Puerto Rico (PR)
Puerto Rico is a self-governing US Commonwealth (Estado Libre Asociado) in the northeastern Caribbean, offering a unique blend of vibrant Latin culture, US legal framework, and tropical island living.
Employment Rights
Sick leave, dismissal protection and red flags in Puerto Rico.
Puerto Rico employment law combines US federal labour law (FLSA, FMLA, Title VII, ADA, OSHA) with Puerto Rico-specific legislation. PR historically had more generous worker protections than the mainland. Law 80-1976 (unjust dismissal) was significantly amended by Law 4-2017 (Labour Transformation and Flexibility Act), reducing some protections for employees hired after 2017. Puerto Rico's minimum wage is $10.50/hour as of 2026 (higher than the federal FLSA floor of $7.25/hour; PR-specific rate applies to most covered employees). All workers in Puerto Rico are subject to FICA (Social Security and Medicare) taxes and federal income tax obligations.
Sick leave
Rules: Puerto Rico Law 180-1998: 1 day paid sick leave per month (12 days/year maximum). Accrual starts from day 1 of employment. Unused sick leave carries over year to year. Unlike many US states, PR sick leave is mandated by statute. FMLA (federal) provides an additional 12 weeks of unpaid job-protected leave for serious health conditions.
Doctor note: Doctor's note may be required after 3 consecutive sick days. No mandatory day threshold under PR law — employer policy governs for shorter absences.
Employer pay: Paid at regular wages by the employer for the full 12 days/year. There is no state sick pay fund — the employer bears the cost directly.
Long-term: FMLA (federal): 12 weeks unpaid, job-protected leave for serious health conditions. Puerto Rico Temporary Disability Insurance (SINOT) provides wage replacement for non-work-related disabilities lasting more than 7 days — $55–113/week from the PR Disability Insurance Fund (CFSE).
Dismissal protection
Law: Law 80-1976 (as amended by Law 4-2017) governs unjust dismissal. At-will employment applies to most private sector employees hired after 2017. Wrongful termination is prohibited on the basis of sex, race, age (40+), national origin, social condition, political affiliation, religion, disability, sexual orientation, or union membership (federal Title VII, ADEA, ADA, and PR Law 100-1959 apply). Severance (mesada) for unjust dismissal without just cause: post-2017 hires receive 2 months base pay + 1 week per year of service; pre-2017 hires receive more generous formula.
Deadline to sue: Discrimination claims: file with EEOC (San Juan office) within 300 days of the discriminatory act, or with Puerto Rico UADA (Anti-Discrimination Unit) within 1 year. Wage claims: 3 years under FLSA and PR law. Wrongful termination (Law 80): 3 years from termination date.
Probation
Probationary periods are permitted under Puerto Rico law. Standard probation: 3 months for regular employees; up to 12 months may be agreed for professionals or managerial roles. During probation, Law 80 severance (mesada) does not apply — employer may terminate without mesada. After probation ends, full Law 80 protections apply to pre-2017 hires; post-2017 hires remain subject to the reduced Law 4-2017 severance formula.
Notice periods
No statutory minimum employee notice period. Professional courtesy is 2 weeks. Employer termination: immediate termination is allowed but triggers Law 80 severance if no just cause. Final paycheck must be issued on the next regular payday after termination. COBRA continuation coverage available for 18–36 months following termination (same as US mainland).
Working time
Max hours: 40 hours per week under FLSA. Puerto Rico Labour Code additionally triggers overtime after 8 hours in a single workday (daily overtime), which is more protective than the federal weekly-only threshold. This daily overtime provision remains in force for most non-exempt employees.
Min rest: Meal break: 1 hour (unpaid) after no more than 5 consecutive hours of work — required under PR labour law. Rest periods: 15-minute paid breaks are common but not universally mandated by PR statute — employer policy and collective agreements govern.
Overtime: Overtime at 1.5x regular rate for hours exceeding 8/day or 40/week (whichever triggers first). Some collective agreements provide 2x for Sunday or holiday work. Tipped workers, exempt professionals, and some agricultural workers are excluded from overtime requirements under FLSA exemptions.
Vacation
Puerto Rico Law 180-1998 mandates paid vacation accrual: 1 day/month during the first year of employment (12 days); 1.25 days/month in years 2–5 (15 days); 1.5 days/month after 5+ years (18 days). Accrued unused vacation must be paid out on termination — "use it or lose it" policies are NOT permitted under PR law. Employers may require vacation to be scheduled in advance but cannot forfeit the accrued balance.
Anti-discrimination
Puerto Rico Law 100-1959 prohibits employment discrimination on the basis of age (40+), race, color, sex, sexual orientation, gender identity, social condition, national origin, political affiliation, religion, or disability. Federal laws (Title VII, ADEA, ADA, PDA) apply concurrently. File complaints with the Puerto Rico Anti-Discrimination Unit (UADA) at the Department of Labour and Human Resources (dtrh.pr.gov, 787-754-2119) or the EEOC San Juan Office (1-800-669-4000). PR Law 100 is notably broader than federal law, covering political affiliation and social condition not protected under federal statutes.
Contract red flags
- !No written employment contract or offer letter — PR employees should request written confirmation of salary, position, and start date.
- !Misclassification as independent contractor (1099) when working under employer supervision and control — triggers loss of FICA, FMLA, and Law 80 protections.
- !Waiver of overtime rights in the employment contract — illegal under FLSA; overtime rights cannot be contractually waived.
- !"Use it or lose it" vacation clause — not enforceable under Puerto Rico Law 180-1998; accrued vacation must be paid out on termination.
- !Mandatory arbitration clause covering discrimination claims — review carefully; some PR employment arbitration agreements limit access to the EEOC or UADA.
- !Non-compete clauses of unreasonable scope or duration — Puerto Rico courts have limited enforceability of over-broad non-competes; review with a PR labour attorney.
- !No mention of Christmas Bonus (Bono de Navidad) — employers with 12+ employees must pay a statutory Christmas bonus (Law 148-1969): 6% of wages earned June 1–November 30, up to $600 maximum.
- !Unpaid trial period beyond 3 months — probationary work must be paid at minimum wage; unpaid "trial" work periods are illegal.
- !Hourly rate below $10.50/hour — Puerto Rico minimum wage as of 2026, higher than federal FLSA floor; federal contractors may have different obligations under Executive Order rates.
- !Meal period deducted from pay when employer requires employee to remain on premises or available — in PR, a "bona fide" meal break must be completely employee-controlled; if not, it is compensable time.
- !Act 20/22 (now Act 60) tax incentive used without actual presence and genuine business activity — PR tax incentives require genuine relocation and business activity; nominal arrangements attract IRS scrutiny.
- !Employment contract specifying New York or other mainland state law as governing — while federal law applies to PR, certain PR-specific protections (Law 80, Law 180) cannot be stripped by choice-of-law clauses.
Employment Rights
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