Fair Wage Act up for amendment

Locals earning less than the prevailing U.S. minimum wage of $5.15 may have to wait a little longer for the anticipated windfall of a recently-signed law providing them the same employment benefits granted to foreign workers.

Lawmakers are expected to pass a new legislation amending Public Law 11-74 or the Resident Workers Fair Compensation Act in efforts to correct loopholes and incorporate the forthcoming implementing guidelines.

This will further push back its implementation to a later date after it has already been stalled twice following concerns voiced out by the private sector against some provisions of the law.

House Speaker Diego T. Benavente yesterday said the administration-sponsored bill is being drafted by the Attorney General’s Office and they expect to receive it by this week.

“Rather than wait for continued promulgation of regulations, this time they have to make comprehensive changes on the original (law),” he said in an interview.

The proposed amendment will include giving blanket authority to the Department of Labor and Immigration to promulgate the rules and regulations, which has not been provided in the initial measure.

Benavente, however, did not disclose specific details of the amendment which he said is intended to resolve problems arising from the proposed rules earlier drawn up by the AGO.

He stressed the new measure would make promulgation of the regulations “practical or possible,” adding that it will be effective as soon as the governor signs it into law.

PL 11-74 has required drafting of the regulations for 30 days before the government can enforce it. But the Saipan Chamber of Commerce had sought clarification on the law, noting it is subject to various interpretations that may lead to lawsuits against businesses.

“Because of that problem, we need to amend the law,” Benavente explained, “and rather than amend the law and promulgate the regulations for another 30 days, I just asked to include all the proposed regulations into the bill, pass it and make it effective as soon as the governor signs it.”

According to the Speaker, he had asked that the guidelines be incorporated into the amendment to avoid potential conflict with it is implemented in the future.

Signed into law last March, PL 11-74 provided that local residents earning less than an hourly wage of $5.15 to receive all benefits either in cash or in-kind, such as subsidized food and housing, transportation and health insurance, extended to guest workers as mandated by existing laws.

The new policy was supposed to be implemented last May 15, but the government decided to extend the comment period on the rules and regulations to give the public more time to submit the necessary changes.

With the planned amendment by the Legislature, it will delay further the effective date when Gov. Pedro P. Tenorio signs it into law, according to Benavente.

“It will be implemented — that’s the language that will be put in the law and I feel that will be the quickest way to implement this rather than wait for regulations to be promulgated,” he added.