wow nice find, i guess city councils have more independence. On a state level i doubt this would be possible.
The issue is really more about the size of the employer. A small employer usually does a lot of the payroll process manually. Once you get to a certain size, you are pretty much stuck doing it the way the payroll software wants it done.
The fun part is that at the large end, there is a lot of consolidation. ADP, for example, does payroll for millions. If they offered a bitcoin paycheck...