Many of the Commonwealth’s laws and regulations administered by the
Department of Labor and Immigration concern the entry and treatment of
nonresident workers. Not much has been published regarding federal labor
laws.
     Officers and management of firms doing business in the Commonwealth
should familiarize themselves with certain federal laws and regulations as
they may affect, or apply, to a particular business activity. Several of
the more important of these are as follows:
- The Occupational Safety And Health Administration (OSHA) develops and
promulgates occupational safety and health standards, develops and issues
regulations for a wide variety of industries and services, conducts
investigations and inspections to determine the status of compliance with
safety and health standards and regulations and issues citations and
proposes penalties for noncompliance with health and safety standards and
regulations. Construction firms and other businesses working in the
Commonwealth should be aware that their activities will be subject to laws
and regulations administered by OSHA. In June, 1989 as a result of fines
imposed by OSHA, a  Japanese construction company on Saipan agreed to a
$100,000. settlement for safety violations during the construction of a
hotel.  The company was charged with 89 violations of federal safety and
health regulations. Charges included: failure to install guard railings on
stairways; no scaffolding and open sided floors above ground level; not
using enclosed chutes to dispose of waste from upper floors; not providing
employees with protective equipment such as helmets, and many other
violations.
       In 1977 the U.S. Supreme Court ruled that foreign subsidiaries are
constituted under and subject to the full  panoply of U.S. civil rights and
labor laws, (Sumitomo Shoji America Inc. v. Avagliano, 1982, 457 U.S.176).
- The National Labor Relations Board (NLRB) has two principal functions:
preventing and remedying unfair labor practices by employers and labor
organizations and their agents and conducting secret ballot elections among
employees in appropriate collective bargaining units to determine whether
or not they desire to be represented by a labor organization.  The Board
has other functions and activities but can only act when it is formally
requested to do so by individuals, employers or unions.
- Civil Rights: The implementation of all federal activities in the area of
civil rights, consumer affairs, public health, social security
administration and many other areas related to the well being of society
are the responsibility of the U. S. Department of Health and Human
Services.  The Department enforces policies promulgated under the Civil
Rights Act of 1964 which prohibits discrimination with regard to race,
color or national origin.
- The Fair Labor Standards Act which establishes overtime pay, record
keeping, and child labor standards applies in the Commonwealth and is
enforced by that agency's Wage and Hour Division. Workers are entitled to
overtime pay at a rate of not less than one and one-half times their
regular rates of pay after 40 hours of work in a workweek. Wages are due on
the regular day for the pay period covered. Deductions made from wages for
such items as cash or merchandise shortages, employer-required uniforms and
tools of the trade are not legal to the extent that they reduce the wages
of an employee below the minimum rate of pay or reduce the amount of
overtime pay due the worker.
       The Act restricts the hours of work for minors under the age of 16
and lists jobs considered too dangerous for minors to perform. Employers
are required to keep records relating to: personal information, (
employee's name, home address, occupation, sex and date of birth); hour and
day when their workweek begins; total hours worked each workday and each
workweek; total daily or weekly straight-time earnings; regular hourly pay
rate for any week when overtime is worked; total overtime pay for the
workweek; deductions from or additions to wages; total wages paid each pay
period and date of payment and pay period covered. Records required for
exempt employees differ from those for nonexempt workers and special
information is required for home workers, for employees working under
uncommon pay arrangements, or for employees to whom lodging or other
facilities are furnished. A workweek is a period of 168 hours during 7
consecutive 24 - periods. There can be no averaging of 2 or more workweeks.
Covered employees must be paid for all hours worked in a workweek. In
general "hours worked" includes all time an employee must be on duty, or on
the employer's premises or any other prescribed place of work. Also
included is any additional time the employee is suffered or permitted to
work.
- Overtime Pay: (1) Hourly Rate - Regular pay rate for an employee paid by
the hour. If more than 40 hours are worked, at least one and one-half times
the regular rate for each hour over 40 is due. (2) Piece Rate  - The
regular rate of pay for an employee paid on a piecework basis is obtained
by dividing the total weekly earnings by the total number of hours worked
in the same week. The employee is entitled to an additional one-half times
this regular rate for each hour over 40, plus the full piecework earnings.
(3) Salary - The regular rate for an employee paid a salary for a regular
or specified number of hours a week is obtained by dividing the salary by
the number of hours for which the salary is intended to compensate.
       It is a violation of United States law to fire, or in any other
manner discriminate against an employee for filing a compliant, or for
participating in a legal proceeding under the Fair Labor Standards Act.
Willful violations may be prosecuted criminally and the violator fined up
to $10,000. A second conviction may result in imprisonment.
Violators of the child labor provisions are subject to a civil money
penalty of up to $1,000. for each violation.
       The equal pay provisions of the Fair Labor Standards Act prohibits
wage differentials based on sex, between men and women employed in the same
establishment, on jobs that require equal skill, effort and responsibility
and which are performed under similar working conditions. These provisions
as well as others prohibiting discrimination in employment are enforced by
the Equal Employment Opportunity Commission.
- Other Labor Laws: In addition to the Fair Labor Standards Act the Wage
and Hour Division administers other United States labor laws as follows:
- The Davis - Bacon and related Acts requiring payment of prevailing wage
rates and fringe benefits on federally financed or assisted construction;
- The Walsh - Healey Public Contracts Act requires payment of minimum wage
rates and overtime pay on contracts to provide goods to the federal
government;
- The Service Contract Act requires payment of prevailing wage rates and
fringe benefits on contracts to provide services to the federal government;

- The Contract Work Hours and Safety Standards Act establishes overtime
standards for federal service and construction contracts;
- The Wage  Garnishment Law limits the amount of an individual's income
that may be legally garnisheed and prohibits the firing of an employee
whose pay is garnisheed for payment of a single debt.
    Depending upon the number of employees maintained by a business,
particularly those with more that 15 to 20 employees and whether or not a
federal contract is involved, there are a number of federal laws that
prohibit discrimination in employment. Among those that may apply to a
business are:
- Civil Rights Act of 1964: - Requires that there is no discrimination in
employment practices based on race, sex, religion, disability or national
origin.
- Pregnancy Discrimination Act: - Equal treatment for pregnant women and
new mothers for all employment related purposes including fringe benefits.
- Equal Pay Act: - Equal pay for women.
- Age Discrimination Employment Act: - No discrimination in hiring or
dismissing because of age for persons between the age of 40 to 70.
- Rehabilitation Act - (where a federal  contract is involved): -No
discrimination in employment practices based on mental health or physical
handicap.
- Vietnam - Veteran Readjustment Assistance Act - (where a federal
contract is involved): Affirmative action programs for certain disabled
veterans.
- Sexual Harassment: - Employers must be aware of the possibility of
liability for conduct in the work place relative to potentially unwelcome
requests or conduct or for engendering a work environment which is
oppressive and hostile to members of one sex.
- The Worker Adjustment and Retraining Notification Act, (WARN Act):-
(Usually applies to businesses with 100 employees or more with a 40 hour
work week at a single location): - This law may apply when 50 employees or
more, or one third of a work force, is laid off within a thirty day period.
There are several exceptions and include: layoffs as a result of
earthquakes, floods, a labor dispute,such as a strike or lockout, in which
case no notice of the layoff need be given. Generally a “layoff” is
considered when there is a permanent termination of employment, a layoff
for a period exceeding six months, or loss of half an employee’s working
hours for six consecutive months. When layoffs occur the employer is
required to provide the employees with 60 days advance notice. Failure to
do so could result in the employer paying the employees for 60 days minus
the number of days the notice was given. The law does not prohibit an
employer from making layoffs or closing a plant .
     The WARN Act imposes restrictions on a company’s ability to
reorganize,  sell, consolidate or merge operations if such action will
result in adversely affecting the employment of 50 or more employees. This
Act makes the risk of building a plant in the United States much greater
than was previously the case since, if the business fails, the owners may
have to close their facility rather than restructure or sell the business.
- Federal Contracts: All federal contracts for materials, supplies or
equipment valued at more than $10,000. must contain guarantees that all
persons employed by the contractor will be paid wages not less than the
federal minimum wage ($4.25 per hour); provide for the compensation of
workers at 1 1/2 times the regular rate  for work performed in excess of 40
hours per week and provide a safe, sanitary workplace, (Walsh-Healy Act -
U.S.C. Section 35-45 and Covenant, Section 502 (b).
     The above is a cursory review of some of the more important United
States labor laws. For more specific information as to how any of the above
may apply to your business consult a local attorney or the United States
Government agency concerned.

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