Exactly, and those answers are why it’s a hurdle and a leap of faith.

The company has to adhere to labor laws in foreign countries (most likely plural if this is a general policy). That’s quite the overhead and opens you up to legal trouble.

The employee has to trust their government can prosecute or otherwise coerce a foreign company with no entity on their territory (otherwise they’d just get hired normally through the subsidiary).

LA and NJ remain two states of a common country and I'm sure that simplifies a lot of things.

Although none of this applies if the company is a multinational with offices in the employee’s country. But then that is offshoring rather than remote work.