Multiple job regs take effect today
The new alien labor rules and regulations will take effect today despite some reservations from employers, bonding agencies, and workers.
The high level of interest in the new regulations showed yesterday, when over a hundred representatives of various sectors trooped to the Governor’s Office on Capitol Hill to attend the public forum on the changes in the alien labor policy and procedures.
Attorney general Pamela S. Brown, assistant attorney general James Livingstone, the Governor’s legal counsel Steve Newman, Labor Secretary Jack Tenorio, Labor director Dean Tenorio, and Labor processing supervisor James Ullua took turns in addressing concerns and clarifications raised by the forum participants.
The major point of discussion involved the provision allowing guest workers to hold multiple jobs and the new bonding requirement for hiring nonresidents.
Specifically, the business sector asked the government officials for clarifications regarding employer liability over a worker who engages in secondary employment. In response, Brown strongly urged employers who share a worker to draft a comprehensive memorandum of understanding addressing any division of responsibilities for medical, board, lodging, and repatriation expenses of the nonresident worker; scheduling; and other agreements.
She also maintained that each employer is liable for all medical expenses resulting from any injury or illness that the worker incurs within their respective scope of employment. However, in the event that the worker gets injured outside of work, both employers will be liable for the medical expenses, which will be divided on a pro-rated basis—or depending on the number of hours that the employee works for each employer.
During the forum, a Saipan resident reiterated a concern of some local workers that by giving guest workers an opportunity to take more than one job, the new regulations might take away jobs from the residents.
But Livingstone maintained that a lot of effort has been done to ensure that the new regulations protect the local people’s right to hiring preference. He cited that the amended rules, for instance, increase the advertising amount required from hiring businesses. Aside from putting out a newspaper advertisement, employers will also be required to post job vacancy announcement at designated areas throughout the island.
Further, Dean Tenorio said the new rules require employers to include all the benefits and incentives they offer their employees.
“Employers cannot just say that you give a salary of $3.05 per hour in your JVA. They have to list down allowance for housing, travel and all other benefits. With that, we hope many more locals will be interested in applying for jobs now,” he said.
For their part, the bonding agencies expressed concern about the new policy increasing the bonding requirement from the equivalent of three months’ salary to six months’ salary.
A bonding company representative said they have yet to hear from their regulating body—the Insurance Commissioner—on the specifics of how to go about the new labor rules.
Brown admitted that the new policy may cause a problem, as most bonding companies in the CNMI are “undercapitalized.” But she said the Labor Department and her office are now working with the Insurance Commissioner in promulgating procedures to implement the new bonding requirement. She also announced plans to organize another forum next week to address bonding-related issues.
Despite these concerns, however, Brown maintained that the scheduled implementation of the new labor regulations will push through today.
She noted that the Labor Department will start accepting applications for secondary employment starting today. But she stressed that it may be “foolish” for employers to submit applications without first completing the required documents.
Brown noted that certification of a job vacancy announcement—which is one of the requirements—takes a minimum of 15 days. She added that turning in an incomplete application is not advisable, as the new regulations impose a $5 fine for each day that an employer fails to correct the deficiency.
Further, the forms necessary for filing have not been printed. The Labor Department said that for the first few weeks, secondary employment applicants may need to file forms that will be modified or created by the department to temporarily meet their needs.