Government sets the rules by which the people play.
A smart businessman could game the system for his employees, by reducing all salaries between $29K-69K to $29K, and then hiring a PhD in Benefits to get his employees all the benefits and more than they deserve. They would improve their net income, while he would improve his bottom line.
This reminds me of a situation in Russia, where farmers were feeding animals loaves of bread rather than raw grain, because of the subsidies for bread. Animals got fat, while shelves in the markets were bare.