News

Increase in Minimum Wage to $10.50

On June 12, 2024, the Minimum Wage Evaluation Commission approved the increase of the state minimum wage from $9.50 to $10.50, effective July 1, 2024, after evaluating the economic report that analyzed the impact of the minimum wage increase as provided by Act 47-2021, known as the Puerto Rico Minimum Wage Act.

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New Overtime Rules under the FLSA

On April 23, 2024, the U.S. Department of Labor Wage and Hour Division published its Final Rule increasing the Fair Labor Standards Act’s annual salary threshold for exempt employees classified as executive, administrative or professional.

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New Act to Facilitate the Implementation of Remote Work in Private Companies

On January 17, 2024, Puerto Rico Governor Pedro R. Pierluisi Urrutia signed into effect Act 27-2024, known as the “Act to Facilitate the Implementation of Remote Work in Private Companies and Encouragement to Establish Airline Bases in Puerto Rico”, which aims to encourage companies without business operations in Puerto Rico to recruit employees domiciled on the Island and allow them to work remotely from here.

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Null and void ab initio Law 41-2022, the 2022 Labor Reform Act

On March 3, 2023, the U.S. District Court for the District of Puerto Rico, through the voice of Judge Laura Taylor Swain declared null and void Act 41-2022, also known as the 2022 Labor Reform Act, after the Financial Oversight & Management Board for Puerto Rico under the provisions of the Puerto Rico Oversight, Management, and Economic Stability Act challenged the legitimacy of Act 41-2022.

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Newly issued Executive Order 2021-075

On November 15, 2021, Puerto Rico Governor Pedro R. Pierluisi Urrutia issued Executive Order OE-2021-075, which became effective immediately. This latest Executive Order highlights the effectiveness of the measures taken until now by the Government of Puerto Rico in addressing the COVID-19 pandemic.

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Puerto Rico to raise minimum wage

On September 21, 2021, Puerto Rico Governor Pedro R. Pierluisi Urrutia signed into law Act No. 47 which was recently approved by the Senate and House of Representatives to raise the state minimum wage in Puerto Rico from $7.25 per hour by gradual annual increases up to $10.50 per hour.

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