Yeah, Keats. You are 100% right. Remote covered this briefly, I think in the "Beware the dragons" chapter.
I don't understand the legal side of the situation completely, but if you have enough people working out of a given international city, it could create a Nexus and require you to set up an office, etc.
Remote's advice here is to hire international workers as contractors, but to treat them like full-time employees. Not ideal.
Hopefully, this will get easier as time goes on.