[fr_freak]

It would only be accurate if employer A had to pay for insurance and Employer B did not, giving him an economic advantage that allows him to underprice A.

You are assuming that small businesses only compete with other small businesses. That is rarely the case these days. Large businesses, which can absorb these kinds of regulatory costs much better, will simply swallow the niche market left by small businesses that go under. That is precisely the reason why large businesses often support seemingly self-harming regulations - because it prevents smaller competitors from succeeding.

[Sherman Logan]

True. However, the example given in the article is of a Wendy’s franchisee.

I have worked for several franchisors, and I can guarantee you that Wendy’s provides everything he needs to handle the paperwork as well as any large company.

In any case, the Wendy’s franchisee isn’t competing against giant chain restaurants, which don’t really exist, he’s competing against franchisees of other systems. Which gets us back to a level playing field.

I’ve run into this before in discussions over businessmen hiring illegal aliens. If by doing so company A is able to reduce its labor costs and therefore its prices, by a significant amount, company B doesn’t have the option of refusing to hire illegal aliens itself.

Well, it does, but it will quickly be out of business, which comes to much the same thing.

But strictly enforce regulations against hiring illegal aliens, and we’re back to a level playing field.