News & Analysis as of

Puerto Rico

Procopio, Cory, Hargreaves & Savitch LLP

GAO Report Signals Intensified IRS Scrutiny of Puerto Rico Act 60 Residents

The U.S. Internal Revenue Service (IRS) appears to be entering a new and far more aggressive phase of enforcement focused on taxpayers claiming Puerto Rico residency and Act 60 (formerly Act 22) incentives or benefits. The...more

Holland & Knight LLP

Puerto Rico's Act 60, Income Sourcing and IRS Scrutiny in the Age of Cryptocurrency

Holland & Knight LLP on

Puerto Rico's Tax Incentives Code (Act 60) has quickly risen to the forefront of tax planning conversations, drawing intense interest from entrepreneurs, investors, cryptocurrency traders and taxpayers holding carried...more

Jackson Lewis P.C.

Avoiding the Naughty List: Christmas Bonus Compliance for Puerto Rico Employers

Jackson Lewis P.C. on

As coquito season nears, Puerto Rico employers must remember another local tradition: Paying the Christmas Bonus. Under P.R. Law No. 148 of June 30, 1969, eligible (including former) employees must receive this statutory...more

Jackson Lewis P.C.

PR OSHA’s New Penalty Framework for Workplace Safety Violations Increases Fines for Employers

Jackson Lewis P.C. on

Takeaways- • Puerto Rico Occupational Safety and Health Administration (PR OSHA) has increased penalty amounts for workplace safety violations. • The new penalty structure ensures consistency with federal OSHA...more

DLA Piper

Puerto Rico Announces Competitive Procurement for New Flexible Generation Capacity

DLA Piper on

The Puerto Rico Public-Private Partnerships Authority (Authority) recently issued a Request for Qualifications (RFQ) to procure generation capacity through power purchase and operating agreements with developers of new...more

Lewitt Hackman

New Bad Bunny Lawsuit Highlights Unjust Enrichment and Contract Law

Lewitt Hackman on

Contracts form the foundation of nearly every business transaction in California and across the United States. Parties use them to hire employees, license a service, or, as in musician Bad Bunny’s case, feature a private home...more

DLA Piper

La gobernadora de Puerto Rico firma varias enmiendas sobre disposiciones contributivas: Puntos clave

DLA Piper on

La gobernadora de Puerto Rico, la Honorable Jenniffer González Colón, convirtió en ley varias medidas que fueron aprobadas en la sesión legislativa que finalizó el 30 de junio de 2025, las cuales, entre otras cosas,...more

DLA Piper

Governor of Puerto Rico signs amendments impacting tax provisions: Key points

DLA Piper on

The governor of Puerto Rico, Jenniffer González Colón, signed into law various tax bills that were approved in the legislative session ending on June 30, 2025. These bills primarily amend the Puerto Rico Internal Revenue Code...more

Fisher Phillips

Puerto Rico Adopts New Lactation Rights for Working Mothers: Compliance Action Steps for Employers

Fisher Phillips on

When Puerto Rico Governor Jennifer González enacted the “Puerto Rico Lactation Code” (Act 87-2025) on August 1, she rung in a new day for employers and working mothers across the territory. This innovative legislation...more

Holland & Knight LLP

Trouble in Paradise? The IRS Is Taking a Hard Look at Puerto Rican Tax Breaks

Holland & Knight LLP on

A decade ago, the IRS audited and brought cases against numerous taxpayers who claimed residency in the U.S. Virgin Islands to take advantage of a highly touted benefit whereby bona fide Virgin Islands residents could claim a...more

DLA Piper

Puerto Rico Law to Streamline Reciprocal License Applications: Key Takeaways for US Professionals

DLA Piper on

Puerto Rico recently approved Law No. 102-2025 – known as the Universal Recognition of Occupational and Professional Licenses Act – simplifying the process for qualified professionals holding valid licenses in the US to apply...more

Procopio, Cory, Hargreaves & Savitch LLP

IRS Intensifies Scrutiny of Puerto Rico Tax Residency Claims Under Act 60

The U.S. Internal Revenue Service (IRS) is sharpening its focus on taxpayers who claim residency in Puerto Rico under Act 60 (formerly Act 22). The program was designed to attract investment by offering generous tax...more

Morgan Lewis

Puerto Rico Law Expanding Lactation Rights Now in Effect

Morgan Lewis on

On August 1, 2025, Puerto Rico enacted Act No. 87-2025, the “Código de Lactancia de Puerto Rico” or “Puerto Rico Lactation Code” (the Code). The law took immediate effect and consolidated prior laws into one unified code. It...more

Jackson Lewis P.C.

Breastfeeding at Work Redefined: Puerto Rico’s New Code Ushers in Major Changes

Jackson Lewis P.C. on

Puerto Rico has enacted a groundbreaking Lactation/Breastfeeding Code that consolidates in one statute the rights of breastfeeding employees and the responsibilities of employers across the Island. Signed into law on...more

Littler

Puerto Rico Enacts New Lactation Code

Littler on

On August 1, 2025, Governor Jennifer González signed Act 87-2025, titled, “Puerto Rico Lactation Code” (“Code” or “Act 87-2025”). The Code compiles all previously enacted breastfeeding-related laws into one (i.e.,...more

Fisher Phillips

Doing Business in Puerto Rico: Top 10 Things Employers Need to Know About the Island’s Workplace Laws

Fisher Phillips on

Vacationers are flocking to Puerto Rico this summer to see the island’s superstar reggaeton singer perform, and the potential economic boost is capturing the attention of many businesses. Whether your business is already...more

DLA Piper

What the One Big Beautiful Bill Act’s Tax Provisions Mean for Businesses Operating in Puerto Rico

DLA Piper on

President Donald Trump recently signed into law the bill commonly known as the One Big Beautiful Bill Act (OBBBA). On July 4, 2025, the OBBBA made permanent many of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA)...more

Littler

Puerto Rico Governor Signs Two New Acts Addressing Arbitration and Preferences for Veterans

Littler on

Puerto Rico Governor Jennifer González recently signed into law two employment statutes, Act No. 37-2025 and Act No. 26-2025, governing arbitration and hiring preferences for veterans, respectively....more

Fisher Phillips

Puerto Rico Supreme Court Tightens “Just Cause” Under Law 80 in Injury-Firing Case

Fisher Phillips on

The Puerto Rico Supreme Court recently ruled that an employer did not have just cause under local employment law to dismiss an employee who required additional medical treatment after the expiration of the job reserve period...more

Jackson Lewis P.C.

Puerto Rico Supreme Court Reaffirms Importance of Just Cause for Employee Terminations

Jackson Lewis P.C. on

The Puerto Rico Supreme Court recently issued a decision reaffirming the importance of just cause for employment terminations in Puerto Rico. Méndez Ruiz v. Techno Plastics Industries, Inc., No. 2025 TSPR 68 (June 26, 2025)....more

Littler

Puerto Rico Prohibits Discrimination Against Breastfeeding Mothers in the Workplace

Littler on

Puerto Rico Governor Jeniffer González has signed Act No. 29-2025 into law, modifying the Act to Regulate the Breastfeeding or Breast Milk Extraction Period, as amended (“Act 427-2000”), which provides certain nursing...more

Jackson Lewis P.C.

Puerto Rico New Act 29-2025: Essential Employer Obligations for Breastfeeding/Pumping Activities

Jackson Lewis P.C. on

On June 23, 2025, Governor Jennifer González signed Act 29-2025, amending Puerto Rico’s Act 427-2000, “Act to Regulate Breastfeeding and Breast Milk Extraction Periods,” and strengthening protections for nursing employees....more

Littler

Puerto Rico Supreme Court Clarifies Limits for Unjustified Dismissal Under the Workers' Compensation Act

Littler on

On June 26, 2025, the Puerto Rico Supreme Court (PRSC) issued an opinion in Méndez Ruiz v. Techno Plastics Industries, Inc., 216 D.P.R. ____, 2025 TSPR 68 (2025), determining whether the defendant had “just cause” under...more

Littler

Puerto Rico Supreme Court: State Courts Lack Jurisdiction Over Labor Cases Governed by the NLRA

Littler on

The Supreme Court of Puerto Rico recently issued an important decision limiting the role of Puerto Rico’s courts in labor complaints that involve conduct governed by the National Labor Relations Act (NLRA). In Rodríguez...more

Littler

Supreme Court of Puerto Rico Addressed the Legal Framework of Deference to Administrative Agencies

Littler on

On May 21, 2025, the Supreme Court of Puerto Rico had the opportunity to address the judicial deference that was traditionally given to administrative decisions. In Vázquez v. Consejo de Titulares, 215 D.P.R. ___, 2025 TSPR...more

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