Posted on May 19, 2014

Surprise Worker's Comp Compliance Checks Are The Norm In North Dakota

Construction compliance

Going to work on the construction site just might be a little trickier for those North Dakota construction companies without licensing or workers compensation insurance.

The state's Construction Compliance Task Force originally launched in May 2002 is on the move to make sure that contractors are following state law and regulations when it comes to having a contractor's license, maintaining protection for employees with workers comp coverage and also paying state tax. The task force also wants to make sure that contractors and businesses from out of state have obtained the appropriate licenses and are registered in North Dakota to do business in the state.

The Attorney General's office restarted the compliance checks because of the recent boom in oil that has brought many new contractors to the area. When the task force first started checking for compliance, there was an increase in contractor license applications. The state requires that contractors have a license for job projects totaling more than $2,000. They must also provide a bond and certificate of insurance for workers compensation coverage to the Secretary of State at time of licensing.

It is important to note that the state will periodically check for compliance especially after events that lead to the need for construction work. In spring time when many people start construction projects, after hailstorms or any time a new construction boom occurs, construction companies can expect to see the task force on hand verifying information.

The goal of compliance checks is to even the playing field for construction companies who comply with state laws and regulations over those who try to operate under the radar and cut costs to themselves creating an unfair competitive advantage during bidding. These checks also protect the consumer from contractors that are operating unlawfully and could take advantage of them. Employees of these companies also benefit because of the state mandate that all employers have workers compensation insurance to protect and pay benefits to injured workers.


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