124+ PEO Companies

Best PEO Companies in Texas

Compare Professional Employer Organizations serving Texas businesses. Editorial ratings are independent — featured placements are paid visibility, not endorsements.

PEO Companies Serving Texas

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Justworks

New York, NY · Est. 2012

Payroll ProcessingEmployee BenefitsHR ManagementCompliance Support
Serving
2200 employees
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Insperity

Kingwood, TX · Est. 1986

Payroll ProcessingEmployee BenefitsHR ManagementWorkers Compensation
Serving
55,000+ employees
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TriNet

Dublin, CA · Est. 1988

Payroll ProcessingEmployee BenefitsHR ManagementCompliance Support
Serving
5500 employees
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ADP TotalSource

IRS CPEO ✓Nationwide

HQ: Roseland, NJ · Est. 1996

ADP TotalSource is the Professional Employer Organization division of ADP (NASDAQ: ADP), one of the world's largest payroll and HR companies with over 75 years of history and more than 1.1 million clients across 140+ cou…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportTax Administration

CoAdvantage

IRS CPEO ✓Nationwide

HQ: Tampa, FL · Est. 1996

CoAdvantage is a Bradenton, Florida-based Professional Employer Organization founded in 1997.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportTax Administration

Infiniti HR

Nationwide

HQ: Rockville, MD · Est. 2008

Infiniti HR is a Burtonsville, Maryland-based IRS CPEO certified Professional Employer Organization founded in 2004.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

G&A Partners

IRS CPEO ✓Regional

HQ: Houston, TX · Est. 1995

G&A Partners is a Houston, Texas-based Professional Employer Organization founded in 1995 by Antonio Grijalva and John Allen.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportRecruiting & Hiring

Questco

Regional

HQ: The Woodlands, TX · Est. 1994

A Texas-based PEO with a strong track record in the energy and professional services sectors. Questco emphasizes a relationship-driven service model with local expertise.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportTraining & Development

Employer Flexible

Regional

HQ: Houston, TX · Est. 1998

A regional PEO serving the South Central US with particular strength in the energy sector. Offers combined PEO and staffing services for workforce flexibility.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Abacus HR

Regional

HQ: Dallas, TX · Est. 2001

A Dallas-based PEO providing tailored HR solutions to small and mid-sized businesses across Texas and the surrounding region.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

FrankCrum

Nationwide

HQ: Clearwater, FL · Est. 1981

A family-owned PEO based in Florida serving businesses nationwide with 2-500 employees. FrankCrum is one of the few PEOs with its own insurance company, enabling highly competitive workers comp rates.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Extensis

IRS CPEO ✓Regional

HQ: Union, NJ · Est. 1997

ExtensisHR is a Woodbridge, New Jersey-based IRS CPEO certified and ESAC accredited Professional Employer Organization founded in 1997 by Richard Augustyn.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

PrestigePEO

IRS CPEO ✓Nationwide

HQ: Melville, NY · Est. 1998

PrestigePEO is a national Professional Employer Organization headquartered in Melville, New York, serving small and mid-sized businesses across all 50 states since 1998.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

Emergent PEO

IRS CPEO ✓Regional

HQ: The Woodlands, TX · Est. 2012

Emergent PEO is an IRS CPEO certified Professional Employer Organization serving small and mid-sized businesses across the United States.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Nextep

IRS CPEO ✓Regional

HQ: Norman, OK · Est. 1997

Nextep is a Norman, Oklahoma-based IRS CPEO certified and ESAC accredited Professional Employer Organization founded in 1997.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportRecruiting & Hiring

Resourcing Edge

IRS CPEO ✓Regional

HQ: Rockwall, TX · Est. 2005

Resourcing Edge is a Rockwall, Texas-based IRS CPEO certified Professional Employer Organization serving small and mid-sized businesses across the United States.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportRecruiting & Hiring

SWBC Professional Employer Services

IRS CPEO ✓Regional

HQ: Bulverde, TX · Est. 2000

SWBC Professional Employer Services is a Texas-based IRS CPEO certified PEO and a division of SWBC, a diversified financial services company headquartered in San Antonio.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Sequoia One PEO

IRS CPEO ✓Regional

HQ: Tempe, AZ · Est. 2012

Sequoia One PEO is a Tempe, Arizona-based IRS CPEO certified and ESAC accredited Professional Employer Organization founded in 2018, operating as part of Sequoia Consulting Group.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportRecruiting & Hiring

IntelliPro

IRS CPEO ✓Nationwide

HQ: San Jose, CA · Est. 2009

IntelliPro is an IRS-certified PEO headquartered in San Jose, California, specializing in HR outsourcing, payroll administration, and employee benefits management for technology companies and professional services firms…

Payroll ProcessingEmployee BenefitsHR ManagementCompliance SupportRecruiting & Hiring

The Labor Source

IRS CPEO ✓Regional

HQ: Orlando, FL · Est. 2012

The Labor Source is an IRS-certified PEO headquartered in Orlando, Florida, providing payroll administration, employee benefits, HR outsourcing, and compliance services to growing businesses across the Southeast and beyo…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

American One Source

IRS CPEO ✓Regional

HQ: Waco, TX · Est. 2015

American One Source is a family-owned and operated IRS CPEO certified Professional Employer Organization providing co-employment services to businesses and government agencies across the United States.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Paychex PEO

IRS CPEO ✓Nationwide

HQ: Rochester, NY · Est. 1971

Paychex PEO is the co-employment division of Paychex (NASDAQ: PAYX), one of the largest HR and payroll companies in the United States with over 50 years of experience serving American businesses.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

BBSI

Nationwide

HQ: Vancouver, WA · Est. 1965

Barrett Business Services, Inc. (BBSI) is a publicly traded (NASDAQ: BBSI) Professional Employer Organization headquartered in Vancouver, Washington.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

Adams Keegan

IRS CPEO ✓Nationwide

HQ: Memphis, TN · Est. 1987

Adams Keegan is a Memphis, Tennessee-based PEO offering both co-employment (PEO) and administrative services organization (ASO) models.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

Deel PEO

Nationwide

HQ: San Francisco, CA · Est. 2019

Deel PEO is the domestic U.S. co-employment offering from Deel, a San Francisco-based global HR and payroll platform founded in 2019 and valued at $16.8 billion following a $450 million Series G in May 2025.

Payroll ProcessingEmployee BenefitsHR ManagementCompliance SupportRecruiting & Hiring

AlphaStaff

Nationwide

HQ: Sunrise, FL · Est. 1997

AlphaStaff is a Sunrise, Florida-based Professional Employer Organization founded in 1997 and ESAC accredited.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportRecruiting & Hiring

Vensure Employer Services

Nationwide

HQ: Chandler, AZ · Est. 2004

Vensure Employer Services is one of the largest privately held PEOs in the United States, headquartered in Chandler, Arizona, and founded in 2004.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-managementRecruiting & Hiring

America's Back Office

IRS CPEO ✓Nationwide

HQ: Chandler, AZ · Est. 2000

America's Back Office is an IRS CPEO certified and ESAC accredited PEO headquartered in Chandler, Arizona, providing comprehensive HR outsourcing services to small and mid-sized businesses across the United States.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Avitus Group

Nationwide

HQ: Billings, MT · Est. 1994

Avitus Group is a Billings, Montana-based PEO and HR outsourcing company founded in 1994, providing payroll processing, employee benefits, workers' compensation, and HR services to businesses nationwide.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance SupportRecruiting & Hiring

Tandem HR

Regional

HQ: Burr Ridge, IL · Est. 1998

Tandem HR is a Burr Ridge, Illinois-based PEO founded in 1998, providing payroll, benefits administration, HR support, workers' compensation, and compliance services to small and mid-sized businesses.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Modern Business Associates

Nationwide

HQ: Tampa, FL · Est. 1990

Modern Business Associates (MBA) is a Tampa, Florida-based PEO founded in 1990, providing co-employment services including payroll processing, employee benefits, HR administration, workers' compensation, and compliance s…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Congruity HR

Regional

HQ: Kernersville, NC · Est. 2015

Congruity HR is a Kernersville, North Carolina-based PEO providing co-employment services including payroll, employee benefits, HR administration, and compliance support to growing businesses in the Southeast and Mid-Atl…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Employco USA

Regional

HQ: Westmont, IL · Est. 1997

Employco USA is a Westmont, Illinois-based PEO founded in 1997, providing payroll administration, employee benefits, HR outsourcing, workers' compensation, and compliance services to small and mid-sized businesses.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Cornerstone Employer Solutions

Regional

HQ: St. Louis, MO · Est. 2002

Cornerstone Employer Solutions is a St. Louis, Missouri-based PEO providing co-employment services including payroll processing, employee benefits administration, HR outsourcing, workers' compensation, and compliance sup…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Dynamic HR Services

Regional

HQ: Auburn Hills, MI · Est. 2000

Dynamic HR Services is an Auburn Hills, Michigan-based PEO providing co-employment services including payroll processing, employee benefits, HR administration, workers' compensation, and compliance support to businesses…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

eEmployers Solutions

Regional

HQ: San Antonio, TX · Est. 2000

eEmployers Solutions is a San Antonio, Texas-based PEO providing payroll processing, employee benefits, HR outsourcing, workers' compensation, and compliance services to small and mid-sized businesses across Texas and th…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Obsidian HR

Regional

HQ: Charlotte, NC · Est. 2014

Obsidian HR is a Charlotte, North Carolina-based PEO providing payroll, employee benefits, HR outsourcing, and compliance services to growing businesses in the Southeast.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Vincera HR

Regional

HQ: Troy, MI · Est. 2005

Vincera HR is a Troy, Michigan-based PEO providing payroll processing, employee benefits, HR outsourcing, and compliance services to small and mid-sized businesses across the Midwest and select markets nationally.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Flex HR

Regional

HQ: Johns Creek, GA · Est. 2009

Flex HR is a Johns Creek, Georgia-based HR outsourcing company providing PEO services and HR consulting to small and mid-sized businesses across the Southeast.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Proservice National

Nationwide

HQ: Honolulu, HI · Est. 2010

Proservice National is the mainland U.S. PEO extension of ProService Hawaii, providing co-employment services including payroll, benefits, HR administration, and compliance support to businesses across the continental Un…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Questco

Nationwide

HQ: The Woodlands, TX · Est. 2002

Questco is a national PEO headquartered in The Woodlands, Texas, providing comprehensive co-employment services to businesses across the United States.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

Regis HR Group

Nationwide

HQ: Tampa, FL · Est. 2002

Regis HR Group is a Tampa, Florida-based national PEO providing co-employment services including payroll processing, employee benefits, HR administration, workers' compensation, and compliance support to businesses acros…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Stratus HR

Nationwide

HQ: South Jordan, UT · Est. 2003

Stratus HR is a South Jordan, Utah-based PEO (operating as ISI HR) providing comprehensive co-employment services to small and mid-sized businesses nationwide.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Servant HR

Regional

HQ: Birmingham, AL · Est. 2005

Servant HR is a Birmingham, Alabama-based PEO providing co-employment services including payroll, benefits, HR administration, and compliance support to small and mid-sized businesses across the Southeast.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

True PEO

Regional

HQ: Scottsdale, AZ · Est. 2008

True PEO is a Scottsdale, Arizona-based Professional Employer Organization providing payroll, employee benefits, HR administration, and compliance services to small and mid-sized businesses in the Southwest and Western U…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

INVO PEO

Nationwide

HQ: Tampa, FL · Est. 2010

INVO PEO is a Tampa, Florida-based Professional Employer Organization providing co-employment services including payroll processing, employee benefits, HR administration, workers' compensation, and compliance support to…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Shift Human Capital Management

Regional

HQ: Chicago, IL · Est. 2012

Shift Human Capital Management is a Chicago, Illinois-based PEO providing payroll, employee benefits, HR outsourcing, and compliance services to growing businesses across the Midwest and nationally.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

SinglePoint Outsourcing

Nationwide

HQ: Scottsdale, AZ · Est. 2007

SinglePoint Outsourcing is a Scottsdale, Arizona-based PEO providing national co-employment services including payroll, employee benefits, HR administration, and compliance support to small and mid-sized businesses acros…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Quality Business Solutions

Regional

HQ: Columbia, MD · Est. 2001

Quality Business Solutions (QBS) is a Columbia, Maryland-based PEO specializing in co-employment services for small and mid-sized businesses, with particular depth in supporting government contractors and professional se…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Harbor America

Regional

HQ: Houston, TX · Est. 2000

Harbor America is a Houston, Texas-based PEO providing payroll, employee benefits, HR administration, workers' compensation, and compliance services to businesses in Texas and the South Central region, with particular st…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Four Point HR

Regional

HQ: Orlando, FL · Est. 2014

Four Point HR is an Orlando, Florida-based PEO providing co-employment services including payroll, employee benefits, HR administration, and compliance support to small and mid-sized businesses across the Southeast.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Go-Hire Employment

Regional

HQ: Baton Rouge, LA · Est. 2003

Go-Hire Employment and Development is a Baton Rouge, Louisiana-based PEO providing co-employment services including payroll, employee benefits, HR administration, workers' compensation, and compliance support to business…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Saltus

Regional

HQ: Las Vegas, NV · Est. 2012

Saltus is a Las Vegas, Nevada-based PEO providing co-employment services including payroll, employee benefits, HR administration, and compliance support to businesses in Nevada and surrounding Western states, with notabl…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

NetPEO

Nationwide

HQ: Atlanta, GA · Est. 2009

NetPEO is an Atlanta, Georgia-based PEO broker and provider offering co-employment services and PEO matching to businesses nationwide.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Total HR

Regional

HQ: San Diego, CA · Est. 2006

Total HR is a San Diego, California-based PEO (operating as Strategic HR Management Services) providing comprehensive co-employment services including payroll, employee benefits, HR administration, and compliance support…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Integrity Employee Leasing

Regional

HQ: Clearwater, FL · Est. 2004

Integrity Employee Leasing is a Clearwater, Florida-based PEO providing co-employment services including payroll, employee benefits, HR administration, workers' compensation, and compliance support to small and mid-sized…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Employer Flexible

Regional

HQ: Houston, TX · Est. 2000

Employer Flexible is a Houston, Texas-based PEO providing co-employment services including payroll, employee benefits, HR administration, workers' compensation, and compliance support.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

TEL Staffing & HR

Regional

HQ: Pensacola, FL · Est. 2000

TEL Staffing & HR is a Pensacola, Florida-based PEO founded in 2000, reporting over $637 million in annual revenue and serving businesses across 16 states.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-managementRecruiting & Hiring

Applied Business Solutions

Regional

HQ: Jacksonville, FL · Est. 1998

Applied Business Solutions (ABS) is a Jacksonville, Florida-based PEO providing co-employment services including payroll, employee benefits, HR administration, workers' compensation, and compliance support to businesses…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Complete Employee Services

Regional

HQ: Columbia, SC · Est. 2005

Complete Employee Services is a Columbia, South Carolina-based PEO providing co-employment services including payroll, employee benefits, HR administration, and compliance support to businesses in the Carolinas and South…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

PrimePay

Nationwide

HQ: West Chester, PA · Est. 1986

PrimePay is a West Chester, Pennsylvania-based payroll and PEO services company founded in 1986, providing co-employment services and payroll administration to small and mid-sized businesses nationwide.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

CPE HR

Regional

HQ: Burbank, CA · Est. 2003

CPE HR is a Burbank, California-based PEO providing co-employment services to businesses primarily in California and nationally.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Centric HR

Regional

HQ: Charlotte, NC · Est. 2010

Centric HR is a Charlotte, North Carolina-based PEO providing co-employment services including payroll, employee benefits, HR administration, and compliance support to businesses in the Southeast and Mid-Atlantic.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Boon Chapman

Regional

HQ: Brenham, TX · Est. 1975

Boon Chapman is a Brenham, Texas-based employee benefits and PEO services company founded in 1975, providing payroll, employee benefits, HR administration, and compliance services to businesses primarily in Texas and the…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Employco Resources

Regional

HQ: Westmont, IL · Est. 1997

Employco Resources is a Westmont, Illinois-based PEO founded in 1997, providing payroll, employee benefits, HR outsourcing, workers' compensation, and compliance services to small and mid-sized businesses with a focus on…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

MidwestHR

IRS CPEO ✓Regional

HQ: Woodridge, IL · Est. 1997

MidwestHR is a Woodridge, Illinois-based IRS-certified PEO founded in 1997, serving startups and small businesses with HR outsourcing, payroll processing, employee benefits administration, and workers' compensation.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Sheakley HR

Regional

HQ: Cincinnati, OH · Est. 1963

Sheakley HR is a Cincinnati, Ohio-based PEO and HR services company founded in 1963, offering a full-service co-employment model alongside HR consulting, employee benefits, payroll, workers' compensation, and workplace s…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Supportrisk-management

AHEAD HR

Regional

HQ: Lisle, IL · Est. 1995

AHEAD HR is a Lisle, Illinois-based PEO founded in 1995 by William and Andrea Bellis.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Creative Business Resources

Regional

HQ: Denver, CO · Est. 1991

Creative Business Resources is a Denver, Colorado-based PEO founded in 1991, providing co-employment services to businesses across the Mountain West and Central Plains.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Genesis HR

IRS CPEO ✓Nationwide

HQ: Burlington, MA · Est. 1991

Genesis HR Solutions is a Burlington, Massachusetts-based IRS CPEO certified PEO founded in 1991, providing co-employment services to businesses across New England and nationally.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Employer Advantage

IRS CPEO ✓Regional

HQ: Joplin, MO · Est. 1995

Employer Advantage is a Joplin, Missouri-based IRS CPEO certified PEO providing co-employment services to businesses across the Midwest and South Central United States.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Trion Group

Regional

HQ: Wayne, PA · Est. 1990

Trion Group is a Wayne, Pennsylvania-based PEO and benefits administration company founded in 1990, providing co-employment services, employee benefits, payroll, HR consulting, and compliance support to businesses in the…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Pinnacle PEO

Regional

HQ: Scottsdale, AZ · Est. 2005

Pinnacle PEO is a Scottsdale, Arizona-based Professional Employer Organization providing co-employment services including payroll processing, employee benefits, HR administration, and compliance support to businesses acr…

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Prism HR

Nationwide

HQ: Hopkinton, MA · Est. 1996

PrismHR is a Hopkinton, Massachusetts-based HR technology platform and PEO services provider founded in 1996.

Payroll ProcessingEmployee BenefitsHR ManagementWorkers CompensationCompliance Support

Choosing a PEO in Texas

Texas is one of the most business-friendly states in the country, but that does not mean HR is simple. With a minimum wage set at the federal floor of $7.25 per hour and no state income tax, Texas employers face a different compliance landscape than most — but one that still carries significant risk without proper HR infrastructure.

Texas is one of only a handful of states where workers' compensation insurance is not mandatory for private employers. While this gives businesses flexibility, it also creates significant liability exposure. Many PEOs operating in Texas include workers' comp coverage as part of their co-employment arrangement, effectively solving this gap for small business owners who would otherwise be self-insured or exposed to unlimited liability for workplace injuries.

Texas follows the federal WARN Act, requiring 60 days advance notice for layoffs affecting 50 or more employees at a single site. Texas has no state-level paid sick leave mandate — though several cities including Austin and San Antonio have attempted local ordinances that have faced ongoing legal challenges. Employers operating across Texas cities should verify current local ordinance status with their PEO.

For businesses in industries common to Texas — energy, construction, healthcare, and professional services — a PEO with IRS CPEO certification provides an additional layer of tax protection and compliance assurance. Texas is a right-to-work state, meaning employees cannot be compelled to join a union, which simplifies certain HR considerations. Use the form on this page to connect with PEOs experienced in Texas employment law and ready to serve your business.

Already working with a PEO and considering a switch? PEO Alternatives has independent comparisons of the top providers to help you evaluate your options.

Frequently Asked Questions

Is workers' compensation insurance required in Texas?

Texas is one of the only states where workers' compensation insurance is not mandatory for private employers. However, employers who opt out face unlimited liability for workplace injuries and cannot use common law defenses. Most PEOs operating in Texas include workers' comp coverage as part of their co-employment agreement, which is a significant advantage for small businesses.

What is the minimum wage in Texas in 2026?

Texas does not have a state minimum wage above the federal rate. In 2026, the effective minimum wage for most Texas employers covered by the Fair Labor Standards Act is $7.25 per hour. Some cities have attempted to set higher local rates, but state law has generally preempted local minimum wage ordinances.

Does Texas require paid sick leave?

Texas has no statewide paid sick leave law. Several cities including Austin and San Antonio passed local paid sick leave ordinances, but these have faced significant legal challenges. Businesses operating in Texas should consult with their PEO to understand current local ordinance status in each city where they operate.

How can a PEO help Texas businesses with HR compliance?

A PEO helps Texas businesses navigate workers' compensation decisions, federal WARN Act obligations, multi-city employment law variations, and FLSA compliance. For businesses in industries like energy, construction, or healthcare — which face elevated workers' comp risk — a PEO that includes comprehensive coverage is particularly valuable.