Houston toughens record-keeping rules for city contractors

City toughens rules for contractors Misclassification of workers could result in $500 fine By CAROLYN FEIBEL City Council passed an ordinance Wednesday requiring better record keeping from contractors working for the city. The new rules are aimed at making it harder for companies to misclassify their workers as "independent contractors," to avoid paying Social Security, Medicare, workers' compensation or unemployment insurance. Union officials say the practice is widespread in construction, allowing companies to underbid their competitors. Council approved the ordinance 12-2, with Councilmen Ron Green and Mike Sullivan dissenting. The ordinance requires all contractors, except professional service providers, to keep a list of every employee or independent contractor working on a city project, including descriptions of his or... [read full story]