I don't know. I worry that would immediately become a major form of discrimination -- it would inherently put anyone who was poor/middle-class or anyone with any sort of family/children at a huge employment disadvantage. Large companies would only ever hire already-hyper-wealthy individuals for their main positions (since they are the only people who are ever allowed to live in dense urban places). I'm imagining employers in Seattle saying "We like this guy, but he doesn't live in Pioneer Square where our office is, so that will be a pain, we should pass on him"
Many people already have to deal with that discrimination somewhat in terms of employers only being in major cities. Having that hyper-charged down to just major cities wealthiest neighborhoods seems like an even worse situation.
Obviously enough economic incentive exists to convince people to spend the time and effort to commute, but if city centers were more affordable to live in, many fewer would choose to live so far away from work. Myself included.
I agree, and would personally do the same too if possible. But I've watched us artificially inflate property values for literally my entire life. Even in my tiny US Midwest city in the middle of nowhere, city center prices have never been remotely affordable.
We should take it for granted that it's too expensive to live in US/CA/AUS/NZ cities -- because that's the honest truth. That's been the current state for decades, and there's very little chance that any major city center ever becomes affordable again in our lifetimes.
Obviously, we should still try to fix this. I fully support trying. But every facet of our society is wholly dedicated to preventing city centers from ever becoming affordable. Affordable city centers just are not likely to happen. We should not assume regular people live in a situation that doesn't exist, and likely never will.
Also, you have to remember, in places like the bay area, you can't just pick up and move closer to work. People have enormous incentives to never move: Proposition 13 means you get 5 times lower property taxes by staying put. Not to mention the enormous imbalance between housing and jobs. All the jobs are on the peninnsula and all the housing is in the east bay. All these problems would just be amplified.
I think we're miss-stating the problem. The problem isn't that employers are forcing us to commute long distances with poor company placement. The problem is, we as employees don't have enough power to choose/demand where we want to work. There's simply too much labor supply and too little demand. So, if a worker demands to work remotely, the company can just say: we'll fire this guy and hire one of the countless others willing to commute 2 hours or more.
Just to prove my point: Here in the bay area, companies still place themselves on the penninsula where there's a 4 to 1 ratio of jobs to residential places to live. By that math, they shouldn't be able to hire anyone. And yet, they're having absolutely no problem filling positions, because workers are extremely desperate for money. So desperate, they're willing commute 2 hours or pay 60% of their paycheck to live closer. These are all symptoms of labor oversupply and too little labor demand.
As an employer, I'm indifferent between paying someone $50/hour for an 8-hour work day, or $40/hr for an 8-hour workday plus 2 hours of paid commuting.
I think it's more likely that the interview process would just have another step to suss out how much commuting time I'd be paying you for, and then figuring out how to divide up your day rate of $400 (higher in reality, of course) across the buckets. So Laura Long Commute gets $40/hr * 10 hrs/day and Sally Short Commute gets $50/hr * 8 hours/day.
You'd have to be careful about that. Employers might end up, in data, showing a negative impact against some protected class (married people, certain races) if they weigh hiring or compensation decisions based on proximity to the office.
It's my understanding that current jurisprudence doesn't require proof of intention to discriminate, just evidence of disparate impact. Single and married people live in different neighborhoods. Different races do as well, depending on the city. Non-heterosexual people tend to cluster in certain neighborhoods, too, for that matter. If a class action suit can show that married people are paid 10% less than single people for equivalent roles, it could be problematic.
Regarding the second point: Employees always have an incentive to try to stretch out their tasks, so employers already know how to minimize that behavior. If employers paid for commuting, commuting would be managed like other tasks.
On the other hand, employees would have an incentive to try to stretch out their commute as much as possible, to get extra pay for time "not working". I don't know how rampant that would be. I like to think most people hate commuting enough that it wouldn't be worth it to make an extra $20 sitting in traffic when you could just be home faster, but who knows.