In fact, it is perfectly legal in most of US. It is on paper illegal in California, but I haven’t seen this law actually being enforced.
I have a relative who processes digital intakes for a CA ACLU chapter, and they get a huge number of interview-related complaints, which get referred directly to legal assistance who are interested in such cases.
My opinion is we likely don’t hear about it because each case is small, and companies have no incentive to publicize settlements.