Labor tells firm to reimburse worker’s medical expenses

The Department of Labor has found a company liable to pay its former salesman $9,654.69 as reimbursement for medical and incidental expenses he incurred when he was seriously ill in 2004.

Labor administrative hearing officer Jerry Cody also slapped a $1,000 sanction on the employer, Commercial Trading of Saipan Inc., for its failure and refusal to pay the medical expenses of Pedro D. Miral in November 2004. CTS owns Rota Hardware

Cody ordered CTS to pay the award to Miral and the sanction to the CNMI Treasury within 30 days.

Labor granted Miral’s request to find another employer until June 25, 2006.

Cody said CTS failed to pay even the undisputed portions of the November 2004 medical bills in an apparent bid for leverage in its negotiations with Miral.

“Such bad faith refusal to pay legitimate medical expenses should not go unpunished,” said the hearing officer in sanctioning the company $1,000. He warned that any similar conduct in the future would be grounds for further sanctions, both monetary and injunctive.

Labor records show that Miral worked as a salesman for CTS on Rota under a work and entry permit that expired on Dec. 11, 2004.

In 2004, the salesman began experiencing fatigue and chest pains. In August 2004, he sought and received authorization from his employer to visit the Commonwealth Health Center in Saipan for a medical check-up.

During that check-up, the doctor detected certain abnormalities in diagnostic tests of Miral’s heart.

On Sept. 10, 2004, Miral submitted a written request to his employer for “emergency leave” so he could travel to the Philippines for further medical examination.

When nothing happened to his request, the salesman, who was concerned about his heart condition, decided to make his own plans to fly to the Philippines.

On Sept. 16, 2004, Miral flew to the Philippines for his medical check-up. He incurred expenses for airfare, hospitalization and medication totaling $774.74.

On Nov. 4, 2004, Miral visited Rota Health Center to refill his medication.

The doctor became so concerned that Miral’s heart condition was unstable that he confined Miral to the center for one or two days.

Miral returned to the Rota Health Center on Nov. 16, 2004 complaining of chest pains. The doctor advised him and his employer that he had unstable angina—a serious medical condition—and needed to be transported to the Philippines immediately for “urgent” medical treatment that was not available in the CNMI.

CTS approved Miral’s medical referral and paid for him and a nurse escort to fly to Saipan.

On Nov. 16, 2004, Miral enlisted the help of church officials in Saipan, who secured an immediate airline ticket for him. That evening, he flew to the Philippines where he was hospitalized for several weeks.

Miral borrowed money to pay his own medical and incidental expenses in the Philippines.

On Nov. 30, 2004, CTS delivered a memorandum to Miral in the Philippines, informing him that he was not being renewed. The company, however, assured that it would “provide his paycheck up to the end of the contract.”

Miral returned to Rota on Dec. 9, 2004. His permit expired on Dec. 11, 2004. Two days later, he filed a labor case against CTS.

On July 26, 2005, Labor concluded that CTS is responsible for all medical expenses incurred in the September and November 2004 trips.

In November 2005, Miral again traveled to the Philippines for medical treatment. His expenses totaled $2,500.

During the Labor hearing, CTS offered to pay the claimed expenses for the first two trips (September and November. 2004). But it contested Miral’s claim for expenses for his November 2005 trip, based on the fact that the expenses were incurred 11 months after complainants’ employment expired.

In his order, Cody said as the employer has not contested the individual expense amounts claimed by Miral, the only issue is whether each of the three trips should be reimbursed.

In the September 2004 trip, Cody said, the evidence shows that Miral asked for medical leave and attempted to get approval, but the company failed to respond to the request for about a week. Miral’s departure from the CNMI without the approval of his employer was reasonable under the circumstances, Cody said.

He said the complainant is entitled to be reimbursed for his $774.74 expenses for this trip, as claimed in the hearing,” he pointed out.

As to the November 2004 trip, Cody said, the evidence establishes that this trip was urged by the medical personnel in the CNMI and agreed to by the employer. Miral, Cody said, is entitled to be reimbursed by CTS for the debt he incurred in obtaining the airline ticket and medical treatment in the Philippines in November 2004.

Accordingly, the entire amount of $8,879.95 should be reimbursed, he said.

Additionally, Miral moved for reimbursement of the $2,500 in expenses incurred in his trip to the Philippines in November 2005 for medical treatment.

But Cody cited a Superior Court ruling that was affirmed by the CNMI Supreme Court holding that employers of nonresident workers with pending labor complaints are not responsible for the medical expenses of those former employees incurred more than 96 days after expiration of the employees’ labor permits.

Applying the clear holding of the courts’ rulings, Cody said he finds that Miral’s responsibility for medical coverage ended 96 days following the expiration of the permit.

Thus, he said, CTS is not responsible to pay for medical expenses incurred in November 2005.

Finally, Miral asserted that CTS should be required to pay wages for the last month of his contract because the employer promised to pay his salary in its “nonrenewal” memorandum.

Cody said CTS was under no contractual obligation to pay a salary to an employee who was incapacitated by illness and therefore, not performing his job.