It is perfectly fine to remove applicants based on salary requirements and/or location, however, this criteria must be applied uniformly. For example, it would not be appropriate to follow-up with some of the applicants to see whether they would be willing to adjust their salary request, but not others. Likewise, you couldn't remove a subset of applicants based on location.
You can use this OFCCP audit checklist to ensure you're doing what is required to maintain OFCCP's regulations including VEVRAA, Section 503, and EO 11246. Or request a demo to streamline your compliance and recruiting efforts.