The trouble comes when companies pay remote employees less if their cost of living is lower, or when they move to another place so they can pay people less. HP did that when they moved to Boise, ID.
In most cases, companies aren't actually able to adjust point-for-point for CoL.. it just isn't possible in any market with local opportunity. If remote markets ever see dramatic expansion/acceptance, CoL won't even be a mentionable factor.
CoL might be N-300% higher in SF but salaries (thank wage-fixing companies) are not. Salaries are (necessarily higher) but it's easy to dwarf the spread in normal, requisite expenditures.
CA has a high state income tax, relatively higher sales tax (than most midwest areas), and in the case of SF, the oh-so-obvious (self-inflicted) real estate problem.
CoL might be N-300% higher in SF but salaries (thank wage-fixing companies) are not. Salaries are (necessarily higher) but it's easy to dwarf the spread in normal, requisite expenditures.
CA has a high state income tax, relatively higher sales tax (than most midwest areas), and in the case of SF, the oh-so-obvious (self-inflicted) real estate problem.