Probably depends on the employer. I've always asked people to write actual code, rather than pseudo-code, because I've found that a lot of pseudo-code I've gotten doesn't make sense or majorly glosses over things. (Think "and then a miracle occurs".)
But I personally wouldn't dock a person if they screwed up the syntax on a whiteboard coding interview - I really use it more as a way to extend the conversation. I do have the bad habit of correcting syntax, though, because I find it too distracting once I see it.