City toughens rules for contractors / Misclassification of workers could result in $500 fine
Source: By CAROLYN FEIBEL, Houston Chronicle (TX), July 24, 2008, 6:34AM
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.