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> ...salaries will be adjusted to reflect the local cost of living.

So if the employee where to move to say Hong Kong where cost of living is higher will they also in turn increase wages? I think not.

If they keep a local address in some random apartment they never stay at but live elsewhere how would one check on that?

If you're willing to pay California taxes but live elsewhere I find it hard to see how they'd plan to enforce this. You could always argue you were temporarily traveling hence the local address you intended to return to and pay taxes at. Friends of mine do this, returning to the US every 6 months or so.

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I read somewhere that they were talking about using the Facebook app itself to track remote employees whereabouts. Having trouble finding the reference right now though.

[ngngngng]

Employees who attempt to wiggle around those compensation adjustments will be subject to “severe ramifications,” [Zuckerberg] said, as the company needs to account for employee locations to avoid violating tax laws. Zuckerberg said Facebook will monitor adherence by checking where employees access its VPN. Facebook also uses its own apps' to track employee locations, according to CNBC [...]

(See https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu.... about SNI.)