The District Court for the District of Puerto Rico has nullified Act No. 41-2022, enacted in June 2022, which had instituted significant changes to labor and employment laws in Puerto Rico. Employers in Puerto Rico are once again subject to the law as it was prior to the summer of 2022, when the Puerto Rico Labor Transformation and Flexibility Act, Act No. 4 of January 26, 2017, was in effect.

For the past few years, Puerto Rico’s finances have been supervised by a board designated by the U.S. Government—the Financial Oversight & Management Board for Puerto Rico (“FOMB”). Its role is to revise and approve the budget and obligations of the Puerto Rico Government in compliance with a federal law mandate named PROMESA, to manage the liquidity crisis facing the island's government amid a shrinking economy and debt crisis.

On June 20, 2022, Puerto Rico Governor Pedro Pierluisi signed into law Act No. 41-2022 (“Act 41-2022”), instituting changes to labor and employment laws in Puerto Rico and extending employment rights for employees in the private sector. The FOMB’s contention was that the bill is inconsistent with the fiscal plan. It therefore filed a complaint in the U.S. District Court for the District of Puerto Rico to nullify Act 41-2022. In its complaint the FOMB reiterated that Act 41-2022 is contrary to the certified fiscal plan and that its enactment adversely affects the Commonwealth’s compliance with the plan. The complaint asked the court to nullify Act...

Read Full Story: https://news.google.com/rss/articles/CBMidGh0dHBzOi8vd3d3LmxpdHRsZXIuY29tL3B1...