Podcast: Puerto Rico Employment Law Undergoes Seismic Shift

Hosted by: David Weisenfeld

Puerto Rico has long been a strongly pro-employee territory. Littler global employment attorney Shiara Diloné, of the firm's San Juan office, calls it, "California on steroids." But in the midst of economic tumult, Puerto Rico has instituted a host of employment law changes that dramatically alter the landscape in an attempt to attract new business.

On this podcast, Diloné takes an in-depth look at the many changes, including:

  • Automatic nine-month probationary periods for most employees;
  • Capping severance pay at nine months;
  • Reducing the statute of limitations from three years to one;
  • Redefining the concept of overtime hours; and
  • Dramatically reduced benefits.

Puerto Rico Employment Law Undergoes Seismic Shift

March 13, 2017

All of the changes took effect on January 26, 2017. "Puerto Rico has been going through some very tough economic times," said Diloné. "So the government was looking for ways to make the laws more flexible to make it more attractive for companies to come to Puerto Rico." She explained that these new laws will make Puerto Rico "more balanced" and make it easier to hire employees there. In light of the changes, Diloné suggested that employers take immediate action to amend their employee handbooks.