Hearing Officer Jerry Cody said Hongrong Sun, manager of MZ Corp., which operates the Crystal Massage Parlor in Garapan, is also ordered to stop working immediately.
Sun is prohibited from working for any corporation in which MZ directors and officers hold positions as officers or directors, Cody said in his administrative order dated Aug. 12.
He said Sun and MZ violated Public Law 15-108 when it employed Yadi Guo, Dan Wang and Chunxian Zhang.
“A foreign national worker shall not work in any capacity, including…engagement for training, other pre-employment purposes…prior to the issuance…of an approved employment contract,” Cody said.
In Oct. 2008, Sun hired the three workers as masseuses but only signed an employer intent form.
There was no conditional grant of transfer submitted and approved at that time, Cody said.
He said Sun asked each worker to pay her $700 for the processing of their papers.
From Oct. 20 to Nov. 21, 2008 all three workers remained at the massage parlor but only Zhang, who is an experienced masseuse, performed massages on a daily basis and was paid in “commission” for each massage.
When Labor conducted an on-site visit, it found the two workers in the reception area while Zhang performed a massage in a side room.
“None of the workers had any permit or authorization to begin working for MZ Corp.,” Cody said.
Labor filed a compliance agency case against Sun, MZ and the three workers.
During the hearing, Sun admitted her wrongdoing, saying she was warned that her operation was unlawful.
Cody said each of the workers explained that they were sorry for their conduct and requested permission to transfer to a new employer.
In Jan. 2009, the three workers filed a labor complaint against MZ Corp. for unpaid wages and illegal collection of processing fees.
The cases have already been settled.
Sun was granted immediate transfer relief and was told to register with the Division of Employment Services and Training. But if she failed to secure a transfer application and failed to obtain an extension she will be repatriated from the CNMI.
The three workers were ordered to pay a $500 fine each, but this will be suspended provided they no longer commit labor law violations.
Zhang, however, will still pay one-half of the fine.
The workers were also granted transfer relief. If they fail to get new employment, MZ Corp. will be required to buy their repatriation tickets.
