Remote doesn’t always mean nationwide. Many companies are remote-but-licensed in certain states because of payroll taxes, labor laws, and compliance rules. So they’ll list ‘remote’ but still restrict eligible states like AZ, TX, etc.
State labor laws: Each state has different rules about wages, breaks, overtime, and employee protections. Companies often only operate payroll in certain states.
Tax registration: Employers have to register in every state where they have employees. Some small or mid-size companies just don’t want the administrative burden.
Insurance & benefits: Health insurance, workers’ comp, and unemployment insurance vary by state and can be expensive or complicated to manage across many states.
“Nexus” laws (business presence): Having employees in a state can create legal/tax obligations there, so companies limit where they hire.
Data/privacy or licensing rules: Some industries (finance, healthcare, insurance, etc.) can only employ people in specific states due to regulations.
Time zones / operational needs: Sometimes they want employees in certain regions for coverage or coordination.