The video has prompted animal rights activists to call for legislation making animal abuse a crime.
On Wednesday, the Bureau of Environmental Health suspended the operation of Happiness Chinese Restaurant on Saipan after it was found in violation of sanitary regulations.
The suspension was not prompted by the video or claims the establishment was serving cat meat.
An anti-animal cruelty bill to protect cats and dogs that are house pets is currently languishing in the CNMI Senate after passing the House last year.
The kitchen worker claims the cat he butchered was for personal consumption.