Virgin Islands Law Blog : Virgin Islands Lawyer & Attorney : BoltNagi Law Firm : St. Thomas, St. John, St. Croix, Water Island, US Virgin Islands

At the beginning of 2009, employers, insurers and COBRA administrators revised their procedures and notices to implement the COBRA subsidy provided under the American Recovery and Reinvestment Act of 2009 (“ARRA”). These provisions allowed certain eligible individuals to elect COBRA coverage and pay only 35% of the COBRA premium for up to 9 months. Subject to certain exceptions, employers then collect the other 65% of the premium from the federal government through a credit claimed on the employer’s payroll tax return. This COBRA subsidy was a temporary measure that was to be available only to individuals who were involuntarily terminated from employment and were entitled to elect COBRA coverage on or prior to December 31, 2009. On December 19, 2009, President Obama signed the Department of Defense Appropriations Act, 2010, which includes an amendment extending the COBRA subsidy (the “Subsidy Amendment”).

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On January 29, 2009, President Obama signed into law the Lilly Ledbetter Fair Pay Act, effectively overturning a controversial 2007 Supreme Court decision dealing with discrimination in employee compensation. The Act, named for the plaintiff in the 2007 Supreme Court case, eases the path for employees suing their employers for pay discrimination by relaxing certain statutory deadlines for filing a claim. 

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St. Croix, VI - Friday afternoon Luis Diaz, Agent for the National Labor Relations Board, announced the union election results by the workers of the St. Croix Kentucky Fried Chicken restaurants at Frederiksted, Orange Grove and Sunny Isle. Diaz declared that the workers voted 28-5 in favor of rejecting Our Virgin Islands Labor Union to represent them.

Juan Mujica, Vice President of Operations for Kazi Foods of the Virgin Islands Inc. stated that he is “very pleased with the results of the election and that the workers are giving Kazi Foods, the franchise owner, a chance to show its commitment to its employees”. Mujica stated that “the workers made an informed decision and now Kazi Foods will be able to work directly with its employees.”

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For the first time in nearly a decade the federal minimum wage will increase Tuesday, July 24, 2007 from $5.15 per hour to $5.85.   The $0.70 increase is scheduled to continue each summer for the following two years and will stop at $7.25 per hour in 2009.

           

Attorney Ravinder S. Nagi, Chair of the Labor and Employment Practice Group at Tom Bolt & Associates P.C., noted that most Virgin Islands employers and employees are not affected by the increase this year, because since January 1, 2007 the Virgin Islands’ minimum wage was increased to $6.15 per hour- higher then the impending $5.85 federal minimum wage increase. 

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Responding to remarks of Central Labor Council President Luis "Tito" Morales, St. Thomas attorney Tom Bolt called them "unfortunate and irresponsible".  Morales appearing on St. Thomas radio station WVWI's "Morning News" stated that "Kazi Management should lose its EDC benefits due to the closure of the KFC restaurant at Buccaneer Mall on St. Thomas."

"Once again, Tito Morales has spoken before he has the facts," said Tom Bolt, the St. Thomas attorney that represents Kazi Foods of the Virgin Islands.  "Kazi Foods of the Virgin Islands does not have EDC benefits, has not applied for EDC benefits, and would not qualify if they did apply." Bolt noted. 

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Juan Mujica, Vice President of Operations for Kazi Foods of the Virgin Islands, announced earlier today the closure of the Kentucky Fried Chicken restaurant located at Buccaneer Mall on St. Thomas. “The lease for this facility is due to expire in a few weeks,” Mujica explained, “and the rent on this particular restaurant is more than four times that of some of our other restaurants on St. Thomas. We attempted to negotiate with the landlord, but could not reach a mutually agreeable position.”

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Tom Bolt & Associates,P.C. and its affiliated firm, Kilpatrick Stockton, LLP recently held sexual harassment training sponsored by the St. Thomas-St. John Chamber of Commerce and the USVI Hotel & Tourism Association.  The training was mandated adopted by the Virgin Islands earlier this year.

St. Thomas attorney Ravinder Nagi who coordinated the traning sessions noted that the San Francisco Chronicle recently reported that workplace harassment training is paying off.  The Equal Employment Opportunity Commission (EEOC) has also reported that the number of harassment claims has dropped by 20% since 1997.

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In April, Governor Charles W. Turnbull approved a law that affects every employer and employee in the Virgin Islands. While the Territory already has laws prohibiting discrimination, Act No. 6829 amends the Virgin Islands Civil Rights Act to require every employer in the territory to adopt a policy against sexual harassment in the workplace and provide a written copy to each employee. Employers with five or more employees are required to conduct education and training programs designed to prevent sexual harassment. The Act also makes it unlawful to retaliate against employees making good faith reports of harassment. In perhaps its most significant provision, Act No. 6829 provides for individual monetary liability, not only employers, but also for supervisors, managers or co-employees who are found to have engaged in sexual harassment.

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