You have a good case here to get the law changed. The angle you have put into this issue should have been addressed before the legislation was passed. This is just common sense. The current situation was quite predictable.
And as you have said, "under the table" becomes a more common mode of operation. I lived in Czechoslovakia just after communism fell. Despite being against business, the communists allowed all sorts of informal businesses to exist. Otherwise, many things would not have got done.
I attribute these "bad" laws to USA's reliance on lobbyists. The unions can hire lobbyists in the capital city to park themselves at the desks of legislators; the independents cannot. Guess who wins the advantages?
There's too many bad laws in the USA that seemingly can't be changed. The problem is our 18th century legislatures working in the 21st century.
Thanks for enhancing the $10,000 angle in Alaska. It is a bad law.