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Role of bond provider
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Posted on Nov 24 2006
[B]Q: What are the steps that the Labor director should take before ordering a bonding company to satisfy the Labor judgment of an employer?[/B]
A: Within 10 days of receipt of, or within five days of determining that Labor has administrative jurisdiction over a labor complaint, whichever is later, the director or his or her designee should transmit a “notice of potential claim” to the bonding company, third party guarantor, or administrator of the approved escrow account (bond provider).
According to the CNMI Alien Labor Rules and Regulations, within 10 business days of receipt of such “notice of potential claim,” the bond provider will provide written evidence to the Labor director that sufficient funds are available and have been reserved to satisfy the bond, guarantee, or escrow account deposit made in connection with the employment of a complaining alien worker.
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[B]Q: What will happen if Labor finds no evidence of payment by an employer to a final court or Labor administrative hearing officer’s order that is favorable to a complaining nonresident worker?[/B]A: Within 30 days after payment is ordered based on any final order of a court or Labor administrative hearing officer for unpaid wages, repatriation costs, medical expenses, or liquidated damages in favor of the alien worker, in the absence of written evidence of payment by an employer, the Labor director or his or her designee shall transmit the “notice of claim” to the bond provider.
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[B]Q: How long should a bond provider make payment to satisfy court or Labor administrative hearing officer’s final order?[/B]A: Within 10 days of the receipt of a “notice of claim,” the bond provider should make payment of the bond necessary to satisfy any final order of a court or Labor administrative hearing officer for unpaid wages, repatriation costs, medical expenses, or liquidated damages in favor of the alien worker.
The Labor director should then remit to the employee or authorized service provider any amounts deposited in favor of the party within 10 days of the deposit of the bond, guarantee, or escrow with the Labor director.
Submit questions on labor issues to [I]Saipan Tribune[/I] 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 [I]Saipan Tribune[/I]’s office on the second floor of the CIC Centre on Beach Road, Garapan.
