News & Analysis as of

Employment Contract Puerto Rico

Jackson Lewis P.C.

New Law Regulates Remote Work, Promotes Establishment of Airline Home Bases in Puerto Rico

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The “Law to Facilitate the Implementation of Remote Work in the Private Sector and to Incentivize the Establishment of Airline Home Bases in Puerto Rico” regulates the employment relation of employees who work remotely from...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Employee Benefits and Rights in Puerto Rico: What to Know Now That Law 41-2022 Has Been Declared Null and Void

On March 3, 2023, the U.S. District Court for the District of Puerto Rico issued a decision declaring Law 41-2022 null and void, effectively reinstating the prior state of many of Puerto Rico’s employment statutory...more

Faegre Drinker Biddle & Reath LLP

Reforms to Puerto Rico’s Labor Law Declared Null and Void Ab Initio

On March 3, 2023, U.S. District Court Judge Laura Taylor Swain, presiding over Puerto Rico’s bankruptcy, issued an opinion declaring Act 41-2022 (Act No. 41) null and void ab initio. Law 41-2022 Amendments - Act No....more

Littler

Hot off the Press: New Labor Reform Bill for Puerto Rico

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On June 20, 2022, Governor Pedro Pierluisi signed into law Act No. 41-2022, instituting drastic changes to labor and employment laws in Puerto Rico and extending employment rights for employees in the private sector. In doing...more

Littler

Supreme Court of Puerto Rico Validates Implicit Consent for Arbitration Agreements in the Employment Context

Littler on

In Aponte Valentín v. Pfizer Pharmaceuticals, CC-2018-748, the Puerto Rico Supreme Court reinforced the strong public policy favoring arbitration agreements in Puerto Rico, validating continued employment as implicit consent...more

Littler

Puerto Rico Supreme Court Holds Act 2’s Counterclaim Bar Does Not Preclude Employer’s Independent Suit

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Act No. 2 of October 17, 1961 (Act 2) created a procedural process for the expeditious adjudication of employment claims in Puerto Rico. Among other ways to streamline the process, Act 2 bars the employer from filing a...more

Littler

Puerto Rico Supreme Court Holds Arbitration Clauses in Employment Contracts—Including Those Governing Unjust Dismissal Claims—are...

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The Puerto Rico Supreme Court (PRSC) recently issued an opinion in José Méndez et al v. Carso Construction, 2019 TSPR 19 (May 22, 2019), validating an arbitration clause that covers a claim under the Puerto Rico Unjust...more

Littler

Guidelines on the Interpretation of Puerto Rico’s Employment Legislation, Chapters 1-3

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As we have previously discussed, the Puerto Rico Department of Labor (PR DOL) has recently published the first edition of its Guidelines on the Interpretation of Puerto Rico’s Employment Legislation (Guidelines), which...more

FordHarrison

Puerto Rico Issues Comprehensive Labor Law Reform

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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...more

Morgan Lewis

Open for Business: Puerto Rico Enacts Sweeping Labor Reform

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Employer-friendly revisions to attract new businesses and facilitate operations for existing enterprises signals a new era of labor flexibility in Puerto Rico. On January 26, 2017, weeks after being sworn in as the...more

Littler

Puerto Rico Approves Major Reform of its Employment Laws

Littler on

On January 26, 2017, the Governor of Puerto Rico approved the Labor Transformation and Flexibility Act (“the Act"). The Act makes substantial changes to virtually all existing Puerto Rico employment laws, including those...more

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