Company says I'm Hybrid but I'm 100% remote

Firstly I'm just assuming this is legal, I'm technically classified as "hybrid" along with the rest of my team but since I live out of state I'm 100% remote. My company does have plenty of remote positions and a few 100% in office jobs. There is no expectation of me to be in office at any point and hasn't been in the 4 years I've worked here. My question is, why is it set up this way? Are there tax implications? I live in NJ but work in NY (Rochester). Is there a (legal or otherwise) reason for me to push to get this "corrected"?