Quick Article Summary

• Texas employers generally have the legal authority to require employees to work from a specific location, including requiring in-office work or restricting remote employees to certain states, because Texas follows strong at-will employment principles unless contracts or laws create exceptions.
• When employees work remotely from another state, employers may trigger new obligations such as payroll taxes, unemployment insurance registration, and compliance with that state’s employment laws.
• Businesses should create clear remote work policies that address work location requirements, relocation approval, and expectations for returning to the office to avoid legal disputes and operational problems.

Remote Work Has Changed Employer Expectations

Remote work expanded dramatically during the pandemic, and many businesses discovered that employees could perform their duties outside the traditional office. However, as companies continue to refine their workplace strategies, a common question arises: can employers dictate where employees work?

For Texas employers, the answer is generally yes, but the situation becomes more complicated when remote workers live in another state. Employers must balance operational control, employment law compliance, tax obligations, and workplace policy consistency.

Understanding the legal framework governing remote work helps businesses make decisions about requiring employees to return to the office, limiting remote work to certain locations, or managing employees who relocate without approval.

Texas At-Will Employment Allows Employers to Set Work Location Requirements

Texas is an at-will employment state, meaning employers and employees may terminate the employment relationship at any time for almost any lawful reason. The concept of at-will employment is explained by the Texas Workforce Commission’s guidance on employment law, which notes that either party may end the relationship unless a contract or law provides otherwise.

Because of this framework, employers typically retain the right to establish job requirements, including where the work must be performed. If a job description specifies in-office work, hybrid work, or remote work within a certain geographic region, employers may enforce those requirements as a condition of employment.

For example, an employer may lawfully:

• Require employees to work in the office full-time
• Require employees to live within commuting distance of the office
• Allow remote work but require the employee to remain in Texas
• Require employees to relocate if the job requires in-person presence
• Require employees to conduct work in an agreed upon physical location or office, and restrict work from being conducted elsewhere (i.e. work may only be conducted from the employee’s home office and not at a local coffee shop).

If an employee refuses to comply with these requirements, the employer may treat that refusal as a performance or policy issue, which could ultimately lead to termination under at-will employment principles.

However, employers must ensure that such policies are applied consistently and do not violate anti-discrimination laws enforced by the U.S. Equal Employment Opportunity Commission under Title VII of the Civil Rights Act, which prohibit employment decisions based on protected characteristics.

Can Employers Require Employees to Return to the Office?

Yes. In most circumstances, employers can require employees to return to the office even if they previously worked remotely.

Remote work arrangements are usually considered discretionary workplace policies, not permanent employee rights. Unless an employee has an employment contract guaranteeing remote work or qualifies for a legally protected accommodation, employers may modify remote work policies.

For example, an employer could implement a new policy requiring employees to work in the office three days per week or full-time.

However, there are two important exceptions employers must consider.

Disability Accommodations Under the ADA

If an employee requests remote work because of a medical condition or disability, the request may trigger obligations under the Americans with Disabilities Act administered by the U.S. Equal Employment Opportunity Commission.

The ADA requires employers with 15 or more employees to provide reasonable accommodations when an employee has a qualifying disability. In some cases, remote work may qualify as a reasonable accommodation if it allows the employee to perform the essential functions of the job.

Employers must engage in an interactive process with the employee before denying such requests. Read more about the American with Disabilities Act and best practices in handling ADA requests.

Religious Accommodation Requests

Employees may also request remote work as a religious accommodation. Employers must evaluate these requests under federal protections described by the U.S. Equal Employment Opportunity Commission’s guidance on religious discrimination and accommodation.

While remote work is not automatically required, employers must consider whether the accommodation would impose an undue hardship on the business.

Why Employers Often Restrict Remote Workers to Certain States

Many employers assume that allowing an employee to work remotely from another state is a minor administrative change. In reality, it can create significant legal and financial obligations.

Once an employee performs work in another state, the employer may become subject to that state’s employment laws.

This often includes registering for unemployment insurance in that state. Employers must report wages and pay unemployment taxes in the state where the employee performs work according to the U.S. Department of Labor’s guidance on unemployment insurance coverage and multi-state employment.

Additionally, employers may face obligations such as:

• Registering to do business in the employee’s state
• Withholding income tax in states that impose it
• Following that state’s wage and hour laws
• Complying with additional workplace protections

For example, states such as California, New York, and Colorado have stricter employment laws regarding overtime, leave, and employee protections.

Because of these complexities, many businesses adopt policies stating that remote employees must live in specific states where the company is already registered and compliant.

The Risk of Employees Moving Without Permission

Another common issue arises when employees relocate without informing their employer.

An employee might move to another state for personal reasons while continuing to work remotely, believing that the move will not affect their employment status.

However, this situation can expose the employer to legal and tax liability.

For example, if an employee moves to another state and begins working from that location, the employer may unknowingly create a tax nexus or employment jurisdiction in that state. This may require the business to register with tax authorities, pay unemployment insurance, and comply with state labor laws.

Because of this risk, many employers include provisions in remote work policies stating that employees must obtain written approval before relocating.

Failure to follow these policies can be treated as a violation of company rules.

Can Employers Limit Remote Work to Texas Only?

Yes, many employers adopt policies requiring remote workers to live within a specific state, such as Texas.

This type of policy is generally lawful because employers are permitted to define job requirements and working conditions.

Limiting remote workers to Texas can simplify compliance with payroll taxes, unemployment insurance, and employment laws administered by the Texas Workforce Commission, which regulates unemployment insurance and wage claims for Texas employees.

Employers often implement these geographic limitations for operational reasons as well. Employees living in the same state may be easier to bring into the office for meetings, training, or emergencies.

Best Practices for Creating a Remote Work Policy

Employers should avoid informal remote work arrangements that rely on verbal agreements or ad-hoc approvals. Instead, businesses should develop clear written policies outlining expectations.

A well-structured remote work policy typically includes several key components.

First, employers should define whether remote work is permanent, temporary, or discretionary. This helps prevent misunderstandings about whether employees have a long-term right to work remotely.

Second, employers should specify approved work locations. If the company only allows remote work within a specific location such as an employee’s home office, the policy should clearly state that requirement.

Third, the policy should require employees to obtain approval before relocating. This helps employers maintain compliance with employment and tax laws.

Fourth, employers should consider all remote working conditions and requirements prior to any agreement, such as the requirement of reliable internet, device requirements and possible reimbursements.

Finally, employers should reserve the right to modify or revoke remote work privileges if business needs change.

Clear policies not only reduce legal risk but also protect employers from disputes when workplace expectations shift.

Planning Ahead: Remote Work Is Ultimately a Business Decision

Remote work remains an evolving workplace model, and employers must balance flexibility with legal compliance.

Texas employers generally have broad authority to decide whether employees may work remotely, where they may live, and whether positions require in-office attendance. However, once remote workers cross state lines, the legal landscape becomes significantly more complicated.

Businesses that proactively create clear remote work policies and monitor employee work locations can avoid unexpected compliance issues and maintain operational control.

How The Texas HR Experts at The Unit Consulting Helps Texas Employers Manage Remote Work Policies

Managing remote workers is no longer just an operational issue. It involves employment law compliance, payroll obligations, workplace policy development, and risk management.

The Texas HR Service Firm at The Unit Consulting helps Texas businesses create structured remote work policies, manage multi-state compliance risks, and build HR systems that protect both the employer and the employee. Whether your business is transitioning back to in-office work, implementing hybrid schedules, or expanding remote hiring, our team provides expert HR guidance to ensure your policies remain compliant and effective.

If your business needs help structuring remote work policies or navigating multi-state employment challenges, The Unit Consulting can help you build a compliant and scalable HR strategy.