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this post was submitted on 29 Nov 2025
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Insurance, benefits and labor expenses. Even in places with little worker protections there are costs that scale with the number of workers instead of the number of hours.
A brief look indicates employers in India can expect to budget on the order of 18% of an employees take home per year for those expenses.
There are some circumstances and places in the US where you don't need to provide as many benefits to employees who work below 40 hours. Then you see employers hire more people and schedule them for just under the threshold to give them benefits.
The answer is always because it's cheaper for them somehow.