On September 1, 2022, the Financial Oversight and Management Board for Puerto Rico (“Oversight Board”) – an entity created by Congress to supervise the finances of the government of Puerto Rico and restructure its public debt – filed a federal lawsuit seeking to nullify Act 41, a law that rolled back parts of the 2017 labor law reform. Act 41 went into effect on July 20, 2022, for many employers in Puerto Rico. The changes introduced by Act 41 are effective on September 18, 2022 for certain small and mid-sized businesses, however, as defined in the new law.
In the suit, the Oversight Board argues Act 41 violates several provisions of the PROMESA Act, a federal law passed in 2016 to allow for Puerto Rico to restructure its public debt. Specifically, the Oversight Board alleges Act 41 violates Section 108 of PROMESA, which prohibits the government from enacting, implementing, or enforcing any statute, resolution, policy, or rule that would impair or defeat the purposes of PROMESA, as determined by the Oversight Board. The recently filed complaint argues Act 41 violates this provision because it would negatively affect the revenues of the government of Puerto Rico and would slow economic growth, which would in turn affect Puerto Rico’s capacity to pay newly restructured public debt. The Oversight Board further argues Act 41 violates the certified Puerto Rico Fiscal Plan, a document approved exclusively by the Oversight Board as part of its functions to restructure public debt...
On September 14, 2026, the Department of Justice announced that Accenture Federal Services, Accenture plc, and Accenture LLP agreed to pay $25 million to resolve False Claims Act allegations that ...