Q. "Can we limit which states our remote employees work in?"
Answer:
Yes, you can determine work locations for remote employees or even choose not to hire anyone in specific states, and may want to because of business/operational costs as well as state or local employment laws.
If you do decide to limit which states employees work in, make current employees aware of any restrictions on where they can work. Also include this information in job postings to reduce the number of applications received from states where you don’t intend to hire.