First Circuit Holds That Puerto Rico’s Law 41-2022 Is Null And Void – Employee Rights/ Labour Relations – United States

On August 10, 2023, the U.S. Court of Appeals for the First
Circuit affirmed the U.S. District Court for the
District of Puerto Rico’s decision declaring Law 41-2022 null and void
ab initio. Law 41-2022 sought to repeal some of the
reductions in benefits enacted by the 2017 Labor Reform (Law
4-2017) for employees hired on or after January 26, 2017, including
the reduction in the vacation accumulation rates, the increase in
the number of hours worked to qualify for the Christmas bonus, the
cap on the statutory severance, the extension of the automatic
probationary period, and the shortening of the statute of
limitations to file employment-related claims.

Quick Hits

• The First Circuit Court of Appeals affirmed a district court
  decision and held that Puerto Rico’s Law 41-2022, which had
  reduced some benefits enacted under the 2017 Labor Reform Law, was
  null and void.




• Employers must follow the employment regulations that were in
  force prior to July 20, 2022.

This means that Puerto Rico employers must continue to follow
the employment regulations in force prior to July 20, 2022 (the
effective date of Law 41-2022), which were incorporated by the 2017
Labor Reform.

Ogletree Deakins’ Cross-Border Practice Group will continue to
monitor developments and will publish updates on the Cross-Border blog as additional information
becomes available.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.