Previous Story
Labor’s Revolving Fund
|
Posted on Jun 20 2008
[B]Q: Can the Department of Labor Secretary use funds from the Labor Revolving Fund to pay a final Labor judgment against an employer? [/B]
A: According to the new Alien Labor Rules and Regulations, funds in the trust account may be used by the Labor Secretary to pay a final judgment against an employer who has paid for coverage from the Labor Trust Account Revolving Fund.
The Regulations state that the Secretary may in his or her discretion, but is not required to, pay judgments which remain unpaid by reason of defaults by insurers if an employer has a contract with an insurance company. The Secretary may also do so at his or her discretion if a claim has been made and denied or is uncollectible and the alien worker opts for repatriation. These judgments normally would be paid from the Deportation Fund.
***
[B]Q: When is a Labor judgment considered final? [/B]A: A Labor judgment is considered final when all appeals have been exhausted. The Regulations also state that the Secretary may, at his or her discretion, assign judgments paid from the Trust Account for collection by a private firm. Payments are limited to the amount of the judgment or $3,000, whichever is a lower amount, less any repatriation costs to be met by the Commonwealth.
The Secretary shall be substituted for the payee in any available cause of action to collect on the judgment from the employer or insurer.
***
[B]Q: What is the limitation on recovery from Labor’s Trust Account Revolving Fund?[/B]A: An alien worker who has a judgment arising out of a case or matter brought before a court or other administrative agency and not adjudicated by Labor may not recover from the Labor Trust Account Revolving Fund or the Deportation Fund for any money damages awarded by the court or other administrative agency, provided however that the costs of repatriation may be paid from these funds as appropriate.
Enforcement of judgments from courts or other administrative agencies in cases not adjudicated by the Labor is through the processes of those courts or other administrative agencies.
[I]Disclaimer: Readers should conduct their own research and due diligence and obtain professional legal advice. Saipan Tribune will not be liable for any loss or damage caused by a reader’s reliance on information obtained from this section. Submit questions on labor issues to Saipan Tribune via e-mail at editor@saipantribune.com, or by calling 235-6397, 235-2440, or 235-8747 and leaving a message at Ext. 133 or 135. You may also submit questions in person by writing it down and dropping it off at the Saipan Tribune’s office on the second floor of the CIC Centre on Beach Road, Garapan. [/I]
