LemmyKnowsBestIf I'm legal resident of a state with no state income tax, but work a W-4 job in a different state that has a very high state income tax...
Generally speaking you are taxed/most follow employment laws of the state you do the work in.
Using the WA/OR example: If you work in OR, you follow OR employment/tax/workers comp laws regardless of where you permanently reside. If you worked from home in WA for an OR based company, they have to follow WA laws.