A Cost Effective Way to Reduced Labor CostAn employer can have many different pay rates. The only exceptions appear to be that the rate can not be below the minimum rate or be lower for work already performed.
You are allowed to offer an employee a reduced hourly rate to work from home. I would suggest that the rate be set after discussing with the employee.
The employee will receive less salary but will have save the cost of transportation, lunch and wardrobe. They will also spend less time away from home.
The employer reduces his payroll cost without investing a dime! It is truely a win win situation for employer and employee.