Labor proposes regs against ‘kickbacks’ and other unlawful practices

The Department of Labor wants to ban any employer who receives “kickbacks” or engages in any unlawful practice in recruiting nonresident workers.

A new set of regulations proposed by Labor also caps the fees that a recruiter may charge for his or her services at 12.5 percent of the base rate of the contract.

In a public notice, the department said that the proposed regulations clarify and interpret existing statutes and restrict practices that lead to violations of labor and immigration laws.

“These regulations prohibit ‘kickbacks’ and other unlawful practices that occur when an alien worker is compelled to pay an employer in exchange for receiving or renewing a job. They prohibit sponsorship relationships that occur when a worker is not truly employed by his or her employer of record,” according to Labor.

Furthermore, the regulations require that recruiters be licensed to do business in the Commonwealth and recruit that recruiters register with the Department of Labor.

According to the regulations, an employer, prospective employer, or a third person should not receive a kickback from any person in exchange for the employment or offer of employment to a prospective employee.

Labor definition of a “kickback” does not include the customary fees paid by a prospective employee to a recruiter in exchange for the recruiter’s services in attempting to secure or securing employment for the prospective employee as long as the recruiter does not make or offer payment to the employer or his agent for providing the job.

However, the term “kickback” includes any person’s collection or attempt to collect money or other consideration from an alien worker in exchange for an offer of employment or renewal of employment if that person is not a recruiter.

An alien worker is also prohibited from receiving compensation or consideration of any kind in exchange for recruiting or promising employment or renewal of employment to another person. A worker who violates this may have his employment permit revoked.

A person or agency should not engage in recruiting workers unless licensed by the departments of Commerce and Labor.

Fees charged by a recruiter for all recruiting services and related duties performed in the CNMI may not exceed 12 percent of the base rate of the contract. This is calculated at 40 hours per week multiplied by the hourly wage rate multiplied by the number of weeks in the contract period. It does not include actual or projected overtime compensation. (Agnes E. Donato)