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Even though you may be covered by these laws, your employee may not be. Title VII and the ADA protect any U.S. citizen employed outside of the United States, absent any conflict with foreign law (not a foreign practice, policy, custom or preference) or employed in the U.S. by a foreign employer.
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.
Section 403 of PROMESA modified Section 6(g) of the Fair Labor Standards Act (FLSA) to allow employers to pay employees in Puerto Rico who are under the age of 25 years a subminimum wage of not less than $4.25 per hour for the first 90 consecutive calendar days after initial employment by their employer.
From an employment law perspective, this means federal statutes such as Title VII, FLSA, ADA, ADEA, FMLA, USERRA, OSHA, ERISA, COBRA, among others, apply to Puerto Rico. For stateside employers, that is the easy part.
Can US companies hire foreign workers? Yes, US companies can hire foreign workers either as full-time employees or independent contractors, with the option of either working remotely in their home country or relocating to the US with the relevant labor certification and visa.
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.
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.
Puerto RicoRegister your business name and file articles of incorporation.File for local bank accounts.Learn and keep track of the local employment laws.Set up local payroll.Hire local accounting, legal, and HR people.
In short, because Puerto Rican workers are U.S. citizens, the process is quite simple. This process can include using a third-party recruiting agency or sourcing directly from the island, which bear varying levels of cost.