The IT behemoth has created a salary calculator that allows employees to assess the financial implications of working remotely or shifting locations.
Some remote employees, particularly those who have a long commute, may have their compensation reduced without changing addresses.
Google has no plans to apply the policy in the United Kingdom at this time.
Employees at numerous firms have demonstrated that working from home is a feasible option during a Covid epidemic.
Many businesses are planning for how workers will work as the epidemic fades, even as the United States continues to combat the Delta strain of the disease.
Employee compensation arrangements are being experimented with by Silicon Valley businesses, some of which are eager to lure staff back to their desks.
Large software corporations such as Microsoft, Facebook, and Twitter have given lower compensation to staff situated in less costly areas.
Smaller companies, such as Reddit and Zillow, have said that they will pay the same regardless of where their employees are located, claiming that this encourages diversity.
"Our compensation packages have always been decided by geography, and we always pay at the top of the local market based on where an employee works," a Google representative stated.
"Our new Work Location Tool was created to assist workers in making educated decisions about which city or state they work from, as well as any implications for remuneration if they chose to relocate or work remotely."
Alarm
One Google employee, who works in Seattle but has a two-hour commute, told Reuters that if they opted to work from home full time, they would receive a 10% salary decrease.
"It's the same salary reduction I got for my most recent promotion," the employee explained. "I didn't put in all that effort to get promoted only to take a wage reduction."
According to Jake Rosenfeld, a sociology professor at Washington University in St. Louis, Google's decision raises concerns about who would be most affected, particularly families.
"What is obvious is that Google is not required to do this," Professor Rosenfeld stated. "By definition, Google has compensated these employees at 100% of their previous pay. So it's not like they can't afford to pay their remote workers the same as they do their on-site employees."
Working remotely would pay a Google employee in Stamford, Connecticut, which is an hour by train from New York, 15% less, and there were 5% and 10% disparities in Seattle, Boston, and San Francisco.
If an employee works entirely remotely from the same city, Google will not modify their compensation.
Some companies, like as the US technology behemoth Cisco, have implemented a hybrid work schedule with no restrictions on how frequently employees must report to the office.
Cisco anticipates that fewer than a quarter of its staff will desire to work three or more days per week.
However, some companies, such as Goldman Sachs, urge employees to return to the workplace.
In February, the CEO of an investment bank, David Solomon, stated that working from home was "an anomaly" rather than "the new normal."
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