Houston expert on how you can keep your company HR compliant

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The rules surrounding employment in the U.S. are a moving target. Companies must stay up-to-speed on the various regulations that may impact their operations. Photo via Getty Images

Failing to remain compliant with federal and state employment laws can be costly for businesses. Doing so can lead to audits or even lawsuits.

At the same time, keeping up to date with new human resource rules and regulations may seem like a significant task, especially for small businesses focused on maintaining sufficient staffing, making payroll, keeping the lights on and building a positive culture. Companies can prevent minor mistakes from snowballing into big problems by following these tips.

Recognize the most common HR compliance mistakes

There are a few HR compliance areas where companies big and small are prone to errors. One of the most common and costly mistakes can be the incorrect classification of employees. The rules can vary significantly for full-time, part-time and contract employees when it comes to areas like benefits coverage, tax responsibilities and employment status. Failures to submit required paperwork and noncompliance with state and federal safety regulations are other common problem areas. In addition to any local or state regulations related to employment, companies should also be familiar with the requirements of the Fair Labor Standards Act (FLSA), which establishes minimum wage, overtime pay, record keeping and youth employment standards, covering employees in the private sector and in federal, state and local governments.

Support Title VII compliance

Employers and employees should be well-versed when it comes to workplace discrimination and anti-harassment laws, but they don’t just apply to managers and staff. Title VII applies to discrimination and harassment from clients, vendors and even customers. Because discrimination and harassment are often thought of as “internal workplace issues,” many companies may not be aware that they can be held responsible for the actions of non-employees when the employer (or its agents or supervisory employees) knew or should have known of inappropriate conduct and failed to take immediate and appropriate corrective action. This is why employees should be well aware of the protections in place and understand the importance of reporting harassing conduct.

Know AI-related regulations as they intersect with employment best practices

Companies are increasingly using AI in a variety of helpful ways. For instance, many employ smart software solutions to match candidates to open positions. However, these technologies can also pose a risk as they quickly evolve, along with the laws that govern them. Some AI programs may demonstrate bias to certain individuals or groups and certain cities and states are enacting legislation to prevent these kinds of issues.

Understanding varying payroll requirements

Prior to 2020, remote work options were becoming an increasingly popular benefit. The pandemic led to this option's explosive, lasting expansion. Nowadays, employees can work from other states, other times zones and even from other countries. While this is an attractive benefit to offer - especially across the technology and software sectors - there are some regulations that companies should know about.

At the top of the list are payroll laws, which can vary significantly from state to state. Employees in other states may be subject to city or state minimum wage laws or pay frequency requirements that differ from the regulations where the company headquarters is based. Overtime regulations and payroll deductions may also vary. A contracted payroll provider can help address these issues. Still, if these functions are led internally, care should be taken to stay current with the evolving regulatory landscape across the U.S.

With so many areas where mistakes can be made, companies can avoid costly errors by obtaining outside help. An employment attorney can assist in identifying and eliminating risks before they arise. Another option for small and medium-sized businesses is partnering with a professional employer organization (PEO

The rules surrounding employment in the U.S. are a moving target. This is why companies must stay up-to-speed on the various regulations that may impact their operations and be prepared to adjust as needed.

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Fernanda Anzek is managing director of HR services with Insperity, a Houston-based provider of human resources and business performance solutions.

Not everyone's brains work in the same way. Rather than ignoring that, here are an expert's tips for tapping into your workforce's cognitive diversity to the benefit of your business. Photo via Getty Images

Houston expert: How to embrace cognitive diversity in the workplace

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Everyone thinks and processes information in their own unique way. Cognitive diversity refers to these differing styles, perspectives, and problem-solving approaches among individuals in a group. Cognitive diversity, in today’s evolving workplace, is recognized as a valuable asset. Teams that are cognitively diverse can enhance their innovation, creativity and overall performance. The challenge comes with group dynamics when there may be communication barriers, conflicts and biases.

Effective strategies to consider for managing cognitive diversity in the workplace are as follows.

Communicate and take action

Business leaders who recognize and embrace the value of diverse perspectives and cognitive styles are better able to manage any challenges that may arise within the organization. Leaders and managers should communicate the importance of cognitive diversity to their team and encourage employees to share their unique viewpoints and approaches. This also means managers should be aware of their own biases and avoid making assumptions about people in order to create a more inclusive environment.

When a company uses hiring practices that embrace cognitive diversity, brings forth varying perspectives and ways of problem solving. Identifying those who may think differently than others or who may challenge the status quo is many times identifying those who will become the company’s best innovators. Embracing a diverse group of thinkers will help foster a culture of inclusivity, open-mindedness, and innovation.

Encourage collaboration

Collaboration is key to the success of any team. When working together, different cognitive styles can complement each other’s strengths and compensate for any weaknesses. Studies show cognitive diversity within groups can accelerate learning and performance when faced with challenges. In order to get through some of businesses’ most complex situations, there needs to be different perspectives and viewpoints.

For the most innovative thoughts to be heard, people must have the space to raise their hand and speak up, but also, people must actively listen to what the person has to say. Managers should work to create opportunities for collaboration, whether it is building cross-functional teams or other group projects and encourage employees to openly communicate and give feedback to improve the outcome.

Provide training and development

Training and development opportunities focused on cognitive diversity can help employees understand their own communication styles and the communication styles of others. By educating and applying, taking action steps after training will help reduce biases and misunderstandings. Additionally, these trainings can increase empathy, which does not come natural for some, and respect among team members.

Businesses should also evaluate their current company training programs to make certain they are inclusive of different learning styles, such as using infographics for visual learners or having hands-on demonstrations. Another consideration is to incorporate self-paced learning into training and development plans. No matter the type of training, solicit feedback, and take it under consideration to continuously improve how teams can develop their skills. Feedback that is thoughtfully considered and implemented leads to more engaged employees overall.

Manage conflicts

Conflicts are inevitable; however, organizations should set clear expectations and policies for performance and behavior. Unfortunately, conflict can be exacerbated in a diverse environment. Managers should be primed with knowledge on how to resolve conflicts and help facilitate constructive conversations among both parties. Also, managers should know when to reach out for help from their supervisor or human resources.

For business leaders to successfully manage cognitive diversity in the workplace, they must intentionally work to develop a culture that embraces the differences in others. Savvy business leaders will enlist the help of their HR team or outside council, such as a professional employer organization, to ensure their strategies and policies for managing a cognitively diverse workplace are inclusive.

Most importantly, when the company culture embodies a diverse, equitable, and inclusive workplace, the employees tend to have the same values, especially when the expectations are clearly set. As a result, the business will become a more innovative and engaging environment where employees know how to leverage their own strengths and the strengths of others, no matter their cognitive style.

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Fernanda Anzek is managing director of HR services with Insperity, a Houston-based provider of human resources and business performance solutions.
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Houston ranks among world’s top 30 emerging startup ecosystems

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Long known as the Energy Capital of the World, Houston also ranks among the world’s top 30 emerging startup ecosystems, according to a new report.

The report from Startup Genome, a research and advisory organization, doesn’t assign a specific numeric ranking to Houston’s startup ecosystem. Rather, it puts Houston in the ranking range of 21 to 30 for emerging ecosystems. Startup Genome weighed factors such as early-stage funding, performance and talent to identify the top emerging ecosystems.

Houston also gained notice for being one of the world’s 20 emerging ecosystems with at least four unicorn startups in the past 10 years. Houston and nine other ecosystems each had four unicorns.

According to StartupBlink, a startup research platform, Houston’s startup ecosystem grew 24 percent in 2025, with over 1,300 startups and total startup funding exceeding $808 million. StartupBlink places Houston at No. 46 among the world’s top 100 startup ecosystems.

In a recent post on LinkedIn, David Horsup, executive in residence at the Rice Alliance Clean Energy Accelerator, wrote that Houston “has all the ingredients to be wildly successful if it stays true to its differentiated pillars that drive the economy — energy, medical, and aerospace.”

Mumbai topped Startup Genome’s list of emerging ecosystems, followed by Istanbul, Madrid, Salt Lake City-Provo and Barcelona. After Salt Lake City-Provo, the top U.S. ecosystems were Phoenix, Detroit, Minneapolis and Las Vegas.

Silicon Valley led Startup Genome’s ranking of the world’s top established ecosystems, followed by New York City, London, Tel Aviv and Boston. Austin landed at No. 18 in this category and Dallas at No. 27.

“For much of the past decade, this report has chronicled the welcome dispersion of opportunity beyond the traditional hubs,” Startup Genome writes. “That trend has not died — but it has been complicated. Capital and scale are consolidating once more, particularly in the United States, and the gap between leading and emerging ecosystems is widening.”

KBR names C-suite duo to lead $5.3B government services spinoff

new leaders

In advance of the spinoff of its Mission Technology Solutions unit, Houston-based KBR has made two C-suite hires for the new business.

Michael LaRouche is coming aboard as president and CEO of the spinoff, currently called SpinCo, on Sept. 26. Nicholas Veasey is joining as executive vice president and chief financial officer on July 1.

“Michael and Nick bring a highly complementary combination of operational leadership, financial expertise, and mission-driven experience, and together they will accelerate our impact for stakeholders,” Stuart Bradie, chairman, president and CEO of publicly traded KBR, said in a news release.

LaRouche currently is CEO of Serco North America, a Herndon, Virginia-based government services contractor. Veasey most recently was CFO of MAG Aerospace, a Fairfax, Virginia-based defense contractor.

SpinCo, a government services contractor, will launch with more than $5.3 billion in annual revenue and 20,000 employees. KBR’s total headcount is around 36,000. Branding for SpinCo, including a formal name, will be revealed in July.

“SpinCo is positioned as a top-tier provider of differentiated technology solutions, anchored by deep mission expertise, global scale, and a relentless commitment to delivering for our customers,” LaRouche says.

After the spinoff, the slimmed-down KBR will focus on its Sustainable Technology Solutions business, a provider of energy and industrial technology that generated $2.5 billion in revenue in 2025. Bradie will remain chairman, president and CEO of the business.

Both SpinCo and the new KBR will be public companies. The spinoff is scheduled to be completed in January.

Experts: Houston's VC ecosystem has set the foundation — now we need scale

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Fervo Energy went public earlier this summer. The Houston geothermal company priced its IPO at $27 per share, raised $1.89 billion, and opened the next morning at a market capitalization north of $10 billion. By most measures, it is the largest venture-backed cleantech IPO in history and an unambiguous win for Houston. It’s also a useful moment to look at where Houston's venture ecosystem stands and where it can go. The highlight: Houston's venture ecosystem has real foundations and, with increased company formation activity, can grow into the scale our city's ambitions deserve.

A Houston energy story in the national recovery

The recent uptick in Houston venture activity follows national trends. U.S. venture deal count contracted roughly 22 percent from its 2021 peak through 2024 before rebounding to about 16,700 rounds in 2025. Houston's 23 percent increase in VC funding from 2023 to 2024 is part of a national recovery of comparable magnitude over the same time window.

The energy sector is where Houston exhibits unique trends—and where the story turns clearly positive. (Houston's strong health and space sectors deserve their own separate consideration.) By deal count, energy-related rounds have accounted for 15 to 20 percent of Houston activity, roughly consistent over the past few years.

By capital, energy's share surged from about 14 percent in 2023 to over 60 percent in 2025, driven by a small number of large Houston-headquartered rounds, primarily in geothermal and related technologies. Fervo is the obvious anchor, but Sage Geosystems, Quaise Energy, Zeta Energy, Vaulted Deep, Applied Carbon and Mariana Minerals have all closed meaningful rounds. Houston is concentrated and accelerating as an energy capital market, an invaluable position to build upon.

From foundation to scale

The institutional pieces are in place. Greentown Labs, Activate, the Ion and others have built sector-specialized infrastructure most cities would struggle to assemble. Fervo itself is an alum of both Activate and Greentown Labs. Mercury Fund closed its $160 million Fund V, its largest ever. Houston Angel Network, GOOSE Capital, Fathom Fund, and broader pre-seed and seed capital coverage are here. The Houston $10 million-plus Series A list now includes 40 rounds since 2021, which break roughly into two eras. While 2021 to 2022 was biotech-heavy, with companies like Sporos Bioventures, RadioMedix, Cellenkos and Coya Therapeutics, 2024 to 2025 has tilted clearly toward energy, climate, and critical minerals, with Vaulted Deep, Applied Carbon, Mariana Minerals, Sage Geosystems and Ignis H2 Energy among them.

What’s less developed is the volume of seed-stage companies flowing into that capital. Imagine a dozen more Fervos coming out of that infrastructure over the next decade, each generating jobs, recycled founder capital, and the next wave of operators and angel investors. That is the kind of opportunity Houston has within reach if we build the company-formation pipeline to feed it. To be relevant on the national stage as a venture market, and to drive an economy the size of Houston's into the 2030s, the city needs to be doing closer to 20 Series A rounds per month rather than per year. That throughput implies roughly 1,000 seed rounds per year, feeding the funnel at a 20 percent to 30 percent graduation rate. Reaching such throughput depends on how many new founders Houston produces and how quickly our innovation ecosystem can help them achieve lift-off.

Houston in context

The comparative picture brings the scaling challenge into focus. Between 2021 and 2024, Houston-area startups closed between 126 and 153 disclosed venture rounds per year, against a national count between 9,854 and 14,125. That places Houston at a little over 1 percent of the U.S. deal count. For comparison, Austin ran about three times Houston's deal count each year.

At the Series A level, Houston closed between 12 and 24 rounds in any given year. The median Houston Series A across the period was about $10.7 million, compared with $15.4 million in San Francisco. Houston founders are raising fewer and smaller Series A rounds than founders in peer metros, which points directly to where Houston has the most room to grow.

The unicorn picture tells the same story. From 2021 through 2025, the U.S. produced 590 venture-backed unicorns. Four were Houston-based: Solugen and Axiom Space in 2021, Cart.com in 2023, and Fervo Energy in 2024. Adding HighRadius from 2020 brings Houston's all-time total to five. Austin added 19 over the same five-year window. The path from here is to make Houston's entries on lists like these less the exception and more the rule.

Where this leads

Houston has a real opportunity to become the deepest, most credible energy and climate capital market in the country, with the company formation, talent and operator density to support it. The data shows the foundation is already in place. Fervo, Solugen and the growing roster of energy-adjacent Series A graduates are proof. Fervo's IPO is the first of what should be many. Houston has not had a venture-backed cleantech liquidity event of this scale before, and the city now has one to reference, recruit against and build on. With increased company formation at the seed and pre-seed stages, a Fervo-scale outcome need not be a generational event in Houston, but instead, it can become part of a chain reaction powering the city's economy.

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Stephanie T. Schmidt, PhD, is the founder of a stealth startup, a Venture Fellow at Energy Transition Ventures, and an Executive MBA candidate at Rice University's Jones Graduate School of Business. Lawson Gow is the Chief Operating Officer of Greentown Labs. The full Houston VC landscape report is available at Energy Transition Ventures and CleanTech.Org.

Sources: Crunchbase, PitchBook-NVCA, Carta
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