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New law now enables collection of ex-govt employees’ earned wages
Gov. Eloy S. Inos signed into law last week a Senate bill that provides a legal structure that would give relief in situations where there is earned compensation owed former employees and subsistence allowance pursuant to an appropriation legislation.
Inos informed Senate President Ralph DLG. Torres and House Speaker Joseph P. Deleon Guerrero that Senate Bill 18-53, SD1, HD1 that the Legislature passed last month is now Public Law 18-57.
Senate vice president Victor B. Hocog (R-Rota) introduced the legislation.
The Legislature acknowledged that the government as the largest employer in the CNMI has had repeated experiences where a current or former employee has died and was still owed payment for wages associated with prior services (earned compensation).
In these instances, the Legislature found that payment of the earned compensation cannot be made without either use of probate proceedings or valid assignment by the former employee completed prior to death.
These limitations have resulted in numerous situations in which earned compensation owed former employees remains undistributed at times when families often require these funds to meet funeral expenses or to settle claims.
The bill provides a legal structure similar to that of other states that would give relief in situations where there is earned compensation owed former employees and subsistence allowances owed pursuant to a legislative appropriation.
With the signing of the bill into law, if, at the time of the death of any person, an employer is indebted to the person for work and labor and no personal representative of the person’s estate has been appointed, such employer shall, upon the request of the surviving spouse, pay this indebtedness, in such an amount as may be due the surviving spouse.
In the absence of a surviving spouse, the employer shall pay this indebtedness jointly to the surviving children of the decedent.
