Small and mid sized businesses cannot afford the extra costs involved in complying with such a policy.  Each new worker has certain fixed costs associated with their employment. Tax, insurance, training, office space, record keeping, background checks, sickness, disciplinary as well as necessary equipment, the actual cost of hiring them and advertising for them and other benefits (usually this adds up to 1.25-1.4x base salary per worker.1  1 Joe Hadzima "How Much Does an Employee Cost?" Boston Business Journal (reprinted for MIT 2005)