I don't get that. Is there an actual reason why employers care about where you live when you work remotely? Beyond, I suppose, time zone concerns?

I'm sure it's a matter of being able to meet in person without the need for pricey flights, having the ability to come in with some sort of frequency.

Honestly, I think it comes down to a trust issue. It's so easy for a company to get burned by a remote worker. Then again, I worked remotely for a very small company for about 6 months and didn't get paid for the last three months until about two months after I quit. I guess it goes both ways.