Virgin Islands Law Blog

Virgin Islands Law Blog

U.S. Virgin Islands law & politics

Checklist for Hiring a New H1-B Visa Program Employee

Posted in Labor & Employment

American businesses that require highly skilled workers have the option of looking at international candidates who are working in the United States on a visa or who are graduating from an U.S. college. This is made possible through the H-1B visa program.

There are a few steps in the H-1B process for hiring foreign nationals who are already in the country. These steps include:

  • Establishing the prevailing wage for the position: The prevailing wage is determined by the statistical average pay for workers performing the same job in the same area.
  • Filing a Labor Condition Application: You must file this form with the U.S. Department of Labor, verifying that your proposed hiring of the H-1B worker fulfills the requirements for wages and working conditions.
  • Filing a Petition on Form I-129: This document is filed with United States Citizenship and Immigration Services (USCIS).

Form I-129: More information

The process of preparing and filing the H-1B petition (Form I-129) may be the most complicated part of the process. To accomplish this, the employer must include certain information with the application, including:

  • The Form I-129 Petition for a Nonimmigrant Worker, H Classification Supplement to Form I-129, and the H-1B Data Collection and Filing Fee Exemption Supplement, the first two of which require signatures.
  • A letter of support from the employer confirming their job offer to the potential foreign employee and outlining all terms and conditions of the arrangement.
  • Copies of the foreign worker’s immigration and identification documents, as needed. These documents could include their passport, visa, USCIS Forms I-797, I-94 Arrival/Departure Record, and/or SEVIS Form I-20 (for F-1 students).
  • Copies of all transcripts and educational degrees of the foreign worker. U.S. equivalency evaluation reports are required if the degrees and transcripts are from another country.
  • Documentation proving the foreign worker has lawful status in the United States.
  • A base filing fee (visit www.uscis.gov for current fee information).
  • Fraud prevention fee and ACWIA fee, unless an exemption applies to the foreign worker (again, visit www.uscis.gov for fee information).
  • Public Law 114-113 Fee, required for any employer with 50 or more employees based in the United States, at least half of whom are in L or H-1B status.
  • An LCA (certified labor condition application) from the Department of Labor.

For more information on what you need to collect and the steps you must take to hire an employee through the H-1B visa program, contact an experienced international law attorney in the U.S. Virgin Islands.

 

Ravinder S. Nagi is Assistant Managing Attorney and Chair of the Labor and Employment Law Practice Group at BoltNagi, a widely respected and well-established international law firm serving individuals and businesses throughout the U.S. Virgin Islands.

U.S. Virgin Islands Signs Tax Agreement with Airbnb

Posted in Government Relations

The U.S. Virgin Islands and Airbnb recently reached a landmark agreement that will allow the popular service for apartment and room rentals to collect the  12.5 % Hotel Room Occupancy Tax on behalf of hosts. Airbnb will then remit those funds to the Territory’s Bureau of Internal Revenue.

The deal also establishes a framework by which Airbnb will help promote more tourism in the U.S. Virgin Islands, with particular attention paid to the Territory’s cultural and historical heritage.

This is not the first time Airbnb has invested in an agreement of this kind in the Caribbean. The company has been focused on creating a community in which homeowners can rent out their own properties to create additional options for tourists in the region.

Home sharing and renting have become major trends in the tourism industry thanks in large part to the explosion in popularity of services like Airbnb and HomeAway. With this agreement, the U.S. Virgin Islands can take in revenue more reliably, with hosts not having to worry about handling remittance transactions themselves. Governor Kenneth E. Mapp said the benefits of the agreement are far-reaching and would perhaps impact the hospitality sector most significantly.

All part of the plan

This latest agreement with Airbnb is just one component of the Mapp Administration’s five-year plan to provide economic stability to the government through increased revenue collection, better management of resources and the spurring of economic growth in as many areas and industries as possible.

There are currently about 2,000 active listings on Airbnb in the U.S. Virgin Islands. On average, a host in the Territory will earn about $7,700 a year. In almost every case, money earned through Airbnb is a supplemental income that helps families to pay their bills and improve their overall quality of life. The selling point for Airbnb users is that staying with a host gets them a more authentic and up-close view of the Territory, especially when it comes to recommendations for sites and restaurants to check out.

Local authorities in the U.S. Virgin Islands have made it clear that growth and diversification of tourism in the islands—along with the improvement of tax collection for hosts and the government—is top priority. This agreement helps to provide a boost for each of those areas.

For more information on how the USVI government’s commitment to tourism, especially related to this new Airbnb deal, could affect your company, work with a skilled business law attorney in the U.S. Virgin Islands.

 

Tom Bolt is Managing Attorney of BoltNagi, a respected and well-established business law firm serving clients throughout the U.S. Virgin Islands.

USVI Attorney General: Physicians Must Treat Medicare, Medicaid Patients

Posted in Government Relations

Recent efforts on the part of U.S. Virgin Islands Governor Kenneth E. Mapp have resulted in the federal Medicaid program being made available to an additional 19,000 citizens in the Territory. However, reports continue to circulate about physicians denying medical services to Medicare and Medicaid patients.

An official complaint regarding this denial of care was made by Dr. Frank Odlum, Chair of the Board of Medical Examiners for the U.S. Virgin Islands, to Attorney General Claude Walker. Walker said he is “deeply troubled” by the nature of the complaints, one of which involved a doctor terminating a patient’s ongoing care after that patient was no longer covered by private insurance and was placed on Medicare instead.

U.S. Virgin Islands law requires doctors to provide care to Medicaid and Medicare patients. Here is an excerpt of the law:

All health care providers who, in addition to their employment with the Government of the Virgin Islands, engage in a private practice and receive financial assistance toward the payment of their medical malpractice insurance premiums under this section, shall accept Medicare and Medicaid for payment of health care services from patients in their private practice, and in addition must provide medical services to veterans of the United States Military Services that are covered by an insurance carrier.

As the Attorney General went on to say, the words contained in the statute are clear in their meaning—that doctors must accept Medicaid and Medicare patients into their care. There are no exceptions from this obligation in the U.S. Virgin Islands.

Doctor participation rate in Medicaid often subject to criticism

This is far from the first time the Medicaid program has seen some controversy over doctor participation. In fact, one of the most common criticisms of the program is that the rate of physician participation is lower than the rate for beneficiaries of Medicare. Some imply the Patient Protection and Affordable Care Act of 2010 has made access to Medicaid worse for the people who need it. However, there are some additional factors to take into consideration:

  • Federal statistics show the percentage of doctors accepting new Medicaid patients has remained steady at around 70 percent, with no evidence for decline under the ACA.
  • Doctor participation rates only measure patient care to a certain extent. One also should consider the number of doctors and their geographic distribution.
  • Participations vary from jurisdiction to jurisdiction, and mostly based on reimbursement rates.
  • Studies show beneficiaries of Medicaid fare as well as most privately insured people on certain important measures of care access.

Generally, while there may be a lot of excuses raised about low levels of doctor participation, these excuses are tenuous at best. Physicians in the U.S. Virgin Islands are expected to follow the law regarding admittance of Medicaid and Medicare patients.

For more information on the legal aspects of this public policy issue, speak with a knowledgeable government relations attorney.

 

Tom Bolt is Managing Attorney and Chair of the Government Relations Practice Group at BoltNagi, a widely respected and established government relations law firm serving individuals and businesses throughout the U.S. Virgin Islands.

Developing a Retirement Plan When You’re Self-Employed

Posted in Labor & Employment

As someone who is self-employed, you have the unique ability to control your own retirement plan. This might be an overwhelming prospect if you are unfamiliar with retirement planning, but once you have familiarized yourself with the process, you will find this total control to be quite beneficial.

The following are a few issues to should consider as you begin the process of selecting a plan:

  • Tax benefits: Some types of retirement plans allow you to make larger contributions than others. The larger the contribution you can make, the larger the tax break you are likely to receive.
  • Plan costs: Certain types of retirement plans are more expensive and require more work to maintain. You may need to hire a financial planner to help you determine your contributions. In other cases, you may need to file certain reports with the government. You should decide if the costs (of both time and money) are outweighed by the benefits of your potential plan.
  • Required contributions: Some types of retirement plans require you to make minimum annual contributions, while others allow you to contribute at your leisure. If the amount of money you make varies from year to year, you might want to have some more flexibility with your contributions, something you won’t be able to get from every type of plan.
  • Deadlines: There are deadlines to establish your plan. Sometimes that deadline is December 31 of the year you wish to begin making contributions, while others can be established before tax return due dates.

Common plan examples

The following are a few of the most common types of retirement plans used by people who are self-employed:

  • SEPs: A simplified employee pension (SEP) plan offers you some much-needed flexibility. You can contribute up to 25 percent of your business income up to $54,000, but there is no minimum contribution at all. You are never locked into a contribution amount, so if you had a great year you can max out your contributions, while if you had a down year you can simply skip your contributions.
  • Solo 401(k): A solo 401(k) plan gives you higher contribution caps and provides you with similar flexibility to an SEP. However, it requires more work to set up than an SEP, and once your plan reaches a certain size, you must file a special tax return for it.
  • Roth IRA: A Roth IRA contains investments in stocks and bonds through mutual funds and other investments. The total contributions allowed for an IRA is whatever is less between your taxable income and the limit for your age. Limits grow higher as you get older, as well.

For more information and guidance on your best strategies for planning your retirement while self-employed, meet with a trusted estate planning attorney in the U.S. Virgin Islands.

Ravinder S. Nagi is Assistant Managing Attorney and Chair of the Labor and Employment Practice Group at BoltNagi PC a respected and well-established labor and employment law firm proudly serving clients throughout the U.S. Virgin Islands.

Could an Implied Contract Be Legally Binding?

Posted in Corporate & Financial Services

An implied contract exists when two or more parties do not have a written contract in place, but there is a legal obligation based on the circumstances to uphold fairness for each party. While it’s typically a good idea to get any important contracts in writing, there are situations in which implied contracts are legally binding.

There are basically two types of these contracts: implied in-fact contracts and implied at-law contracts.

Implied in-fact contracts

A contract that is implied in fact establishes an obligation between all parties to the contract based on the situation’s facts. If parties conduct themselves in a way that suggests they had reached an agreement or understanding, the law generally states that there was an implied in-fact contract in place.

For example, imagine you are hired by someone to do some weekly landscaping and gardening work every Saturday, and are paid upon completion of each week’s work. You perform the job for five weeks in a row without incident, but on the sixth week, the person who hired you refuses to pay. Even if your agreement with this person was not in writing, a court would likely find that the person who hired you acted as though there was an agreement in place and that he or she did not live up to that implied in-fact contract.

Implied at-law contracts

In an implied at-law contract, there is a duty for the parties involved to perform certain duties, even if it’s against one of the party’s will. Without this duty, one party would be unfairly impacted by the actions of another party. In such a scenario, one party would be entitled to restitution for his or her losses, even if there was not an intent to enter a contract by either party.

This can get quite complicated. As an example, imagine a person gets into a car accident and suffers a broken bone, and then another person arrives at the scene to call an ambulance and help the injured party to safety. Later, that person is billed for their medical expenses, but they refuse to pay, having never intended to need medical treatment to start. The person is obligated to pay, however, because otherwise he or she would have unfairly benefited from the hospital’s services. The law determines there is an implied at-law contract in place between the patient and the hospital.

In short, just because a contract is not written down does not mean it is not legally enforceable. Even verbal contracts can be considered legally binding in some circumstances.

Regardless, it is always a good idea to get a contract in writing. For more information and guidance on establishing and enforcing sound business contracts, speak with an experienced business law attorney in the U.S. Virgin Islands.

 

Tobi A. Russeck is an attorney in the Litigation Practice Group at BoltNagi PC, a widely respected and established civil litigation law firm serving clients throughout the U.S. Virgin Islands.

Checklist for Covering Your Legal Obligations After the Death of a Family Member

Posted in Tax & Estate Planning

The time immediately following the death of a loved one can be incredibly stressful and hectic. If you have been appointed to the role of estate administrator, you will have a lot of work to do in the near future.

Here is a checklist of some of the most important responsibilities you must take care of when a family member passes away:

Immediate concerns

  • Arrange organ donation: If your loved one was an organ donor, the donations need to be made as soon as possible so that medical professionals can use them to save the lives of other people.
  • Contact immediate family: Inform all immediate family members of the death right away. You can contact close friends and extended family after all immediate family has received notification.
  • Follow your loved one’s body wishes: Whether the person wanted to be buried, cremated or donated to science, it is important to follow the guidelines they outlined in their estate planning documents.
  • Begin funeral preparations: Hopefully, your loved one will have left behind instructions for their funeral. Regardless, you will need to begin preparations for the funeral quickly. This includes choosing a funeral home.
  • Make sure property is secure: Your loved one’s home, possessions and vehicle should all be locked up and secure as soon as possible.
  • Notify the post office: Begin forwarding the deceased’s mail to your address. This will also help you determine which subscriptions and accounts need to be canceled. This can be done online in the Quick Tools section at www.usps.com

Before the funeral

  • Meet with the funeral director: Talk about the format of the funeral, the burial site, any traditions you have in your family and anything else important to you loved one.
  • Spread the word about the funeral: Inform as many people who knew your loved one about the funeral as soon as possible.
  • Write an obituary: Create a public obituary with funeral information. Send it to local newspapers and websites.

After the funeral

  • Obtain death certificate copies: These documents could be important for canceling certain accounts and dealing with creditors.
  • Notify the Social Security Administration office: This is especially important if your loved one had already been receiving benefits. The funeral home may assist with this.
  • Stop coverages: End coverages for health insurance, life insurance and any other policies your loved one had.
  • Notify lenders and banks: Make sure all banks and lenders, along with credit card companies, know of your loved one’s passing.
  • Cancel driver’s license: Inform the Bureau of Motor Vehicles about your loved one’s passing so the agency removes their name from its records.

For further tips on how to proceed after the death of a loved one and what steps you need to take, work with a trusted estate planning attorney.

Steven K. Hardy is an Associate with BoltNagi PC and concentrates his practice in estate planning and probate matters.

BoltNagi is a widely respected and established estate and tax planning law firm that serves clients throughout the U.S. Virgin Islands.

Determining Eligibility for EDC Tax Incentives in the US Virgin Islands

Posted in Government Relations, Tax & Estate Planning

Are you wondering whether you qualify to receive benefits from the Economic Development Commission in the U.S. Virgin Islands? To be considered eligible for benefits, applicants must meet the following requirements:

  • Invest a minimum of $100,000 outside of their inventory in a business or industry that is determined to advance the best interest of the territory.
  • Meet all the requirements of the Internal Revenue Code’s Section 934 (in the case of an individual, partnership or corporation).
  • Provide full-time work for at least ten people, of whom at least 80 percent must be U.S. Virgin Islands residents. These residents must have lived in the territory for at least a year before being hired. Any enterprise that applies for economic development benefits as a Category IV Designated Service Business that provides non-labor intensive financial services is required to employ at least five people.
  • Comply with all local and federal regulations and laws, including environmental legislation.
  • Be an investor in the enterprise for which the economic development benefits are being sought. An applicant cannot be a contractor, subcontractor or any other corporation or person acting as an agent on the behalf of the company that would receive those benefits.
  • Provide an easement for free access to the shoreline if the applicant will be conducting any business on property adjacent to the shoreline.
  • Review the full list of requirements in exchange for benefits.

Categories of eligible activities

There are several categories of activities that could make you eligible to receive benefits from the EDC, although the agency does have the authority to look outside these categories so long as the enterprise advances the economic well-being of the Territory.

Here are those categories:

  • Category I – Legacy Virgin Islands Industries: Examples include businesses that produce rum, milk or dairy—or any companies that manufacture watches or jewelry.
  • Category II – Product Assembly, Manufacturing, Repair and Maintenance and/or Export Operations: Examples include agriculture or mariculture and food processing, machine and heavy equipment, bottling and packing and the marine and aircraft industry.
  • Category III – Facilities, Tourism and Communications: Examples include guesthouses, hotels, healthcare, transportation, recreation, retirement facilities, telecommunication and utilities.
  • Category IV – Designated Services Businesses (defined in section 703(g)): Examples include commercial distribution and trading services, international banking, insurance agencies, public relations firms, call centers, investment managers, print and film industry companies, investment banking, venture capital management, medical laboratories, computer and technology businesses and engineering companies.
  • Category V – International Financial Service Entity: Companies that would fit within this category are defined by Act 7968, § 7, Jan. 20, 2017, V.I. Sess. Laws (2017).

 

If you are looking to apply for EDC benefits and would like assistance in the process, reach out to a dedicated U.S. Virgin Islands corporate planning attorney.

 

Tom Bolt is Managing Attorney and Chair of the Government Relations Practice Group at BoltNagi, a well-respected and established business and government relations law firm, serving individuals, businesses and organizations throughout the U.S. Virgin Islands.

Checklist for Buying a Business in the U.S. Virgin Islands

Posted in Real Estate

Many entrepreneurs get their start in the world of business by buying an existing company rather than starting their own. Many people see this as a less-risky endeavor, although it still comes with plenty of challenges.

There are numerous steps you will need to take to ensure you are making the right move and covering all your legal obligations as you move ahead with the purchase of a business. Our experienced attorneys have compiled a simple checklist below:

Getting started

When you first begin the process of looking for a business to buy, you should be clear to do the following:

  • Determine your interests: To start, any business you wish to invest in should be in an industry that’s of some interest to you.
  • Know your talents and skills: Certain unrealistic business ventures can be eliminated if you are honest with yourself about your experience and talent.
  • Quantify the investment: It’s not always easy to find profitable businesses for sale at reasonable purchase points. You should understand why the business is being sold at the price it is, and then determine how much you are willing to invest.

Conducting due diligence

Next, you will need to address certain issues before you enter a business transaction. These include the following:

  • Obtain all licenses and permits: Most businesses require certain licenses and permits to operate. You should have as many of those as is available prior to assuming ownership of a company.
  • Check zoning requirements: These requirements could affect the type of business you wish to operate in a certain area.
  • Address environmental concerns: If you are also acquiring real estate with the business, you should make sure you have a cohesive understanding of the state of title with the property and any relevant environmental regulations.
  • Determine the business’s value: There are many ways you can determine the value of a business, including capitalized earning approaches, excess earning methods, cash flow methods, values of tangible assets and values of specific intangible assets.
  • Craft a letter of intent: This letter should include your offer figure, the terms of the purchase and conditions for the sale.
  • Create a confidentiality agreement: This agreement should indicate that you will not use any information about the seller’s business for any reasons outside of the purchase.
  • Review financial statements: You should look at financial statements from the last several years to ensure the business is in good financial standing. This includes tax returns, audit information and anything else that provides an accurate financial profile.
  • Check other important documents: These documents could include property documents, sales records, customer lists, advertising materials, contracts, leases and employee and management information.
  • Prepare for closing: At closing, you will need to address items such as the adjusted purchase price, promissory notes, security agreements, leases, franchising issues, non-compete clauses, employment agreements and tax information.

For more detailed information and guidance when purchasing a business in the U.S. Virgin Islands, consult a skilled business transaction lawyer.

Tom Bolt is Managing Attorney of BoltNagi, a widely respected and established business and corporate law firm serving clients throughout the U.S. Virgin Islands.

USVI Paternity and Child Support Division Receives High Marks from Federal Regulators

Posted in Family Law & Children's Issues

The U.S. Virgin Islands Department of Justice, Paternity and Child Support Division (PCSD) received high praise from a federal agency for its “Operation Support Our Children” initiative.

The recognition came after a federal audit conducted for the 2015 fiscal year by the U.S. Department of Health and Human Services, Administration of Children and Family, Office of Child Support Enforcement (OCSE). Auditors discovered that for the first time in years, PCSD had reliable child support data, which meant the territory was eligible to receive federal incentive rewards it had been denied in previous years.

OCSE performed the audit to determine how reliable the data and performance of PCSD had been after the agency had repeatedly failed to meet federal standards. In fact, the U.S. Virgin Islands was the first-ever American jurisdiction to be denied federal incentive payments because of how poorly it performed on these audits. The problem had been mostly attributed to PCSD staff members’ inability to provide accurate data to auditors.

Positive outcome the result of hard work by the division

According to Virgin Islands Attorney General Claude Walker, there had been a lot of positivity within the division regarding its chances of passing the audit. There had been considerable improvements made in 2015 to its data system, collections and child support distribution, thanks to the Operation Support Our Children initiative. As Walker says: “Failure was no longer an option.”

The division ended up outperforming itself in every area of the audit after four straight years of failures. The U.S. Virgin Islands received marks between 92 percent and 100 percent in every area covered under the annual audit, which means it passed with flying colors and can now receive incentive funds that regularly get distributed to other states.

There were eight total performance measures, and PCSD scored 100 percent on one of them. It also had scores of 99 percent, 98 percent and 96 percent on several others. These measures include number of cases open at the end of the fiscal year, the total amount of support collected and distributed and total amount of current support due.

To be sure, these positive marks are excellent news for the U.S. Virgin Islands and the children and families who rely on PCSD. If you have questions about a family law issue, such as child support, child custody or the modification of existing court orders, meet with an experienced attorney.

 

BoltNagi is a trusted and respected law firm serving clients throughout the U.S. Virgin Islands.

US Virgin Islands Offers Tax Incentives for Relocating Companies

Posted in Government Relations

The U.S. Virgin Islands receives a great deal of publicity for the vitality of its tourism industry, and rightfully so—there are so many beautiful beaches, plenty of sunshine and some fascinating historical sites to check out. However, the Territory also offers some attractive incentives for businesses that relocate here.

The Economic Development Authority and the Economic Development Commission (EDC) Program provide these incentives. Tax credits are available for companies in the manufacturing, service or technology industries, as well as for businesses that do outsourced work (such as call centers). The agencies’ goal is to bring a wider range of businesses to the U.S. Virgin Islands to continue expanding and improving the territory’s economy.

The official mandate for the EDC tax incentives is as follows:

  • To promote more growth, development and diversity of the territory’s economy
  • To benefit citizens of the U.S. Virgin Islands by developing such resources to the fullest possible extent
  • To establish and preserve capital and job opportunities for the residents of the Territory
  • To promote capital formation for economic development in the territory

 

Which specific benefits are available to relocating businesses?

The various benefits and advantages available for businesses that take part in the EDC program may include the following:

  • A 90% reduction in corporate income tax;
  • A 90% reduction in personal income tax;
  • A 100 % exemption on gross receipt tax;
  • A 100% business real property tax;
  • A 100% excise tax payments;
  • A reduction in the customers’ duty, from the normal 6% to just 1%; and
  • Rental space made available at rates below the market average in the St. Thomas and St. Croix Economic Development Parks

There are also various other fringe benefits associated with investing in the U.S. Virgin Islands business community. These include an overall very business-friendly environment, a well-educated labor force, world-class telecommunication capabilities, plenty of prime real estate available and easy access to the most important business locations in the world. There are also shipping advantages and the ability to use legitimate “Made in the USA” labeling.

Finally, it is important to note that the U.S. Virgin Islands is exempt from the Jones Act, which requires all freight traveling between American ports to be carried on vessels bearing the U.S. flag. This creates more shipping opportunities, as freight carried between the U.S. Virgin Islands and American ports may be carried on foreign flag vessels.

Now is a great time for business owners and investors to consider making their investment in the U.S. Virgin Islands. If you would like to learn more, speak with a U.S. investment and relocation attorney.

 

Tom Bolt is Managing Attorney of BoltNagi PC, a respected and well-established business and corporate law firm that serves clients throughout the U.S. Virgin Islands.