Littler Global Guide - Puerto Rico - Q1 2020

Browse through brief employment and labor law updates from around the globe. Contact a Littler attorney for more information or view our global locations.

Download full Q1 2020 Global Guide Quarterly

Puerto Rico’s Working Women’s Bill of Rights Includes New Posting Requirement

New Legislation Enacted

Authors: Ana Beatriz Rivera-Beltran, Member and Andrés C. Gorbea-Del Valle, Associate – Littler Puerto Rico

On January 3, 2020, Puerto Rico Governor Wanda Vázquez signed Law No. 9-2020 (the Act), known as the Working Women’s Bill of Rights. While the Act expressly states that it was enacted for informational purposes and does not create any new substantive rights, the Act centralizes a non-exhaustive list of previously established rights for working women in the public and private sectors. The Act requires all governmental agencies, public corporations, municipalities and private employers to publish its provisions in a place accessible to all employees and visitors.

The Interplay Between the Federal FFCRA and Puerto Rico’s Laws on Vacation and Sick Leave

New Legislation Enacted

Authors: Anabel Rodríguez-Alonso, Capital Member and Mariela Rexach-Rexach, Capital Member – Littler Puerto Rico

On March 18, 2020, the President signed into law the Families First Coronavirus Response Act (FFCRA). Among other things, the new law provides for paid sick leave and expanded FMLA provisions. The benefits provided for by the FFCRA are in addition to any benefits under state law or voluntarily provided by an employer pursuant to its policies. Therefore, the emergency paid sick leave is in addition to the statutory sick leave benefit and applicable vacation leave to which Puerto Rico non-exempt employees are entitled under the Minimum Wage, Vacation, and Sick Leave Act, Act No. 180 of July 27, 1998, as amended, or, alternatively, to any other similar benefit voluntarily provided under an employer’s policy to either exempt or nonexempt employees.

COVID-19: New Labor Department Opinion on Employee Compensation and Leaves

New Regulation or Official Guidance

Authors: Anabel Rodríguez-Alonso, Capital Member , Elizabeth Pérez-Lleras, Capital Member and Albert Tabales-Maldonado, Associate – Littler Puerto Rico

On March 23, 2020, the Secretary of the Puerto Rico Department of Labor and Human Resources issued Opinion No. 2020-02, discussing provisions applicable to both exempt and non-exempt private-sector employees impacted by the COVID-19-related lockdown imposed by Executive Order No. 2020-023. Opinion 2020-02 addresses permitted wage deductions, restates the employer’s duty to comply with occupational health and safety requirements, and briefly discusses the new paid leaves available to employees pursuant to the Families First Coronavirus Response Act, Pub. L. 116-127.

Considerations for Employers Monitoring Employees’ Body Temperatures, Amid the COVID-19 Outbreak

New Regulation or Official Guidance

Authors: Anabel Rodríguez-Alonso, Capital Member and Ana Beatriz Rivera-Beltrán, Member – Littler Puerto Rico

In response to the COVID-19 pandemic, the Secretary of the Puerto Rico Department of Labor and Human Resources issued guidance that specifically allows employers to take an employee’s body temperature provided they secure the individual’s express consent. The Article addresses issues employers should consider when implementing such measure.

Treasury Department Extends Tax Exemptions for COVID-19 Employer-Provided Payments and Amends Rules for Qualified Retirement Plan and IRA Distributions

New Regulation or Official Guidance

Authors: Lourdes C. Hernández-Venegas, Capital Member and Shiara L. Diloné-Fernández, Capital Member – Littler Puerto Rico

On March 29, 2020, the Puerto Rico Treasury Department issued guidance on temporary income tax exemptions over payments and benefits voluntarily provided to employees by employers, in response to the COVID-19 emergency. Internal Revenue Circular Letters (CC RI) Numbers 20-22 and 20-23 extends the provisions of Circular Letter 20-08 (CC RI 20-08) to qualifying payments voluntarily provided by employers as a result of the COVID-19 emergency. CC RI 20-08 granted employers temporary income tax exemptions over payments and certain benefits made to their employees and/or independent contractors to assist with earthquake relief efforts. The latter amends Internal Revenue Circular Letter 20-09 (CC RI 20-09), which provided special rules and procedures applicable to distributions from qualified retirement plans and individual retirement accounts (IRAs) following the recent earthquakes in Puerto Rico, to incorporate, as part of the definition of “Eligible Expenses,” those related to the COVID-19 emergency.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.