From the first principles, I suspect it’s an attitude thing, management-to-individual-contributors relationships. If management treats ICs as equals and tries to form a healthy human-centric culture, you get unlimited PTO. If the management treats ICs as tools to do the work and tries to squeeze maximum performance per dollar out of that biomass, you get sweatshops with zero time off. Incidentally things correlate with ICs replaceability - the more replaceable an individual is, the less reasons to care (see a work-performer as a human with needs and problems and ) business owners have. Plus, the wellbeing of the business is a likely factor - the more breathing space it gets, the more it could afford (unless greed and lack of long-term planning kills everything) to be less financially optimal short-term for long-term prosperity.

Regulations are means of pushing the bottom line back at scale. They should be unnecessary in ideal humane society, but that’s not a thing. I wonder whether there’s a way to shift the culture somehow… but there seems to be no political will for that, because it’s certainly not any popular agenda point.