[co-author: Mariel Torres]*
On September 10, 2024, the Puerto Rico Secretary of Labor issued an Opinion (No. 2024-02) to clarify and provide additional information about the application of Act No. 27-2024, known as the "Act to Facilitate the Implementation of Remote Work in the Private Sector and to Incentivize the Establishment of Airline Bases in Puerto Rico.” Act No. 27-2024 exempts from certain employment law coverage domiciled and non-domiciled employees working remotely from Puerto Rico for out-of-state employers with no business nexus to Puerto Rico, and certain unionized airline employees.
Remote Employees Domiciled in Puerto Rico
The new guidance clarifies that employment relationships between covered employers from out-of-state jurisdictions and remote employees domiciled in Puerto Rico (employees physically present and with the intention to remain in Puerto Rico indefinitely) are governed by their employment agreements when all of the following conditions are met: (i) the employee is an "exempt employee" under the Fair Labor Standards Act and Puerto Rican regulations; (ii) resides in Puerto Rico; (iii) the employer is covered by Act No. 27-2024; and (iv) the employee works remotely. These relationships are generally excluded from Puerto Rican employment laws, except as specifically stated.
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