I telecommuted most of my career. This includes west coast tech companies and large New York City banks. My salary was always the going rate for these locales. If people want to negotiate using your living arrangements, I’m ok with that. But I’m blown away that a company (Facebook, of course) is trying to tie salary to where you live. How does this work, in the real world? If I move to a more expensive neighborhood do I get a raise? Will I get a pay cut if I sell my house and move to a cheaper place, in the same city? This is just another abusive tactic used by abusive employers. Sad thing is they will probably get away with it.