When the Puerto Rico Minimum Wage Act, Act No. 47-2021, went into effect, in addition to the three hourly rate increases set out in the law, a new Minimum Wage Review Board appointed by the governor was to periodically review the minimum wage and announce increases every two years. However, the governor has not appointed all Board members and the Board has not begun operations. There is no certainty if or when the minimum wage will be increased again after the July 1, 2024, increase.
Prior to January 1, 2022, Puerto Rico generally followed the federal minimum wage. The Puerto Rico Legislature passed Act No. 47-2021 to stem the tide of local workers leaving the Island to find better paying jobs. Act No. 47-2021 expressly provides for three automatic minimum wage increases generally applicable to non-exempt employees. The second increase, from $8.50 to $9.50, will take place on July 1, 2023. The third scheduled will be to $10.50 on July 1, 2024, unless the new Board provides otherwise.
Among the industries that have felt, and will continue to feel, the impact of Act No. 47-2021 are the retail and restaurant industries. These industries represent a large sector of the economy in Puerto Rico and typically rely on hourly employees. Employees in the retail and restaurant industries are covered by Act No. 47-2021 unless they are covered by a collective bargaining agreement establishing higher wages than those provided in the statute. For restaurant employees who receive tips, the...
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