The problem I am unsure of is that they require a California address for my records. I do have family in California, but not sure how that would effect my tax filing, etc.
Since they require you to have a California )CA) address, and if you provide a CA address for an employer, you may have to file a CA return next year as a resident. It's not clear why any employer would require you to provide an address where you do not live.
Currently, in CA, the rule is, if a nonresident receives W-2 wages for work performed out of state, even if it's from a California employer, the income is not subject to California income taxes. This means if you do not perform your work within the state of CA, then your income should not be taxed to CA. However, this employer is requiring a CA address which will likely complicate things for you.
Per California law, a resident is any individual who is:
• In California for other than a temporary or transitory purpose; or
• Domiciled in California, but who is outside California for a temporary or transitory purpose.
If your domicile (your main, primary home) is in Texas, then for tax purposes you are a resident of Texas. Your tax residency is determined by state laws, not by your employer. So be sure to file your tax returns based on actual facts and circumstances.
If you're a non-resident of CA and a W-2 employee whose work is carried on entirely remotely from a location outside CA, then that income is not taxable by CA. If an employer in that circumstance mistakenly withholds CA income tax, you will be able to obtain a refund.