Labor & Employment

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As we begin the new year – 2012, it is especially important for U.S. Virgin Islands employers to review their employee handbooks to ensure that they are both legally compliant and up to date with current practices.  A number of  changes in federal and territorial employment laws have taken place over the past year and are slated to become effective in 2012, requiring employers to act now. Continue Reading New Year Provides Opportunity to Review and Update Employment Policies

What if I told you that you could pay your U.S. Virgin Islands employees $2.13/hr, legally? You would probably say, “Sign me up!” As many employers in the Territory already know, if you are in the tourist service or restaurant industry, you can pay your employees that traditionally receive tips, no less than $2.13/hr in direct wages.

The Virgin Islands Department of Labor, Division of Labor Relations, has promulgated regulations that put strict guidelines on what is allowed in paying tipped employees and how such tips are distributed. It is essential, however, for employers who are in the tourist service and restaurant industries to abide by these regulations, or risk facing an exhaustive investigation and audit by the Virgin Islands Department of Labor with risk of fines and penalties.

 Continue Reading The Tipping Point: How to Pay Your USVI Employees $2.13/ hr.

The Obama administration has intensified a crackdown on employers of illegal immigrants, notifying over 1,000 companies recently that the government plans to inspect their hiring records. Employers of all sizes were notified they must hand over I-9 employment-eligibility forms, which contain Social Security numbers, dates of birth and statements by employees of their citizenship status.Continue Reading Should You Be Concerned About I-9 Audits?

The National Labor Relations Board (“NLRB” or the “Board”) has issued final rules that will require most private employers in the U.S. Virgin Islands and throughout the United States to post in the workplace by November 14, 2011 a notice informing employees of their rights under the National Labor Relations Act (“NLRA”), including their right to form and join labor unions. This new posting requirement is similar to one imposed last year on federal contractors pursuant to an Executive Order from the President. The new rules mark the first time that private employers other than government contractors have been required to post a notice informing employees of the full range of their NLRA rights. It should be noted that at least one lawsuit has already been filed challenging the NLRB’s authority to issue the new rules. 

Continue Reading VI Employers Required to Inform Employees of Right to Form and Join Labor Unions

Luis “Tito” Morales, President of the United Steelworkers Union – Local 8249, made good on this challenge to Governor John P. deJongh and the 29th Legislature, when the main group of unions in the U.S. Virgin Islands petitioned a court to block the government’s plan to cut the pay of government workers across the board by eight percent.

The Central Labor Council argues that the cuts would not be needed if the government improved the collection of taxes. The CLC is seeking an injunction from the Superior Court of the Virgin Islands enjoining the Governor from implementing the cuts. Governor deJongh announced the cuts last week, saying the option would be to lay off over 600 workers. The new law also creates incentives for government workers to retire early.Continue Reading Virgin Islands Unions Petition Court to Block Government Pay Cuts

In what labor and employment lawyers, legal scholars, and union officials are calling a ground-breaking case, the National Labor Relations Board (“NLRB”) has for the first-time filed a complaint to protect the rights of employees to express their opinions, with co-workers, about supervisors and employers on social network sites, such as Facebook, Twitter, and MySpace. The NLRB’s complaint specifically argues that a company cannot fire an employee for criticizing a supervisor online to co-workers. Continue Reading Do Virgin Islands’ Employees Have The Right to Criticize Supervisors on Facebook?

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”). Continue Reading Congress Provides for COBRA Extension

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. Continue Reading President Obama Signs New Law Creating Additional Rights to Recovery for Employees Claiming Discriminatory Pay

On November 17, 2008, the Department of Labor (“DOL”) published its long-awaited revisions to regulations interpreting the Family and Medical Leave Act (“FMLA”). As originally enacted in 1993, the FMLA provided employees meeting certain eligibility criteria with the right to take up to twelve weeks of job-protected unpaid leave during a twelve-month period for four specified family and medical reasons. In January 2008, the FMLA was amended to add new leave rights for military families. The new regulations address the 2008 amendments to the FMLA and make significant (and in many instances, employer-friendly) changes to the existing regulations that have guided employers and the courts since they were first issued in 1995.

Continue Reading Department of Labor Issues Revisions to Family and Medical Leave Act Regulations

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.”Continue Reading St. Croix KFC Workers Defeat Union