Facebook pay cuts for remote employees who move prove that labor market rigged?

Facebook pay cuts for remote employees who move to Nevada or Texas prove that the labor market is rigged?

“Zuckerberg says employees moving out of Silicon Valley may face pay cuts” (CNBC):

The company will begin allowing certain employees to work remotely full time, he said. Those employees will have to notify the company if they move to a different location by Jan. 1, 2021. As a result, those employees may have their compensations adjusted based on their new locations, Zuckerberg said.

“We’ll adjust salary to your location at that point,” said Zuckerberg, citing that this is necessary for taxes and accounting. “There’ll be severe ramifications for people who are not honest about this.”

If there is a market for productivity and accomplishment, the remote worker should be able to get paid the same regardless of location, no? For items where there is a functional market, we can’t say “Oh, this is of excellent quality, but was produced in Cambodia so I am going to pay only half as much as I would pay for the same item, same quality, made in higher-cost China, right?

Readers: Does the fact that Facebook can unilaterally set the price it will pay for labor depending on the cost of housing from which the labor toils show that the market for Silicon Valley labor is rigged?

Related:

• High-Tech Employee Antitrust Litigation (Wikipedia): High-Tech Employee Antitrust Litigation is a 2010 United States Department of Justice (DOJ) antitrust action and a 2013 civil class action against several Silicon Valley companies for alleged “no cold call” agreements which restrained the recruitment of high-tech employees.

Posted in Computer nerdism, Coronaplague, Economics

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