undefined | Better HN

0 pointsleetcrew2y ago0 comments

> having laws passed that force a pizza parlor manager to turn their drivers into unemployed app users

this sounds like an exaggeration, but I'm not familiar with the law you're referencing. what exactly are you talking about?

0 comments

kmeisthax2y ago

I think they mean minimum wage laws in general. Another comment mentioned that restaurants were reclassifying their workers as contractors to pay them less.

Describing this as restaurants being "forced" to reclassify their drivers is mildly disingenuous. There's some coercion in minimum wage laws, yes, but it does not specifically prescribe a particular solution to balancing your books. The restaurants could alternatively not offer delivery, or charge more for delivery orders. Lord knows companies are very good at passing along costs to consumers these days...

whatshisface2y ago

Low margin businesses like restaurants aren't at liberty to provide services in a more expensive way than their competitors. There's almost no "extra" money in the food service industry.

I'm not actually criticising minimum wage laws with this argument. If it applies to every possible way to hire someone, all of your competitors will have to do it too and the costs will be passed on to the consumer. I am however sharply criticizing minimum wage laws that have a tech company shaped loophole. Market forces will require every competing business to use the loophole if any of them do.

mistrial92y ago

you are not wrong but there is more to it.. companies that incorporate have some tax advantages that other small business do not have; corporations with access to public markets also have many more advantages financially than closely held corporations; real estate ownership and financial leverage also make advantages that non-owners do not have.. there are doubtless other examples that I do not know about.. go the other way for a minute .. those that pay legal wages to employees have higher costs than those that hire "illegal" workers.. those that steal wages from "illegal" workers have lower costs than that.. undocumented or non-English speaking staff have been the rule not the exception for twenty+ years in California.. more examples that I do not know..

j / k navigate · click thread line to collapse