Definition

• For a contract between an employer and an employee to be valid, it must always be entered into voluntarily and with mutual consent.
• Consensual agreements between people that don’t harm others must not be interfered with, even for supposedly moral reasons.
• Many civil laws and regulations pertaining to employment restrict victimless crimes. These restrictions are coercive; they breach the Legal Principle and should be abolished.
  • For example, minimum wage laws prohibit parties from voluntarily agreeing to an employment contract at a wage below certain thresholds. By artificially raising the ‘minimum wage’ threshold, some low-skilled workers who want to work are priced out of the market - as a result of the state intervention, their real minimum wage becomes zero.