SHRM calls for predictable labor policy as CW program nears end

The Society for Human Resource Management-CNMI Chapter has urged the adoption of a labor framework that balances stability, enforcement, and workforce development, warning that the Commonwealth’s current labor program is set to expire in 2029.

In a Feb. 26, 2026, letter to Delegate Kimberlyn King-Hinds, SHRM NMI [resident Polly DLG. Masga highlighted the challenges faced by employers in healthcare, construction, and hospitality—sectors that “experience labor volatility that can create immediate operational challenges,” affecting service continuity, regulatory compliance, and long-term workforce planning.

The professional organization dedicated to serving human resources professionals in the CNMI said it supports the intent of the proposed Northern Mariana Islands Labor Stabilization Act to extend the labor program, adjust numerical caps, and remove operationally burdensome provisions.

SHRM-NMI also stressed that predictable labor policy is essential “for responsible workforce planning, compliance with employment laws, and the retention of skilled workers in the Commonwealth.”

Masga also emphasized the importance of enforcement, noting that “effective enforcement protects workers and ensures that compliant employers are not placed at a competitive disadvantage by bad actors.”

The group recommended that any expansion of local oversight, including the governor’s approval role in labor determinations, be paired with sufficient administrative capacity, clear timelines, and transparent processes to prevent delays or uncertainty. It also called for wage and stabilization measures to balance economic realities with worker protections.

Finally, SHRM-NMI urged that long-term labor stabilization be coupled with workforce development efforts, including training and upskilling programs for U.S. workers, with measurable outcomes and strong employer engagement.

The organization concluded by offering its ongoing support as a resource for employer education, workforce compliance, and collaboration as the legislation advances.

In February 2026, King-Hinds circulated a draft of the Northern Mariana Islands Labor Stabilization Act, a legislative proposal designed to overhaul the Commonwealth’s foreign labor system.

The act aims to move away from the current “short-term transition” model (CNMI-Only Transitional Worker Program) toward a permanent framework aligned with the CNMI’s long-term workforce needs.

The proposal was developed after months of dialogue with local employers and residents to address economic instability caused by the impending 2029 expiration of the current transitional worker program.

Among its key measures, the act extends the CNMI’s specific foreign labor authority by 10 years, to Dec. 31, 2039, with options for further 10-year extensions based on economic conditions.

It establishes a flexible annual limit of 15,000 permits, including a dedicated pool of 3,000 permits for construction and extraction occupations.

The legislation also repeals the “Touchback” provision, which had required CW-1 workers to leave the islands for 30 days before their third renewal, grants the governor authority over labor determinations similar to the system used in Guam, restores the cover-over of immigration fees to the CNMI, creates new mechanisms for immigration enforcement, and offers a narrow pathway for individuals who fell out of lawful status during or after the COVID-19 pandemic to return to status, provided they have been in the CNMI since 2019.

Attorney Stephen Woodruff provided a critical analysis of the draft, calling it an “important but ultimately incomplete piecemeal measure.”

He praised the elimination of the declining numerical cap, the repeal of the “outrageous” touchback provision, and the inclusion of access to federal safety-net programs for non-citizens, but argued that the bill “doesn't actually improve the program” and “mostly relies on continuing with the same program.”

Woodruff emphasized that while the CNMI needs stability, it requires structural reform rather than a stopgap that preserves the flawed foundations of the original CW program.