4 ms·

My suspicion is that it’s a way to dodge labor laws.

• lotsofpulp 5y ago
  It is not defined benefit pensions or labor laws. It is cheaper to scale up and down expenses instead of firing people due to unemployment insurance premiums increasing when you lay people off due to lack of work who are then eligible for unemployment benefits. Also, benefits can get expensive if you also have to offer them to lower paid employees if they normally would not be able to get them at a different employer, due to non discrimination testing.
  • sgerenser 5y ago
    The benefits are a big one. This is definitely true at Microsoft where benefits are very good even by FAANG standards. Being able to skip those costs for workers that aren’t highly paid devs is definitely a factor in choosing contractors (or “vendors” in MSFT-speak) for many roles.