CONTRACTOR EMPLOYEE CLASSIFICATION

Houston Code of Ordinances ch. 15, art. X

in effect

Houston Code of Ordinances § 15-151 Declaration of policy; exclusions

Sec. 15-151. - Declaration of policy; exclusions (a) It is the policy of the city to encourage fair competition for city contracts by requiring all contractors to comply with applicable employment laws, statutes and ordinances. It is city policy to prevent any unfairness or inequity for contractors who comply with applicable employment laws. (b) It is the policy of the city to place an affirmative duty on contractors to demonstrate compliance with all employment laws, statutes and ordinances. (c) Contractors awarded contracts for professional services, as defined in § 2254.002 of the Texas Government Code, are excluded from the requirements of this article. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-152 Definitions.

Sec. 15-152. - Definitions. The words and phrases defined in this section shall have the meanings ascribed when used in this article, unless the context clearly indicates another meaning. Contractor means any person or legal entity providing goods, labor, or services to the city by contract for profit and their agents. Independent contractor means a person performing work for a contractor under a city contract for whom the contractor has the right to control or direct only the result of the work and not the means and methods of accomplishing the result, or a person the Internal Revenue Service has determined is an independent contractor for purposes of federal employment taxes and income tax withholding. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-153 Records regarding classification.

Sec. 15-153. - Records regarding classification. (a) A contractor must maintain a list of all persons performing work under a city contract classifying each person as either an employee or independent contractor, including a description of each person's duties and any benefits provided, and produce a copy of the list upon request of the city. (b) A contractor must produce a copy of the Internal Revenue Service Form 1099-Misc. for each independent contractor performing work under a city contract upon request of the city. (c) A contractor must produce a copy of any written contract or agreement describing the relationship with each independent contractor performing work under a contract with the city upon request of the city. (d) A contractor must submit to the Internal Revenue Service an SS-8 "Determination of Worker Status for Purposes of Federal Employment Tax and Income Tax Withholding" for any person classified as an independent contractor upon request of the city. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-154 Violation of article.

Sec. 15-154. - Violation of article. It is unlawful for a contractor to fail to maintain, fail to produce or fail to submit the records, documents or forms required by this article. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-155 Presumption.

Sec. 15-155. - Presumption. Any person performing work for a contractor under a city contract who is not classified as an independent contractor on the list required by this article, and who has not been provided a 1099-Misc. form as required by this article, and with whom a written contract or other agreement describing the relationship with the person does not exist, is presumed to be an employee of the contractor. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-156 Debarment.

Sec. 15-156. - Debarment. Failure to comply with the terms of this article constitutes grounds for debarment as defined in article VII of this Code. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013; Ord. No. 2015-668, § 6, 7-8-2015)

Houston Code of Ordinances § 15-157 Penalty.

Sec. 15-157. - Penalty. A violation of this article is a misdemeanor criminal offense and is punishable pursuant to section 1-6 of this Code. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH15CO_ARTXCOEMCLFetched: 10/26/2026