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A recent ruling by the United States District Court for the District of Puerto Rico clarifies that Law 44, Puerto Rico's counterpart to the federal American with Disabilities Act (ADA), applies only to employers and does not provide for individual liability.
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.
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.
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.
Restrictive covenantsNon-compete clauses in employment contracts are valid and enforceable in Puerto Rico under general freedom of contract principles but must comply with requirements established by the Supreme Court of Puerto Rico.
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
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.
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.
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.