[ljoshua]

There are limits to how much you can do this as a US-based company, and if you overstep the bounds the IRS will come a-knockin'. I imagine it's much easier to hire someone as a real employee inside the US, and based on the size of many of the companies, they probably don't have the accounting or legal resources necessary to deal with real international employees.

[zura]

It seems to be a US-only phenomenon. I have yet to see a non-US company which allows remote working and restricts the location within its country.