• Skip to primary navigation
  • Skip to main content

HRMorning

  • FREE RESOURCES
  • PREMIUM CONTENT
  • HR DEEP DIVES
  • PODCASTS
    • VOICES OF HR
    • WOMEN’S LEADERSHIP TODAY
  • LOGIN
  • SIGN UP FREE
  • Employment Law
  • Benefits
  • Recruiting
  • HR Technology
  • Payroll
  • Management
  • Women’s Leadership
  • More
    • Talent Management
    • Performance Management
    • Leadership & Strategy
    • Compensation
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans
  • Employment Law
  • Recruiting

Is Geographical Discrimination Legal? What HR Needs to Know

Carol Warner
By: Carol Warner
  • Share on

About the Author

For nearly two decades, Carol Warner has analyzed the legal and financial realities behind workplace decisions, covering employment law, benefits, payroll and HR technology. She translates complex legal updates, regulatory shifts and vendor claims into plain language that HR teams can act on. Her focus is simple: What does this mean for employers, and what should they do next? Connect with her on LinkedIn.

Show Less
Last Updated: June 30, 2025
4 minute engagement
Geographical Discrimination

As remote and hybrid work continue to evolve, some employees are finding themselves on the receiving end of unexpected ultimatums: Relocate or lose your job. 

This has sparked questions about so-called geographical discrimination – the idea that making employment decisions based on where someone lives might cross a legal line.

But geography – the location of an employee’s work – is not a protected class under federal law, employment attorney Jon Hyman points out.

While employers have broad legal latitude here, HR leaders must carefully weigh the wider impact of location-based decisions on culture and fairness.

Geographical Discrimination Isn’t a Legal Category

Employers’ legal authority to make location-based decisions is grounded in at-will employment, which is the default in every state except Montana. Unless a contract or specific law applies, employers can terminate someone for nearly any reason – including their location – as long as it’s not tied to a protected class like race, religion or disability.

Location-based policies are common across sectors and may include:

  • Formal residency requirements for government roles, such as first responders being required to live within city or county limits
  • Relocation clauses in offer letters
  • Tying certain roles to specific geographic regions, and
  • RTO policies requiring proximity to a physical workplace.

While requiring employees to return to the office may be unpopular, it’s firmly within an employer’s legal rights. However, Hyman points out an important exception: If an employee requires remote work as a reasonable accommodation for a disability, employers must carefully evaluate the request and determine whether the employee can perform essential job functions remotely.

Beyond legal authority, location decisions have practical business implications. Employers have to follow a patchwork of state and local tax rules that affect payroll withholding, unemployment insurance and workers’ comp.  

Hiring or retaining employees in different states or municipalities can significantly increase administrative burdens and costs. As a result, many companies require employees to live within certain geographic boundaries to simplify compliance and control costs.

Key takeaway: Generally, employers are legally allowed to make location a condition of employment.

But HR’s real challenge is recognizing when those decisions start to introduce proximity bias that can undercut fairness, engagement and performance.

How Proximity Bias Harms Company Culture

Proximity bias happens when managers and leaders favor employees who are physically closer or more visible in the workplace. Proximity bias can result in:

  • On-site employees receiving more attention from managers
  • Better or more high-profile assignments going to those physically present
  • Faster promotions for employees who are more visible, and
  • Performance reviews, promotions and project access that may not fully reflect actual merit.

The shift to hybrid and remote work has made proximity bias more pronounced.

Employees working from home may get less face time with managers, miss out on informal networking, or be overlooked for high-profile projects. Left unchecked, this can damage morale and affect overall team performance.

Balancing Location Flexibility and Fairness

Even with full legal authority to set location requirements, HR plays a critical role in ensuring those decisions are fairly applied. Balancing business needs with employee experience is key to maintaining equity and engagement in hybrid environments.

Standardize Expectations

Location requirements should be based on clear business needs and applied consistently across roles and teams.

Avoid ad hoc ultimatums such as “move or else” that lack a formal policy rationale. Having documented guidelines helps HR make fair decisions while maintaining flexibility.

Use Objective Criteria for Performance and Promotions

Prioritize performance metrics that focus on outcomes rather than proximity. Make sure goals, deliverables, and evaluation criteria are clearly defined and role-specific.

Build in regular checkpoints and structured feedback to reduce the influence of visibility bias and keep performance management equitable across in-office and remote employees.

Train Managers to Spot Bias in Hybrid Teams

Include proximity bias in manager training. Encourage inclusive habits such as:

  • Equal access to meetings
  • Mentorship opportunities, and
  • Stretch assignments.

Balancing Legal Rights with Best Practices 

HR has the authority to make location-based decisions, and it’s both legal and often necessary. That’s important to know.

But complying with the law is just the baseline. It doesn’t ensure fairness or support long-term performance. Without clear guardrails, proximity bias can limit opportunities for remote workers and weaken team dynamics.

Effective hybrid leadership calls for intentional leadership practices that promote equity, consistency and trust across all work environments.

Filed under
  • Employment Law
  • Recruiting
  • Share on

Get the HRMorning Newsletter

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

  • This field is for validation purposes and should be left unchanged.
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form
  • This field is hidden when viewing the form

Free Training & Resources

White Papers

The Employer’s Guide to Lowering Healthcare Spend Without Losing Coverage

Provided by Personify Health

Webinars

How can HR leaders address excessive workloads in their teams?

White Papers

Crowe LLP’s CSR Success Story

Provided by Blackbaud

White Papers

The Retention Dilemma: Mitigating High Employee Turnover in The U.S.

Provided by PeopleGuru

SPONSORED CONTENT

HR Technology

sponsored content
The Best AI Software for HR Automation

Courtesy of G-P

Talent Management

sponsored content
Powerful Employee Retention Strategies for 2025: How to Keep Your Best People

Courtesy of PEOPLEGURU

Benefits

Health Care

Wellness

sponsored content
Proven Results: 5 Ways Teladoc Health Chronic Condition Management Transforms HR Outcomes

Courtesy of TELADOC HEALTH

Further Reading

  • Employment Law
Overtime Miscalculation Costs Hawaii Rehab Clinic $171K in Back Wages, Plus Penalty

A physical therapy and rehabilitation clinic in Hawaii recently learned an expensive lesson about overtime compliance after a federal inves...

  • Employment Law
Costly FLSA Mistake: Appeals Court Upholds $22M Verdict in Wage Dispute

The Third Circuit recently affirmed a jury verdict awarding more than $22 million in back wages to 11,780 employees at a Pennsylvania batte...

  • Employment Law
Do you know this accommodation rule? It just cost this employer $158K

Under the ADA, a broad variety of accommodations may need to be provided to applicants and employees with disabilities. Both the statute a...

  • Recruiting
The cost of hiring a deepfake job candidate — and 5 ways to avoid the scam

Scams are constantly evolving, but it may surprise you to realize scammers can fake an entire person. Deepfake job candidates can slip thro...

  • Employment Law
New Wage Settlement: Worker Misclassification Leads to $243K Payout

A D.C. hospitality business will pay more than $243,000 after an investigation found worker misclassification and other wage and hour viola...

  • Employment Law
Workers’ Comp: Does Shooting Victim Get Benefits?

If an injury happens at work, does the injured employee always get workers’ comp benefits? In New York, the law sets a presumption tha...

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES
HR Morning Logo
  • Facebook
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • Leadership & Strategy
  • Compensation
  • Policy & Procedures
  • Wellness
  • Staff Departure
  • HR Career & Self-Care
  • Health Care
  • Retirement Plans
  • DEI

HRMorning, part of the Rover Insights Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day's headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Powered By Rover Insights
Privacy Policy | Terms of Service
Copyright© 2026 Rover Insights
HRMorning Logo

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.