[paxys]

The difference is that this lawsuit's judgement will affect not just Amazon but every tech company in California. The thousands of companies that popped up remote-friendly positions overnight will all have to reassess their stance now that they could be on the hook for employees' electricity, internet and even rent.

Right now Amazon and Google have to compete with a startup that is offering a competitive salary and fully remote positions. Can the startup survive if employees start billing them for the cost of their home office?

[SoftTalker]

If you look at the IRS rules for deductibility on a home office, they are pretty strict. It needs to be a physically defined area that is used only for work. If you use the same area as living space, or use the same desk and computer for personal stuff, it's not deductible. If you work off of a laptop, sometimes sitting on the couch, sometimes at the kitchen table, it's not deductible. I don't know if California law is more relaxed, but if it is, then I would think that any expense reimbursements would be taxable income at the federal level.

[cudgy]

None of this is easily verifiable. Are the tax agencies going to install cameras in your office and monitor your internet traffic to verify compliance?

Not recommending tax fraud, but as a practical matter, these are non-issues.