Remote work is often marketed as “work from anywhere,” promising job seekers unprecedented freedom and access to opportunities beyond their local markets. But new research suggests that reality is far more complicated, and, in many cases, more restrictive than it appears.
A recent study by FoxHire reveals that state lines still play a major role in hiring decisions, even in a remote-first era. According to the survey, 50% of employers have rejected candidates based solely on the state they live in. Additionally, 43.7% of companies say they actively avoid hiring in certain states altogether, while 48% have delayed hiring decisions due to uncertainty around multi-state compliance requirements.
At the same time, nearly 80% of companies report that they are hiring across multiple states, highlighting a growing tension. While businesses are expanding their geographic reach, they are also encountering a patchwork of state-specific labor laws, tax regulations, and compliance requirements that can complicate the hiring process.
For employers, navigating these rules can be time-consuming and costly. Each state may have different requirements related to payroll taxes, employee classification, benefits, and reporting. For smaller companies or those without dedicated HR infrastructure, these complexities can act as a deterrent, leading them to limit hiring to states where they are already set up.
For job seekers, the implications are significant. While remote work has broadened access in theory, in practice, it may exclude candidates based on factors entirely outside their control. A qualified applicant could be overlooked simply because their state presents additional administrative hurdles.
Ultimately, the findings suggest that remote work isn’t entirely location-agnostic. Instead, geography continues to shape opportunity, just in less visible ways. As companies adapt to a more distributed workforce, addressing these compliance challenges may be key to making “work from anywhere” a true reality.
Full study: https://www.foxhire.com/blog/multi-state-hiring-compliance-burden-index