Second Floor Afetña Square Building, San Antonio, P.O. Box

8/14/2019 Second Floor Afeta Square Building, San Antonio, P.O. Box

1/12

COMMONWEALTH OF THE NORTHERN MARIANAISLANDSDEPARTMENTOF LABOR

OFFICE OF THE SECRETARYSecond Floor Afeta Squar e Building, San Antonio, P.O. Box 10007, Saipan, MP 96950

Telephone no. (670) 236-0908 or 0903 Facsimile no. (670) 236-0992

GIL M. SAN NICOLAS CINTA M. KAIPADeputy SecretarSecretary

TO: Evelyn C. Fleming, House Clerk

Dolores S. Bermudes, Senate Clerk

FROM: Cinta M. Kaipat, Deputy Secretary of Labor/cmk

DATE: May 18, 2009

SUBJECT: Proposed Changes to Labor Regulations

I am transmitting herewith proposed changes to the Labor Rules and Regulations.

/cmk

Attachments


2/12

PUBLICNOTICEOF PROPOSED RULES AND REGULATIONS

WHICH ARE AMENDMENTS TO

THE EMPLOYMENT RULES AND REGULATIONSISSUED BY THE SECRETARY OF LABOR

INTENDED ACTION TO ADOPT THESE PROPOSED RULES AND REGULATIONS: The

Commonwealth of the Northern Mariana Islands, Secretary of Labor, intends to adopt as

permanent regulations the attached Proposed Regulations, pursuant to the procedures of the

Administrative Procedure Act, 1 CMC 9104(a). The Regulations would become effective 10

days after adoption. (1 CMC 9105(b))

AUTHORITY: The Secretary of Labor is authorized to promulgate regulations pertaining toemployment of citizens, permanent residents, and foreign national workers pursuant to PL 15-

108 4530, 4606, 4961, 4971, and 4972.

THE TERMS AND SUBSTANCE: The proposed revisions are to provide additional

opportunities for the employment of U.S. citizens, to advance the phase-out of the moratorium,

to suspend the provisions for periodic exit until the uncertainties of the federalization law are

resolved, and to decrease the Departments paperwork burdens and make certain other

administrative changes.

A SUMMARY OF THE SUBJECTS AND ISSUES INVOLVED:

These rules and regulations are promulgated:

1. To broaden the requirement to post job vacancy announcements on the

Departments free website so that job opportunities are made known within the

community and to increase the requirements for an exemption from the workforce

participation requirement of 20% U.S. citizens in order to promote the employment of

U.S. citizens;

2. To advance the phase-out of the moratorium to July 1, 2009 in order to increase

flexibility for local businesses under the current adverse economic circumstances

and to suspend the provisions for periodic exit until the uncertainties of the

federalization law are resolved so that local businesses are not faced with potentially

conflicting requirements;


3/12

3. To simplify the provisions for part-time employment of foreign national workers in

order to decrease the paperwork burdens on local employers;

4. To simplify the regulations with respect to deductions from wages in light of minimum

wage increases;

5. To eliminate or simplify certain paperwork burdens on the Department and to make

minor adjustments in fees;

6. To provide guidelines for judicial review of final agency actions.

CITATION OF RELATED AND/OR AFFECTED STATUTES, RULES AND REGULATIONS.

These proposed regulations will supersede the designated sections of Title 20, Chapter 30,

Subchapters 30.1, 30.2, and 30.3 of the N.M.I. Administrative Code and by adding Subchapters

30.4 and 30.5 of the N.M.I. Administrative Code.

DIRECTIONS FOR FILING AND PUBLICATION: These Proposed Regulations shall be

published in the Commonwealth Register in the section on proposed and newly adopted

regulations (1 CMC 9102(a)(1)) and posted in convenient places in the civic center and in

local government offices in each senatorial district, both in English and in the principal

vernacular. (1 CMC 9104(a)(1))

TO PROVIDE COMMENTS: Send or deliver your comments to the Secretary of Labor, Gil San

Nicolas, c/o Eli Golub, Labor Counsel, at P.O. Box 10007, Saipan, MP 96950, or by fax at 236-

0991 or by email at [email protected], with the subject line Proposed Regulations.

Comments are due within 30 days from the date of publication of this notice. Please submit

your data, views or proposed changes. (1 CMC 9104(a)(2))

Submitted by: _/s/________________________ ____________

Gil M. San Nicolas Date

Secretary of Labor

Received by: _/s/_________________________ _____________

ESTHER S. FLEMING Date

Governors Special Assistant for Administration
mailto:[email protected]:[email protected]


4/12

Filed and

Recorded by: _/s/_________________________ ______________

ESTHER SAN NICOLAS Date

Commonwealth Register

Pursuant to 1 CMC 2153(e) (AG approval of regulations to be promulgated as to form) and 1

CMC 9104(a)(3) (obtain AG approval) the proposed regulations attached hereto have been

reviewed and approved as to form and legal sufficiency by the CNMI Attorney General and shall

be published, 1 CMC 2153(f) (publication of rules and regulations).

Dated the ____ day of May, 2009

__/s/_____________________________

GREGORY BAKA

Acting Attorney General


5/12

Rev 051 Page 1

PROPOSEDCHANGESINTHELABORREGULATIONS

SUBCHAPTER8020 DEPARTMENTOFLABOR

Section8020.1 Delegationofauthority. TheSecretaryofLaborherebydelegatesauthority underthe

CommonwealthEmploymentActof2007,PL15108;theMinimumWageandHourActasamended;

andPublic

Laws

No.

11

6,

12

11,

and

12

58

to

the

Director

of

Employment

Services,

the

Director

of

Labor,andthehearingofficersintheAdministrativeHearingOffice.Writtendelegationofauthority

previouslyissuedshallremaininfullforceandeffectuntilrescinded,altered,ormodifiedas

circumstancesrequire. AdelegationoftheSecretarysauthoritytotheDeputySecretaryshalloccur

whenevertheSecretaryisoffisland.

***

SUBCHAPTER8030 EMPLOYMENTOFCITIZENSANDPERMANENTRESIDENTS

Section30.2 Privatesectoremploymentpreferences

Section30.2

400

Job

referral

30.2445 Nowaivers. Therearenowaiversavailablewithrespecttothepublication

requirement.

***

30.2450 Publicationfiling. Whenajobvacancyannouncementispublishedonthe

Departmentswebsite,nofilingofproofofpublicationisrequired. Ifthejobvacancy

announcementispublishedelsewheretofulfilltherequirementsof30.2440(a),theemployer

mustfilewithEmploymentServices,nolaterthanthirty(30)daysfromlastpublication, a

statementorinvoicefromtheproviderofpublicationservicesshowingthedatesonwhichthe

jobvacancyannouncementwaspublished.

***

30.2460Cancellationofthejobvacancyannouncement. EmploymentServicesmaycancela

jobvacancyannouncementordenycertificationifinsufficientreasonsarestatedforfailureto

hireorifnostatementisreceivedwithin14days. Adenialmaybeappealedtothe

AdministrativeHearingOfficewithinfifteen(15)daysafterthedateofthedenial. (SeeSection

8050.4155.)

***

30.2480Workforceplan.


6/12

Rev 051 Page 2

(b)Employerscovered. Everyemployer,unlessexempted,isrequiredtohaveaworkforceplan.

***

(g) Lossofexemption. AnemployeragainstwhomtwoormorejudgmentsinlaborcasesorconsolidatedagencycasesareenteredinDepartmentproceedingswithinany

twoyearperiodautomaticallylosesanyapplicableexemptionandaplanmustbefiled

withEmployment

Services

within

30

days

of

the

entry

of

the

second

judgment.

No

administrativeproceedingisrequiredtoremovetheexemption. Ajudgmentfor

purposesofthissubsectionisafinalaction,whichincludesadecisionofahearing

officerthathasnotbeenappealedwithinthetimeallowed,oradecisionofthe

Secretaryonamatterthathasbeenappealedwithinthetimeallowed,provided

howeverthatastayoftheremovaloftheexemptionmaybeprovidedbyacourtof

competentjurisdiction. Theexemptionautomaticallybecomesunavailableonthedate

onwhichthesecondjudgmentisentered.Thetermtwojudgmentsincludes

judgmentsintwoseparateactionsorcasesbearingtwoseparatecasenumbers,and

alsoincludesjudgmentswithrespecttotwocomplainantsinthesameactionoracase

bearingonlyonecasenumber.Withinatwoyearperiodforpurposesofthissectionis

any24monthperiod. Thisperioddoesnotrelatetoacalendaryear.

***

Section8030.2600Workforceparticipationbycitizensandpermanentresidents

30.2620 Nowaivers. Therearenowaiversavailablewithrespecttotheparticipation

requirement.

***

Section8030.2700 Exemptions.

30.2705 Employerswithfewerthanfiveemployees. TheprovisionsofSection4525ofPL15108donotapplytoemployerswithfewerthanfiveemployeesexceptasprovidedinthissection

and,withrespecttothissection,donotapplytoowneroperatedbusinesseswithnoemployees

otherthanowners. Forpurposesofthissection,allfulltimeemployeesarecounted. Allretail

establishmentsthathandlefoodstampsshallhaveatleastemployeewhoisacitizenor

permanentresidentafterJune30,2008. Allemployerswithfewerthanfiveemployeesshall

haveatleastoneemployeewhoisacitizenorpermanentresidentafterOctober1,2009. All

suchemployersaresubjecttothejobvacancyannouncementrequirementsforalljob

vacancies.

***


7/12

Rev 051 Page 3

30.2715 Incentiveexemption. AnincentiveexemptionwithrespecttoSection4521(job

preference)butnotwithrespecttoSection4525(workforceparticipationbycitizens)orSection

452223(jobvacancyannouncementsandreferrals)shallbeavailableifthecitizenand

permanentresidentemployeesinthefulltimeworkforceofanemployerinthatONET

classification exceedssubstantiallythirty(30)percentoftheemployerstotalfulltime

workforceinthesepositions.Theincentivebenchmarkisfifty(50)percentfortheemployers

totalfull

time

work

force

in

the

A

List

and

B

List

jobs

,however

all

job

vacancies

must

be

advertised (SeeSection8030.2205).

***

30.2725 Lossofexemption. Anemployeragainstwhomtwoormorejudgmentsinlabor

casesorconsolidatedagencycasesareenteredinDepartmentproceedingswithinanytwoyear

periodautomaticallylosesanyapplicableexemptionandallprovisionsofPL15108

automaticallybecomeapplicable. Noadministrativeproceedingisrequiredtoremovethe

exemption. Ajudgmentforpurposesofthissectionisafinalaction,whichincludesadecision

ofahearingofficerthathasnotbeenappealedwithinthetimeallowed,oradecisionofthe

Secretaryonamatterthathasbeenappealedwithinthetimeallowed,providedhoweverthata

stay

of

the

removal

of

the

exemption

may

be

provided

by

a

court

of

competent

jurisdiction.

Theexemptionautomaticallybecomesunavailableonthedateonwhichthesecondjudgmentis

entered.Thetermtwojudgmentsincludesjudgmentsintwoseparateactionsorcasesbearing

twoseparatecasenumbers,andalsoincludesjudgmentswithrespecttotwocomplainantsin

thesameactionoracasebearingonlyonecasenumber.Withinatwoyearperiodfor

purposesofthissectionisany24monthperiod. Thisperioddoesnotrelatetoacalendaryear.

***

SUBCHAPTER8040 MORATORIUM

Section8040.1Moratoriumphaseout. Thepreviouslylegislatedmoratoriumonthehiringofforeign

nationalworkersisphasedoutasfollows:

Section40.1

100

Visitor

industry.

As

of

January

1,

2008,

the

moratorium

does

not

apply

to

the

visitorindustry. Thevisitorindustryincludeshotels,airlines,aircraftservices,tourpackagers,

tourguides,touristtransportation,andtouristsports,charters,andrecreationservices.

Section40.1200 Servicesindustry. AsofJanuary1,2009,themoratoriumdoesnotapplyto

theservicesindustry.Theservicesindustryincludesaccountants,lawyers,banksandfinancial

services,medicalandhealthcareservices,maintenanceandrepairandrentalservices,

restaurantsandcateringservices,retailandwholesalesalesandservices,bakerieswithretail

outlets,freightandshippingservices,appraisalandsurveyingservices,andeducationservices.

Section40.1300 Agricultural. AsofJuly1,2009,themoratoriumdoesnotapplyto

agricultural,fishingandfisheries,forestry, andgroundskeepingpositions.

Deleted: .


8/12

Rev 051 Page 4

Section40.1400 Allother. AsofJuly1,2009,themoratoriumexpireswithrespecttoall

remainingpositions.

***

SUBCHAPTER80

50

EMPLOYMENT

OF

FOREIGN

NATIONAL

WORKERS

Section8050.2 EntryintotheCommonwealth

Section50.2200 Approvedemploymentcontract

50.2205 Application. Anapplicationforapprovalofanemploymentcontractmustbesigned

byadirector,officer,ormanagerofacorporationorotherbusinessorganizationandmust

submittedtotheDirectorofLaboronastandardformprovidedbytheDepartmentinpersonby

anemployeeofacorporationorotherbusinessorganizationwhoshallpresentsufficient

identificationandproofofstatus. Anapplicationmustbesignedandsubmittedinpersonbya

nonbusinessemployer. Nopersonwhoisanagentandnopersonholdingapowerofattorney

maysignorsubmitanapplication. TheDirectorshallreviewtheapplicationtoascertainifitis

complete.

An

incomplete

application

will

not

be

accepted.

The

Director

shall

take

action

on

a

completeapplicationassoonaspracticableafterreceipt,dependingprimarilyonthetime

requiredforinvestigation,ifany,ofrepresentationsmadeintheapplication.TheDirectormay

approveordenytheapplication. Approvaloftheapplicationisanagreementorcontract

betweentheDirectorandtheemployerastothetermsunderwhichtheemployerwilloperate.

Adenialshallbeonastandardform. Nootherdocumentationwithrespecttoadenialis

required. AdenialmaybeappealedtotheAdministrative HearingOffice withinfifteen(15)

daysafterthedateofthedenial. (SeeSection 8050.4155.)

***

Section8050.3 StandardsforEmployment

Section50.3

100

Standard

conditions

of

employment

50.3105(c)(iii): Hiringforparttime. Anemployermayemployaforeignnationalworkerpart

timefornomorethan32hoursamonth. Anemployerwhohassignedanapproved

employmentcontractwithaforeignnationalworkermaynothirethatforeignnationalworker

forparttimework.

***

50.3140(c): Deductionsforemployersuppliedfood,transportation,andotherpurposes.

Allowabledeductionsforemployersuppliedfood,transportationtoandfromtheworksite,

utilitiesforthepersonaluseofaforeignnationalworker,andotherbenefitsorpurposesmaybe

Deleted:


9/12

Rev 051 Page 5

nomorethantheexpensesactuallyincurredbytheemployerinprovidingsuchbenefitsor$100

permonthfornonbusinessemployers.

***

50.3155 Contractextension,contractamendmentandreductioninhours.

(a)An

extension

to

an

existing

approved

employment

contract

for

up

to

six

months

may

be

agreedbythepartiesatanytimeduringthetermofthecontractandfiledwiththe

DepartmentonthestandardformprovidedbytheDepartmentforthatpurpose.

(b) Achange(amendment)toanexistingapprovedemploymentcontractmaybeimplementedorperformedonlywithprioragreementofbothpartiestothecontractandwithprior

submissiononastandardformprovidedbytheDepartment,providedhoweverthathours

maynotbereducedbelowthirtytwo(32)perweek.

(c) Acontractextensionoramendmentdoesnotrequirepriorapprovalof,butmaybedeniedby,theDirectorofLabor. AdenialbytheDirectormaybeappealedtotheAdministrative

HearingOfficewithinfifteen(15)daysafterthedateofthedenial. (SeeSection8050.4

155.)

***

Section50.3300 Contractrenewal,nonrenewal,andtermination

50.3305(d): Documents. Arequestforrenewalshallbeaccompaniedbycopiesofan

approvedemploymentcontract,anapprovedhealthinsurancecontract(afterthedateonwhich

theSecretaryofPublicHealthpublishesfinalregulationsinthatregard),andanapproved

securitycontractcoveringtheforeignnationalworkertoberenewed. Anemployermaysubmit

anewemploymentcontractwithnewtermsasnecessary. Arequestforrenewalmaybe

submittedandapprovedwithoutanaccompanyinghealthcertificate,butthehealthcertificate

mustbesubmittedwithinsixty(60)daysofapprovalortherenewalissubjecttorevocation. A

requestfor

renewal

may

be

submitted

and

approved

ifthe

Job

Vacancy

Announcement

is

on

file

(online),buttheJVAmustbecertifiedwithin sixty(60)daysofapprovalortherenewalis

subjecttorevocation.

***

Section50.3400 Transferbyadministrativeorder.

50.3420. Extensionoftime. Extensionsoftimewithinwhichtolocateanemployermaybe

grantedbytheAdministrative HearingOfficeuponapplicationsubmittedwithinten(10)days


10/12

Rev 051 Page 6

afterexpirationoftheinitialperiodoftimewithinwhichtolocateanemployerandassumption

offullresponsibilitybytheforeignnationalworkerformedicalandotherexpenseswithan

appropriateguaranteeundertermsacceptabletothehearingofficerandpaymentofafee.

50.3422. Objectionstoproposedtransfer. TheDirectorofEmploymentServicesshall

circulatetoallSectionswithintheDepartmenteachrequestforpermissiontotransferreceived

byEmploymentServices. Ifnoobjectionisreceived,ahearingofficermayissueanorder

grantingpermissiontotransfer. Ifanobjectionisreceived,ahearingofficershallconducta

hearingon

the

objection

and

the

burden

of

proof

is

on

the

objecting

officer

of

the

Department.

***

Section50.3500 Reductionsinforce

50.3540 Limitationsonnewhiresofforeignnationalworkers.

(a)Onislandhires. Anemployerwhohaslaidoffcitizens,permanentresidents,orforeignnationalworkersshallbebarredforaperiodof90daysfromtheeffective

dateoftermination.fromhiringanynewforeignnationalworkerstoworkintheO

NETjobclassificationsheldbylaidoffworkers

(b)Offislandhires. Anemployerwhohaslaidoffcitizens,permanentresidents,orforeignnationalworkersshallbebarredforaperiodofsixmonthsfollowingthe

effectivedateofterminationfromhiringforeignnationalworkersfromoffislandto

workintheONETjobclassificationsheldbylaidoffworkers.

***

50.3545 Pendingapplicationsforapprovedemploymentcontracts. Uponreceiptofnotice

fromanemployerofareductioninforce,downsizingorpartialclosure,theDirectorshall

immediatelydenyallpendingapplicationsfiledbytheemployertohireforeignnationalworkers

fromoffisland.

***

Section50.4 Adjudicationofdisputes

Section50.4700 Ordersandrelief

50.4725Whistleblowerrelief. Inordertopromotethepublicinterestinsecuringcompliance

withCommonwealthlaw,aforeignnationalworkerwhoprovidestheDepartmentwith

informationonthebasisofwhichacomplianceagencycaseisbroughtmaybegranteda

transferbyahearingofficerevenifnotqualifiedunderSection8050.4720above.

***


11/12

Rev 051 Page 7

Section50.4900 Judicialreview. JudicialreviewofafinalactionoftheSecretaryisauthorized

afterexhaustionofalladministrative remedies. AppealfromafinalactionbytheSecretaryshall

bedirectlytotheCommonwealthSuperiorCourtandshallbeinitiatedwithinthirty(30)daysof

thefinalaction.

Exceptas

otherwise

required

by

arule

of

the

Commonwealth

Superior

Court,

the

pleading

initiatingjudicial reviewshallbeaPetition for JudicialReview. ThePetition shall identify the

orderoftheSecretarybeingappealedandtheorderoftheAdministrativeHearingOfficethat

wasappealedtotheSecretaryandshallattachcopiesofboth. ThePetitionshallsetouteach

groundforappealinsummaryforminaseparatenumberedparagraph,andshallstatethatthe

requirementsoftheCommonwealthEmploymentActwithrespecttoappealsoffinalordersof

theSecretaryhavebeenmet.

***

SUBCHAPTER8060 OTHERPROVISIONS

Section60.8 Fees. ThefollowingfeesshallbecollectedbytheDepartment. Allfeesarenonrefundableandnontransferableunlessotherwiseprovidedintheseregulations.

6. Applicationforparttimeemployment $40.0013. Penaltyfeeforuntimelyrenewal (limit60days) $5.00/day14. Processingatemporaryworkauthorization (6months) $150.0015. Renewaloftemporaryworkauthorization (permonth) $25.0016. Mediationoflabordisputes Nofee17. Filingalaborcomplaint (perperson) $20.0018. Filingan appealtotheSecretary(perperson,exceptinagencycases) $40.00

19. AppealtotheHearingOffice (perperson) $25.0027. Contractextensions(uptosixmonths) $35/month

***

Section60.9 Statisticaldata

Deleted: 15

Deleted: 50

Deleted:

Deleted: 25


12/12

Rev 051 Page 8

Section60.9200 Standarddatasets. TheDepartmentwillpublishonitswebsiteandprovideto

the Department of Commerce quarterly statistics with respect to the number of permit

transactionswithinindustrycategories.

***

Section60.12 Transition

Section60.12335 EffectofPL110229. Inorder topromote recovery from severelyadverse

economicconditions, toaccommodate theuncertaintieswith respect to implementationofPL

110229(thefederalizationlaw),tominimizecostsimposedonbusinesses,andtoallowthelabor

departmenttofunctionefficientlyunderasubstantiallyreducedbudget,therequirementsofthe

periodicexithavebeensuspendeduntilfurtherpublicationofregulations.

***

Second Floor Afetña Square Building, San Antonio, P.O. Box

Documents

Transcript of Second Floor Afetña Square Building, San Antonio, P.O. Box