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I certainly don't understand "employment" regulations, but I'd be surprised if you have to KYC someone for even a fiat bounty.
I pay @ThrillerX_ as a contractor for SNL and afaik, there's no KYC with that.
Correction: there might've been KYC when he signed up to get paid on Gusto but idk.
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I was also surprised, and am not very convinced that all their KYC stuff is forced by law. Also the whole KYC for contributing to bitcoin dev seems a bit counter to the whole ethos of the community, but that might also just be me.