Labor now charges $50 for extension requests

Unemployed nonresident workers who want to ask the Department of Labor’s permission to extend the period allowed them to find new jobs must now shell out $50, according to information posted at the agency’s office.

“Effective May 1, 2009 the hearing office shall collect a $50 fee for extension request per the Employment Rules and Regulations,” the Labor notice said, citing Section 60.8 of the regulations authorizing the fee.

The fee must be paid at the CNMI Treasury upon submitting the extension request.

A 39-year-old nonresident worker who agreed to speak on condition of anonymity expressed frustration with the implementation of the fee.

“We’re asking an extension … because we want to find new jobs and employers. The fee imposed, though legal, would somehow add to our burden and concerns. The $50 fee for each extension is something we’re now thinking about. We want to find jobs because we want to earn money…”

For many years, the Labor Department did not charge any fee for extension requests made and granted by the agency.

The new fee surprised Ronnie Doca, chairman of the United Workers Movement, who believes it would further burden many nonresident workers who are doing their best to find new employers.

“It would be an added burden to the hundreds of alien workers who come to seek for such an extension. …The $50 fee for every extension request is a big amount especially for those who are still seeking new jobs. I hope the local Labor Department would reconsider this,” said Doca.

He said that in previous meetings with Labor officials, they were assured of “help and assistance.”

“I think this is the right time to memorialize those conversations…because imposing the fee in these very hard times would be a big burden to many of our nonresident workers who want to work in the CNMI,” Doca said.

Some 200 extension requests are made by alien workers every month, he added.

Doca said some issues also need to be clarified by the department.

“Does this mean that all requests for extension will be granted provided they pay the $50 fee?” he asked.

Doca’s organization has called for a meeting to seek the members’ input on the issue and to measure the impact it will have on individuals.

Department of Labor acting secretary Cinta Kaipat yesterday explained that they decided to charge a fee because the processing of extension requests costs the taxpayers money and those who benefit from the service should help pay for it.

She said that before implementing the fee, Labor amended its regulations, published the regulations for public comment, and met with workers and their representatives to discuss a reasonable fee.

“The Labor Department allows extensions of time to transfer when a foreign worker has prospects for employment but has been unable to complete the necessary paperwork within the normal 30-day period. This policy benefits CNMI businesses in these difficult economic times but never displaces U.S. citizen applicants because all of these jobs are subject to job vacancy announcements and the preference for U.S. citizen applicants,” she said.

As for the amount the department expects to generate from the fee, Kaipat said Labor has yet to map a projection, adding that the amount depends on the number of requests that are processed by the department.

“The fee is for the purpose of meeting the cost of this function [processing requests for extension of time] when requests are made. The fee is not for the purpose of generating a specific amount of revenue,” she said.

Labor also does not have any estimate of how many extensions will be submitted, she said.

She said this is an accommodation to businesses that may not be able to complete the paperwork within the initial 30-day period.

“The department enforces the preference for U.S. citizens with respect to all job vacancy announcements. This means that an employer cannot hire a foreign worker until the employer has considered the qualifications of every U.S. citizen who applies. This takes some time to determine if a U.S. citizen is available. If no U.S. citizen is available, then there may not be enough time left for the business to process the application for the foreign worker,” she said, adding that it is for this reason that extensions of time are sometimes granted as the circumstances justify.

“It is important to get consideration of all U.S. citizen candidates and it is important that businesses be able to operate efficiently in these difficult economic times. The extension of time to transfer is a reasonable accommodation of these needs,” Kaipat added.