Labor chief denies transfer for worker

Labor Secretary Gil M. San Nicolas has affirmed the Labor administrative hearing office’s decision to deny transfer to an alien worker who reportedly paid $7,000 in China to get a job in the CNMI based on fraudulent documents.

San Nicolas ruled that then Labor hearing officer Barry Hirshbein lawfully used his authority and discretion to deny transfer relief for Xiuyun Zhang.

San Nicolas remanded the issue of damages arising out of recruitment fees paid in China for a re-hearing that will be limited to that issue.

“There is inadequate evidence on the record for a meaningful review,” he said.

The hearing officer, San Nicolas said, did in fact fail to address this issue in his decision.

In August 2007, Hirshbein revoked the entry permit issued to Zhang and permanently barred her from working in the CNMI as a nonresident worker.

Hirshbein ordered Zhang to depart the CNMI within 15 days after the employer of record delivers to Labor the repatriation ticket.

“It is clear that [Zhang] entry into the CNMI was based upon fraudulent documents and statements,” he pointed out.

The hearing officer found Zhang’s employer, Sheng Rong Development Corp., liable to pay the complainant $3,515.04 in wages and liquidated damages.

Hirshbein, however, stressed that even though the complainant prevailed in her wage claim, it is not a recovery under contract.

“Complainant is entitled to compensation on the theory of quantum meruit (as much as she deserves) for work performed,” the officer said.

He ordered Sheng Rong Development to pay a $1,000 sanction and permanently barred the company from employing alien workers.

Hirshbein also barred Sheng Rong’s corporate secretary, Su Xin Guo Edboi, or any corporation in which she is an officer from hiring nonresident workers for three years.

Zhang filed a Labor case against Sheng Rong Development on June 20, 2007, alleging that she worked for the company but was not paid.

Zhang testified she arrived in the CNMI on Feb. 11, 2007, and began working for Sheng Rong Development the next day. She worked seven days per week, eight hours per day until April 16, 2007. She testified she did not receive any wages at all.

Zhang paid RMB 50,000 ($7,000) in China for the promise of a job in the CNMI.

Zhang, through counsel Stephen Woodruff, appealed Hirshbein’s decision to the Secretary.

Woodruff asserted that the contract was voidable rather than void and should, therefore, be enforced against the defrauding party.

But San Nicolas said Zhang cites no legal authority for her proposition.

“In the absence of legal authority, the hearing officer’s decision to void the contract and to award the wage claim damages is affirmed,” San Nicolas said. [B][I](Ferdie de la Torre)[/I][/B]