Is Cost-led pricing a Root Cause or a Symptom?

Eric Fetterolf asks:

I wonder if the root of the problem (cost-led pricing and keeping timesheets) is not lack of vision or education. I wonder if the problem actually exists at a deeper level — the law.

Employers are required to pay employees the hours they work. That is why firms that make time cards, physical and software based, are successful. Employees are not paid by the result, but by the punch time clock. Since the law is rooted deeply in the fundamental Marx theory of labor, (isn't that a shock that the American labor laws are guided by Marx), is it really a mental stretch to see why many firms are struggling with the transition? They are being held to a flawed standard by our government.

The question for the court of public debate: Are we simply attacking a virulent symptom and not the true underlying root cause?

Eric, you are correct in your assessment that most labor laws are derived from Marx and that this is certainly a problem. However, from my (amateur) understanding of the law, this does not force companies to keep timesheets. I know that most companies are required to keep attendance records for exempt employees, but this does not mean that they have to pay by the hour. It certainly does not mean that they have to price and then bill by the hour.

Any other thoughts from the community?