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.

Small businesses need to factor in employee benefit options from day one — and this Houston expert has some tips. Photo via Getty Images

Houston wealth management adviser weighs in on benefit options as key for small business success

guest column

While Small Business Appreciation month has come to an end, my work in aiding small businesses achieve financial success is continuous.

In 2009, I began my career as a financial adviser recently co-founded Volante Integrated Planning, a Houston-based office of Northwestern Mutual focused on comprehensive financial planning and helping clients achieve financial freedom.

After years of working with business owners, and as a small business owner myself, I have learned the importance of offering benefits that help attract and retain talent, foster improved work habits and provide a foundation for growth. According to the annual SHRM employee benefit survey, health-related benefits and retirement plans were ranked the two most important benefits for employees. Whether you are a new small business owner or an established one, it is important to be aware of the benefit options available to you and the considerations that go into mapping out a benefits strategy.

1. Retirement plan options

The most common retirement plans available to small business owners are 401(k), simplified employee pension (SEP) IRA and savings incentive match plan for employees (SIMPLE) IRA. The SEP IRA and SIMPLE IRA provide employers the ability to save on a pre-tax basis. While there are some required contributions on behalf of any full-time employees, the SEP and SIMPLE IRA’s are often recommended for the self-employed or businesses with part-time or contract employees. The 401(k) also provides employers with a pre-tax savings opportunity and the ability to save on a Roth basis. Because a 401(k) requires additional administration and ongoing requirements, it is often a valuable tool for business owners who have more full-time employees.

2. Health care benefit options

According to the Affordable Care Act, companies with fewer than 50 employees are not required to provide health insurance. However, offering a competitive health insurance benefits package is an increasingly important strategy to help boost both new employee acquisition and retention. Following the global pandemic, health benefits have become increasingly important. According to a study by McKinsey & Company, 51 percent of employers now offer health care benefits to attract new employees with dental, vision, and short-term disability as the most important for job-seekers.

Not only are these benefits of importance to employees, they provide protection for business owners by ensuring good health and protection from illness-related lost productivity. Some health care benefits available to small business owners include health reimbursement accounts, where you make contributions to an account that can be used by employees to pay for individual health insurance policies acquired on their own. Consider hiring a broker, benefits consultant or financial adviser to help compare your options.

3. Life and disability insurance options

As a small business owner, you have a duty to your family, employees and business partners. It is often the unexpected that can derail the success of a business. To that extent, taking the steps to ensure you and your business are protected if you are unable to work is important. Disability insurance is a versatile product that can be used to protect you, as the owner, and your employees against loss of income due to the inability to work. Additionally, disability overhead coverage and disability buy-out insurance can protect the business and any business partners from an owner’s disability, ensuring that the business can still run smoothly. Life insurance is also important, and often required if seeking a business-related loan, to provide income replacement for your family and any business partners in the event of an owner’s death.

4. Get creative with your benefit options

The small business world is ever changing, which is why it is essential — and sometimes difficult — to keep up with benefit options. I encourage small business owners to get creative with their benefit options by exploring a professional employer organization (PEO) and a multiple employer welfare arrangement (MEWA). PEO is designed to help small businesses manage their administrative overhead, benefits and compliance duties. Through MEWA, small businesses are able to collaborate on group insurance benefits for a low cost. Lastly, if your family members contribute to your small business, make sure they are on the payroll and eligible for various benefits. This may allow you to increase the benefits your household takes home.

While creating a small business employee benefits plan can be tedious, it will take your small business to the next level. Consult in a CPA, business attorney, and financial adviser to help navigate what benefits are a good fit for you and your small business.

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Jennifer Steil is principal and wealth management adviser at Volante Integrated Planning, a private client group at Northwestern Mutual.

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Houston VC funding surged nearly 50% in Q1 2026, report says

VC victories

First-quarter venture capital funding for Houston-area startups climbed nearly 50 percent compared to the same time last year, according to the PitchBook-NVCA Venture Monitor.

In Q1 2026, Houston-area startups raised $532.3 million, a 49 percent jump from $320.2 million in Q1 2025, according to the PitchBook-NVCA Venture Monitor.

However, the Q1 total fell 23 percent from the $671.05 million raised in Q4 2025.

Among the first-quarter funding highlights in Houston were:

  • Utility Global, which focuses on industrial decarbonization, announced a first close of $100 million for its Series D round.
  • Sage Geosystems raised a $97 million Series B round to support its geothermal energy storage technology.

Those funding rounds underscore Houston’s evolution as a magnet for VC in the energy sector.

“Today, the energy sector is increasingly extending into the startup economy as venture capital flows into companies developing the technologies that will shape the future of global energy,” the Greater Houston Partnership says.

The energy industry accounted for nearly 40 percent of Houston-area VC funding last year, according to market research and lead generation service Growth List.

Adding to Houston’s stature in VC for energy startups are investors like Chevron Technology Ventures, the investment arm of Houston-based oil and gas giant Chevron; Goose Capital; Mercury Fund; and Quantum Energy Partners.

How Houston innovators played a role in the historic Artemis II splashdown

safe landing

Research from Rice University played a critical role in the safe return of U.S. astronauts aboard NASA’s Artemis II mission this month.

Rice mechanical engineer Tayfun E. Tezduyar and longtime collaborator Kenji Takizawa developed a key computational parachute fluid-structure interaction (FSI) analysis system that proved vital in NASA’s Orion capsule’s descent into the Pacific Ocean. The FSI system, originally developed in 2013 alongside NASA Johnson Space Center, was critical in Orion’s three-parachute design, which slowed the capsule as it returned to Earth, according to Rice.

The model helped ensure that the parachute design was large enough to slow the capsule for a safe landing while also being stable enough to prevent the capsule from oscillating as it descended.

“You cannot separate the aerodynamics from the structural dynamics,” Tezduyar said in a news release. “They influence each other continuously and even more so for large spacecraft parachutes, so the analysis must capture that interaction in a robustly coupled way.”

The end result was a final parachute system, refined through NASA drop tests and Rice’s computational FSI analysis, that eliminated fluctuations and produced a stable descent profile.

Apart from the dynamic challenges in design, modeling Orion’s parachutes also required solving complex equations that considered airflow and fabric deformation and accounted for features like ringsail canopy construction and aerodynamic interactions among multiple parachutes in a cluster.

“Essentially, my entire group was dedicated to that work, because I considered it a national priority,” Tezduyar added in the release. “Kenji and I were personally involved in every computer simulation. Some of the best graduate students and research associates I met in my career worked on the project, creating unique, first-of-its-kind parachute computer simulations, one after the other.”

Current Intuitive Machines engineer Mario Romero also worked on Orion during his time at NASA. From 2018 to 2021, Romero was a member of the Orion Crew Capsule Recovery Team, which focused on creating likely scenarios that crewmembers could encounter in Orion.

The team trained in NASA’s 6.2-million-gallon pool, using wave machines to replicate a range of sea conditions. They also simulated worst-case scenarios by cutting the lights, blasting high-powered fans and tipping a mock capsule to mimic distress situations. In some drills, mock crew members were treated as “injured,” requiring the team to practice safe, controlled egress procedures.

“It’s hard to find the appropriate descriptors that can fully encapsulate the feeling of getting to witness all the work we, and everyone else, did being put into action,” Romero tells InnovationMap. “I loved seeing the reactions of everyone, but especially of the Houston communities—that brought me a real sense of gratitude and joy.”

Intuitive Machines was also selected to support the Artemis II mission using its Space Data Network and ground station infrastructure. The company monitored radio signals sent from the Orion spacecraft and used Doppler measurements to help determine the spacecraft's precise position and speed.

Tim Crain, Chief Technology Officer at Intuitive Machines, wrote about the experience last week.

"I specialized in orbital mechanics and deep space navigation in graduate school,” Crain shared. “But seeing the theory behind tracking spacecraft come to life as they thread through planetary gravity fields on ultra-precise trajectories still seems like magic."