Salient Points of Omnibus Law

— Imposing a requirement of 20 percent ratio of U.S. citizens, CNMI residents within the management and/or supervisory positions in the garment manufacturing industry.

Management covers positions with minimum base salary of $24,000, while $18,000 for supervisory, among other job classifications.

However, the percentage can be reduced by the Labor and Immigration Secretary if a factory is unable to meet the requirement despite a good faith effort to do so.

The employer must demonstrate that a training program for the development of resident supervisors/managers is in place and that resident workers are in fact being trained.

Eighteen months after its signing, reduction shall no longer be available. Failure to comply with this requirement — which will take effect in 180 days — will be grounds for suspension or revocation of the license and penalty of not more than $5,000 per day.

— Providing two options for foreign investors to meet the $100,000 security deposit through a cash deposit in a financial institution or a bond issued by a surety company on the islands.

Such surety company must be acceptable for federal projects by the U.S. Department of the Treasury, and that the local Department of Commerce may impose other requirements to ensure its reliability and capability. The bond must run for a minimum terms of two years.

— Easing the moratorium on the hiring of nonresident workers under PL 11-6.
An entry permit once issued shall remain in effect for one year after the date of issue.
DOLI shall strictly enforce the requirement of 30 days notice by employer to renew or not to renew the contract of a nonresident worker.

If the contract will not be renewed as properly notified, the worker will have 15 days upon its expiration to secure new employment. If there is no proper notification, then the worker will have 45 days after the end of the contract term to find a new job.

The DOLI Secretary will implement regulations to establish a mechanism for the temporary transfer of employees between employers within garment, hotel and construction sectors.

Such regulations shall require, at a minimum, that all transfers are for a limited duration and are within the same industry.

Nonresident workers employed in the garment industry shall only be permitted to transfer to another employer in the same industry provided that it is a consensual transfer during the contract period.

— Reallocating nonresident workforce in the garment industry as provided under the garment cap of PL 11-76 so long as it does not exceed the ceiling of 15,727 workers.

The DOLI Secretary will establish a mechanism for the reallocation of nonresident workers among manufacturers based on need for a fee in order to offset the administrative costs.

If a license is revoked, not renewed or permitted to lapse, the quota of workers for that factory will be reallocated at the discretion of the DOLI Secretary to another qualified manufacturer.