> Considering most places does direct deposit and that requires a bank account (so KYC), I don't see what's particularly new here.

Slippery slope is a fallacy, they said.

> Many places also do background and/or work eligibility checks, which again is a form of KYC.

Except that it isn't KYC at all, both because employees aren't customers (most people are the employees of one company but the customers of hundreds or more), and because the majority of people don't have that requirement imposed on them by the government. There are many jobs you can get without a background check.