I can see how something changes when an employee moves elsewhere but it is far from a simple cost of living factor. Off the top of my head... Possible new com

I can see how something changes when an employee moves elsewhere but it is far from a simple cost of living factor. Off the top of my head... Possible new company costs: - In theory a company could incur new costs based on where their employees are (e.g. you move to a different state; that changes how they compute taxes from your income, they may need to become aware of several new state laws, may need new licenses, etc.). - The company may have made a deal with their HQ city, e.g. tax breaks in exchange for $X jobs. If they renege because everyone moved away, they may lose a lot. - Maintaining widespread remote work is not free; not only IT setup (high availability, etc.) but a need to do so very securely. Probably at the very least new staff or contracts for this alone. New company SAVINGS: - Depending on how many people move, they may need MUCH less office space. This saves in rent in high-rent areas, air conditioning, coffee, cleaning or whatever else they have to count. ...Considering all of the above, the idea of a company scaling pay sounds like it should at the very least be negotiable. They clearly have some new costs but arguably also save a ton in the process! So does the employee. And it may be difficult to quantify the value of having a vastly greater talent pool, enabling the business to hire people that otherwise would not have wanted to move to SV.