A fundamental business dynamic is that transparently passing on expenses is a low margin behavior, while higher margins come from charging based on value and often involve including more things for "free". Personally I'd rather workers have higher margins (eg higher pay) while individually choosing how to spend some of that income on the job requirements, than receiving lower pay while being able to nickle and dime employers for bureaucratically-approved expenses.

Of course it's not like the government really wants to encourage more small businesses that replace W-2 workers at large businesses, given how lopsided the tax code is against W-2 income.