On the one hand, the logic of the employees is pretty irrefutable: why should anyone be paid less money for the same work, just because they have a different zip code?
On the other, it's hard for me not to agree with the employers' basic arguments. In a capitalist sense, they're gonna pay what they need to, nothing more: market-based pay is just that. PR aside, they're running a business.
Probably the argument that makes the most sense to me in favor of pay adjustments is that a worker making a Bay Area salary in North Carolina is effectively being paid more than their SF-based-counterpart, because while the nominal value of their compensation is the same, the NC worker's purchasing power is much higher. In one view, they are (almost!) literally being paid more.
But I just can't get over the very basic logic of "same work, same pay." It seems deeply, critically unfair to me – and beyond unfair, it seems like a quick way to make anyone outside SF feel "lesser-than."
I don't know. Does anyone have links to convincing arguments you've read one way or the other? I think this really is a kind of unsolved question, and one that is only growing in importance with remote work.