Having been on the employer end of this, yes, a small company can find it hard to justify the fixed cost of adding another state’s worth of cost/effort overhead to hire one person. It’s a nontrivial barrier to deal with for a fully remote startup.
One workaround is to use a “PEO”, or “co-employment” provider, to be the employer of record and handle HR, insurance, payroll, etc. Though it can feel like a rather weird arrangement when employees don’t technically work for the company they think they do.
One workaround is to use a “PEO”, or “co-employment” provider, to be the employer of record and handle HR, insurance, payroll, etc. Though it can feel like a rather weird arrangement when employees don’t technically work for the company they think they do.