Webinar: Puerto Rico Labor Laws

Discover Puerto Rico's Unique Labor Landscape

Webinar: Navigating Puerto Rico Labor Laws

Join us for an in-depth exploration of Puerto Rico’s labor laws and how they differ from those in the mainland US. This webinar is essential for business owners and investors looking to understand the legal nuances of operating in Puerto Rico.

Registration Calendar

About the Webinar

Did you realize that the Puerto Rico labor laws are different in many key ways than in the mainland US? They are substantially more labor-friendly than you might expect. If you own or are starting a Puerto Rico business and have employees in PR, it’s very important to understand these key differences.

Join us for an overview of PR labor laws co-hosted with an experienced Puerto Rico labor attorney. Check our webinar calendar for updated dates and registration links; registration is free.

Some of the key points covered:

Puerto Rico labor laws are based on “right to work” rather than the “at will” employment in the mainland.
Employment can begin under a probationary period.
Should you need to terminate an employee for cause, it’s important to show a history backing this up.
Minimum paid vacations, sick leave, and government holidays are dictated by law.
A small annual Christmas bonus is mandatory for most employees.

How do I register for the webinar?

To register, click the desired date/time on our webinar calendar, and fill out the registration form. You’ll receive a confirmation email with further details once your registration is complete.

What is the cost to attend the webinar?

The webinar is free of charge for all attendees. We encourage anyone interested in learning more about Puerto Rico’s labor laws to join us.

What are the technical requirements to attend the webinar?

You’ll need a stable internet connection and a device capable of streaming video, such as a computer, tablet, or smartphone. We will be using Zoom, so you will need to join from a browser or a local Zoom client installation.

Will there be a Q&A session during the webinar?

Yes, there will be a live Q&A session at the end of the webinar. This is a great opportunity to ask any specific questions you may have about the topics covered. There will also be an interactive Q&A window during the presentation.

Can I access the webinar recording later?

All registered participants will receive a copy of the presentation materials, allowing you to review the content at your convenience. They will also receive contact details for the experts hosting the session, in case additional consultation is needed.

Check our webinar calendar for upcoming dates

What You Should Know About Puerto Rico’s Employment Laws

Employee management can be more complex in Puerto Rico

Puerto Rico labor laws can be said to favor the employee. We have also heard from a number of sources that lower wage, non-exempt employees commonly know the employment laws well and hold employers accountable to them. If you will be managing employees of your own, you must become familiar with these laws, especially if you are required to maintain a certain number of employees to remain compliant with a tax exemption grant.

Because management of employees can be complex, our company offers business management services to oversee your human resources needs. We assist our clients in hiring and management of employees, as needed.

Below are some important notes (though this is not intended to be comprehensive).

Employment is not “at will:

It can be more difficult to release an employee in Puerto Rico. If you wish to terminate an employee due to their performance, it must be for just cause, and you must be able to show documentation of disciplinary actions taken over time to remedy the situation. It is also possible to lay off an employee because their position has truly been eliminated for demonstrable, valid business reasons.

In addition, it is possible for an employee to be hired for only a pre-defined length of time or to have an initial probation period of up to 90 days. These types of arrangements would need to be explicitly stated in the employment contract and cannot continue indefinitely.

Firing someone without just cause can result in owing severance compensation based on years of service.

Paid Time Off

Puerto Rico requires employers to pay for time off in situations not required in the mainland US.

Mandatory paid maternity leave: Employees are entitled by law to 8 weeks paid maternity leave. Paid leave rights also apply to miscarriages, abortions, and adoptions of children 5 years or younger. The Working Mother’s Act also protects employees from pregnancy discrimination.

Vacation leave: All non-exempt employees are entitled to 1.25 days of paid vacation leave for each month in which they work at least 115 hours, though they aren’t entitled to take this leave until it has accrued for an entire year. Employers owe employees payment for vacation time not taken upon termination.

Sick leave: Non-exempt employees are also entitled to accrue one day of sick leave for each month in which they work at least 115 hours.

Paid Christmas Bonuses

Puerto Rico employees are legally entitled to a bonus in December of 6% of the first $10,000 of the employee’s annual wages.

PROMESA Changes

Exempt employees: The July 2016 FLSA rule change that doubled the minimum salary for employees defined as exempt from overtime does not apply in Puerto Rico. The minimum annual salary for exempt employees in Puerto Rico currently remains at $23,660, but this matter is subject to a review underway by the Comptroller General of the United States.

We Can Help

Take advantage of Puerto Rico’s incredible tax breaks! We can help you determine which tax incentives are right for you, help you plan your residency and relocation strategy, and simplify the entire process for you.

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