A teacher worked at a day-care center, where she organized educational activities. The center’s owner believed strongly in presenting a wholesome image to the public.

A few blocks from the center was a restaurant with outdoor seating adjacent to the sidewalk. One day after work, the owner walked by the restaurant and saw the teacher sitting at an outdoor table drinking a beer. The teacher was eating a meal with a friend and wasn’t visibly intoxicated or otherwise misbehaving. The following...