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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 Rico's minimum wage increased from $7.25 to $8.50 effective January 1, 2022. Additional increases are scheduled to take effect on July 1, 2023, when it will be raised to $9.50, and on July 1, 2024, with a raise to $10.50.
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.
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.
Whether you're a seasoned digital nomad or a first-time remote worker, you can relocate to Puerto Rico Opens in new window for a few weeks, a few months, or moreno applications, visas, or passports required for U.S. citizens. Discover how easy, exhilarating, and vibrant work in full color can be.
Section 29 CFR 825.105(b) of the FMLA regulations states that the FMLA applies only to employees who are employed within any State of the United States, the District of Columbia or any Territory or possession of the United States. Territories or possessions of the United States include Puerto Rico, the Virgin Islands
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.
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.
All in all, even if you have to hire employees in Puerto Rico, the process is relatively simple and straightforward. You can take advantage of a highly skilled labor force that works for significantly lower wages than in the US while enjoying Puerto Rico's generous tax incentives.