New Jersey cracks down on conniving contractors

New Jersey Assembly Bill No. 2138 would create a board specifically for oversight of both home improvement and home elevation contractors in New Jersey.

Under this new rule, contractors would be subject to specific experiential requirements, whether hands-on or program-based, and businesses would be required to provide proof of insurance for both workers compensation and commercial general liability (CGL). (Credit: amnaj/Adobe Stock)

The Northeastern United States is no stranger to extreme weather events, such as Superstorm Sandy in 2012 and Hurricane Ida in 2021. For homeowners struggling to rebuild their lives after such a loss, having a trustworthy home contractor is critical. However, some unscrupulous contractors prey on vulnerable families and individuals by making promises they have little or even no intention of keeping. 

The New Jersey Assembly has a bill in the works–Assembly Bill No. 2138–that would create a board specifically for oversight of both home improvement and home elevation contractors (collectively, “contractors”) in New Jersey. This board would be responsible for establishing the requirements and standards for contractor education, examination, and licensing as well as creating a contractor registry and even a code of ethics. The board would also set standards requiring licensed contractors to complete a certain number of continuing education hours during each licensing period. 

Under this new rule, contractors would be subject to specific experiential requirements, whether hands-on or program-based, and businesses would be required to provide proof of insurance for both workers compensation and commercial general liability (CGL). Licensed contractors would be issued a photo id badge and be required to wear that badge at all times while on the job; an identical type of badge would also be required for the contractor’s employees or other individuals contracted with to sell home improvement or home elevation services or both. 

Editor’s Note: Home contractor fraud is an enormous issue across the nation. It’s widely known that predatory contractors prey on insureds after a disaster. Apart from leaving homeowners in limbo during what could be a very difficult time, it often leaves insureds without the funds to repair their property. It’s not unheard of for a contractor to take the initial steps toward replacing a roof, but disappear with the insurance payment without completing the job. In other situations, a contractor might completely abandon a new home construction, leaving aspiring homeowners with a half-finished house.

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