Employer referred for possible investigation

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Posted on Aug 07 2004
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An employer received a warning from the Department of Labor after he failed to inform the agency of the closure of his business, despite his having a pending permit renewal application for a nonresident employee.

Labor hearing officer Jerry Cody also referred employer Ambrosio Ogumoro, owner of Oceanside Bar and Grill, for a possible investigation. Cody asked Labor director Dean O. Tenorio to review Ogumoro’s actions to determine whether a compliance case should be started against the employer.

Records showed that Ogumoro employed Melanie L. Gonzales as waitress under a nonresident work permit that expired on July 12, 2003. The employer filed a renewal application for Gonzales on Aug. 22, 2003—41 days after the expiration of the permit.

On Apr. 22, 2004, the department denied the application on the grounds that it was untimely filed. The appeal followed.

At the hearing, Ogumoro testified that the application was filed late because he had been visiting California in July 2003 at the time that the permit expired. When Ogumoro returned to Saipan in Aug. 2003, he immediately filed the renewal.

The employer claimed that he transferred “custody” of his business to his uncle, Pedro Deleon Guerrero, back in January 2004. The Oceanside Bar has been closed since Feb. 21, 2004 due to renovations being done on the building. Ogumoro’s business license for the bar expired on June 30, 2004.

“The closure of this business effectively deprived this worker of months of employment. Ms. Gonzales is not at fault in the matter that gave rise to the denial of this application,” Cody noted.

He ordered that the denial be affirmed and Gonzales be given 45 days to secure a new job.

“Finally, I am troubled by the somewhat cavalier attitude of the employer in this case, who closed his business for months and allegedly transferred his business interest—all without notifying the director of Labor of these changes,” Cody said. “The employer’s conduct in this case—both with respect to the late filing and the subsequent closure and transfer of the business—was negligent and disregarded the appellant-worker.”

He warned Ogumoro of substantial sanctions if the employer fails in the future to take prompt steps to inform the department of a business closure, especially when the employer has nonresident work applications either pending or existing.

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