Indirect Data Validation of Dynamic Named Ranges

I'm trying to create an indirect data validation of dynamic named ranges of employees and their locations that can be updated as I download new employee lists from a payroll list that can change. Basically I want to to be able to select the location "NY" and have only the employees in NY pull up in a separate drop down field.

I can get the dynamic named ranges to work using the below formula to name each location (ex. NY) but when I try to do an indirect formula in the data validation it says that Excel evaluates an error. I never have this problem with a normal indirect data validation for named ranges but for some reason this dynamic named range is causing me problems.

=INDEX(Employees!$B:$B,MATCH("NY",Employees!$A:$A,0)):INDEX(Employees!$F:$F,MATCH("NY",Employees!$A:$A,1))

A B
NY Employee 1
NY Employee 2
NY Employee 3
NY Employee 4
PA Employee 5
PA Employee 6
PA Employee 7

I thought that might be the issue. I don't have an issue using tables as it's a pretty easy list to download and paste into excel...just never done that before.

Simply a case of creating a table for each State(?) that was in column A and adding the names from column B to the relevant one.
Then create a named range and rather than use the formula above to drive the range, select the names in the table and it'll show something like =NYTable[Names] or =PATable[Names]

Should work fine then.

BSB