> How about this argument. Say I have a restaurant. Typically that means there is some landlord, and I pay them utilities and rent in exchange for using the space. Now some guitar-strumming, crooning ape wants to perform in the same space. If he and I are to be considered part of the same organization, we are on the same level of the "org chart". We are sharing the space and doing our thing. Why would I pay him anything? He should pay part of the rent and utilities. Or, why not the other way around?
Owners are allowed to do a lot of things that would be considered exploitative in an employment relationship: they can work excessive hours, below minimum wage, etc.. If they're a genuine owner getting their share of the upside, it's fair enough.
> Now if I give the hot dogs and sandwiches for free, so that many more people come, and those people pay to get into this music venue, then there is a case that I'm increasing the business, and doing it out of my pocket. Still, that is my problem; I shouldn't be doing such a thing. Maybe I know what I'm doing! Or maybe I'm trying out new product to see how people like it or whatever (market research).
You're not allowed to do form relationships that are indistinguishable from illegally-exploitative employment, for the same reason you're not allowed to run the shell game even if you do it 100% honestly. You'll find a lot of similar rules around charities that don't make sense on the surface, but are the only way to have a regulatory regime that protects people: you're not allowed to volunteer for or donate to the same organisation you work for, volunteers aren't allowed to be paid, volunteers can't do the exact same activities that they do for the charity but for a non-charity business...
Owners are allowed to do a lot of things that would be considered exploitative in an employment relationship: they can work excessive hours, below minimum wage, etc.. If they're a genuine owner getting their share of the upside, it's fair enough.
> Now if I give the hot dogs and sandwiches for free, so that many more people come, and those people pay to get into this music venue, then there is a case that I'm increasing the business, and doing it out of my pocket. Still, that is my problem; I shouldn't be doing such a thing. Maybe I know what I'm doing! Or maybe I'm trying out new product to see how people like it or whatever (market research).
You're not allowed to do form relationships that are indistinguishable from illegally-exploitative employment, for the same reason you're not allowed to run the shell game even if you do it 100% honestly. You'll find a lot of similar rules around charities that don't make sense on the surface, but are the only way to have a regulatory regime that protects people: you're not allowed to volunteer for or donate to the same organisation you work for, volunteers aren't allowed to be paid, volunteers can't do the exact same activities that they do for the charity but for a non-charity business...