Nevada HSA contribution being taxed to CA tax return (multi state filing)

Taxpayers are full year residents of Nevada.  The taxpayer works in California and the spouse works in Nevada.   The spouse has a W-2 with code W in box 12: Employer contributions to HSA.  She did not make a contribution, just her employer on her behalf.  The schedule  CA-NR is adding the HSA contribution to California as taxable income. Would someone be able to tell me if  I can exclude this from being taxed to California since she does not work in California?  

Your reply would be greatly appreciated.