Twilio Technical Support Engineer interview questions

Several months after applying, I was contacted via email to schedule a phone interview. First phone interview was with a recruiter, very nice, asked me some general questions about my background. Recruiter stated that before he could forward the interview to the hiring manager he had to check to see if they could hire in my state. A few weeks went by, and after I sent an email inquiring about the states, the recruiter replied saying that unfortunately they were not able to hire in my state. I've never heard of this issue, but I assume it means they would have to have some type of employment/payroll arrangements made in my state that they didn't have. For this reason, I wasn't offered to move forward with the process.