&gt;What happens next? More importantly, what should happen?<p>&gt;So, we punish Ann for moving by reducing her salary?<p>I don&#x27;t see a problem with reducing Ann&#x27;s pay. If rent is only $300 instead of $3000 the pay should reflect that.<p>If that sounds like a problem, imagine that the company pays rent or for hotel stay for visiting employees. If hotels cost $400 a night in SV and $40 a night in Argentina, should the company pay $400 a night in Argentina in order to &#x27;equalize the pay&#x27;?