If they are remote employees, why would the employee's city matter to the employer in either of the cases you mentioned (beyond any tax or employment law implic

If they are remote employees, why would the employee's city matter to the employer in either of the cases you mentioned (beyond any tax or employment law implications)? If the company is sure enough that the remote candidate from Louisville is talented enough for the job, it makes no financial sense for the company to lose that candidate over salary if they would have paid the same amount to a candidate in a different, more expensive city. One exception I can see is if the company would pay a premium for remote employees living in a city where they have an office, so that they can be asked to come in if there is an emergency.