The passage of Hurricane María through Puerto Rico in September 2017 left catastrophic damages. In an effort to encourage employer assistance and provide temporary economic relief to employees in Puerto Rico, local government agencies have issued the following measures and guidance related to employers concerning their employees.
Articles About Puerto Rico Labor And Employment Law
Deadline to Make Contributions and File Quarterly Unemployment and Disability Tax Report in Puerto Rico Extended until December 15, 2017
On October 24, 2017, Puerto Rico’s Secretary of the Department of Labor and Human Resources issued an Administrative Order granting an automatic extension for all employers required to file a Quarterly Unemployment and Disability Tax Report (“Quarterly Report”). Per the Administrative Order, the automatic extension applies to the filing of the quarterly salary statements required for both programs, as well as for the payment of contributions corresponding to the third quarter of 2017.
Puerto Rico Secretary of Labor Issues Opinion Regarding Employee Compensation Following Hurricanes Irma and María
On October 17, 2017, the Puerto Rico Secretary of Labor and Human Resources (Secretary) issued Opinion No. 2017-001 (Opinion) regarding the compensation of exempt and non-exempt private sector employees for workdays interrupted by Hurricanes Irma and María and their aftermath.
Hurricane Maria’s Aftermath, Part II: Puerto Rico Government Provides Various Exemptions and Extensions to Multiple Upcoming Deadlines
In the aftermath of Hurricane Maria’s catastrophic impact on Puerto Rico, in order to assist in rebuilding and recovery, Puerto Rico’s governor and several agencies have issued multiple exemptions to previously established rules for operations, as well as extensions to multiple deadlines.1 Highlighted below are some of these exemptions and extensions. Given the scope of the damage caused by María, it is likely that additional exemptions and extensions will be approved in the coming weeks and months.
Puerto Rico Department of the Treasury Grants Temporary Tax Exemptions for Employer-Provided Payments and Certain Benefits to Employees Related to Hurricane Maria Relief
On October 4, 2017, the Puerto Rico Department of the Treasury (the “PR Treasury”) issued Administrative Determination No. 17-21 (“AD 17-21”) granting temporary income tax exemptions for payments and certain benefits provided by employers to their employees for relief due to the passing of Hurricane Maria through Puerto Rico, provided such payments are considered “Qualified Payments Made for Disaster Assistance” and certain requirements are met.
Puerto Rico Employers May Pay Their Outstanding Workers’ Compensation Debts Owed to the State Insurance Fund Corporation with a 50% Discount
The Puerto Rican government recently enacted Act 92, which establishes a debt payment incentive plan (the “Plan”) for employers in Puerto Rico that have outstanding debts with the Puerto Rico State Insurance Fund Corporation (“SIFC”). Under Puerto Rican law, workers’ compensation can only be obtained through the SIFC, a government-owned corporation.1 In the event of a work-related accident at an uninsured employer, the SIFC nevertheless covers that accident and seeks reimbursement from the uninsured employer for any compensation plus medical expenses the SIFC incurred. The SIFC collects such amounts and deposits them into the Uninsured-Employer Cases Fund.
Puerto Rico Employers Prepare for New Guidelines Governing Equal Pay in the Workplace
On August 10, 2017, the Puerto Rico Secretary of Labor and Human Resources issued and made effective the Uniform Guidelines for the Self-Assessment of Equal Pay in the Workplace (“the Guidelines”).
New Puerto Rico Labor Department Religious Accommodation Regulations Effective May 25
The Employment Law Reform enacted earlier this year in Puerto Rico introduced a local requirement to accommodate an employee’s observance of religious practices or beliefs. (See our article, Top 20 Things You Should Know About the Proposed Puerto Rico Employment Law Reform.)
Puerto Rico Employers Brace for New Right to Religious Freedom Accommodation Requests
Earlier this year, the Governor of Puerto Rico signed into law the Labor Transformation and Flexibility Act (“the Act”). While the Act makes substantial changes to virtually all existing Puerto Rico employment laws, it also introduces a new employee right not previously recognized: the right to participate in religious services. Last month, the Secretary of Labor and Human Resources filed Regulation Number 8947 before de Puerto Rico Department of State to implement this new right. The Regulation is set to take effect on May 25, 2017.
Deadline for Plan Sponsors to Submit Qualification Amendments with the Puerto Rico Treasury is Fast Approaching
Employers that sponsor an employee retirement plan in Puerto Rico must review plan amendments and/or restatements adopted during 2016 to determine whether they need to submit their plan documents to the Puerto Rico Department of the Treasury (“Puerto Rico Treasury”) for qualification.
Puerto Rico Enacts Equal Pay Law, Prohibits Employers from Inquiring about Past Salary History
Almost two months after signing sweeping employment law reform, Governor Ricardo Rosselló has signed Puerto Rico Act No. 16 of March 8, 2017, known as the “Puerto Rico Equal Pay Act.” Act 16 is effective immediately.
Puerto Rico Adopts Local Equal Pay Act
On March 8, 2017, Puerto Rico enacted Act 16, creating the Puerto Rico Equal Pay Act (“PR Equal Pay Act” or “the Act”). The law’s stated intent is to eradicate the pay difference between female and male employees. To that end, the Act prohibits pay discrimination based on sex among employees performing comparable job functions or duties that require the same skill, effort or responsibilities under similar working conditions.
Puerto Rico Issues Comprehensive Labor Law Reform
Executive Summary: On January 26, 2017, Puerto Rico’s Governor, Ricardo Roselló, signed into law the Labor Transformation and Flexibility Act (the “Act”). The Act represents the first significant and comprehensive labor law reform to occur in Puerto Rico in decades. Prior to the Act, Puerto Rico’s labor laws were historically employee-friendly. The Act has changed the employment landscape in Puerto Rico making the labor laws more business-friendly. Unless otherwise stated in the Act, the revisions in the law will apply only to employees hired after January 26, 2017. The most significant changes to the labor law are explained below.
Governor Signs Puerto Rico Employment Law Reform
Puerto Rico Governor Ricardo Rosselló has signed the “Labor Transformation and Flexibility Act” (House Bill 453), a law that dramatically changes the employment landscape in Puerto Rico and provides more flexibility in the workplace.
Puerto Rico Treasury Issues New Guidance on Rules and Procedures for Qualification of Retirement Plans
The Puerto Rico Department of the Treasury (the “PR Treasury”) issued Tax Policy Circular Letter No. 16-08 on December 23, 2016 (“CL 16-08”). CL 16-08 establishes new rules regarding the validity of retirement plan qualification letters and the procedures that employers and service providers must follow to request such qualification letters. It also repeals PR Treasury’s Circular Letter 11-10 dated December 16, 2011, and Letter 13-02 dated May 28, 2013, which established guidance in connection with procedures for plan qualification (the “Previous Guidance”), to the extent not adopted by reference in CL 16-08. The following is a summary of the changes made to the rules and procedures for qualification of retirement plans: