Puerto Rico Checklist of Matters to be Considered at a Preliminary Meeting of Organizers of a Corporation and Included in its Minutes
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FAQ
Employees at businesses that have an annual revenue of less than $500,000 and who do not engage in interstate commercei Railroad workers (covered instead by the Railway Labor Act) Truck drivers (covered instead by the Motor Carriers Act) Independent contractors and freelance workers (they're not employees)ii
Normal Working Hours The regular work shift for non-exempt employees is 8 hours per day and a regular workweek of 40 hours per week.
The FLSA applies only to employers whose annual sales total $500,000 or more or who are engaged in interstate commerce. Originally the FLSA prohibited child labor; it has since been expanded to prohibit wage disparity due to gender and discrimination due to age.
According to Puerto Rico Act Number 379 of (Law No 379), which covers non-exempt (hourly) employees, eight hours of work constitutes a regular working day in Puerto Rico and 40 hours of work constitutes a workweek. Working hours exceeding these minimums must be compensated as overtime.
Wage and hour coverage in Puerto Rico for non-exempt employees is governed by the US Fair Labor Standards Act (FLSA) as well as local laws.
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.
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.
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.
