They do that anyway, but the whole wage market shifts upward because of the non-exempt regulations. The whole reason we even had a middle class to loose was the labor laws established from union strikes and labor reform in the early 20th century. The only reason you have a weekend is because of those laws. Regulation like this is the first step toward improving labor down the board.
ofc we should also raise min wage and/or establish universal benefits to head off automation and other productivity improvements, but those are bigger reforms.