Act No. 180 of July 27, 1998, provides that the federal minimum wage fixed by the Fair Labor Standards Act approved by the Congress of the United States of America on June 25, 1938, as it has subsequently been amended, shall automatically apply to the workers in Puerto Rico covered by the federal act.
Those businesses that do not meet the criteria of the Federal Fair Labor Standards Act, and are thus exempted from the federal minimum wage, shall pay a minimum wage equivalent to seventy percent (70%) of the prevailing minimum wage. Every other phase of federal legislation and regulations regarding how the minimum wage is to be paid, working hours, which employees and occupations are exempted from the federal minimum wage, and what a working day or week is, are applicable. Provided, That the Secretary of Labor and Human Resources shall have the authority to reduce the prevailing percent if he/she shows that its implementation will substantially affect the employees in the enterprises covered by this section.
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