I'm fine with tests, but only if companies pay a standard fee (say, $100) for a dev's time. If a company doesn't respect your time during the interview process, it probably won't while you're on the job.
This is such an out-of-touch and ridiculous thing to say
And why is that? Do you not agree that time is our most valuable asset?
Interviewing is a time investment for both sides. Should the company charge you to evaluate your skills?