Did any of you read the full story or simply glance at the highlights?
"He said the decision was in line with state and federal court rulings that found workers can be fired for relationships that cause jealousy and tension within a business owner's family. One such case from the 8th Circuit Court of Appeals upheld a business owner's firing of a valued employee who was seen by his wife as a threat to their marriage. In that case, the fired employee had engaged in flirtatious conduct."
Apparently, a similar case (cases) went before other courts as well as the 8th Circuit so the Iowa law is based in previous cases. Read the following article for a more complete look at the case being discussed in this thread.
Iowa court: Bosses can fire 'irresistible' workers