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Why do remote US companies require working in the US?


remote developer pay - carreers 2.0Working for two companies at the same timeHow to handle discussing working remote and the impending possibility of leaving for a new job?remote work - on which national laws the working contract will be based?Manager claims working remote is hindering my performanceBest way to convince boss remote working is the way to go?Childcare and remote workingHow should this type of remote work environment be handled?Can I get a job at remote job in phone service company with low english skill?Advocating for a freer “Remote Work” policy in the office






.everyoneloves__top-leaderboard:empty,.everyoneloves__mid-leaderboard:empty,.everyoneloves__bot-mid-leaderboard:empty margin-bottom:0;








72















Many of the high-tech opportunities for remote work require that you are working in the US. Why?



I am a US citizen, and I lived in the US until I graduated university. I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US were required periodically, I would need to work it out.



Why should I be automatically disqualified for not residing in the US, if the entire company is composed of remote workers?










share|improve this question
























  • As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.

    – Kyralessa
    Mar 28 at 16:53






  • 2





    Presumably you specifically mean US companies? Can you clarify? Not all companies are in the US

    – Lightness Races in Orbit
    Mar 29 at 15:25











  • @jpmc26, OP said he is willing to work American hours.

    – Catsunami
    Mar 29 at 16:33











  • @LightnessRacesinOrbit I mean US companies, and I specifically mean US citizens living abroad. I will edit.

    – Shifra
    Mar 30 at 18:22






  • 1





    Essentially same question on Money at money.stackexchange.com/questions/102205/…

    – Henning Makholm
    Mar 31 at 9:59

















72















Many of the high-tech opportunities for remote work require that you are working in the US. Why?



I am a US citizen, and I lived in the US until I graduated university. I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US were required periodically, I would need to work it out.



Why should I be automatically disqualified for not residing in the US, if the entire company is composed of remote workers?










share|improve this question
























  • As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.

    – Kyralessa
    Mar 28 at 16:53






  • 2





    Presumably you specifically mean US companies? Can you clarify? Not all companies are in the US

    – Lightness Races in Orbit
    Mar 29 at 15:25











  • @jpmc26, OP said he is willing to work American hours.

    – Catsunami
    Mar 29 at 16:33











  • @LightnessRacesinOrbit I mean US companies, and I specifically mean US citizens living abroad. I will edit.

    – Shifra
    Mar 30 at 18:22






  • 1





    Essentially same question on Money at money.stackexchange.com/questions/102205/…

    – Henning Makholm
    Mar 31 at 9:59













72












72








72


5






Many of the high-tech opportunities for remote work require that you are working in the US. Why?



I am a US citizen, and I lived in the US until I graduated university. I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US were required periodically, I would need to work it out.



Why should I be automatically disqualified for not residing in the US, if the entire company is composed of remote workers?










share|improve this question
















Many of the high-tech opportunities for remote work require that you are working in the US. Why?



I am a US citizen, and I lived in the US until I graduated university. I am now living abroad. I have impeccable english, fully understand US culture, and I am willing to work american hours. I obviously would be responsible for managing my tax burden with my home country, and if travel to the US were required periodically, I would need to work it out.



Why should I be automatically disqualified for not residing in the US, if the entire company is composed of remote workers?







telecommute remotework






share|improve this question















share|improve this question













share|improve this question




share|improve this question








edited Mar 30 at 18:25







Shifra

















asked Mar 28 at 13:45









ShifraShifra

470124




470124












  • As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.

    – Kyralessa
    Mar 28 at 16:53






  • 2





    Presumably you specifically mean US companies? Can you clarify? Not all companies are in the US

    – Lightness Races in Orbit
    Mar 29 at 15:25











  • @jpmc26, OP said he is willing to work American hours.

    – Catsunami
    Mar 29 at 16:33











  • @LightnessRacesinOrbit I mean US companies, and I specifically mean US citizens living abroad. I will edit.

    – Shifra
    Mar 30 at 18:22






  • 1





    Essentially same question on Money at money.stackexchange.com/questions/102205/…

    – Henning Makholm
    Mar 31 at 9:59

















  • As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.

    – Kyralessa
    Mar 28 at 16:53






  • 2





    Presumably you specifically mean US companies? Can you clarify? Not all companies are in the US

    – Lightness Races in Orbit
    Mar 29 at 15:25











  • @jpmc26, OP said he is willing to work American hours.

    – Catsunami
    Mar 29 at 16:33











  • @LightnessRacesinOrbit I mean US companies, and I specifically mean US citizens living abroad. I will edit.

    – Shifra
    Mar 30 at 18:22






  • 1





    Essentially same question on Money at money.stackexchange.com/questions/102205/…

    – Henning Makholm
    Mar 31 at 9:59
















As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.

– Kyralessa
Mar 28 at 16:53





As a side note, is there an outsourcing firm you could team up with, so that instead of hiring you directly, the US company you want to work for could pay the firm an hourly rate? This might make the legalities simpler, at least from the US company's perspective.

– Kyralessa
Mar 28 at 16:53




2




2





Presumably you specifically mean US companies? Can you clarify? Not all companies are in the US

– Lightness Races in Orbit
Mar 29 at 15:25





Presumably you specifically mean US companies? Can you clarify? Not all companies are in the US

– Lightness Races in Orbit
Mar 29 at 15:25













@jpmc26, OP said he is willing to work American hours.

– Catsunami
Mar 29 at 16:33





@jpmc26, OP said he is willing to work American hours.

– Catsunami
Mar 29 at 16:33













@LightnessRacesinOrbit I mean US companies, and I specifically mean US citizens living abroad. I will edit.

– Shifra
Mar 30 at 18:22





@LightnessRacesinOrbit I mean US companies, and I specifically mean US citizens living abroad. I will edit.

– Shifra
Mar 30 at 18:22




1




1





Essentially same question on Money at money.stackexchange.com/questions/102205/…

– Henning Makholm
Mar 31 at 9:59





Essentially same question on Money at money.stackexchange.com/questions/102205/…

– Henning Makholm
Mar 31 at 9:59










3 Answers
3






active

oldest

votes


















192















Why do remote companies require working in the US?




Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.






share|improve this answer























  • Comments are not for extended discussion; this conversation has been moved to chat.

    – Snow
    Apr 1 at 12:46


















87














There are many potential reasons for a company to discriminate based upon your country.



Tax Reasons



Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.



This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.



Labor Laws



Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?



Technology & Export Laws



There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.



Intellectual Property Concerns



Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.



Marketing



Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.



Government Contracts



Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).



Security



Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.



This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.



Conclusion



The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.






share|improve this answer




















  • 1





    +1 Only for the effort of thinking in so many reasons, well done!

    – Chococroc
    Mar 29 at 10:52







  • 3





    Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

    – Lightness Races in Orbit
    Mar 29 at 15:26







  • 2





    Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

    – Harper
    Mar 29 at 22:52






  • 2





    @Harper: "They have some way of recovering it from employers" falls under "Tax".

    – Ben Voigt
    Mar 30 at 5:37











  • + for export laws

    – A.K.
    Mar 31 at 3:56


















10














As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.



Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.






share|improve this answer























  • The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

    – JonathanReez
    Mar 28 at 19:12






  • 2





    @JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

    – Patrice
    Mar 28 at 19:56







  • 5





    @JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

    – David Richerby
    Mar 28 at 21:06






  • 3





    @JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

    – David Richerby
    Mar 28 at 21:25






  • 3





    So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

    – David Richerby
    Mar 28 at 21:27











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3 Answers
3






active

oldest

votes








3 Answers
3






active

oldest

votes









active

oldest

votes






active

oldest

votes









192















Why do remote companies require working in the US?




Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.






share|improve this answer























  • Comments are not for extended discussion; this conversation has been moved to chat.

    – Snow
    Apr 1 at 12:46















192















Why do remote companies require working in the US?




Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.






share|improve this answer























  • Comments are not for extended discussion; this conversation has been moved to chat.

    – Snow
    Apr 1 at 12:46













192












192








192








Why do remote companies require working in the US?




Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.






share|improve this answer














Why do remote companies require working in the US?




Those companies are likely based in the US and don't want to deal with the legal and tax complexities of having employees who live in multiple countries. It is complicated enough for some companies to deal with employees from various states within the US. Also having employees from around the world will further complicate legalities to the point that many companies would rather not deal with it.







share|improve this answer












share|improve this answer



share|improve this answer










answered Mar 28 at 13:51









sf02sf02

11.7k72143




11.7k72143












  • Comments are not for extended discussion; this conversation has been moved to chat.

    – Snow
    Apr 1 at 12:46

















  • Comments are not for extended discussion; this conversation has been moved to chat.

    – Snow
    Apr 1 at 12:46
















Comments are not for extended discussion; this conversation has been moved to chat.

– Snow
Apr 1 at 12:46





Comments are not for extended discussion; this conversation has been moved to chat.

– Snow
Apr 1 at 12:46













87














There are many potential reasons for a company to discriminate based upon your country.



Tax Reasons



Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.



This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.



Labor Laws



Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?



Technology & Export Laws



There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.



Intellectual Property Concerns



Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.



Marketing



Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.



Government Contracts



Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).



Security



Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.



This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.



Conclusion



The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.






share|improve this answer




















  • 1





    +1 Only for the effort of thinking in so many reasons, well done!

    – Chococroc
    Mar 29 at 10:52







  • 3





    Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

    – Lightness Races in Orbit
    Mar 29 at 15:26







  • 2





    Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

    – Harper
    Mar 29 at 22:52






  • 2





    @Harper: "They have some way of recovering it from employers" falls under "Tax".

    – Ben Voigt
    Mar 30 at 5:37











  • + for export laws

    – A.K.
    Mar 31 at 3:56















87














There are many potential reasons for a company to discriminate based upon your country.



Tax Reasons



Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.



This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.



Labor Laws



Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?



Technology & Export Laws



There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.



Intellectual Property Concerns



Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.



Marketing



Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.



Government Contracts



Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).



Security



Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.



This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.



Conclusion



The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.






share|improve this answer




















  • 1





    +1 Only for the effort of thinking in so many reasons, well done!

    – Chococroc
    Mar 29 at 10:52







  • 3





    Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

    – Lightness Races in Orbit
    Mar 29 at 15:26







  • 2





    Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

    – Harper
    Mar 29 at 22:52






  • 2





    @Harper: "They have some way of recovering it from employers" falls under "Tax".

    – Ben Voigt
    Mar 30 at 5:37











  • + for export laws

    – A.K.
    Mar 31 at 3:56













87












87








87







There are many potential reasons for a company to discriminate based upon your country.



Tax Reasons



Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.



This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.



Labor Laws



Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?



Technology & Export Laws



There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.



Intellectual Property Concerns



Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.



Marketing



Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.



Government Contracts



Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).



Security



Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.



This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.



Conclusion



The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.






share|improve this answer















There are many potential reasons for a company to discriminate based upon your country.



Tax Reasons



Taxes can get very complex, very quickly. Even if your country allows you to take on all of the tax responsibilities, which is relatively uncommon, the company will have to spend money even getting an expert on your country's laws to confirm this. Otherwise, the company will have to comply with tax laws of the US, the state the company is in, and your country. In some cases, it might even cost the company more money to comply with the tax laws of your parent country than your salary. It is not even that uncommon for smaller US companies hiring remote workers that must be based out of only one state, because it is costly to even comply with multiple US state tax and benefit rules.



This also raises issues with tax incentives that might be offered by the either the US federal or state governments. Some locations might provide tax breaks for employing local citizens.



Labor Laws



Labor laws vary even between different states, and vary drastically between different countries. There is a lot of cost involved with even identifying all of company's responsibilities to you—let alone complying with all of the applicable labor laws. How many days off a year do I have to give you? If you have a child, do I lose you as an employee for 6 months, but still have to pay you? What am I allowed to do with your employee data, and how am I required to store it?



Technology & Export Laws



There are laws that restrict the flow of technology from the US. Take for example, encryption export laws—although these have been greatly relaxed in recent years, there are still restrictions on what encryption algorithms are allowed to be used in products sold to a non-US country. This also leaves the potential for gray areas—it can be difficult to determine the legality of having someone who lives in country A working on technology X. In some cases, this could either be very expensive to figure out & keep track of, or the law might be ambiguous enough that it is easier to simply not have to worry about this becoming an issue at all.



Intellectual Property Concerns



Countries tend to have different laws dealing with IP, and some countries are known to ignore IP claims of other countries if doing so has the potential to benefit them (as an example, look at claims of IP theft in China for the last few years). It is potentially easier to protect your company's IP if both you and your employees are following the same rules. Also, if an employee steals a company's IP in the US, there is a clear path for the company to take legal action against that employee.



Marketing



Due to how many jobs have left the US to go overseas, it can be useful for marketing if companies are able to say that their products are fully made in the US, or that they only employ US citizens.



Government Contracts



Within the US, there are multiple levels of government, all of which have their own rules on who they allow to bid on and win contracts for government work. Government work is usually one of the most stable, and sometimes the most lucrative, sources of revenue for a lot of these companies. For example, if your US company has foreign-based employees, and is fulfilling a contract for the US Department of Defense, your US-based employees might not even be able to talk to non-US-based employees without extensively documenting every time they have a conversation. There might also be state or lower governments who require or give preference to companies who are employing people who work in their districts (in an attempt to keep taxes and jobs as local as possible).



Security



Companies will generally want to vet that you are who you say you are, that you are not a criminal, and that you do not partake in illicit drugs. They will usually already have a partnership or contract with a company who can perform background checks on you. In the US, it is not uncommon for even retail style jobs to require you to undergo a background check and drug screening. If you are not US-based, the company might not be able to get a reliable, accurate background check done, or might not want to spend the time and money it will cost to find a company in your location to complete it.



This also concerns cyber security. Depending upon the security controls for a given company, they might not feel comfortable allowing VPN access to their internal network from a foreign country, or they might not want to face increased risk of the data you might have stored becoming compromised.



Conclusion



The US is a large country, and has a lot of highly skilled individuals. There are not too many remote jobs where it would not be possible to find a US worker who is able to complete that work. Given that it almost always possible to find a US-based worker to fulfill a role, and all of the potential pitfalls listed above when hiring a foreign worker, it makes sense that non-international US-based companies would primarily hire US-based workers.







share|improve this answer














share|improve this answer



share|improve this answer








edited Mar 28 at 22:23









CodeSeeker

2,26411124




2,26411124










answered Mar 28 at 18:07









CobyCodeCobyCode

73116




73116







  • 1





    +1 Only for the effort of thinking in so many reasons, well done!

    – Chococroc
    Mar 29 at 10:52







  • 3





    Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

    – Lightness Races in Orbit
    Mar 29 at 15:26







  • 2





    Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

    – Harper
    Mar 29 at 22:52






  • 2





    @Harper: "They have some way of recovering it from employers" falls under "Tax".

    – Ben Voigt
    Mar 30 at 5:37











  • + for export laws

    – A.K.
    Mar 31 at 3:56












  • 1





    +1 Only for the effort of thinking in so many reasons, well done!

    – Chococroc
    Mar 29 at 10:52







  • 3





    Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

    – Lightness Races in Orbit
    Mar 29 at 15:26







  • 2





    Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

    – Harper
    Mar 29 at 22:52






  • 2





    @Harper: "They have some way of recovering it from employers" falls under "Tax".

    – Ben Voigt
    Mar 30 at 5:37











  • + for export laws

    – A.K.
    Mar 31 at 3:56







1




1





+1 Only for the effort of thinking in so many reasons, well done!

– Chococroc
Mar 29 at 10:52






+1 Only for the effort of thinking in so many reasons, well done!

– Chococroc
Mar 29 at 10:52





3




3





Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

– Lightness Races in Orbit
Mar 29 at 15:26






Could be a social aspect too. As in, "let's support homegrown talent first and foremost" (more fundamentally than the ensuing marketing benefits)

– Lightness Races in Orbit
Mar 29 at 15:26





2




2





Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

– Harper
Mar 29 at 22:52





Healthcare. Most countries don't charge citizens for their healthcare, they have some way of recovering it from the employers. That would get weird.

– Harper
Mar 29 at 22:52




2




2





@Harper: "They have some way of recovering it from employers" falls under "Tax".

– Ben Voigt
Mar 30 at 5:37





@Harper: "They have some way of recovering it from employers" falls under "Tax".

– Ben Voigt
Mar 30 at 5:37













+ for export laws

– A.K.
Mar 31 at 3:56





+ for export laws

– A.K.
Mar 31 at 3:56











10














As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.



Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.






share|improve this answer























  • The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

    – JonathanReez
    Mar 28 at 19:12






  • 2





    @JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

    – Patrice
    Mar 28 at 19:56







  • 5





    @JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

    – David Richerby
    Mar 28 at 21:06






  • 3





    @JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

    – David Richerby
    Mar 28 at 21:25






  • 3





    So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

    – David Richerby
    Mar 28 at 21:27















10














As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.



Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.






share|improve this answer























  • The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

    – JonathanReez
    Mar 28 at 19:12






  • 2





    @JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

    – Patrice
    Mar 28 at 19:56







  • 5





    @JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

    – David Richerby
    Mar 28 at 21:06






  • 3





    @JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

    – David Richerby
    Mar 28 at 21:25






  • 3





    So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

    – David Richerby
    Mar 28 at 21:27













10












10








10







As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.



Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.






share|improve this answer













As a permanent employee, your employer will have tax and social security costs related to you, which would be complicated by your being in a different country.



Your employer would not necessarily know what these implications are, and there is no incentive for them to find out; they can generally get an equivalently qualified employee in the USA. The easy solution for them is to just recruit within the US, and preferably within the state where they are based.







share|improve this answer












share|improve this answer



share|improve this answer










answered Mar 28 at 14:10









PeteConPeteCon

17.5k74669




17.5k74669












  • The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

    – JonathanReez
    Mar 28 at 19:12






  • 2





    @JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

    – Patrice
    Mar 28 at 19:56







  • 5





    @JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

    – David Richerby
    Mar 28 at 21:06






  • 3





    @JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

    – David Richerby
    Mar 28 at 21:25






  • 3





    So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

    – David Richerby
    Mar 28 at 21:27

















  • The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

    – JonathanReez
    Mar 28 at 19:12






  • 2





    @JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

    – Patrice
    Mar 28 at 19:56







  • 5





    @JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

    – David Richerby
    Mar 28 at 21:06






  • 3





    @JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

    – David Richerby
    Mar 28 at 21:25






  • 3





    So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

    – David Richerby
    Mar 28 at 21:27
















The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

– JonathanReez
Mar 28 at 19:12





The right way to handle these relationships is to have the foreign employee set up a self-employed legal business entity. Then there's absolutely no complications, you just pay a foreign business for their services.

– JonathanReez
Mar 28 at 19:12




2




2





@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

– Patrice
Mar 28 at 19:56






@JonathanReez but at that point, do you "employ the non-US citizen", or do you just do business with an overseas company?

– Patrice
Mar 28 at 19:56





5




5





@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

– David Richerby
Mar 28 at 21:06





@JonathanReez Except that then you have to figure out the legal framework under which you'll deal with this foreign entity. And deal with the risk that comes with the difficulty of taking legal action in a foreign country. And the risk that the tax authorities will say, "So, er, that person who works for a single-employee corporation, and who spends 100% of their time working for you, under your day-to-day direction and management? That's a sham and we consider them to be your empoyee."

– David Richerby
Mar 28 at 21:06




3




3





@JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

– David Richerby
Mar 28 at 21:25





@JonathanReez My point is that the legal agreements you need with an incorporated contractor are different to the ones you need with an employee. So you need (expensive) lawyer time to draw up those agreements. If the *cough* employee breaches those agreements, suing them in a foreign country is difficult and expensive. And classing somebody who is functionally an employee (works 100% for you and is under your day-to-day management) as an external contractor is a form of tax evasion that tax authorities are well aware of and often pursue.

– David Richerby
Mar 28 at 21:25




3




3





So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

– David Richerby
Mar 28 at 21:27





So setting up this arrangement as hiring an incorporated contractor might be the "best" way of employing somebody in a foreign country, but it's still a lot more hassle than hiring somebody domestically.

– David Richerby
Mar 28 at 21:27

















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Hall Of Fame””Slayer Wins 'Best Metal' Grammy Award””Slayer Guitarist Jeff Hanneman Dies””Bullet-For My Valentine booed at Metal Hammer Golden Gods Awards””Unholy Aliance””The End Of Slayer?””Slayer: We Could Thrash Out Two More Albums If We're Fast Enough...””'The Unholy Alliance: Chapter III' UK Dates Added”originalet”Megadeth And Slayer To Co-Headline 'Canadian Carnage' Trek”originalet”World Painted Blood””Release “World Painted Blood” by Slayer””Metallica Heading To Cinemas””Slayer, Megadeth To Join Forces For 'European Carnage' Tour - Dec. 18, 2010”originalet”Slayer's Hanneman Contracts Acute Infection; Band To Bring In Guest Guitarist””Cannibal Corpse's Pat O'Brien Will Step In As Slayer's Guest Guitarist”originalet”Slayer’s Jeff Hanneman Dead at 49””Dave Lombardo Says He Made Only $67,000 In 2011 While Touring With Slayer””Slayer: We Do Not Agree With Dave Lombardo's Substance Or Timeline Of Events””Slayer Welcomes Drummer Paul Bostaph Back To The Fold””Slayer Hope to Unveil Never-Before-Heard Jeff Hanneman Material on Next Album””Slayer Debut New Song 'Implode' During Surprise Golden Gods Appearance””Release group Repentless by Slayer””Repentless - Slayer - Credits””Slayer””Metal Storm Awards 2015””Slayer - to release comic book "Repentless #1"””Slayer To Release 'Repentless' 6.66" Vinyl Box Set””BREAKING NEWS: Slayer Announce Farewell Tour””Slayer Recruit Lamb of God, Anthrax, Behemoth + Testament for Final Tour””Slayer lägger ner efter 37 år””Slayer Announces Second North American Leg Of 'Final' Tour””Final World Tour””Slayer Announces Final European Tour With Lamb of God, Anthrax And Obituary””Slayer To Tour Europe With Lamb of God, Anthrax And Obituary””Slayer To Play 'Last French Show Ever' At Next Year's Hellfst””Slayer's Final World Tour Will Extend Into 2019””Death Angel's Rob Cavestany On Slayer's 'Farewell' Tour: 'Some Of Us Could See This Coming'””Testament Has No Plans To Retire Anytime Soon, Says Chuck Billy””Anthrax's Scott Ian On Slayer's 'Farewell' Tour Plans: 'I Was Surprised And I Wasn't Surprised'””Slayer””Slayer's Morbid Schlock””Review/Rock; For Slayer, the Mania Is the Message””Slayer - Biography””Slayer - Reign In Blood”originalet”Dave Lombardo””An exclusive oral history of Slayer”originalet”Exclusive! Interview With Slayer Guitarist Jeff Hanneman”originalet”Thinking Out Loud: Slayer's Kerry King on hair metal, Satan and being polite””Slayer Lyrics””Slayer - Biography””Most influential artists for extreme metal music””Slayer - Reign in Blood””Slayer guitarist Jeff Hanneman dies aged 49””Slatanic Slaughter: A Tribute to Slayer””Gateway to Hell: A Tribute to Slayer””Covered In Blood””Slayer: The Origins of Thrash in San Francisco, CA.””Why They Rule - #6 Slayer”originalet”Guitar World's 100 Greatest Heavy Metal Guitarists Of All Time”originalet”The fans have spoken: Slayer comes out on top in readers' polls”originalet”Tribute to Jeff Hanneman (1964-2013)””Lamb Of God Frontman: We Sound Like A Slayer Rip-Off””BEHEMOTH Frontman Pays Tribute To SLAYER's JEFF HANNEMAN””Slayer, Hatebreed Doing Double Duty On This Year's Ozzfest””System of a Down””Lacuna Coil’s Andrea Ferro Talks Influences, Skateboarding, Band Origins + More””Slayer - Reign in Blood””Into The Lungs of Hell””Slayer rules - en utställning om fans””Slayer and Their Fans Slashed Through a No-Holds-Barred Night at Gas Monkey””Home””Slayer””Gold & Platinum - The Big 4 Live from Sofia, Bulgaria””Exclusive! Interview With Slayer Guitarist Kerry King””2008-02-23: Wiltern, Los Angeles, CA, USA””Slayer's Kerry King To Perform With Megadeth Tonight! - Oct. 21, 2010”originalet”Dave Lombardo - Biography”Slayer Case DismissedArkiveradUltimate Classic Rock: Slayer guitarist Jeff Hanneman dead at 49.”Slayer: "We could never do any thing like Some Kind Of Monster..."””Cannibal Corpse'S Pat O'Brien Will Step In As Slayer'S Guest Guitarist | The Official Slayer Site”originalet”Slayer Wins 'Best Metal' Grammy Award””Slayer Guitarist Jeff Hanneman Dies””Kerrang! Awards 2006 Blog: Kerrang! Hall Of Fame””Kerrang! Awards 2013: Kerrang! Legend”originalet”Metallica, Slayer, Iron Maien Among Winners At Metal Hammer Awards””Metal Hammer Golden Gods Awards””Bullet For My Valentine Booed At Metal Hammer Golden Gods Awards””Metal Storm Awards 2006””Metal Storm Awards 2015””Slayer's Concert History””Slayer - Relationships””Slayer - Releases”Slayers officiella webbplatsSlayer på MusicBrainzOfficiell webbplatsSlayerSlayerr1373445760000 0001 1540 47353068615-5086262726cb13906545x(data)6033143kn20030215029