diff --git a/backend/remote/backend.go b/backend/remote/backend.go
index 7f4c24326..17bb4c912 100644
--- a/backend/remote/backend.go
+++ b/backend/remote/backend.go
@@ -271,15 +271,15 @@ func (b *Remote) Configure(obj cty.Value) tfdiags.Diagnostics {
 		return diags
 	}
 
-	// Check if the organization exists.
-	_, err = b.client.Organizations.Read(context.Background(), b.organization)
+	// Check if the organization exists by reading its entitlements.
+	entitlements, err := b.client.Organizations.Entitlements(context.Background(), b.organization)
 	if err != nil {
 		if err == tfe.ErrResourceNotFound {
 			err = fmt.Errorf("organization %s does not exist", b.organization)
 		}
 		diags = diags.Append(tfdiags.AttributeValue(
 			tfdiags.Error,
-			"Failed to read organization settings",
+			"Failed to read organization entitlements",
 			fmt.Sprintf(
 				`The "remote" backend encountered an unexpected error while reading the `+
 					`organization settings: %s.`, err,
@@ -291,7 +291,7 @@ func (b *Remote) Configure(obj cty.Value) tfdiags.Diagnostics {
 
 	// Configure a local backend for when we need to run operations locally.
 	b.local = backendLocal.NewWithBackend(b)
-	b.forceLocal = os.Getenv("TF_FORCE_LOCAL_BACKEND") != ""
+	b.forceLocal = !entitlements.Operations || os.Getenv("TF_FORCE_LOCAL_BACKEND") != ""
 
 	return diags
 }
diff --git a/backend/remote/backend_mock.go b/backend/remote/backend_mock.go
index 8f9a41f03..636062577 100644
--- a/backend/remote/backend_mock.go
+++ b/backend/remote/backend_mock.go
@@ -322,6 +322,17 @@ func (m *mockOrganizations) Capacity(ctx context.Context, name string) (*tfe.Cap
 	return &tfe.Capacity{Pending: pending, Running: running}, nil
 }
 
+func (m *mockOrganizations) Entitlements(ctx context.Context, name string) (*tfe.Entitlements, error) {
+	return &tfe.Entitlements{
+		Operations:            true,
+		PrivateModuleRegistry: true,
+		Sentinel:              true,
+		StateStorage:          true,
+		Teams:                 true,
+		VCSIntegrations:       true,
+	}, nil
+}
+
 func (m *mockOrganizations) RunQueue(ctx context.Context, name string, options tfe.RunQueueOptions) (*tfe.RunQueue, error) {
 	rq := &tfe.RunQueue{}
 
diff --git a/backend/remote/backend_plan_test.go b/backend/remote/backend_plan_test.go
index 403af271b..5c96ebdd5 100644
--- a/backend/remote/backend_plan_test.go
+++ b/backend/remote/backend_plan_test.go
@@ -354,6 +354,36 @@ func TestRemote_planForceLocal(t *testing.T) {
 	}
 }
 
+func TestRemote_planWithoutOperationsEntitlement(t *testing.T) {
+	b := testBackendNoOperations(t)
+
+	op, configCleanup := testOperationPlan(t, "./test-fixtures/plan")
+	defer configCleanup()
+
+	op.Workspace = backend.DefaultStateName
+
+	run, err := b.Operation(context.Background(), op)
+	if err != nil {
+		t.Fatalf("error starting operation: %v", err)
+	}
+
+	<-run.Done()
+	if run.Result != backend.OperationSuccess {
+		t.Fatalf("operation failed: %s", b.CLI.(*cli.MockUi).ErrorWriter.String())
+	}
+	if run.PlanEmpty {
+		t.Fatalf("expected a non-empty plan")
+	}
+
+	output := b.CLI.(*cli.MockUi).OutputWriter.String()
+	if strings.Contains(output, "Running plan in the remote backend") {
+		t.Fatalf("unexpected remote backend header in output: %s", output)
+	}
+	if !strings.Contains(output, "1 to add, 0 to change, 0 to destroy") {
+		t.Fatalf("expected plan summery in output: %s", output)
+	}
+}
+
 func TestRemote_planWorkspaceWithoutOperations(t *testing.T) {
 	b := testBackendNoDefault(t)
 	ctx := context.Background()
diff --git a/backend/remote/testing.go b/backend/remote/testing.go
index 54083dc23..de2d26866 100644
--- a/backend/remote/testing.go
+++ b/backend/remote/testing.go
@@ -66,6 +66,19 @@ func testBackendNoDefault(t *testing.T) *Remote {
 	return testBackend(t, obj)
 }
 
+func testBackendNoOperations(t *testing.T) *Remote {
+	obj := cty.ObjectVal(map[string]cty.Value{
+		"hostname":     cty.NullVal(cty.String),
+		"organization": cty.StringVal("no-operations"),
+		"token":        cty.NullVal(cty.String),
+		"workspaces": cty.ObjectVal(map[string]cty.Value{
+			"name":   cty.StringVal("prod"),
+			"prefix": cty.NullVal(cty.String),
+		}),
+	})
+	return testBackend(t, obj)
+}
+
 func testRemoteClient(t *testing.T) remote.Client {
 	b := testBackendDefault(t)
 	raw, err := b.StateMgr(backend.DefaultStateName)
@@ -171,30 +184,39 @@ func testServer(t *testing.T) *httptest.Server {
 		io.WriteString(w, `{"tfe.v2":"/api/v2/"}`)
 	})
 
-	// Respond to the initial query to read the organization settings.
-	mux.HandleFunc("/api/v2/organizations/hashicorp", func(w http.ResponseWriter, r *http.Request) {
+	// Respond to the initial query to read the hashicorp org entitlements.
+	mux.HandleFunc("/api/v2/organizations/hashicorp/entitlement-set", func(w http.ResponseWriter, r *http.Request) {
 		w.Header().Set("Content-Type", "application/vnd.api+json")
 		io.WriteString(w, `{
   "data": {
-    "id": "hashicorp",
-    "type": "organizations",
+    "id": "org-GExadygjSbKP8hsY",
+    "type": "entitlement-sets",
     "attributes": {
-      "name": "hashicorp",
-      "created-at": "2017-09-07T14:34:40.492Z",
-      "email": "user@example.com",
-      "collaborator-auth-policy": "password",
-      "enterprise-plan": "premium",
-      "permissions": {
-        "can-update": true,
-        "can-destroy": true,
-        "can-create-team": true,
-        "can-create-workspace": true,
-        "can-update-oauth": true,
-        "can-update-api-token": true,
-        "can-update-sentinel": true,
-        "can-traverse": true,
-        "can-create-workspace-migration": true
-      }
+      "operations": true,
+      "private-module-registry": true,
+      "sentinel": true,
+      "state-storage": true,
+      "teams": true,
+      "vcs-integrations": true
+    }
+  }
+}`)
+	})
+
+	// Respond to the initial query to read the no-operations org entitlements.
+	mux.HandleFunc("/api/v2/organizations/no-operations/entitlement-set", func(w http.ResponseWriter, r *http.Request) {
+		w.Header().Set("Content-Type", "application/vnd.api+json")
+		io.WriteString(w, `{
+  "data": {
+    "id": "org-ufxa3y8jSbKP8hsT",
+    "type": "entitlement-sets",
+    "attributes": {
+      "operations": false,
+      "private-module-registry": true,
+      "sentinel": true,
+      "state-storage": true,
+      "teams": true,
+      "vcs-integrations": true
     }
   }
 }`)
diff --git a/go.mod b/go.mod
index 0d5763df0..772caa15c 100644
--- a/go.mod
+++ b/go.mod
@@ -68,7 +68,7 @@ require (
 	github.com/hashicorp/go-rootcerts v0.0.0-20160503143440-6bb64b370b90
 	github.com/hashicorp/go-safetemp v0.0.0-20180326211150-b1a1dbde6fdc // indirect
 	github.com/hashicorp/go-sockaddr v0.0.0-20180320115054-6d291a969b86 // indirect
-	github.com/hashicorp/go-tfe v0.3.3
+	github.com/hashicorp/go-tfe v0.3.4
 	github.com/hashicorp/go-uuid v1.0.0
 	github.com/hashicorp/go-version v0.0.0-20180322230233-23480c066577
 	github.com/hashicorp/golang-lru v0.5.0 // indirect
diff --git a/go.sum b/go.sum
index 2c7399b0d..aa71f39ad 100644
--- a/go.sum
+++ b/go.sum
@@ -153,8 +153,8 @@ github.com/hashicorp/go-slug v0.2.0 h1:gekvezBc+9LwN3qC+lesrz0Qg36hhgge9z/an1FCH
 github.com/hashicorp/go-slug v0.2.0/go.mod h1:+zDycQOzGqOqMW7Kn2fp9vz/NtqpMLQlgb9JUF+0km4=
 github.com/hashicorp/go-sockaddr v0.0.0-20180320115054-6d291a969b86 h1:7YOlAIO2YWnJZkQp7B5eFykaIY7C9JndqAFQyVV5BhM=
 github.com/hashicorp/go-sockaddr v0.0.0-20180320115054-6d291a969b86/go.mod h1:7Xibr9yA9JjQq1JpNB2Vw7kxv8xerXegt+ozgdvDeDU=
-github.com/hashicorp/go-tfe v0.3.3 h1:v17u0VdSy54n6Xn575cTzLrNJ0gn+Y7mq5J+A/p1fkw=
-github.com/hashicorp/go-tfe v0.3.3/go.mod h1:Vssg8/lwVz+PyJ/nAK97zYmXxxLe28MCIMhKo+rva1o=
+github.com/hashicorp/go-tfe v0.3.4 h1:A9pKjZMDTSGozXf2wQlWhBI7QoxCoas14Xg/TSiEAV8=
+github.com/hashicorp/go-tfe v0.3.4/go.mod h1:Vssg8/lwVz+PyJ/nAK97zYmXxxLe28MCIMhKo+rva1o=
 github.com/hashicorp/go-uuid v1.0.0 h1:RS8zrF7PhGwyNPOtxSClXXj9HA8feRnJzgnI1RJCSnM=
 github.com/hashicorp/go-uuid v1.0.0/go.mod h1:6SBZvOh/SIDV7/2o3Jml5SYk/TvGqwFJ/bN7x4byOro=
 github.com/hashicorp/go-version v0.0.0-20180322230233-23480c066577 h1:at4+18LrM8myamuV7/vT6x2s1JNXp2k4PsSbt4I02X4=
diff --git a/vendor/github.com/hashicorp/go-tfe/organization.go b/vendor/github.com/hashicorp/go-tfe/organization.go
index 32e289ed6..edd6d3f47 100644
--- a/vendor/github.com/hashicorp/go-tfe/organization.go
+++ b/vendor/github.com/hashicorp/go-tfe/organization.go
@@ -35,6 +35,9 @@ type Organizations interface {
 	// Capacity shows the current run capacity of an organization.
 	Capacity(ctx context.Context, organization string) (*Capacity, error)
 
+	// Entitlements shows the entitlements of an organization.
+	Entitlements(ctx context.Context, organization string) (*Entitlements, error)
+
 	// RunQueue shows the current run queue of an organization.
 	RunQueue(ctx context.Context, organization string, options RunQueueOptions) (*RunQueue, error)
 }
@@ -93,6 +96,17 @@ type Capacity struct {
 	Running      int    `jsonapi:"attr,running"`
 }
 
+// Entitlements represents the entitlements of an organization.
+type Entitlements struct {
+	ID                    string `jsonapi:"primary,entitlement-sets"`
+	StateStorage          bool   `jsonapi:"attr,state-storage"`
+	Operations            bool   `jsonapi:"attr,operations"`
+	VCSIntegrations       bool   `jsonapi:"attr,vcs-integrations"`
+	Sentinel              bool   `jsonapi:"attr,sentinel"`
+	PrivateModuleRegistry bool   `jsonapi:"attr,private-module-registry"`
+	Teams                 bool   `jsonapi:"attr,teams"`
+}
+
 // RunQueue represents the current run queue of an organization.
 type RunQueue struct {
 	*Pagination
@@ -283,6 +297,27 @@ func (s *organizations) Capacity(ctx context.Context, organization string) (*Cap
 	return c, nil
 }
 
+// Entitlements shows the entitlements of an organization.
+func (s *organizations) Entitlements(ctx context.Context, organization string) (*Entitlements, error) {
+	if !validStringID(&organization) {
+		return nil, errors.New("invalid value for organization")
+	}
+
+	u := fmt.Sprintf("organizations/%s/entitlement-set", url.QueryEscape(organization))
+	req, err := s.client.newRequest("GET", u, nil)
+	if err != nil {
+		return nil, err
+	}
+
+	e := &Entitlements{}
+	err = s.client.do(ctx, req, e)
+	if err != nil {
+		return nil, err
+	}
+
+	return e, nil
+}
+
 // RunQueueOptions represents the options for showing the queue.
 type RunQueueOptions struct {
 	ListOptions
diff --git a/vendor/modules.txt b/vendor/modules.txt
index 68e349b64..ee2abe56c 100644
--- a/vendor/modules.txt
+++ b/vendor/modules.txt
@@ -327,7 +327,7 @@ github.com/hashicorp/go-rootcerts
 github.com/hashicorp/go-safetemp
 # github.com/hashicorp/go-slug v0.2.0
 github.com/hashicorp/go-slug
-# github.com/hashicorp/go-tfe v0.3.3
+# github.com/hashicorp/go-tfe v0.3.4
 github.com/hashicorp/go-tfe
 # github.com/hashicorp/go-uuid v1.0.0
 github.com/hashicorp/go-uuid