Labor sanctions resto operator

The Department of Labor has sanctioned a restaurant operator for allowing two waitresses to continue working without work permits or authorization from the Labor director.

Administrative hearing officer Jerry Cody ordered B&J Corp. to pay a $750 fine to the CNMI government for violating local labor laws.

Cody authorized the workers—Jessica Yap and Xiangshun Cui—to resume their employment with B&J Corp. as waitresses.

Cody directed the company to file renewal applications for Yap and Cui, along with another former employer, Shunyu Jin.

In his administrative order, the hearing officer granted Jin’s request to transfer to a new employer.

“The evidence of unlawful employment on the part of petitioners [Yap, Cui, and Jin] and the “former” employer in this case justifies substantial sanctions,” he said.

Cody noted that B&J’s management controlled the employment relationship and directed the workers to continue working.

“Therefore, the employer bears the primary responsibility for the conduct,” he said.

Labor papers show that B&J operates the Samcheonggak Korean Restaurant on Middle Road. Yap and Cui were working as waitresses at B&J’s restaurant in early 2009.

Yap’s permit expired on Jan. 22, 2009; Cui’s permit expired on Jan. 9, 2009.

Because of B&J’s plan to change the restaurant’s ownership, B&J did not renew the waitresses’ permits when they expired. The plan was for Yap and Cui to transfer to the new owner of the restaurant, D&J.

Therefore, Yap and Cui registered with the Labor Division of Employment Services, submitted Employer Intent Forms signed by D&J Corp., and received notices of hearing and objection to the proposed employment.

The other petitioner, Jin, worked for a different employer under a foreign national permit that expired in November 2008. Jin also registered, submitted an Employer Intent Form signed by D&J, then received a notice of hearing and objection to the proposed employment.

A consolidated objection hearing regarding all three petitions was conducted on March 11, 2009. At the hearing, Yap and Cui admitted that they continued working as waitresses at B&J’s restaurant after their permits expired and at the direction of B&J, from January until the present.

Jin admitted that she began working at the restaurant several weeks ago. The employment was carried out without permit or authorization from the Labor director.

The proposed change of ownership never materialized and B&J now wishes to continue operating the restaurant. B&J is asking to be allowed to renew the work permits for Yap and Cui.

The Labor director indicated that he would not oppose the request, provided that the employer pays a sanction of $750 for its unlawful conduct.

In his order, Cody determined that a sanction of $750 is justified based on the facts of this case.

Cody allowed Yap and Cui to resume working for B&J provided that B&J files a renewal application for each worker, and pays the $750 sanction to the CNMI.

Cody also granted Jin another opportunity to transfer and allowed her to work for B&J provided that B&J follows the rules and procedures of the Labor Division of Employment Services with respect to the evaluation of the transfer application.

“Both parties are reminded that Shunyu cannot begin actually working for B&J until a conditional grant of transfer is approved by Labor,” he added.