Puerto Rico Employment Reference Release
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FAQ
The 183-day rule pertains to tax residency in Puerto Rico, dictating how long one must reside on the island to be taxed as a resident. Under this rule, spending 183 days or more in Puerto Rico usually results in being considered a resident for tax purposes. Understanding your residency status is vital for tax planning. A Puerto Rico Employment Reference Release can provide clarity on this rule.
A noncitizen national of the United States is someone who holds a unique status that allows them to work in the country without needing additional work authorization. When completing an I-9 form, these individuals can present their documentation to verify their rights. It’s important to reference the Puerto Rico Employment Reference Release for guidance on how this status impacts employment procedures.
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.
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.
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.
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.
$6.55 / hour Puerto Rico's state minimum wage rate is $8.50 per hour. This is greater than the Federal Minimum Wage of $7.25. You are entitled to be paid the higher state minimum wage.
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).
Although the EPA does not apply outside the United States, such claims are covered by Title VII, which also prohibits discrimination in compensation on the basis of sex.
Effective January 1, 2018, California law prohibits employers from seeking (on their own or through third parties) and relying on job applicants' past pay information as a factor to determine whether to give a person a job and payment terms of that job.
