Puerto Rico: New Act Extends The List Of Authorized Deductions To Non-Exempt Employees' Wages

Author:Ms Elizabeth Pérez-Lleras and Ana Beatriz Rivera-Beltrán
Profession:Littler Mendelson

The Governor of Puerto Rico recently signed into law Act No. 115, extending the list of authorized payroll deductions under Act 17-1931 ("Act 17"). As a general rule, deductions from non-exempt employees' wages in Puerto Rico are prohibited unless specifically authorized by Article 5 of Act 17.

Act No. 115 was enacted following Hurricane María to provide employees with an additional source of income in the event of emergency situations. To that end, Act No. 115 added section (q) to Article 5 of Act 17 to provide that, upon the employee's written authorization, an employer may prospectively deduct or withhold a fixed amount of money from the employee's wages in the employee's regular pay cycle to fully repay (without interest) the sum corresponding to a loan, salary advance, or any equipment, material, or goods the employer provided that is directly related to an emergency situation (as defined in the Act). Notably, the employee's written authorization must include a...

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