JD Supra (Blogs)
- JD Supra Puerto Rico JD Supra, 2019
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Puerto Rico Governor Issues Executive Order Relaxing COVID-19 Restrictions
On June 3, 2021, Puerto Rico Governor Hon. Pedro Pierluisi issued Executive Order (EO) 2021-043 to further relax COVID-19 restrictions and guidelines. The new EO will be in effect from June 7, 2021 until July 4, 2021. The Order expands the maximum capacity limits for establishments and relaxes mask requirements for fully vaccinated individuals.
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Puerto Rico House Seeks to Undo Sections of the 2017 Labor Reform
The Puerto Rico House of Representatives has introduced House Bill 3, which seeks to amend and repeal certain sections of the Labor Transformation and Flexibility Act of 2017, also known as the 2017 Puerto Rico Labor Reform. The House held a Public Session for Final Consideration on April 27, 2021 where it sought input from…
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Quarantine and Isolation Orders in Puerto Rico’s Executive Orders from March 2020 to April 2021
Since the beginning of the COVID-19 pandemic and as new information has become available, the Centers for Disease Control and Prevention (CDC) and local governments have continuously revised their isolation and quarantine requirements and recommendations.
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Puerto Rico Issues Guidance For Nursing Rooms In Workplace
The Puerto Rico Women’s Advocate Office has published Guidelines for the Establishment of Nursing Rooms with the purpose of ensuring uniformity and setting forth all aspects employers should consider when establishing a nursing room in the workplace...
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Puerto Rico’s New Guidelines on Workplace Harassment/Bullying Clarify Protocols for Employers
The Puerto Rico Department of Labor recently released guidelines on Law 90-2020, which seeks to prohibit workplace harassment and bullying, whether or not tied to a protected category.
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The Women’s Advocate Office of Puerto Rico Publishes Guidelines on Lactation Room Standards
On February 11, 2021, the Women’s Advocate Office (WAO) published Guidelines on the Acclimatization of Lactation Rooms (Guidelines), which apply to both public- and private-sector employers.
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Puerto Rico Government Plan-to-Private Plan Rollovers Allowed
On January 20, 2021, the Puerto Rico Department of the Treasury (Departamento de Hacienda, commonly known as “Hacienda”) issued Administrative Determination No. 21-01 (AD 21-01), which provides that lump-sum distributions from the retirement plan for Puerto Rico government employees are eligible for direct and indirect rollovers into Puerto Rico–qualified retirement plans maintained by private-sec
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Dealing With Missing Participants in Terminating Puerto Rico 401(k) Plans
For a host of legal and practical reasons, the only feasible alternative for disposing of the accounts of missing participants in a terminating 401(k) or other defined contribution retirement plan qualified only in Puerto Rico (commonly known as a “P.R.-only plan”) is, after making reasonable efforts to locate the missing participants, depositing with the proper state unclaimed property fund(s)...
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Do Not Take a Shot in the Dark: Important Considerations for Puerto Rico Employers Eyeing Mandatory COVID-19 Vaccination Programs
Multiple states and jurisdictions are reporting a deadly winter spike of COVID-19 infections. An excess of 220,000 cases of COVID-19 were reported in early December, a dramatic increase from the 44,783 reported in October. Nevertheless, a glint of hope flashes within the gloom of the COVID-19 pandemic: Operation Warp Speed, a partnership program between the public and private sectors to develop,...
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Puerto Rico: A Testing Dilemma in Returning to Work Scenarios and the Governor’s Most Recent Executive Order
In conclusion, employers have multiple CDC-approved approaches to choose from when determining their return-to-work protocols. Employers opting for the test-based strategy are protected under the ADA so long as it is carried out according to current CDC guidelines. A case-by-case analysis should therefore be performed taking into consideration the particularities of each workplace and the...
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Puerto Rico: Pandemic Assistance Packages and their Effect on Christmas Bonus Exemption for Private Employers
On November 16, 2020, the Puerto Rico Department of Labor and Human Resources (“PR DOL”) issued Circular Letter No. 2020-05, discussing considerations for private sector employers when requesting an exemption from paying the Christmas Bonus to their employees where the employer received COVID-19-related economic assistance.
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So Very Hard to Go (Not)! In Pursuit of Puerto Rican Tax Incentives
So Very Hard to Go - The Commonwealth of Puerto Rico has had a hard time in the last ten years. PR has suffered a combination of devastating events including the Island’s bankruptcy, a hurricane and COVID19. The Puerto Rican government introduced an incredible tax incentive program in 2012 to attract investment on the Island. All the unforeseen obstacles got in the way in my opinion. In my...
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Isla del Encanto – Introducing Boricua Split Dollar
This article focuses on a combination of techniques, the use of a Puerto Rican tax-exempt company and the loan method of split dollar life insurance. What’s different in this approach is the fact that the business owner does not need to relocate to Puerto Rico. However, I am not going to trace the path the way that I usually do in my articles to legally accomplish the tax benefits of Puerto Rico...
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Puerto Rico - Qualified Retirement Plans: 2020 Year-End Amendments Deadline Coming Soon
With the fourth quarter of 2020 upon us, it is time to evaluate the year-end amendments that may be needed for retirement plans that are tax-qualified in Puerto Rico. Unlike the Internal Revenue Service, which each year issues a list of required amendments to U.S.–qualified plans and their respective adoption due dates, the Puerto Rico Department of the Treasury (commonly known by its Spanish...
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Court Rejects Claim Based on Interpretation of Clause in Private Purchase and Sale Agreement of Shares and Other Matters
The United States Bankruptcy Court for the District of Puerto Rico recently rejected a defendant’s arguments that a clause in a Private Purchase and Sale Agreement of Shares and Other Matters was invalid under Supreme Court case law but nevertheless agreed with the defendant’s interpretation of the clause and therefore dismissed the claim against it.
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FEMA's Award of Billions in Aid to Puerto Rico Could be the Beginning of an Infrastructure and Manufacturing Expansion
The White House announced an $11.6 billion aid package to Puerto Rico on Sept. 18 to aid it in its recovery from Hurricane Maria, which devastated the island and its infrastructure in September 2017. The funds will be granted by the Federal Emergency Management Authority (FEMA) to the Puerto Rico Electric Power Authority and the Puerto Rico Department of Education.
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Puerto Rico Health Department Adopts Additional Measures To Manage COVID-19 Pandemic
Additional measures adopted by the Puerto Rico Department of Health to manage the COVID-19 pandemic include administrative fines for noncompliance. Regulation No. 9210 applies to natural persons (visitors and residents), as well as legal entities in Puerto Rico, and went into effect on August 21, 2020...
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New Puerto Rico COVID-19 Order Mandates Health Department Reporting, Sunday Closing
Puerto Rico Governor Wanda Vazquez has signed Executive Order 2020-062 (EO) to extend most of the prior COVID-19 pandemic limitations and restrictions, institute important additional restrictions, set a mandatory Sunday lockdown, and require employers to notify the Puerto Rico Department of Health by email of any employee who is suspected of having COVID-19 or who has tested positive to COVID-19..
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Puerto Rico Working Mothers Act Amended To Provide Additional Adoption Leave For Working Mothers
On August 8, 2020, Wanda Vázquez Garced signed into law an amendment to the Puerto Rico Working Mothers Act. Under the amendment, adoption leave benefits were extended to female employees adopting minors 6 years old or older. Now, these adopting mothers will have a paid leave of 5 weeks...
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Supreme Court of Puerto Rico Rules “Ex-Offender” is not a Protected Category
Article II, Section 1, of the Puerto Rico Constitution’s Bill of Rights prohibits "discrimination on the basis of race, color, sex, birth, origin or social status, or political or religious ideas." In Garib Bazain v. Hospital Espanol Auxilio Mutuo de Puerto Rico, 2020 TSPR 69, the Supreme Court of Puerto Rico considered whether a person's prior conviction is a protected classification under the...
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Rare First Circuit Decision Invalidating NDA and Overturning Misappropriation Verdict Serves as a Cautionary Tale
In a rare appellate decision on enforceability of non-disclosure agreements and a plaintiff’s burden to establish the existence of trade secrets, the First Circuit recently overturned a district court summary judgment order and trial verdict. This decision serves as an important reminder for both those who litigate trade secrets claims and those who draft restrictive covenants agreements.
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Puerto Rico’s New Electoral Code Creates Two Hours of Paid Voting Leave
Puerto Rico Governor Wanda Vázquez recently signed into law Puerto Rico’s new Electoral Code, Act No. 58 of June 20, 2020 (Act No. 54-2020). The Electoral Code includes noteworthy changes to employees’ voting rights.
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Puerto Rico Enacts Law Extending Maternity Leave to Mothers Adopting Children Ages Six and Older
On August 8, 2020, Puerto Rico Governor Hon. Wanda Vázquez Garced signed into law House Bill No. 2424 (“Bill No. 2424”), to amend the Puerto Rico Working Mothers Protection Act, otherwise known as Act 3 of March 13, 1942 (“Act No. 3-1942”). The purpose of Bill No. 2424 is to extend the right to maternity leave to working mothers who adopt children six years of age and older.
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Puerto Rico Becomes First Jurisdiction To Adopt Law Against Workplace Bullying
In an unprecedented move and without taking into consideration the mass opposition from the private sector, on August 7, 2020, the Governor of Puerto Rico signed into law House Bill 306 to prohibit workplace bullying. This law goes into effect immediately...
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Puerto Rico Enacts Law on Workplace Harassment
On August 7, 2020, the Governor of Puerto Rico, Hon. Wanda Vázquez Garced, signed into law the “Act to Prohibit and Prevent Workplace Harassment in Puerto Rico,” previously known as House Bill No. 306.
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Puerto Rico’s Anti-Bullying Bill Closer To Enactment
Puerto Rico may become the first jurisdiction to adopt law against workplace bullying. The Puerto Rico Legislature has considered bills on anti-bullying requirements in the workplace over the last decade. None of these bills have become law. That could change soon. Both the House of Representatives and the Senate are considering House Bill 306...
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How Recent Changes to RMD Rules Apply to Puerto Rico Participants in Dual-Qualified Plans
All of the recent changes to the required minimum distribution (RMD) rules of Section 401(a)(9) of the U.S. Internal Revenue Code, except for provisions related to the handling of tax-free rollovers, may be applied to Puerto Rico participants in dual-qualified plans (i.e., U.S.-qualified retirement plans that cover both U.S. and Puerto Rico employees) exactly as they are applied to U.S....
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Puerto Rico State Insurance Corporation Issues 2020-2121 Risk Classification Manual with Important Modifications
On July 1, 2020, the Puerto Rico State Insurance Fund Corporation (“SIF”) announced the automatic extension of the deadline for employers to file the Payroll Statement for fiscal year 2020-2021, from July 20 to August 4, 2020. The SIF is the government agency that provides workers’ compensation benefits in Puerto Rico.
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Puerto Rico Extends Due Date for Coronavirus-Related Distributions From Qualified Retirement Plans
On June 23, 2020, the Puerto Rico Department of the Treasury (commonly known by its Spanish-language name, Departamento de Hacienda de Puerto Rico, or Hacienda) issued Circular Letter of Internal Revenue No. 20-29 (CL 20-29), which extends the due date from June 30, 2020, to December 31, 2020, for the completion of coronavirus-related distributions (CRDs) from retirement plans qualified in Puerto
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Employers in Puerto Rico: Don’t forget to renew your Workers’ Compensation Insurance Policy
Act No. 45 of April 18, 1935, known as the Puerto Rico Compensation System for Work-Related Accidents Act (Act 45), establishes that every employer must secure compulsory insurance to cover their employees’ work-related accidents or illnesses.