Last month, Puerto Rico’s governor approved Act 41-2022, which includes a series of amendments to Puerto Rico’s Act 4-2017, better known as the Labor Transformation and Flexibility Act (LTFA), and other employment legislation. Act 41-2022 includes various provisions, including those providing special treatment for employers that are deemed microenterprises, small or medium businesses (jointly “PYMES” by its Spanish acronym) based on their gross income and number of employees¹ during a determined period, as defined by Act 62-2014. Such special treatment includes: (1) a 90-day deferred effective date of Act 41-2022 (i.e., until September 18, 2022); (2) a special hours-worked requirement for employees hired after the effective date of the LFTA in order to be entitled to the Christmas bonus; and (3) an exemption to the double pay provision applicable when a student works on the day of rest or 7^th consecutive day of work. In an effort to clarify the size and income determinations of these enterprises, the Puerto Rico Secretary of Labor and Human Resources issued Opinion No. 2022-02 (“the Opinion”), which provides the following methodology for employers to self-classify as a PYMES under Act 62-2014:

• The number of employees shall be determined by adding the number of employees for each payroll period during the last natural year divided by the same number of payroll periods during the 12 months of said natural year.² If the enterprise has not operated for more than a year, the...

Read Full Story: https://www.littler.com/publication-press/publication/puerto-rico-secretary-l...