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SGMA trained on changes in overtime regs
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Posted on Jul 15 2004
The human resource and payroll personnel of Saipan Garment Manufacturers Association member-companies were recently trained by the U.S. Department of Labor- Wage and Hour Compliance Division as part of the organization’s commitment to provide educational outreach to its member.
U.S. DOL Saipan Office’s Richard L. Hamilton and Louis F. Cabuhat presented a two-hour introduction to 40 factory representatives covering regulations that will amend the overtime exemptions for salaried employees.
The minimum level for overtime exemption is being raised to $455 weekly, effective Aug. 23, 2004. This means salaried workers who are receiving less than this amount each week will be eligible for overtime pay.
The training session, held at SGMA offices on July 13, focused on revisions to Exemptions for Administrative, Executive, Professional, Computer, and Outside Sales Employees under the Fair Labor Standards Act.
The U.S. DOL officials told SGMA members that factories on-island are now reaching near total compliance with provisions of the Fair Labor Standards Act, which applies to the Commonwealth of the Northern Mariana Islands.
Cabuhat, however, reported that their inspections in the past year have discovered companies where employees have not always been paid exactly on time. Labor realizes this has much to do with smaller factories receiving payments from their customers, and therefore they have been late issuing their checks to their employees, but they are still forced to cite any violations they detect. All factories have eventually paid any and all wages due.
SGMA spokesperson Richard A. Pierce said that unpaid wages to workers has netted removal of one company from SGMA and the eventual closure of that company.
