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"In theory I agree. In practice, has anyone seen anyone work farther from work on purpose to pad their pay?"

Look at it in another way -- you're basically penalizing the employees that don't spend time commuting by paying them less money. In practice I've seen this kind of phenomenon with smoking. Many years ago, in the army, the smokers got smoking breaks whereas the non-smokers did not. Soon almost all soldiers were smokers!



I knew a guy a long time ago who pretended to be a smoker so he could get periodic "smoke breaks" from the office.




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