Essentially companies get to privatize the profits and socialize their labor costs by passing on the costs of social services to the taxpayers.
Wal-Mart and the State of Maryland had this battle a number of years ago.
I can’t recall all the details, however IIRC it was centered on wages and healthcare.
The way the lawsuit was playing out it became clear that if Wal-Mart won, the State or Taxpayers would pick up the difference and if they lost, the State would pick up the difference.
What's the difference? Still the public gets stuck with the bill.