JD Supra Puerto Rico

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Latest documents

• Puerto Rico Governor Signs New Civil Code

  On June 1, 2020, the Governor of Puerto Rico, Hon. Wanda Vázquez-Garced, signed into law Puerto Rico’s new Civil Code. Some of these changes could impact employment-related contracts, although the extent of this impact is not yet known, and will likely be clarified through legislative guidance in the coming days or weeks.

• Governor of Puerto Rico Extends Curfew and Expands List of Businesses Allowed to Reopen

  As part of the ongoing plan to restart Puerto Rico’s economy, on May 21, 2020, Puerto Rico Governor Hon. Wanda Vazquez-Garced issued Executive Order 2020-041 (“EO” or the “Order”). Among other things, the Order, which takes effect on May 26, 2020, expands the list of businesses and commercial activities that were allowed to reopen pursuant to the prior Executive Order issued on May 4, 2020.

• Puerto Rico Senate Approves Reverting To Pre-2017 Employment Law Reform Sick, Vacation Leave

  The Puerto Rico Senate has approved a bill (Senate Bill 1524) that would reverse some vacation and sick leave provisions relating to private sector employees adopted under the controversial “Labor Transformation and Flexibility Act,” Law No. 4-2017, known as Puerto Rico Employment Law Reform...

• District Court Orders Insurer in Receivership to Arbitrate With Reinsurers, Rejecting Argument That Jurisdiction Rests With Receivership Court and That McCarran-Ferguson Act Preempts FAA

  The District Court of Puerto Rico upheld a prior judgment ordering Integrand Assurance Co. to arbitrate its claims against its various reinsurers, rather than remand the case to the court overseeing Integrand’s receivership, the Superior Court of the Commonwealth of Puerto Rico.

• Puerto Rico: Deadline to File Qualification Amendments are Extended due to COVID-19 Lockdown

  To combat exposure to COVID-19, Puerto Rico Governor Wanda Vázquez Garced issued Executive Order EO-2020-023 on March 15, 2020, ordering an island-wide lockdown and curfew. The restrictions have been extended several times. Executive Order EO-2020-038 issued on May 1 extended the curfew in place until May 25, 2020, while relaxing some lockdown measures and allowing…

• Puerto Rico: Breach of Contract Claims in the COVID-19 Age and the “Force Majeure” Defense: Considerations for Employers

  The term “force majeure” takes us on a trip down memory lane to the law school classroom where our contracts professor spoke of antiquated doctrines of limited practical use. Or so we thought. As the COVID-19 outbreak continues to wreak havoc on industries and businesses around the world, disputes regarding breaches of contractual obligations are likely to increase.

• Puerto Rico Senate Passes Reasonable Accommodation Bill For Certain Workers During COVID-19 Pandemic

  The Puerto Rico Senate has approved unanimously Senate Bill No. 1577 (SB 1577), which seeks to amend Section 9 of Puerto Rico Act No. 44 of July 2, 1985, known as the “Law Prohibiting Discrimination Against Disabled Persons,” to expand its protection and confer certain type of employees the right to a reasonable accommodation in the workplace during the COVID-19 pandemic...

• Puerto Rico State Insurance Fund Clarifies Employer Obligations For Employees Working Remotely

  Without requiring employers to make any changes to their relevant, existing workplace policy, on March 18, 2020, the Puerto Rico State Insurance Fund extended coverage to those employees who were sent to work from home due to the COVID-19 pandemic until April 30, 2020, or up to 10 days after services are restored...

• Are the Standards Governing Trustee Appointment Different in Chapter 9?

  Yes, says the First Circuit. The First Circuit recently affirmed the District Court’s decision to deny a group of bondholders’ (the “Bondholders”) motion to have a trustee appointed for the Employees Retirement System of the Government of the Commonwealth of Puerto Rico (the “System”) under section 926 of the Bankruptcy Code. Section 926 of the Bankruptcy Code allows a court to appoint a trustee to pursue avoidance actions in Chapter 9 cases....

• Puerto Rico’s Secretary of Labor Issues Guidance on New Employer Requirements to File Auto-Certification and Adopt COVID-19 Exposure Control Plans

  As Puerto Rico starts to reopen, the government is placing much of the burden to stop the spread of COVID-19 on employers. On May 1, 2020, Puerto Rico Secretary of Labor Hon. Briseida Torres Reyes issued Opinion Letter 2020-03 (OL 2020-03) to implement Executive Order 2020-38 (EO 2020-38), which eases some of the current business closure measures. Among other things, EO 2020-38 requires employers now permitted to operate to submit a self-certification to the Puerto Rico Department of Labor and Human Resources (PRDOL).

Featured documents

• Becoming Puerto Rican - The Tax Benefits of Puerto Rican Residency for U.S. High Net Worth Taxpayers

  Overview -
 
 
 
 My last article focused on the attractiveness of Puerto Rico for hedge fund managers . Poor John Paulsen cannot make a move without the financial press reporting on the story. If he bought a Big Gulp at Seven-Eleven, the Press would declare it as being tax...

• Silicon Boricua – What if Silicon Valley Moved to Puerto Rico?

  Overview -
 
 
 
 I have been writing over the last year on the benefits of Puerto Rican (PR”) residency. The tax benefits of Puerto Rican residency gained some attention and notoriety when hedge fund billionaire John Paulsen went to Puerto Rico to “kick the tires”. He did not...

• Puerto Rico Poised to Enact Bankruptcy-Like Legislation for Certain Revenue Bond Issuers

  Puerto Rico’s Governor Alejandro Garcia Padilla today introduced debt restructuring legislation which, upon enactment, would provide a judicial debt relief process in Puerto Rico’s courts for certain public corporations, including the Puerto Rico Electric Power Authority (“PREPA”), the Puerto Rico...

• Three Observations From the SEC’s Settlements with Thirteen Municipal Dealers Over Below-Denomination Sales of Puerto Rico Bonds

  On November 3, 2014, the SEC announced settlements with thirteen different registered municipal securities dealers in connection with sales of non-investment grade bonds issued by Puerto Rico in 2014. 
 
 
 
 The settlements were based on alleged violations of Section 15B(c)(1) of...

• Supreme Court to Decide Extent of Puerto Rico’s Sovereign Powers

  On Wednesday, January 13, 2016, the U.S. Supreme Court will hear arguments in the appeal styled under the caption Commonwealth of Puerto Rico v. Sanchez Valle, No. 15-108. In this case, the Supreme Court is asked to determine whether Puerto Rico and the United States are separate sovereigns for...

• Balancing the Equities: Default Interest Rate Adjusted as Bankruptcy Court Weighs in on Critical Issue

  Can a bankruptcy court apply its equitable powers to adjust the default rate for post-petition interest owed to over-secured creditors? The Bankruptcy Court for the District of Puerto Rico recently held that the Bankruptcy Code allows for a “balancing of the equities” in determining whether to...

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

  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 significantly reformed the labor landscape in Puerto Rico, on March 8, 2017,...

• Hurricane Maria's Aftermath, Part II: Puerto Rico Government Provides Various Exemptions and Extensions to Multiple Upcoming Deadlines

  In the aftermath of Hurricane Maria's catastrophic impact on Puerto Rico, in order to assist in rebuilding and recovery, Puerto Rico’s governor and several agencies have issued multiple exemptions to previously established rules for operations, as well as extensions to multiple deadlines....

• Smith to Moderate Judges’ Panel at ABI Symposium to Benefit Puerto Rico

  Charlotte Bankruptcy Member and Team Leader Zach Smith will be moderating a panel of Puerto Rico’s Bankruptcy Judges at the American Bankruptcy Institute’s Caribbean Insolvency Symposium on February 1 in Miami, Florida....

• No Arbitration for Insurance Disputes in Puerto Rico

  The 2018 Atlantic Hurricane Season began on June 1 and ends on Nov. 30. This year, the season began with concerns about what is yet to come — particularly in light of the passing of Subtropical Storm Alberto through the Gulf of Mexico — and the lingering impact of the last hurricane season. This is ...