By: Charles Lockwood
Establishing a business in the USVI carries with it a variety of concerns, particularly when your business will also have a significant number of employees. While the labor landscape of the U.S. Virgin Islands shares many familiar concepts with the mainland United States, and federal law continues to apply, there are several critical differences that must be considered when establishing a business and employing personnel locally.
Once licensed to conduct business in the USVI, employers must register with the Virgin Islands Department of Labor (VIDOL) to establish the necessary accounts for compliance as well as to provide employer protection. Key initial steps include:
- setting up an employer portal with the VIDOL online (https://www.vidol.gov/) through which the employer can post all open positions before hiring and manage its obligations through a number of programs administered by VIDOL;
- obtaining workers compensation insurance; and
- setting up the employer’s participation in the unemployment system (or VI Employment Security Agency/VIESA).
A. Posting Job Vacancies Through the VIDOL Portal
A unique requirement of USVI law is that all job vacancies with expected durations of one month or longer must be posted on VIDOL’s online portal. The posting is designed to allow VIDOL to offer open positions to unemployed people already registered with VIDOL as well as the general public. Each posting must include a detailed job description, the position’s requirements (such as the years of experience and education), and the salary range. Employers who fail to post their job vacancies may be subject to criminal penalties or may face employment-related liability claims.
B. Worker’s Compensation Insurance
Workers Compensation Insurance provides important benefits for both employees and employers at a relatively low cost. However, unlike other jurisdictions, the USVI does not have private workers’ compensation insurers. Instead, the VIDOL serves as the sole provider of workers’ compensation coverage through its Workers Compensation Insurance Program. Employees injured on the job make their claims through VIDOL and responsibilities of both the employer and employee are managed through VIDOL. Employers are strongly encouraged to obtain coverage through the Workers’ Compensation Program before hiring employees as the employer cannot qualify for the bar against employer liability for job-related injuries unless the employer is actively registered and insured under the VIDOL program.
C. Unemployment Insurance Program
Employee unemployment claims are also made and managed through the VIDOL. Employers can obtain unemployment insurance by completing the Employer Registration Form with the Virgin Islands Department of Labor’s Unemployment Insurance Division. Premiums are assessed based on the number of employees and the employer’s estimated payroll. Managing unemployment claims and appeals quickly and properly can also be important to avoiding costly, related employer-liability claims. Employers can benefit from using the VIDOL portal to increase contact with VIDOL and reduce management time for claims to a minimum.
DNF specializes in helping our employer clients navigate all challenges of USVI labor laws, and often charting that course begins by helping our clients form their relationship with VIDOL If your business is, or will soon become a USVI employer, contact us about a complete “one-step” service to handle it all—efficiently, accurately, and hassle-free—so you can focus on running your business.
Contact one of our Dudley Newman Feuerzeig LLP locations, or Attorney Charles Lockwood directly, for questions or further information.