Why not re-classify them as "independent contractors."
Because they’re not independent and they’re not contractors?
My current employer has employees in multiple states. Often their manager isn’t in the same one. Just as often, the people or systems they support aren’t in the same state.
There’s no reason to arbitrarily tether them to a desk in an office. The users they serve aren’t there. The supervisor who manages them isn’t there. The employees largely don’t want to be there either (it’s optional for most still)