BIA Advocacy Update

BIA-RRV files amicus brief for Minnesota worker misclassification challenge

Builders Association of Minnesota, Associated Builders and Contractors - MN, and J & M Consulting are appealing Judge Tunheim's decision regarding the MN Worker Misclassification challenge to the U.S. Court of Appeals for the Eighth Circuit. Your BIA-RRV board of directors decided to file an amicus brief which means "friend of the court." This is not joining the case, rather it's providing additional information for the court regarding another party that is impacted by this rule. Since BIA-RRV has members conducting business in Minnesota, this will have impacts. We believe this is an act of good faith and a way for us to advocate on behalf of members' needs.

For background information on the Minnesota Worker Classification Statute for Construction Contractors, consult this resource. 

Here's a top-five list of major concerns:

• Massive, Stacking Financial Penalties:
  • The potential for fines that accumulate per misclassified worker and per violation creates a severe financial threat. Even minor, unintentional errors could lead to crippling penalties, potentially forcing business closures.
• Strict and Unforgiving 14-Factor Test:
  • The rigid requirement to meet all 14 factors, with no room for error, creates an extremely high compliance burden. Even temporary lapses or simple mistakes can trigger misclassification.
• Vague and Ambiguous Language:
  • The poorly defined terms within the statute make it difficult for contractors to understand and comply with the law. This creates a high risk of unintentional misclassification and legal disputes.
• Risk of Criminal Penalties:
  • The potential for criminal charges related to wage theft adds a significant layer of risk and stress for construction contractors. This creates a fear of prosecution for mistakes made in a very unclear regulatory environment.
• Increased Risk of Litigation and Disputes:
  • The combination of unclear rules, and large financial penalties creates a very high risk of lawsuits from workers, or from the state. This increases the cost of doing business.

Meet with building officials Wednesday, April 30

April 30 is our annual Building Officials Roundtable, where we'll hear updates and reminders from our local building officials. Register here. 

For questions, please contact Elizabeth Kosel, elizabeth@buildrrv.org or (701) 232-5846.

North Dakota Legislative Session set to end this week

The legislative session in N.D. is aiming to end this week. Hundreds of bills have been passed during this session. A couple to note for the industry that have been signed by Gov. Armstrong are: 

H.B. 1500 (Nonconforming Structures)

This bill creates new sections of law for counties, cities, and townships in North Dakota that establish consistent rules for repairing and rebuilding nonconforming residential structures (buildings that no longer meet current zoning requirements due to changes in local ordinances). Under these provisions, a damaged residential structure located in a residential zone can be fully repaired or rebuilt even if it was damaged beyond 50% of its value, provided certain conditions are met. A "nonconforming structure" is defined as a building that was legally constructed but became non-compliant due to subsequent zoning changes.

H.B. 1354 (Appraisals)

A bill for an Act to amend and reenact sections 43-23.3-01 and 43-23.3-18 of the North Dakota Century Code, relating to the definitions of agency and evaluation, the standards of professional appraisal practice, and appraisal and evaluation guidelines.

Your local and state associations have been closely monitoring a variety of bills throughout this legislative session and maintaining a strong presence at the Capitol. As we enter the final week, conference committees, which are made up of members from both the Senate and the House, are meeting to resolve differences and finalize bill language. A more comprehensive list of bills will be shared once the session is complete. 

Stormwater Tips & Reminders

With all the rain expected this week, please take a moment to review the reminders in this years' stormwater blog post. Please also be sure to keep your job sites free from debris. 

Update from Fargo Engineering Department

These past few years, the City has seen an increase in calls from residents experiencing rear-yard drainage issues. Since this is private property, their ability to assist is limited, especially once yards are established. However, they do offer a free service to survey rear yard grades before final grading and grass seeding occurs, which allows the homebuilder, homeowner, or landscaping company to grade the rear yards to the designed grades.

Click here for an informational flyer on this service.