Health Minister Brad Hazzard has amended a public health order which left employers in NSW's regions facing $10,000 fines if they did not order their workers to stay at home.
Mr Hazzard said he had signed amended orders at 10.44am on Tuesday limiting the work-from-home order to Greater Sydney.
The order, which came into effect on Sunday, said employers must make their staff work from home unless it was not "reasonably practicable" for them to do so.
The wording left many regional NSW employers unsure if they were breaking the law by allowing staff to come to work.
NSW Health also tweeted on Monday that "every employer across NSW" must follow the rule.
But Mr Hazzard said the order had not been intended to cover regional NSW.
"In the rush to try and defeat a virus that's quickly moving, parliamentary counsel who draft these orders and present them for signing might not get absolute precision on every issue," he said.
He said the instructions to counsel had been "confused" and he had signed an amending order before the media conference.
Mr Hazzard said it was "still wise" for employers throughout the state to have as few people in the office as possible.
NSW added one death and 78 new cases in the 24 hours to 8pm on Monday night.