As Texas continues to experience significant economic growth, many small to medium-sized businesses face challenges in managing human resources, compliance, and employee-related risks. In a recent interview on The Building Texas Show, Neil Katz, CEO of Exceptional HR Solutions, explained how fractional HR services provide expert support without the cost of a full-time department.

Managing Growth and Reducing Risk
With over 25 years of HR experience, Katz emphasizes that business owners often spend 10–50% of their time on people-related issues, diverting focus from core operations. Fractional HR services help companies navigate hiring, onboarding, investigations, compensation, and compliance, allowing leaders to focus on growth.

“Hire experts in their disciplines,” Katz advises. “Get back to what you love because you probably don’t love dealing with this stuff anyway.”

Critical Focus: Employee vs. Contractor Classification
A major area of risk for Texas businesses is the misclassification of employees as 1099 contractors. Katz warns that if a worker uses company email, equipment, or receives majority income from one employer, they should likely be classified as a W-2 employee.

“People don’t get to choose if they want to be a contractor. The law defines what a contractor is and what is not. If you’re not sure, the rule of thumb is to hire them as an employee.”

Serving Municipalities and Small Businesses
Exceptional HR Solutions also supports municipalities, such as the City of Bonham, providing expertise without the overhead of a full-time HR director. Katz highlights that fractional services are ideal for small cities and businesses that need professional HR support but lack the budget for a dedicated department.

Watch the full interview with Neil Katz on The Building Texas Show's Youtube Channel:

1099 vs W-2: The Mistake That Could Sink Your Small Business

Connect with Exceptional HR Solutions
Businesses and municipalities seeking HR support can visit ExceptionalHRSolutions.com or connect with Neil Katz on LinkedIn.

About Exceptional HR Solutions
Exceptional HR Solutions provides fractional HR services to small and medium-sized businesses and municipalities across Texas. With a team of 20 experts, the company helps clients manage hiring, compliance, employee relations, and risk, allowing leaders to focus on growth and operations.

About The Building Texas Show:
Hosted by Justin McKenzie, The Building Texas Show features conversations with leaders and candidates shaping Texas communities. From elections to economic development, the show highlights civic engagement and local impact.

Media Contact:
Justin McKenzie
Host, The Building Texas Show
(210) 748-2312 | justin@buildingtexasshow.com
https://buildingtexasshow.com

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