Puerto Rico Amends 2017 Labor Reform | Morgan Lewis - JDSupra

Puerto Rico Amends 2017 Labor Reform | Morgan Lewis – JDSupra

Puerto Rico Governor Pedro Pierluisi signed Act No. 41-2022 on June 20, 2022, amending and repealing certain sections of the Labor Transformation and Flexibility Act of 2017, also known as the 2017 Labor Reform. The act aims to restore and broaden labor rights for workers in the private sphere and to have the Legislative Assembly inquire into prevailing work conditions and propose new protections for the working class.

The amendments are effective within 30 days for most large employers in the island. Microbusinesses (a business or company that generates a gross income of less than $500,000 each year and has seven or fewer employees), small-sized businesses (a business or company that generates a gross income of less than $3 million each year and has 25 or fewer employees), and medium-sized business (a business or company that generates a gross income of less than $10 million each year and has 50 or fewer employees) will have 90 days to comply with the act.

WHAT IS 2017 LABOR REFORM?

The 2017 Labor Reform was passed with the goal of stimulating Puerto Rico’s economy through employer-friendly provisions intended to attract new business to Puerto Rico while also facilitating operations for existing enterprises. The 2017 Labor Reform made changes to the Puerto Rico Unjust Dismissal Act (Law 80), as well as various local overtime laws, meal break requirements, vacation and sick time accrual rates, and other local employment laws. The new act repeals some of the changes brought about by the Labor Reform.

AMENDMENTS TO 2017 LABOR REFORM

The act states that its intended goal is to reverse some of the changes brought about by the 2017 Labor Reform with a work plan that has two priorities: (1) restore and broaden the labor rights applicable to workers in the private sphere, and (2) reclaim that the Legislative Assembly exercise its investigative power to inquire into prevailing work conditions in Puerto Rico and propose new protections for the benefit of the working class.

Amendments to the 2017 Labor Reform provisions include the following:

IMPLICATIONS FOR EMPLOYERS

The act brings significant changes to employers throughout Puerto Rico, scaling back or eliminating many of the employer-friendly provisions that the 2017 Labor Reform brought along. Employers in the island should immediately revise their Puerto Rico employment policies and practices to ensure compliance with these new provisions.

This content was originally published here.

Leave a Comment

Your email address will not be published.

Scroll to Top