US VIRGIN ISLANDS Law and Practice Contributed by: Marjorie (Jorie) Roberts, Duncan J.J. Kessler and Jessica McKenney, Marjorie Rawls Roberts PC
relating to confidentiality, non-compete and other terms specific to the employer’s business. The DOL regulates employment contracts along with payment of required minimum wages and tipped wages, meal and rest period requirements for certain circumstances, employment discrimination, sexual harassment and child labour laws. 4.3 Working Time Working time is governed by the USVI Fair Labor Standards Act, 24 V.I.C. § 20, which mandates gener - ally a 40-hour work week, no more than five consecu - tive work days, and no longer than eight-hour work - days, unless overtime hours are paid as calculated at a rate of no less than 1.5 times the regular rate at which the employee is employed. The USVI recognis - es exemptions to these rules for restaurant or tourist industry workers. Some salaried workers are exempt from minimum or maximum working time, including executives and certain professional workers whose work requires advanced knowledge or skill. Additionally, other workers may not be included as “employees” for the purpose of working time require - ments such as: an individual employed in domestic service in a private home; an individual employed by the United States, or by the USVI Government or any instrumentality thereof; an individual engaged in the activities of an educational, charitable, religious or non-profit organisation where the employer–employee relationship does not, in fact, exist or where the ser - vices rendered to such organisation are on a volun - tary basis; or an individual employed as a seaman or engaged in the catching, taking or selling of any fresh fish, shellfish or crustacea. 4.4 Termination of Employment Contracts The USVI has adopted the Wrongful Discharge Act detailed in 24 V.I.C. § 76, which provides nine grounds for appropriate discharge, for example, performing work in a negligent manner, advancing the interests of a competitor, or incompetence. Moreover, the law does not prevent termination of an employee due to cessation of business or general cutback because of economic hardship. If wrongfully terminated, the employee can timely appeal their termination to the Commissioner of Labor, who can conduct an investi -
gation, hold hearings and, if the employee was wrong - fully terminated, order they be reinstated with back pay. These orders can then be taken to the Superior Court of the Virgin Islands, which can enforce, modify or set aside the order of the Commissioner. Additionally, under the USVI Plant Closing Act, an employer with fewer than 1,000 employees that is closing a facility, planning a relocation or any other action resulting in an employment loss is required to provide a 90-day advance written notification to the DOL and to the affected employees, and their union, as applicable. For an employer with more than 1,000 employees, 180 days’ advance notification must be given. In case of a mass layoff that will not result in a plant closing, the employer must give at least 30 days’ advance notification of the mass layoff to any affected employees and their respective labour unions, and at least ten days’ advance notification to the DOL. An employer is not required to provide notice of a mass layoff, relocation or employment loss if it results from a physical calamity or an act of terrorism or war. Sever - ance pay to the affected employees must equal one week’s pay for every year of service with the employer in addition to any final wage payment owed to the employee. 4.5 Employee Representations There is no requirement that an employee be rep - resented. Union employees may be represented by their union representative, and union representatives designated or selected by a majority of employees for collective bargaining are the exclusive representa - tives of all employees in the union for negotiations on employment contracts. Employers must follow federal labour laws when it comes to informing employees, such as National Labor Relation Acts Postings and Occupational Safety and Health Act Postings.
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