Work location policies are essential factors that influence employees’ behavior, particularly in light of increased flexibility in choosing work locations, yet many employers mandate that employees return to the office for closer monitoring and to maintain organizational norms. Using an online experiment, we test theories on how peer norms interact with two work location policies to affect misreporting. We find that peer norms affect misreporting regardless of whether employees are assigned to work in their preferred or non-preferred location. We further find that employees who prefer working in the office are more susceptible to peer norms in reporting than those who prefer working from home. Collectively, our findings suggest that employees’ work location preferences indicate their level of interest in social interaction at work, which further determines how strongly they are influenced by honesty norms from their peers. Our findings suggest that leveraging peer norms to maintain honesty is more effective in in-office work settings than in work-from-home settings.