Compliance Issues | Video

Alex Hagan | 1/15/2013

Western North Dakota is a hot spot for new businesses. While construction companies are constantly busy building, some contractors may not be playing by the rules.

New businesses continue to come to North Dakota because of the opportunities the state provides. Having more out of state workers in areas such as construction can sometimes cause problems for state leaders.

"More often than we`d like, we see people that do not have their contractors license and all of the other coverage that is theirs," said Attorney General Wayne Stenehjem.

Building is constant in areas like Dickinson and Williston. The number of contractors has doubled in just the past two years. All builders are required to register with the Secretary of State`s office. If they do not comply with state law, employees run the risk of not having coverage.

"Do they have workforce safety insurance? Do they have job service coverage? Do they have the different coverage`s that they need?" said Secretary of State Al Jaeger.

State leaders want all businesses to operate on the same level as well.

"To make sure that there`s fairness. To make sure that those new contractors are complying with the tax requirements if they have employees that they`re withholding," said Tax Commissioner Cory Fong.

However, state leaders are working together to prevent this issue from happening. They conduct frequent compliance checks throughout the year.

"Sending out teams from different agencies that are responsible for there licensing requirements to do spot checks," Stenehjem said.

Staffing has become a problem with those checks. Those agencies don`t have employees to spend two to three days at various construction sites.

"We don`t have somebody that can go out on a more full-time basis," Jaeger said.

That position is something that will be discussed in the future, but state leaders want businesses to cooperate.

"We want their business, we want them operating in the state, it`s great. We just want to make sure that they`re complying with all the various laws," Fong said.

More building is likely to continue, meaning more checks will be needed.

If a construction company is operating without a license, the attorney general`s office can shut it down until owners obtain one.

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