HR Basics Every Texas Small Business Owner Should Know

HR Basics

When you hire your first employee, you step into a web of federal and state obligations that most new employers aren't fully prepared for. The good news: most HR compliance is manageable with the right setup. Here's what Texas small business owners need to have in place.

Hiring Documentation from Day One

Every new hire requires a completed W-4 for federal withholding, an I-9 to verify work authorization, and a new hire report filed with the Texas Workforce Commission within 20 days of hire. These aren't optional — they're legal requirements.

Employee Handbook: Protect Yourself and Your Team

A well-written employee handbook sets expectations, establishes policies, and significantly reduces your legal exposure in employment disputes. It doesn't need to be 50 pages — but it does need to cover at-will employment, anti-discrimination policy, attendance, and conduct expectations at minimum.

Texas Workers' Compensation: Know Your Options

Unlike most states, Texas does not require private employers to carry workers' compensation insurance. But opting out carries significant legal risk — employers without coverage cannot use many standard legal defenses in workplace injury lawsuits. Most small businesses are better protected with coverage than without it.

Maintaining Compliance as You Grow

Federal employment law thresholds change as your headcount grows. At 15 employees, Title VII and ADA apply. At 50, FMLA kicks in. Knowing these thresholds and preparing for them in advance — rather than scrambling after the fact — is the mark of an operationally mature business.

HR compliance isn't glamorous, but it's foundational. Getting it right from the start protects your team, your culture, and your bottom line.

📞 Kindred Financial Services offers HR services as part of our comprehensive small business support. Contact us at (512) 521-0945 or www.kindredfinancialservices.com.