Authored by Sen. Paul A. Manglona, R-Rota, S.B. 16-23 aims to reduce unemployment among resident workers.
The bill will “encourage resident workers to work under contracts for services to the commonwealth or for capital improvement projects that will pay them at least the prevailing U.S. minimum hourly wage.”
According to the Web site of the U.S. Department of Labor, “For work performed from July 24, 2008 to July 23, 2009, the federal minimum wage is $6.55 per hour, while for work performed on or after July 24, 2009, the federal minimum wage is $7.25 per hour.”
The federal Fair Minimum Wage Act of 2007 provides for phased increases to the federal minimum wage.
S.B. 16-23 has two objectives: to raise the level of disposable income by raising the minimum wage of employees under contract for services to the government or for CIPs; and to reduce the local unemployment rate in the commonwealth.
The legislation will penalize an employer who will violate the federal wage rate by terminating his contract.
According to the bill, the recruitment and training of resident workers will be the task of the CNMI Department of Labor through the Workforce Investment Agency and the Division of Employment Security.
The Division of Procurement and Supply is mandated to inform the governor at the beginning of each calendar quarter on the number of resident workers currently employed under contract.
S.B. 16-23 has already been transmitted to the House of Representatives.
The previous administration required that workers hired for federally funded projects get the federal minimum wage rate.
But the Fitial administration rescinded this rule two years ago.
