Takeaways

• The Puerto Rico Supreme Court’s significant Tucker v. Money Group ruling holds that courts must compel arbitration, even for Puerto Rico Anti-Discrimination Act discrimination claims, when the Federal Arbitration Act applies to a valid arbitration agreement.
• The Puerto Rico court clarified a prior exception to this rule allowing discrimination claims to bypass arbitration applies only to unionized employees covered by collective bargaining agreements, not to individual employees.
• Employers should consider the importance of assessing whether their employment agreements can be read as affecting interstate commerce and drafting robust arbitration provisions.

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Article

The Puerto Rico Supreme Court issued a significant ruling in Tucker v. Money Group, LLC, 2026 T.S.P.R. 9 (Jan. 27, 2026), holding that individual employees who sign valid arbitration agreements must arbitrate discrimination claims under Puerto Rico Anti-Discrimination Act (Act 100) when the Federal Arbitration Act (FAA) applies.

Discrimination claims must be arbitrated under Act 100 when a valid arbitration clause exists in a private employment agreement and the agreement affects interstate commerce in some way, triggering the FAA.

In this case, the employee executed an employment agreement requiring that “all disputes” related to her employment be resolved through arbitration in Puerto Rico. As part of her role, she led an outreach-center business unit that engaged consumers across...

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