Google’s US Employees May Receive a Pay Cut for Choosing to Work From Home

The BBC reports that Google employees in the United States who opt to permanently work from home may have their pay cut. Google currently has no plans to implement the policy in the U.K. According to the BBC, some Silicon Valley firms are experimenting with employee pay structures. Big tech companies including Microsoft, Facebook and Twitter have offered reduced pay to employees working out of locations where it is less expensive to live.

“Our compensation packages have always been determined by location, and we always pay at the top of the local market based on where an employee works from”, said a Google spokesperson via BBC. “Our new Work Location Tool was developed to help employees make informed decisions about which city or state they work from and any impact on compensation if they choose to relocate or work remotely”.

According to the tool, a Google employee in Stamford, Connecticut, which is an hour away from New York by train, would be paid 15% less working remotely. In the Seattle, Boston, and San Francisco areas, there are 5% and 10% differences in pay.

Jake Rosenfeld, a sociology professor at Washington University in St. Louis, said the move by Google is alarming. “What’s clear is that Google doesn’t have to do this. Google has paid these workers at 100% of their prior wage, by definition. So it’s not like they can’t afford to pay their workers who choose to work remotely the same that they are used to receiving”.

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