This Handbook provides an overview of federal laws addressing employer-employee rights and obligations. Information discussed includes wages & hours, discrimination, termination of employment, pension plans and retirement benefits, workplace safety, workers' compensation, unions, the Family and Medical Leave Act, and much more in 25 pages of materials.
Puerto Rico USLF Multistate Employment Law Handbook - Guide
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US-002HB
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If you earn more then the Puerto Rico minimum wage rate, you are entitled to at least 1.5 times your regular hourly wage for all overtime worked. Puerto Rico establishes a special overtime rate of double an employee's normal hourly rate for any hours worked over 8 in a single day, or over 40 in a week.
Puerto Rico is not an 'employment at will' jurisdiction. Thus, an indefinite-term employee discharged without just cause is entitled to receive a statutory discharge indemnity (or severance payment) based on the length of service and a statutory formula.
Pedro Pierluisi has sign into law the "Puerto Rico Minimum Wage Act." The new law supersedes the lower federal minimum wage beginning 2022 and creates the "Minimum Wage Review Board" to periodically review and potentially increase minimum wage every two years.
Puerto Rico has enacted the Minimum Wage Act, Act No. 47-2021, increasing the Island's minimum wage from $7.25 to $8.50 effective January 1, 2022.
As a rule, employers with more than 15 employees are required to pay 6% of the employee's salary, up to a salary cap of $10,000, which is equivalent to a $600 bonus. Employers with up to 15 employees are required to pay 3% of the employee's salary, up to a salary cap of $10,000, which is equivalent to a $300 bonus.
Employment law in Puerto Rico is covered both by U.S. labor law and Puerto Rico's Constitution, which affirms the right of employees to choose their occupation, to have a reasonable minimum salary, a regular workday not exceeding eight hours, and to receive overtime compensation for work beyond eight hours.
As Puerto Rico is subject to US federal law, to qualify as an exempt or "white-collar" employee, an employee must meet the requirements of the Fair Labor Standards Act (FLSA).
The minimum wage under the Fair Labor Standards Act (FLSA) is generally applicable to any state, territory, or possession of the United States such as Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands (CNMI).
Companies looking to hire workers from Puerto Rico must comply with Public Law 87. It requires employers who are recruiting on the island to obtain authorization by the Secretary of Labor and Human Resources of Puerto Rico, according to Odemaris Chacon, a labor attorney with Estrella, based in Puerto Rico.