Bryan submitted bill to use excise tax revenue to repay 8% retro wages to government employees

Gov. Albert Bryan Jr. submitted proposed legislation to the 34th Legislature on June 9, 2021, to allow the Virgin Islands government to use excise tax revenue to repay government employees for the 8% salary reduction imposed under the Virgin Islands Economic Stability Act of 2011, Act No. 7621.

According to the proposal, repayment would begin in fiscal year 2021 and continue into fiscal year 2022 through a VIESA Compensation Excise Tax Account created by the bill. The measure said payments to affected employees would continue until each employee's repayment balance reached zero.

In a transmittal letter to Senate President Donna Frett-Gregory, Bryan said he intended to make payments in accordance with rulings in United Steel Paper and Forestry Rubber Manufacturing Allied Industrial and Service Workers International Union AFL-CIO-CLC v. Government of the Virgin Islands, No. 14-4357, and St. Croix Federation AFT Local 1826 v. Governor of the Virgin Islands, No. 14-4358.

Bryan wrote that repayment would include union members involved in the litigation as well as nonunion employees affected by the law.

Official source: https://www.vi.gov/governor-bryan-submits-legislation-to-use-excise-tax-revenue-for-repayment-of-8-retro-wages-to-government-employees/