Chona De Leon Manalac complained to the CNMI Department of Labor that she was paid the flat rate of $300 a month although the islands’ minimum wage had increased since 2007.
San Nicolas, who is now Gov. Benigno Fitial’s special assistant for political affairs, acknowledged owing her former employee back wages.
According to the administrative order dated Sept. 7, 2010 that Labor Administrative Hearing Officer Barry Hirshbein signed, San Nicolas and Manalac “initially contemplated a salary arrangement rather than hourly employment.”
“When the contract was prepared the wages were set at $4.55 per hour. Employer paid $300 per month for approximately one year. Employer acknowledges that she signed the contract and agrees that under the hourly calculation she owes $6,395.51 for the final six months of the contract. Employer also acknowledges that employee is entitled to reimbursement of $55 in medical expenses,” the order stated.
From $3.05 an hour, the CNMI’s minimum wage rate was raised to $3.55 in 2007 after a national law was enacted that mandates an annual 50-cent increase until the local rate reaches $7.25 an hour by 2015.
The U.S. Congress and President Obama, however, deferred the implementation of the next round of wage increase in the CNMI next year due to the islands’ worsening economic crisis.
Based on the Labor order, Manalac was allowed to transfer to another employer subject to local employment procedures.
