Legislature, Chamber agree on changes in Fair Wage Act

Business leaders have been given opportunity to review a pending legislation amending the controversial law that will require employers to provide benefits to their local workers receiving less than the prevailing federal minimum wage.

House Speaker Diego T. Benavente said they will act on the new measure immediately after the private sector has approved the changes which it had have initially sought.

“The move is still to try to pass the amendment to the existing statute and also to incorporate the proposed regulations into the bill so that it becomes effective as soon as the governor signs it into law,” he told in an interview.

Benavente, Senate President Paul A. Manglona and a dozen other legislators met yesterday morning with members of the Saipan Chamber of Commerce during their regular monthly dialogue.

The meeting tackled several concerns of the Chamber as well as update on proposed bills pending in the Legislature that will affect the business community, including the amendment to Public Law 11-74 or the Resident Workers Fair Compensation Act.

The law stipulates that locals earning less than the prevailing U.S. minimum wage rate of $5.15 must be provided with benefits granted to nonresident workers either in cash or in-kind, such as subsidized food and lodging, transportation and health insurance.

Lawmakers are expected to pass the amendment to the law in efforts to correct loopholes and incorporate the forthcoming regulations, further pushing back its implementation to a later date after it has already been stalled twice following concerns voiced out by the private sector against some provisions of the law.

A draft of the bill drawn up by the Attorney General’s Office has been forwarded to the Chamber and other business organizations to allow them to comment before it is considered for voting in the Legislature.

“We are going to give time for the Chamber and the business community to look at it again and to make sure that the Senate leadership is ready to accept the version as well as the governor,” Benavente explained.

He stressed this action would help eliminate potential disputes since the comprehensive proposal will include concerns of the business community “so that it removes the possibility of questions or problems in the future.”

The proposed amendment will include giving blanket authority to the Department of Labor and Immigration to promulgate the rules and regulations, which has not been provided in the initial measure.

Benavente, however, did not disclose specific details of the amendment which he said is intended to resolve problems arising from the proposed rules earlier drawn up by the AGO.

PL 11-74 has required drafting of the regulations for 30 days before the government can enforce it. But the Chamber had sought clarification on the law, noting it is subject to various interpretations that may lead to lawsuits against businesses.