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Hiring & Firing › Puerto Rico › Employer Liability Issues

Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and... more +
Hiring & Firing refers to the process of recruiting, interviewing and offering employment and the process of evaluating performance and dismissing employees. Hiring & Firing is a highly regulated area and can create tremendous liability for employers who fail to properly adhere to acceptable employment practices. Some of the potential pitfalls in this area stem from discriminatory hiring practices, improper performance evaluations, and retaliatory firings.  less -
Fisher Phillips

Doing Business in Puerto Rico: Top 10 Things Employers Need to Know About the Island’s Workplace Laws

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Vacationers are flocking to Puerto Rico this summer to see the island’s superstar reggaeton singer perform, and the potential economic boost is capturing the attention of many businesses. Whether your business is already...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Remote Workers in Puerto Rico Could Be Exempted From Puerto Rico’s Employment Laws

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On January 26, 2024, Puerto Rico enacted Law 27-2024, which exempts certain remote workers and their employers from complying with Puerto Rico’s employment laws....more

Littler

Nullified ab initio: What Employers in Puerto Rico Need to Know About the Decision to Nullify the New Labor Reform Bill (Act No....

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For the past few years, Puerto Rico’s finances have been supervised by a board designated by the U.S. Government—the Financial Oversight & Management Board for Puerto Rico (“FOMB”). Its role is to revise and approve the...more

Morgan Lewis

Puerto Rico Amends 2017 Labor Reform

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Puerto Rico Governor Pedro Pierluisi signed Act No. 41-2022 on June 20, 2022, amending and repealing certain sections of the Labor Transformation and Flexibility Act of 2017, also known as the 2017 Labor Reform. The act aims...more

Littler

Puerto Rico Supreme Court Favors Employers on Business Reorganization and Unjustified Dismissal

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In a recent case issued by the Supreme Court of Puerto Rico (“the Court”), the Court addressed the standard and level of proof that must be presented by employers when raising as an affirmative defense a corporate...more

Littler

Puerto Rico Supreme Court Holds Plaintiffs Bear the Burden of Clearly Asserting in Their Complaints the Elements of Constructive...

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Constructive discharge is a form of wrongful termination under the Puerto Rico Unjust Dismissal statute, Act No. 80 of May 30, 1976 (“Act 80”). Unlike in traditional wrongful termination cases, plaintiffs alleging...more

Seyfarth Shaw LLP

Puerto Rico Enacts Restrictions on Use of Credit History in Employment

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Seyfarth Synopsis: With limited exception, Puerto Rico has joined the growing list of states that preclude an employer or prospective employer from procuring an employee’s or applicant’s credit history and/or taking adverse...more

Jackson Lewis P.C.

New Puerto Rico Law Limits Employers’ Use Of Credit Reports In Employment Decisions

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Puerto Rico has enacted legislation to limit the use of credit reports in making employment decisions. An “Act to Protect Employee’s Credit Information” (PR Act. No. 150 of October 8, 2019) prohibits employers from...more

Littler

New Legislation Precludes Employers in Puerto Rico from Using Credit Reports or Credit History to Take Employment Actions

Littler on

On October 8, 2019, the Governor of Puerto Rico signed into law Act No. 150 of October 8, 2019 (“Act 150” or “the Act”), which prohibits employers from, among other actions, verifying or investigating credit history or credit...more

Littler

Littler Global Guide - Puerto Rico - Q2 2019

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An Employee’s Felony Indictment Constitutes Just Cause for Termination - Precedential Decision by Judiciary or Regulatory Agency - On April 25, 2019, the Puerto Rico Supreme Court held that a felony indictment...more

Littler

Guidelines on the Interpretation of Puerto Rico’s Employment Legislation, Chapters 9 and 10

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As we have previously discussed, the Puerto Rico Department of Labor (PR DOL) recently published the first edition of its Guidelines on the Interpretation of Puerto Rico’s Employment Legislation (Guidelines), which includes...more

Littler

Puerto Rico Supreme Court Holds Arbitration Clauses in Employment Contracts—Including Those Governing Unjust Dismissal Claims—are...

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The Puerto Rico Supreme Court (PRSC) recently issued an opinion in José Méndez et al v. Carso Construction, 2019 TSPR 19 (May 22, 2019), validating an arbitration clause that covers a claim under the Puerto Rico Unjust...more

Littler

Puerto Rico Supreme Court Holds that an Employee’s Felony Indictment Constitutes Just Cause for Termination

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The Puerto Rico Supreme Court (PRSC) recently held that that a felony indictment constitutes just cause for termination under Puerto Rico’s Unjust Dismissal statute, Act No. 80 of May 30, 1976 (Act 80)....more

Jackson Lewis P.C.

Puerto Rico Revises Form For Reporting Payments To Terminated Employees, Considers Credit History Ban

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The Puerto Rico Department of the Treasury has announced changes to tax reporting for certain severance payments. As a result of the Labor Transformation and Flexibility Act (Act 4-2017), adopted in 2017, certain limited...more

Jackson Lewis P.C.

Employment-At-Will Comes To Puerto Rico?

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Puerto Rico’s Financial Oversight and Management Board and Governor Ricardo Rosselló have sent bills to the Puerto Rico legislature to repeal the Unjust Dismissal Act, Act No. 80 of May 30, 1976 (Act 80). If either bill is...more

Littler

Employment Law Reform in Puerto Rico: Take Two

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Last month, we reported that the Governor of Puerto Rico announced his “Initiative to Reform the Labor Force,” which would have created significant employment law changes to increase the employment participation rate on the...more

FordHarrison

Emerging Laws Prohibit Employers from Inquiring About Past Pay Histories

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Subject to limited exceptions, federal, state, and local laws already require employers to pay men and women equally for doing similar work under similar working conditions. In another important effort to narrow the gender...more

Morgan Lewis

Puerto Rico Enacts Equal Pay Act Prohibiting Gender-Based Pay Disparities

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The Act also prohibits pay inquiries in the hiring process and limits restrictions on employee compensation discussions. Less than two months after the passage of the Labor Transformation and Flexibility Act that...more

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