Building a compliant hiring process for new Texas businesses

On Behalf of | Oct 9, 2026 | BUSINESS & COMMERCIAL LAW - Business Formation & Planning

For a new business owner, creating a hiring process is one of the most intimidating parts of forming a company. There are many rules and laws to navigate and getting things wrong can introduce legal complications. 

Most new business operators need a path that helps them choose the right people while staying within the rules. The right knowledge combined with strong legal support can help you create a hiring process that meets Texas and federal laws.

Rules for interviews

Interviews should focus on job‑related matters while avoiding topics tied to protected traits under federal law such as age, race, national origin, disability, religion and sex. Generally, employers may ask whether an applicant can perform specific duties with or without reasonable accommodation.

These guidelines help keep the interview on track and legal:

  • Keep questions tied to essential job functions
  • Avoid inquiries about protected traits
  • Ask about relevant experience and required skills
  • Confirm availability for required work hours

Focusing on these points facilitates a consistent and lawful interview structure.

Anti‑discrimination laws

Employers must follow federal rules enforced by the Equal Employment Opportunity Commission to avoid discrimination in the hiring process. At the same time, they must also comply with the Texas Labor Code, which mirrors federal protections for hiring decisions. 

One way to help ensure compliance and prevent discrimination is to apply the same criteria to every applicant and document how decisions are made.

Background‑check limitations

Businesses may perform background checks, but they must follow the federal Fair Credit Reporting Act. Employers must provide required notices before obtaining a consumer report and follow adverse‑action steps if the report influences a hiring decision. Background checks should relate directly to job duties to avoid unnecessary screening.

A compliant hiring process gives Texas small businesses a reliable structure for evaluating applicants and meeting legal requirements.