On June 23, 2020, the Puerto Rico Department of the Treasury (commonly known by its Spanish-language name, Departamento de Hacienda de Puerto Rico, or Hacienda) issued Circular Letter of Internal Revenue No. 20-29 (CL 20-29), which extends the due date from June 30, 2020, to December 31, 2020, for the
Articles About Puerto Rico Labor And Employment Law
Employers considering reductions in force in Puerto Rico should be aware that the rules on the taxation of severance pay in the United States and Puerto Rico are different.
Act No. 45 of April 18, 1935, known as the Puerto Rico Compensation System for Work-Related Accidents Act (Act 45), establishes that every employer must secure compulsory insurance to cover their employees’ work-related accidents or illnesses. This insurance, which must be renewed annually and is entirely employer-funded, is administered
On June 1, 2020, the Supreme Court of the United States issued a unanimous decision in Financial Oversight and Management Board for Puerto Rico v. Aurelius Investment, LLC, No. 18–1334, holding that the selection of the members of the Financial and Oversight Management Board for Puerto Rico did not violate
On June 1, 2020, Puerto Rico Governor Hon. Wanda Vázquez-Garced signed into law Act No. 56-2020, amending the Puerto Rico Workers’ Accident Compensation Act (Act No. 45-1935) to extend workers’ compensation insurance coverage to certain employees who get infected with COVID-19 while performing their duties.
On June 1, 2020, the Governor of Puerto Rico, Hon. Wanda Vázquez-Garced, signed into law Puerto Rico’s new Civil Code. Some of these changes could impact employment-related contracts, although the extent of this impact is not yet known, and will likely be clarified through legislative guidance in the coming
As part of the ongoing plan to restart Puerto Rico’s economy, on May 21, 2020, Puerto Rico Governor Hon. Wanda Vazquez-Garced issued Executive Order 2020-041 (“EO” or the “Order”). Among other things, the Order, which takes effect on May 26, 2020, expands the list of businesses and commercial activities that were
To combat exposure to COVID-19, Puerto Rico Governor Wanda Vázquez Garced issued Executive Order EO-2020-023 on March 15, 2020, ordering an island-wide lockdown and curfew. The restrictions have been extended several times. Executive Order EO-2020-038 issued on May 1 extended the curfew in place until May 25, 2020, while
The Puerto Rico Senate has approved unanimously Senate Bill No. 1577 (SB 1577), which seeks to amend Section 9 of Puerto Rico Act No. 44 of July 2, 1985, known as the “Law Prohibiting Discrimination Against Disabled Persons,” to expand its protection and confer certain types of employees the right
The term “force majeure” takes us on a trip down memory lane to the law school classroom where our contracts professor spoke of antiquated doctrines of limited practical use. Or so we thought. As the COVID-19 outbreak continues to wreak havoc on industries and businesses around the world, disputes
As Puerto Rico starts to reopen, the government is placing much of the burden to stop the spread of COVID-19 on employers. On May 1, 2020, Puerto Rico Secretary of Labor Hon. Briseida Torres Reyes issued Opinion Letter 2020-03 (OL 2020-03) to implement Executive Order 2020-38 (EO 2020-38), which eases some of the current business closure measures. Among other things, EO 2020-38 requires employers now permitted to operate to submit a self-certification to the Puerto Rico Department of Labor and Human Resources (PRDOL).
As the first phase of Puerto Rico’s plan to restart the economy, and following the recommendations of the Medical and Economic Task Forces, Governor of Puerto Rico Hon. Wanda Vázquez-Garced issued Executive Order 2020-038 (“EO-038” or the “Order”) on May 1, 2020.
On May 1, the Governor of Puerto Rico issued Executive Order 2020-038 (the Order) effectively extending the existing lockdown order but expanding the scope of services and businesses exempt from limitations on business operations. The Order, which takes effect on May 4 and expires on May 25, also obligates employers to certify the existence of a plan to limit employee’s exposure to COVID-19 prior to opening. Key aspects of the Order are discussed below.
Puerto Rico’s Department of Labor and Human Resources has issued Circular Letter 2020-02 (CC 2020-02) providing that, effective immediately, any private employer that lays off or reduces employees’ regular working hours is required to notify them of the benefits available under the Unemployment Insurance Program. The notification must be in writing and made at the time of layoff or reduction in hours. CC 2020-02 also includes the requirements that an employer must incorporate in this notification.
Employers in Puerto Rico must provide a model notice to employees in the event of a layoff or reduction in working hours. The Secretary of the Puerto Rico Department of Labor and Human Resources, Briseida Torres-Reyes, issued Circular Letter 2020-02 (only in Spanish) on April 16, 2020.