The U.S. District Court for the District of Puerto Rico recently issued a decision declaring Law 41-2022 null and void, effectively reinstating the prior state of many of Puerto Rico's employment-related entitlements. The decision will impact employees' statutory benefits and rights, including vacation pay, sick leave, meal periods, holiday bonuses, and severance pay.
Background
On June 20, 2022, the governor of Puerto Rico signed Law 41-2022, which modified some of the statutory benefits and entitlements granted to Puerto Rico employees. The statute became effective on July 20, 2022. On Sept. 1, 2022, the Financial Oversight and Management Board for Puerto Rico, an entity created by the U.S. Congress to oversee Puerto Rico's public administration and legislation, filed an injunction in federal court seeking to stay the effects of Law 41-2022.
On March 3, 2022, the district court granted the board's request for injunctive relief, holding that Law 41-2022 was null and void and enjoining the governor of Puerto Rico and any other persons from "taking any acts to help private parties implement or enforce [Law] 41."
Based on this decision, employers in Puerto Rico may want to review and revise their employment practices and policies to comply with the state of the law prior to July 20, 2022, the effective date of Law 41-2022.
Vacation and Sick Leave
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