Peak capitalism would have the employees holding their own value and not being crushed in trash power dynamics to allow this kind of stuff. Capitalism is about nonviolent voluntary exchanges between two parties, when one party has a power dynamic skewed in such a way they can use tools like this that employees hate, then that’s not capitalism anymore.
Funny that what you describe will never exist without heavy (extreme?) regulation and progressive taxation, which are anathema to most advocates of capitalism. Have you considered that maybe your definition of capitalism doesn't agree with the definition society has agreed upon?
There is no seperation b/w private entities , the state and the church , all trying to exploit the middle class / lower class was one of the gists that I think when I recall feudalism
sounds familiar ?
Guess what ?
We are living at one right now.