Don't overlook the pain-in-the-ass factor of having to support employees in different jurisdictions with different regulations. Employment contracts need to be

Don't overlook the pain-in-the-ass factor of having to support employees in different jurisdictions with different regulations. Employment contracts need to be customized slightly by state. You've got to sign up for worker's compensation insurance, unemployment insurance taxes, and sometimes disability insurance. You've got to pay state taxes, and for most states you're going to need to do withholding on behalf of your employees. You've got to make sure your benefit plan provides reasonable options in that state. If you're following the letter of the law, every state has different notices you've got to post in the place of work. If you're not talking about employees in different states, but instead are talking about employees in different countries, the complexity level just went up another notch. I'm usually happy to employ great talent wherever it lives (and there's nothing at all wrong with living in the French Riviera), but decentralization doesn't make it easy.