§ 65-04-26.2 — General contractor liability for subcontractors and independent contractors

North Dakota § 65-04-26.2

• Jurisdiction: North Dakota
• Title 65: Workforce Safety and Insurance
• Ch. 65-04: The Fund and Premium Payments Thereto

Text

contractors.
1. An individual employed by a subcontractor or by an independent contractor operating
under an agreement with a general contractor is deemed to be an employee of the
general contractor and any subcontractor that supplied work to the subcontractor or
independent contractor. A general contractor and a subcontractor are liable for
payment of premium and any applicable penalty for an employee of a subcontractor or
independent contractor that does not secure required coverage or pay the premium
owing. The general contractor and a subcontractor are liable for payment of this
premium and penalty until the subcontractor or independent contractor pays this
premium and penalty. The liability imposed on a general contractor and a
subcontractor under this section for the payment of premium and penalties under this
title which are not paid by a subcontractor or independent contractor is limited to work
performed under that general contractor.
2. Upon request of the organization, a person the organization determines may have
information that may assist the organization in determining the amount of wages
expended by the subcontractor or independent contractor shall provide this information
to the organization.
3. If the organization is unable to obtain complete and reliable payroll information for a
subcontractor or independent contractor, the organization may calculate premium
using the available payroll information of the subcontractor or independent contractor
for work performed under the liable general contractor or a subcontractor as permitted
in section 65-04-19. If a subcontractor's or independent contractor's liability for failure
to secure coverage or pay the premium owing arises from a single project with a
general contractor, the liability of the general contractor and subcontractor is one
hundred percent of the amount of premium and penalty owed by the subcontractor or
independent contractor. If there is evidence showing the subcontractor or independent
contractor was working on multiple projects during the period the subcontractor or
independent contractor failed to secure coverage, the organization shall set the
amount of the general contractor and subcontractor's liability which may not exceed
seventy percent of the total premium and penalty owed by the subcontractor or
independent contractor.
4. The definition of the term "contractor" under section 43-07-01 applies to this section.