Labor & Employment Laws in Puerto Rico

In Puerto Rico, employers must comply with both federal employment statutes and Puerto Rico labor laws, creating a complex regulatory framework governing the workplace. Businesses operating in Puerto Rico, particularly U.S. companies entering the local market, frequently encounter employment rules that differ significantly from those applicable in the continental United States.

Federal employment laws applicable in Puerto Rico include:

• Age Discrimination in Employment Act (ADEA)
• American With Disabilities Act (ADA)
• Consolidated Omnibus Budget Reconciliation Act (COBRA)
• Davis Bacon-Act of 1931
• Equal Pay Act (EPA) of 1963
• Employee Retirement Income Security Act of 1974 (ERISA)
• Employee Polygraph Protection Act (EPPA)
• Family and Medical Leave Act (FMLA)
• Fair Labor Standards Act (FLSA)
• Fair Credit Reporting Act of 1970 (FCRA)
• Genetic Information Nondiscrimination Act of 2008 (GINA)
• Health Insurance Portability and Accountability Act (HIPAA)
• Immigration Reform and Control Act (IRCA)
• National Labor Relations Act  and Labor Management Reporting and Disclosure Act
• Title VII of the Civil Rights Act
• Occupational Safety and Health Act (OSHA)
• USERRA
• Worker Adjustment Retraining and Notification Act (WARN)

In addition to federal statutes, Puerto Rico employment laws contained primarily in Title 29 of the Puerto Rico Laws Annotated provide broader protections in many workplace areas.

• 115-1991 (Whistle-blower)
• 100 -1959 (General Discrimination Statute)
• 69-1985 (Sex Discrimination)
• 17 -1988 (Sexual Harassment)
• 44 -1985 (Disability)
• 3 -1942 (Pregnancy)
• 217 -2006 (domestic violence issues in workplace)
• 80 -1976 (wrongful discharge)
• 379-1948 (hours of work)
• 83 – 1995 (Flexible Work Schedule)
• 289 -1946 (Day of Rest)
• 148 -1969 (Christmas Bonus)
• 59 – 1997 (Drug Testing)
• 17 – 1931 (Payment of Wages)
• 230 – 1942 (Employment of Minors)
• 74 – 1956 (Unemployment Compensation)
• 180 – 1998 (Vacation and Sick Leave)
• 427 – 2000 (Breastfeeding)
• 45 -1935 (Workers Compensation)
• 139 – 1968 (Non-Occupational Disability)
• 207 – 2006 (Restrictions Use of Social Security)
• 130 – 1945 (PR Labor Relations Act – Applies where NLRA does not)

These laws, encompassing both federal and Puerto Rico labor and employment laws, are administered by various federal agencies such as the United States Department of Labor, the National Labor Relations Board, and the Equal Employment Opportunity Commission (EEOC), all of which maintain offices in Puerto Rico. The Puerto Rico Department of Labor specifically oversees the administration of local employment laws, including unemployment and workers’ compensation, ensuring comprehensive adherence to labor and employment law in Puerto Rico

Payroll taxes, including  income, social security, unemployment, and disability taxes, are subject to withholding, like in the United States.  An important difference is that income tax  goes  to the local government, not the IRS.

Puerto Rico employers frequently face complex issues related to employment compliance, discrimination claims, wage and hour regulations, workplace policies, employee terminations and employment litigation. These matters often require careful coordination between federal and Puerto Rico employment laws. You may obtain additional information regarding our Puerto Rico labor and employment legal services.

For businesses operating in Puerto Rico, particularly U.S. companies entering the Puerto Rico market, understanding and complying with local employment laws is essential. For a confidential consultation regarding Puerto Rico labor compliance, workplace policies or employment litigation defense, you may contact us here.