Employer’s capability to pay the workers

[B]Q: How does Labor determine an employer’s capability to meet financial obligations to his or her alien employees?

A:[/B] According to the Department of Labor, an employer must be financially able to meet the obligations of an employment contract. The Labor’s Employment Rules and Regulations states that the Labor Director shall evaluate employer financial capability upon receipt of an application for an approved employment contract (initial, renewal, or transfer).

* * *

[B]Q: What are the financial requirements for business and non-business employers?

A:[/B] The Regulations state that the Labor Director may request such evidence of financial capability as is required for an evaluation of the financial capability of the business. The Director may reject an application for an approved employment contract upon a finding that the employer has presented insufficient evidence that he/she is financially capable.

A non-business employer refers to a single individual person who is not incorporated or operating as a partnership or limited liability company and who does not have a business license. Non-business employers may employ full-time alien workers only as domestic helpers, farmers, household maintenance workers, and yard workers.

Non-business employers must not currently be receiving nor within the past year have received assistance from the Nutrition Assistance Program, Security Supplemental Income from the Social Security Administration, any government subsidy in the form of public utilities from the Commonwealth Utilities Corp., or low income housing from the Mariana Islands Housing Authority.

A non-business employer must earn an annual wage or salary equal to or greater than 150 percent of the U.S. Department of Health and Human Services Poverty Guidelines for the State of Hawaii.

* * *

[B]Q: If an employer has a pending Labor complaint, can Labor still consider him or her a suitable employer?

A:[/B] The Regulations state that an employer with more than one outstanding complaint pending with Labor may not be a suitable employer. Labor says that a proposed employment contract with an alien worker may be rejected if the employer has presented insufficient evidence that outstanding judgments or complaints should not disqualify the employer.

The Regulations state that an employer must have no outstanding judgments arising out of Labor proceedings or outstanding billings on behalf of an alien worker from the Commonwealth Health Center that are more than 60 days in arrears, except matters on appeal.

* * *

[I]Disclaimer: Readers should conduct their own research and due diligence and obtain professional legal advice. Saipan Tribune will not be liable for any loss or damage caused by a reader’s reliance on information obtained from this section. Submit questions on labor issues to Saipan Tribune via e-mail at editor@saipantribune.com, or by calling 235-6397, 235-2440, or 235-8747 and leaving a message at Ext. 133 or 135. You may also submit questions in person by writing it down and dropping it off at the Saipan Tribune’s office on the second floor of the JP Centre on Beach Road, Garapan. [/I]