Monday, June 07, 2010
Local
Monday, June 07, 2010

New labor rules now in effect
Alien registration, floating benchmarks, new fees
By Haidee V. Eugenio
Reporter

The CNMI Department of Labor's amended employment regulations came into effect on June 1, requiring aliens to register every year, establishing fees of up to $300, and reorganizing the department.

The final rules also change the 20-percent local hiring requirement into a floating benchmark, incorporate changes contained in Public Law 17-1, and require employers to submit a workforce plan that include a timetable for replacing aliens with qualified citizens.

The 65-page CNMI Employment Rules and Regulations were published in the May 21, 2010, Commonwealth Register, which was distributed on Friday.

Under the newly amended regulations, every alien who remains in the CNMI longer than 90 days shall be required to register annually and to comply with an ID system.

Failure to comply with the alien registration and ID system shall result in a misdemeanor and upon conviction, shall be punished by jail for up to 90 days, or a fine of up to $500, or both.

The parents or legal guardians of aliens under 18 years old are responsible for the child's registration.

The CNMI Department of Labor will be conducting the registration for all classes of aliens.

“Registered aliens will be issued an identification card, which will contain the name of the alien, the LIDS number, such identifying information as the secretary may require, and the expiration date of the card,” the regulations partly read.

Labor Secretary Gil M. San Nicolas, in a public notice of certification and adoption of the labor rules, said the department “received no comments stating reasons against its adoption.”

Labor incorporated seven changes to the final rules, mostly technical changes that the department said were “non-material.”

San Nicolas said they received one comment that pointed out the problem of a lack of regulations from the Department of Public Health secretary so that the department could put into operation the insurance pool provided in P.L. 15-108.

“That commenter also requested additional language about deductions for co-pay and insurance premiums. A clarification was added for co-pay but insurance premiums may require a case-by-case analysis as to the cap on deductions,” San Nicolas said.

He added that Labor circulated the proposed regulations extensively before publication and adopted the informal oral comments it received in the proposed regulations that were published in the April 19 Commonwealth Register.

Labor gave the public 30 days from April 19 to comment on the proposed regulations.

“These regulations are effective on June 1, 2010 and shall not apply retroactively to applications filed or proceedings in the Administrative Hearing Office that were pending before that date,” the final rules stated.

The amended rules include implementing the changes in definitions provided in P.L. 17-1 or the omnibus immigration bill that asserts CNMI control over nonresident workers, and removes all references to immigration and deportation from the Commonwealth Code to conform with the federalization law that became effective on Nov. 28, 2009.

Labor said umbrella permits may be revoked by order of a hearing officer for failure to comply with Commonwealth law or regulations, failure to appear at a hearing, or conviction of a felony or more than one misdemeanor, among other reasons.

The regulations also reiterate job preference for qualified citizens, CNMI permanent residents and U.S. permanent residents in the private sector.

It said the number of citizens, U.S. permanent residents or CNMI permanent residents or their immediate relatives shall equal or exceed the number of foreign workers in the private sector workforce unless attainment of this goal is not feasible within the current calendar year after all reasonable efforts have been made by the employer.

Reporting requirements

Employers of foreign nationals are required to keep six sets of information for at least two years, and present these upon written request by the Labor secretary or his designee.

These include personnel and payroll records for each foreign national, receipts for cash payments, documentation for each foreign worker, the employer's business license and security contract information with respect to each foreign national worker, and the number and type of employment-related accidents or illnesses involving workers and adequate identification of each worker involved.

Employers are also required to provide Labor with a workforce plan that aims to increase the percentage of U.S. citizens, U.S. permanent residents, and CNMI permanent residents and their immediate relatives in the workforce of the employer.

A workforce plan shall also identify specific positions currently occupied by nonimmigrant aliens.

It shall also include a timetable for accomplishing the replacement of nonimmigrant aliens with qualified citizens, CNMI permanent residents, and U.S. permanent residents until the workforce participation objective is met.

Fees

The Department of Labor is now implementing at least 22 fees ranging from $5 to $300.

However, posting a job vacancy announcement, registration to transfer, attendance at orientation, filing of workforce plan, and mediation of labor disputes, are free of charge.

Labor imposes a $300 fee for an application for an approved contract, including initial, transfer and renewal. But there will be no fee if a federal fee has been paid.

There's also a $250 fee for an application for an approved contract for non-business employers. Again, there will be no fee if a federal fee has been paid.

The other fees range from $5 to $150.

These include:

- $150 for processing a temporary work authorization;

- $150 for expedited processing, in addition to the fee;

- $100 for request for certificate of good standing;

- $50 for replacement or duplicate permit;

- $50 for request for extension of transfer;

- $35 a month for contract extensions of up to six months;

- $25 for contract amendment or change;

- $25 for annual registration;

- $20 per person for filing a complaint with the Hearing Office; and

$5 as penalty for untimely renewal.