[ItsTooMuch]

There's no need to have US work permission if you're not on the US soil.

[em-bee]

the company may not want to hire a contractor but only have regular employees that just happen to be living outside of the country.

[ItsTooMuch]

Even regular employment is OK. Tested that myself. It actually is better from taxation view for the employee compared to working for EU native companies - might not apply to all EU states though - but it does in my country of residence, thanks to the bilateral double taxation avoidance deal.