PSU requires the "Authorization to Hire an Employee Residing and Performing Work Outside of Oregon" form to be filled out before a contract is offered or renewed. If the employee relocate from one state to another while they are under contract, then the form needs to be filled out again at that time as well. HR also requires a "Telecommuting Agreement" form.
Here are the links to PSU's policy and the required forms:
Hiring out of state policy:
http://www.pdx.edu/hr/hiring-position-management
Choose the "I want to hire an employee working out of state" option. That link will bring up a PDF that gives more detail and the required form.
Out-of-State hiring form:
PSU's Telecommuting policy:
http://www.pdx.edu/hr/telecommuting-policy
Telecommuting form:
https://www.pdx.edu/hr/telecommuting-policy##TELP
Once you have filled out the forms and received the required signatures, please forward them to HR.