B.S.!
Please my posts #7 and #18 above. The company was within their rights contractually, so in that sense they did the "right thing". However, I have real trouble with that contract in the first place.
As an employer whose employees read and sign employment contracts, am I expected to ignore those contractual agreements, especially if (as others pointed out) I am liable if someone else gets in trouble in the water my lifeguards are supposed to be guarding?
I think the original contract is morally indefensible.