I know someone who has been acting as her boss's replacement since her boss left the company. But the company refuses to promote her into that job because she doesn't have a degree. 20 years of employment with the company, plus demonstrated ability by actively doing the boss's job, doesn't count as much as an old piece of paper.

To emphasize: This company has a degree requirement not just for hiring inexperienced candidates (of unknown quality), but also for promoting experienced employees (of known quality). Stupidest thing I've ever seen.