Quick Hits

• Domiciled employees who are exempt from the overtime requirements of the FLSA, and all nondomiciled employees performing remote work for employers not engaged in trade or business in Puerto Rico, are exempt from local employment laws.
• Nondomiciled employees are exempt from all Puerto Rico employment laws.
• Employers of domiciled FLSA-exempt employees who are classified as executives, administrators, or professionals under the FLSA and regulations of the Puerto Rico Department of Labor and Human Resources must provide at least the same benefits under private plans as the workers’ compensation, short-term nonoccupational benefits, and employee driver’s insurance statutory minimum benefits under Puerto Rico law, or the statutory benefits law will be applicable. Unemployment insurance for domiciled exempt remote employees in Puerto Rico will be applicable unless the employee is eligible to receive unemployment benefits in another jurisdiction.
• Nonexempt employees domiciled in Puerto Rico will be subject to all Puerto Rico employment laws, benefits, and insurance requirements.

Law 27-2024

In an attempt to address the uncertainties in the legal landscape resulting from employees working remotely, Puerto Rico enacted Law 27-2024 which exempts certain employees and employers from being subject to Puerto Rico’s employment obligations, and allows them to govern the employment relationship by the laws of another state.

Under the statute, Puerto Rico employment laws...

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