Since the Great Recession, employers have gotten away with this because they could. That may be about to change...
I must really be an outlier then. I was with the same company for 25+ years before being laid off. Because the job market for electronics engineers is so bad where I live, I've chosen to semi-retire and look around to see what I might do bring in income which doesn't involve a W2 job.
If by "some states" you mean "some (most?) parts of the Western world".