Puerto Rico Executive Order 2025-015 Targets Pilot Program for the Incorporation of Project Labor Agreements

On March 19, 2025, Puerto Rico Governor Hon. Jennifer A. González repealed several sections of Executive Order 2022-014 (“EO-2022-014”) through Executive Order 2025-015 (“EO-2025-015”). EO-2022-014 established the “Pilot Program for the Incorporation of Project Labor Agreements,” which required all bidders on construction projects exceeding $5,000,000, funded in whole or in part with federal funds, to sign a specific Project Labor Agreement model developed by the Multisectoral Advisory Council on Project Labor Agreements (“PLA”). A PLA is an agreement with one or more employers covered by the federal statute provisions found in 29 U.S.C. 158(f) and independent contractors who employ construction workers in a construction project. These agreements include clauses on dispute resolution, warranties against strikes and work stoppages, and employment terms and conditions, among other required issues. 

EO-2025-015 stipulates that contractors or subcontractors will no longer be required to adopt a Project Labor Agreement as a condition for contracting with the government. It further clarifies that any contractor or subcontractor may, if they wish, establish any labor agreement with their employees as they see fit, within the applicable framework of the law. According to the governor, the signing of EO-2025-015 is part of her continued efforts to make government more efficient, cut red tape, and boost reconstruction on the island. EO-2025-015 became effective immediately after its signing.