Labor Administrative Hearing Officer Barry Hirshbein said Ri Jin and Saipan Cool Water & Ice Inc. were “guilty of serious violations” of CNMI labor law and regulations.
He said the employer violated the provision on wage rates, hours of work, payment of wages and contract changes.
Labor revoked Ri Jin’s umbrella permit and fined Saipan Cool Water & Ice $5,000.
Ri Jin’s application for transfer relief was denied and his foreign national ID card showing Saipan Cool Water & Ice as his employer was also revoked.
His case was referred to U.S. Immigration while the company was barred for one year from hiring any additional foreign workers.
Hirshbein at the same time asked the Division of Revenue and Taxation to review the tax issues in this case.
On Jan. 21, 2010, Ri Jin filed a labor complaint alleging that the actual agreement between him and the company was to work on a commission basis.
Ri Jin worked under a commission arrangement. He purchased water from his employer for $0.75 per bottle and then sold it for $1.50.
As agreed, the employee paid for his own fuel.
Ri Jin began working for Saipan Cool Water & Ice under a conditional grant of transfer approved by Labor on July 30, 2008.
The contract was extended for six months as agreed by Ri Jin and Saipan Cool Water & Ice.
According to Labor, beginning in July 2008, Ri Jin worked seven days a week for 14 hours per day delivering water.
He testified that he worked with Fanshu Wu and that they shared whatever they could make after deducting expenses.
Wu continued to be employed by Saipan Cool Water & Ice. He testified that he became an hourly employee after Ri Jin filed his labor complaint.
Kyo Nam Kim, the current president of Saipan Cool Water & Ice, took over the company on Oct. 15, 2009. He testified that he and Ri Jin discussed converting the complainant’s employment into an hourly salary-based work, but Ri Jin wanted to keep the same arrangement.
Ri Jin denied that the conversation took place.
In his order dated June 9, Hirshbein said neither Ri Jin nor the employer kept any time records. The only record kept by the company was the number of bottles of water purchased by Ri Jin.
The employer could not answer questions about whether the business gross revenue tax returns reflected the $.75 purchase price paid by the employee or the $1.50 retail price paid by the customer, Hirshbein said.
He said Kim assumed his duties on Oct. 15, 2009 so he either knew or should have known about the working relationship.
