JD Supra Puerto Rico

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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...

  • 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.

  • 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.

  • 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-sector employers. In practice, however, this determination is unlikely to have much of an impact on the operation of private-sector employer plans.

  • 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) the retirement money of those participants who cannot be located. Sending the money to the Pension Benefit Guaranty Corporation (PBGC), completing direct rollovers into individual retirement accounts or annuities (IRA), and opening bank accounts for the missing participants generally are not viable options.

  • 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, produce, and mass distribute a COVID vaccine.

  • 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 circumstances surrounding the employee.

  • 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.

  • 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 view, the Number 1 problem, is that the business owner or investor cannot make the sale to the spouse to move to Puerto Rico. No one would ever turn their back on significant tax incentive programs but for the dilemma, “How do I convince my spouse to move?”
 Please see full Publication below for more information.

  • 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 without relocation. This information is the “secret sauce” that taxpayers need to pay for. Nothing personal, just business! The combination of the loan method of split dollar provides a mechanism for repatriating profits from the Puerto Rican tax exempt company to a trust-owned life insurance for the taxpayer’s benefit.
 Please see full Publication below for more information.

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