[comprev]

Yes, that's probably the reason but also demonstrates how "limitations" on the supposed freedom of remote work have always been there.

[indymike]

In this case, the employer incurs cost in every state they create a nexus, and so yes, there is a limitation. My company uses a PEO that is able to employ people in every state, so we don't have this limitation, but the cost to carry an employee varies a lot from state to state... and that is before considering difference in local pay rates.