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As a rule, employers with more than 15 employees are required to pay 6% of the employee's salary, up to a salary cap of $10,000, which is equivalent to a $600 bonus. Employers with up to 15 employees are required to pay 3% of the employee's salary, up to a salary cap of $10,000, which is equivalent to a $300 bonus.
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.
4 of 26 January 2017 (the Labor Transformation and Flexibility Act (Law No. 4)), requires that termination be for 'just cause' (or the payment of a statutory severance). A termination is for 'just cause' if it is not motivated by legally prohibited reasons or the product of the employer's caprice.
A just cause termination means that the employer has terminated your employment on the basis of serious misconduct that goes to the heart of your employment contract. A just cause termination means that the misconduct was severe enough such that your employment relationship cannot be repaired.
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.
Attendance issues, such as frequent absences or chronic tardiness. Theft or other criminal behavior including revealing trade secrets. Sexual harassment and other discriminatory behavior in the workplace. Physical violence or threats against other employees.
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.
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.