OBLIGATION OF PRIVATE EMPLOYERS TO NOTIFY EMPLOYEES, AT THE TIME OF TERMINATION OR REDUCTION OF REGULAR HOURS OF WORK, ABOUT AVAILABILITY OF UNEMPLOYMENT INSURANCE BENEFITS

The Puerto Rico Department of Labor and Human Resources (“PR DOL”) issued Circular Letter No. 2020-02, dated April 16, 2020, requiring employers to notify employees, at the time of termination or reduction of regular hours of work, about the availability of Unemployment Insurance benefits. For more information, click here: https://www.pmalaw.com/wp-content/uploads/2020/04/Labor_Alert_-_Circular_Letter_No__2020-02.pdf

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Puerto Rico’s Emergency Paid Leave

On April 9, 2020, the Governor of Puerto Rico, Hon. Wanda Vazquez, signed into law Act No. 37-2020, to amend Article 6 of Act No. 180-1998 to provide that, in cases where the Governor or the Secretary of Health declares a state of emergency, any employee suffering or suspected of suffering from the illness that motivated the state of emergency and who has exhausted all leaves which he/she has a right to, will be entitled to a special emergency paid leave. For more information, click on the following link: https://www.pmalaw.com/wp-content/uploads/2020/04/Labor_Alert_-_Act_No__37-2020.pdf

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Opinion of PR Secretary of Labor 2020-02

On March 23, 2020, the Secretary of the Department of Labor and Human Resources of Puerto Rico issued Opinion No. 2020-02, titled Applicable Provisions to Exempt Employees and Non-Exempt Employees Working in the Private Sector During the Curfew Ordered by the Governor of Puerto Rico and the New Leaves with Pay (“Opinion No. 2020-02”). For more information, click on the following link: https://www.pmalaw.com/wp-content/uploads/2020/03/Labor-Alert-DTRH_Opinion_2020-002-include-Op-link.pdf

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PUERTO RICO AND US LEGISLATION ESTABLISH SPECIAL EPIDEMIC LEAVES

House Bill 2428 was sent to La Fortaleza for Governor Vazquez’s signature. If enacted, the law will amend Article 6 of Act No. 180-1998 to provide that, in cases where the Governor or the Secretary of Health declares a state of emergency, any employee suffering or who suspects to suffer from COVID-19 that motivated the state of emergency, will be entitled to a special leave. For more information, click on the following link: https://www.pmalaw.com/wp-content/uploads/2020/03/LABOR_ALERT_-_CORONAVIRUS_LEGISLATION_PR_AND_USA.pdf

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PR GOVERNOR ISSUES EXECUTIVE ORDER REQUIRING BUSINESS LOCKDOWN

On March 15, 2020, the Governor of the Commonwealth of Puerto Rico Governor Hon. Wanda Vázquez-Garced issued Executive Order OE-2020-023 to implement the necessary and temporary closure of almost all governmental and private sector operations in order to combat the effects of Coronavirus (Covid-19) and to control the risk of infection in Puerto Rico. For more information, click on the following link: https://www.pmalaw.com/wp-content/uploads/2020/03/LABOR-ALERT-CORONAVIRUS-EXECUTIVE-ORDER-Marzo-17.pdf

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LABOR ALERT – NLRB CC1 UNION DE TRONQUISTAS

On September 30, 2019 the National Labor Relations Board issued a key decision holding that a two-day wildcat strike was not a protected activity under the National Labor Relations Act and thus, that the Employer did not violate the Act by suspending and/or terminating the strikers, CC1 Limited Partnership d/b/a Coca Cola Puerto Rico et al and Union de Tronquistas, Local 901, et al., 368 NLRB 84 (2019).  See Opinion and Order at https://apps.nlrb.gov/link/document.aspx/09031d4582d9d057. For more information, click on the following link: https://www.pmalaw.com/wp-content/uploads/2019/10/LABOR_ALERT_-_NLRB_CC1_UNION_DE_TRONQUISTAS.pdf

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Puerto Rico Tax Alert: Incentives Code – Changes to Act 20 & Act 22

On July 1, 2019 (the “Effective Date”), the Governor of Puerto Rico signed into law the Puerto Rico Incentives Code as Act 60-2019 (the “Incentives Code”). In general, the Incentives Code compiles into a single code many of the Puerto Rico tax incentives laws used to promote the island’s economic development, with some modifications, in an effort to establish a new transparent and efficient process for granting and overseeing all the incentives afforded under the Puerto Rico’s incentives laws. We will discuss herein the major changes brought by the Incentives Code in relation to export services businesses (hereinafter referred to as collectively the “Export Services Business”), previously covered under Act 20-2012, as amended (“Act 20”), and resident individual investors (hereinafter referred to as the “Resident Individual Investors”), that were previously covered under Act 22-2012, as amended (“Act 22”). For more information, click here.

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CERTAIN SEVERANCE PAYMENTS CLASSIFIED AS “EXEMPT INCOME” MUST NOW BE REPORTED IN FORM 499R-2/W-2PR

Section 1031.01(b)(11) of Puerto Rico’s Internal Revenue Code, as amended, exempts from income those severance payments that an employer makes to an employee on account of the employee’s separation for service without making a determination of just cause, provided such payments do not exceed the maximum amount payable under Law 80 of May 30, 1976, as amended. For more information, click on the following link: Click here

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