‘New labor regs to benefit local workers’

Resident workers may now file a complaint for possible violations of the local preference law and minimum wage requirements.

Employment Services and Training director Alfred Pangelinan yesterday reiterated that contrary to the belief of some sectors, the new labor rules and regulations aim to benefit resident workers, and not only alien labor.

“The new regulations give resident workers more opportunities to secure jobs,” Pangelinan said.

For instance, he cited, the new regulations provide a process for resident workers to lodge complaints with the Division of Employment Services if they feel that they have been discriminated against during a hiring process.

“A resident worker may file a complaint with the division for possible violations of the preferential hiring of resident workers and minimum wage requirements,” a provision of the new labor rules reads. “If a suspected labor violation is discovered, it shall be reported to the director of Employment Services and the case shall be referred to the director of Labor. Within 30 days upon receipt of any complaint, a determination shall be prepared and finalized for appropriate action.”

Further, the new regulations require employers to declare and advertise all benefits provided to an alien worker, along with the job vacancy announcement, in any newspaper and on radio, television or the Internet.

Benefits include regular wage, overtime pay, free food, transportation, room and board, commissions, bonuses, and training.

Pangelinan expressed hope that the inclusion of benefits resident workers in the JVA will encourage more resident workers to apply for jobs in the private sector.

Employers requesting a waiver of the JVA, the 20-percent resident workforce, and one-to-one job ratio requirements must first post their job openings at, and get certification from, agencies such as the Office of Vocational Rehabilitation, Workforce Investment Agency, Adult Basic Education, and the Adult Development Institute.

“This certification does not guarantee an approval of a request, but will be made as part of the employers’ good faith efforts to locate available and qualified resident workers,” Pangelinan said.

When a referral or placement of a qualified and available resident worker is made by any of the mentioned government agencies, the JVA will be on pending status until the employer responds.

The employer has 14 days to submit the written response, which must include information such as the type of action taken, decision on whether to hire or not, reasons for disqualifying the applicant, and benefits that the employer intends to provide the applicant.

Pangelinan said the employer may be asked to justify his or her reasons for disqualifying a referred applicant.

If the employer fails to respond within the 14-day period, the division will conclude that the applicant has been hired and a JVA certification is no longer needed.

The same process applies to employers who intend to hire nonresident workers for a secondary job, Pangelinan added.

Summary of changes in Alien Labor Rules and Regulations:

* All benefits provided to workers must be included in job vacancy announcements;

* DES certifies employer solvency or the Division of Labor will deny a work permit application;

* Resident workers may file complaints for violations of preference or minimum wage;

* Employers must submit a Nonresident Employment Agreement annually;

* Applications for nonresident work permit must include sworn statement that no other agreement exists between the employer and alien worker;

* Applications must include a waiver of confidentiality concerning records in possession of other government agencies, for the Labor Department to use for enforcement purposes;

* A $5 penalty is imposed each day for correction of deficiency in applications;

* Bonds from unsound surety providers may be rejected;

* Minimum amount of coverage provided by bonds must be increased;

* Alternatives to bonding alone may be posted;

* Sanctions may be imposed for cancellation of bond without authorization from Labor;

* Renewal applications must include a Nonresident Employment Agreement and a statement that wages owed to the employee have been paid;

* Reauthorization is allowed for entry of new employee up to 180 days;

* Processing of applications will be suspended while investigation is on-going;

* Employers barred from hiring nonresident workers will be named on a “barred” list;

* Process for applications of employers with pending investigation;

* Employer or employee may request a reduction or increase of work hours;

* Immediate relative of an alien worker requirements;

* Employers must check with DES if a nonresident worker is available on-island before bringing in a replacement worker;

* Replacement of a worker after consensual transfer is now determined by two factors: (a) the number of workers employed, and (b) the number of consensual transfers granted to the employer within the past 12 months. For every 25 workers employed, an employer may replace only one employee lost through consensual transfer in the 12-month period. If an employer has less than 25 employees, the employer may be granted a replacement for one worker lost through consensual period in any one-year period.

* Replacement is limited to one for each worker that departs or transfers;

* Multiple employment authorization procedures include JVA certification, payment of fees, and submission of new forms;

* A maximum of 16 hours in a 30-day period is allowed for casual employment;

* Temporary transfers for garment, hotel and construction industries are effective for a maximum for 6 months;

* Reallocation of workers in the garment industry;

* U.S. Occupational Safety and Health’s code of federal regulations are recognized as the minimum standard for workplace conditions required of every CNMI employer;

* Both employer and employee are now required to provide 30-day notice of intent to renew or not renew employment;

* Mediation process;

* Administrative hearing rules;

* Fee changes; and

* Temporary work permit procedures.