LONE STAR PEO: HOW TODD & BECKY NEWTON CARRY ON THE PEO FAMILY LEGACY

When Todd and Becky Newton made the decision to launch Lone Star PEO in 2016 it was, in many ways, a return to their family business roots and the kind of business culture they believed in.

Today, as the company approaches its 10-year anniversary, the San Antonio–based PEO reflects a clear philosophy: keep it personal, responsive and never lose sight of the people behind the payroll.

THE FAMILY CONNECTION

Becky’s father, Wallace Brumley, was a PEO industry pioneer and led early legislative efforts in Texas to fight for PEO recognition.

“The successful legal action ultimately contributed to the passage of the PEO licensing act here in Texas, providing regulatory structure and formal recognition for the PEO Industry,” Becky explains.

He’s also responsible for first pulling Todd into the PEO industry.

“I was working in Houston as an investment advisor, dealing with investments and insurance for high-net-worth individuals,” Todd recalls. “One day my father-in-law called and asked if I had interest in managing the retirement plan at his PEO.”

Todd had no expectations of joining the family business. His career had taken off, and he thought there was plenty of opportunity in front of him. Yet, the appeal of returning to Becky’s hometown of San Antonio ultimately won out.

At Brumley PEO, Todd began by overseeing 401(k) plans and eventually worked his way up to chief operating officer. Under Wallace’s mentorship, he absorbed lessons that would shape his professional philosophy: prioritize customer service, treat employees like family and remember the business is about people.

Over the years, the company grew significantly — from roughly 1,500 worksite employees when Todd joined to about 8,000 by 2008. At that time, Wallace decided that it was time to begin planning for the next phase of the company’s history. Ultimately, the PEO was acquired by SWBC.

Following the acquisition, Todd and Becky found themselves in a very different environment. SWBC was a large corporation with multiple lines of business. It was a bit of an office culture shock compared to the family business mindset of Brumley PEO.

“It didn’t take long to realize we weren’t in that family business atmosphere anymore,” Todd says.

Becky left the company soon after the acquisition, but Todd stayed on until 2015.

Todd spent a year reflecting on his career and planning next steps. He also enjoyed the chance to spend time attending soccer games and enjoying family life. It was during that year that the idea of starting their own PEO began to crystallize for Todd and Becky.

The motivation wasn’t simply to launch a business. It was to recreate the culture they had valued most, one centered on service, accessibility and strong relationships with clients and staff.

In June 2016, they officially began working with their first clients as Lone Star PEO opened its doors.

STARTING FROM SCRATCH

Unlike stepping into an established operation, building a PEO from the ground up meant creating everything from systems and service agreements to vendor relationships.

Fortunately, years in the industry and active involvement with NAPEO provided valuable connections and guidance. The couple leaned on industry peers and consultants to navigate the early stages.

Inside the office, the firm’s culture reflects the same family-first ethos of Brumley PEO.

With 10 internal employees the environment is intentionally supportive and relaxed. Staff enjoy flexible Friday afternoons when workload permits, casual dress and even massages from a visiting masseuse once per month.

There’s also a designated relaxation room for employees who need a brief reset during the day, and paid time for volunteering with charities of their choice.

Expectations are set clearly to preserve work-life balance.

“The benefits of a work-life balance prevent burnout, increase productivity, enhance job satisfaction, and strengthen relationships which start internally and waterfalls down to the client,” Becky says.

The result is strong employee morale and minimal turnover which is something clients notice and appreciate.

A DELIBERATE CLIENT FOCUS

Rather than rely on an internal sales force to grow the business, Todd and Becky partner with brokers and benefit from referrals from existing clients. Recently, they began exploring digital marketing to expand lead generation, though the long-term impact remains to be seen.

The company primarily serves blue-collar businesses which often operate with leaner management structures and appreciate hands-on support. Todd notes that construction companies in particular tend to have straightforward HR and workforce expectations which can simplify service delivery.

Rising costs and regulatory complexity continue to make healthcare a challenge for the PEO and clients alike. But Todd and Becky are committed to always helping their clients as best as possible, and have leaned into establishing ICHRAs, a relatively new way for employers to provide health coverage to employees.

Geographically, the focus remains Texas—a market large enough to sustain significant growth. While the firm is licensed in more than 20 states, out-of-state expansion is evaluated carefully, balancing opportunity against regulatory complexity.

SERVICE REMAINS CENTRAL

Over the last two decades, the PEO technology landscape has transformed dramatically. In the early days, employee portals were barely emerging, and systems were largely DOS-based.

Today, robust, sophisticated platforms power much of the administrative backbone of PEO operations. Todd readily acknowledges the value of modern systems, but he understands that technology is only as good as the people behind it.

For Lone Star PEO, the differentiator isn’t automation. It’s accessibility.

“We don’t have an automated phone system. We don’t have AI answering employee questions,” he explains.

Each client is assigned a dedicated payroll specialist as a primary contact, and issues are escalated internally as needed.

Perhaps most telling: clients have direct access to Todd and Becky.

“All of our clients, their key contacts, they have my cell phone number, they have Becky’s cell phone number. We’re available to them 24/7,” Todd says.

That availability isn’t just rhetoric. On one family vacation to Costa Rica, they fielded client questions from the jungle to ensure issues were resolved promptly. For small business owners, that level of access resonates.

“Small business owners like to do business with other small businesses,” Todd explains.

DEEP COMMUNITY ROOTS

Outside the office, the company’s commitment to community is equally personal.

Todd has long supported the National Multiple Sclerosis Society, riding in the MS 150 cycling event for more than two decades after a family member was diagnosed with the disease. The firm also supports the Bexar County Junior Livestock Show and other local initiatives.

Other employees are deeply involved in volunteer work, too, from park cleanups to school supply drives and meal deliveries.

In a gesture that reflects their service philosophy, the company donates a portion of revenue from each newly onboarded client to a charity of that client’s choice.

“This has always been part of our business plan. We strongly believe that everyone can give back—whether through financial support or by giving their time—and we strive to lead by example,” says Becky.

AN ENDURING FOUNDATION

Nearly a decade into their entrepreneurial journey, Todd and Becky have built more than a PEO. They’ve built a business that mirrors their values rooted in accessibility, community and genuine partnership.

In an era defined by consolidation, automation and rapid change, their approach offers a reminder that in the PEO industry, relationships remain the ultimate differentiator.

For them, success isn’t measured solely in worksite employee counts or expansion across state lines. It’s measured in the stability of their staff, the loyalty of their clients and the ability to answer the phone — even from the jungles of Costa Rica — when a business owner needs help.

As the industry continues to evolve, that commitment to personal service may prove to be their most enduring competitive advantage.