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Whistleblowing in Puerto Rico

Puerto Rico's data privacy

Equal treatment for temporary agency workers in Puerto Rico

Anti-discrimination laws in Puerto Rico

Pay equity laws in Puerto Rico

Safeguard your business with our compliance expertise

Employee protections in Puerto Rico

In Puerto Rico, there are various laws that regulate employee practices, wages, benefits, and workplace rights to protect employees from different forms of discrimination, wrongful termination, and unfair labour practices.

Employers must follow both local labour laws and U.S. federal regulations, as Puerto Rico operates under a unique legal framework that blends both systems.

How are employee rights protected by law in Puerto Rico?

Puerto Rico’s labour laws offer strong protections for employees in various aspects of their work life. Employees are guaranteed at least the minimum wage, which is periodically updated through the Puerto Rico Minimum Wage Act and aligned with federal regulations.

When it comes to terminational, employees are protected through Unjust Dismissal Act (Act 80) which ensures that employees with indefinite contracts can only be terminated for just cause.

Moreover, the country’s labour laws protect employees from discrimination based on race, gender, age, religion, disability, or sexual orientation. The Puerto Rico Department of Labour and U.S. Equal Employment Opportunity Commission (EEOC) enforce these laws, ensuring fair hiring and workplace policies.

These are some protections set for employees in Puerto Rico. Employers who fail to comply with labour laws may face penalties or legal disputes.

Whistleblowing in Puerto Rico

Puerto Rico has laws that protect employees who report illegal or unethical activities in the workplace. These laws ensure that workers can speak up about misconduct without fear of retaliation, such as being fired, demoted, or harassed.

The Puerto Rico Whistleblower Act (Act 115-1991) safeguards employees who report violations of laws or regulations. Employers cannot retaliate against workers for reporting illegal activities, fraud, or workplace violations.

In addition, since Puerto Rico follows U.S. federal laws, employees may also be protected under the Sarbanes-Oxley Act, the Whistleblower Protection Act, and OSHA’s whistleblower protections, depending on the industry and type of violation.

Employees can report misconduct anonymously to the Puerto Rico Department of Labour or federal agencies. Companies should have clear, confidential reporting channels to encourage employees to come forward without fear.

What counts as whistleblowing in Puerto Rico?

In the workplace, Puerto Rico’s whistleblowers can be considered those who report fraud, corruption, workplace safety violations, discrimination, harassment, wage theft, or environmental hazards.

Employees must have a reasonable belief that wrongdoing has occurred for protection to apply.

What businesses should keep in mind about whistleblowing in Puerto Rico

Retaliation is illegal: Employers cannot fire, demote, reduce pay, or create a hostile work environment for whistleblowers.
Establish a reporting system: Businesses should have a whistleblower policy that allows employees to report concerns confidentially and without fear of punishment.
Train managers and HR teams: Ensure that company leadership understands whistleblower laws and how to handle reports properly.
Investigate reports fairly: Companies must take all complaints seriously and conduct independent, fair investigations to address concerns.

Puerto Rico's data privacy

Puerto Rico’s data privacy laws are aligned with the local and U.S. federal regulations to protect personal and sensitive information from misuse, breaches, and unauthorised access.

Companies that handle customer or employee data must comply with these laws to maintain trust, prevent legal risks, and avoid financial penalties.

Puerto Rico’s data privacy laws in Puerto Rico

Puerto Rico has enacted its own data protection laws while also following U.S. federal regulations that apply to businesses operating in the territory. These laws ensure that individuals’ personal information is safeguarded and that companies are held accountable for data security.

Puerto Rico’s Consumer Data Protection Law (Act 111-2020)

Puerto Rico’s Consumer Data Protection Law requires businesses to take adequate security measures when handling personally identifiable information (PII). Some of the key provisions include:

Businesses must notify individuals if their personal information has been compromised due to a data breach.
Companies are required to implement security policies and protocols to prevent unauthorised access to sensitive data.
The law applies to both public and private entities that collect or process personal information.

U.S. Federal data protection laws that apply in Puerto Rico

Since Puerto Rico is a U.S. territory, businesses operating there must also comply with several federal data protection laws, including:

The Gramm-Leach-Bliley Act (GLBA): Requires financial institutions to protect customer information and inform them about how their data is shared.
The Health Insurance Portability and Accountability Act (HIPAA): Regulates the protection of medical and health-related data, ensuring that patient information remains confidential.
The Children’s Online Privacy Protection Act (COPPA): Imposes strict requirements on businesses collecting personal information from children under the age of 13.

What businesses should keep in mind about Puerto Rico’s data privacy

To ensure compliance with Puerto Rico’s data privacy laws and U.S. federal regulations, businesses should adopt strong data protection measures. Here are some key considerations:

Secure personal data
Businesses must use encryption, firewalls, and other cybersecurity measures to protect data from theft, unauthorised access, and cyberattacks.

Have a clear privacy policy
Companies should have a transparent privacy policy that informs customers and employees what data is collected, how it is used, and how long it will be stored.

Obtain consent for data collection
If a business collects personal information, it should obtain clear and informed consent from individuals, ensuring they understand how their data will be used.

Report data breaches promptly
In the event of a security breach, businesses must notify affected individuals and relevant authorities as soon as possible. Quick reporting allows individuals to take protective actions, such as changing passwords or monitoring their financial accounts for fraud.

Train employees on data security
Companies should provide ongoing training to employees on best practices for handling data securely, including password management, recognizing phishing scams, and safely storing sensitive information.

Regularly update security measures
Cyber threats evolve constantly, so businesses must regularly review and update their data protection policies and cybersecurity infrastructure.

Equal treatment for temporary agency workers in Puerto Rico

In Puerto Rico, while there are comprehensive labour laws covering aspects like minimum wage, work hours, and employment standards, there isn’t a specific law that mandates equal pay between temporary agency workers and permanent employees. The Puerto Rico Equal Pay Act focuses on eliminating gender-based wage disparities, ensuring that men and women receive equal pay for comparable work.

However, this act doesn’t address pay differences based on employment status, such as between temporary and permanent workers. Therefore, unless a temporary worker’s role and responsibilities are identical to those of a permanent employee, and the pay disparity is due to gender, the law doesn’t explicitly require equal pay between temporary and permanent positions.

Equal treatment in employment conditions for temporary agency workers in Puerto Rico

Equal treatment in employment conditions

Meanwhile, temporary employees supplied by temporary service companies are entitled to the same employment conditions as those established for the client company’s regular employees.

This includes benefits such as vacation and sick leave. Specifically, the mandatory decree covering temporary employment companies applies to these workers for vacation and sick leave, while other employment conditions are governed by the client company’s mandatory decree.

Anti-discrimination laws in Puerto Rico

Discrimination in the workplace is strictly prohibited under Puerto Rico’s Act 100, which protects employees and job applicants from being treated unfairly due to personal characteristics.

Under this law, employers cannot refuse to hire, terminate, or take adverse actions against employees based on the following:

Age.
Race or colour.
Sex.
National or social origin.
Social condition.
Political affiliation or ideology.
Religious beliefs.
Sexual orientation or gender identity.
Disability.
Status as a victim (or perceived victim) of domestic violence, sexual assault, or stalking.

Employers found guilty of discrimination can face civil penalties, including fines or compensating employees twice the amount of the damages suffered.

In more serious cases, they may also face misdemeanour charges, which could result in additional fines or imprisonment. Courts may even order employers to reinstate employees who were wrongfully terminated due to discrimination.

These protections ensure that all employees are given equal opportunities, fair treatment, and protection against biases in hiring, promotions, and workplace policies.

Protection against workplace harassment in Puerto Rico

Harassment, including sexual harassment, is a serious workplace issue. To strengthen protections, Puerto Rico amended its sexual harassment law under Act 82-2022, which requires private employers to implement clear policies and procedures to address and prevent harassment.

Under this law, all businesses must establish workplace harassment protocols, which should include:

A statement affirming that harassment is illegal.
Definitions of what constitutes workplace harassment.
Designated personnel responsible for handling harassment complaints
A process for filing complaints, including options for verbal, written, or anonymous reports.
Confidentiality measures to protect the identities of victims and witnesses.
A non-retaliation policy, ensuring that employees can report harassment without fear of punishment.
Information on legal remedies and victim support resources

Employers who fail to take appropriate action to address workplace harassment can be held legally responsible. However, businesses that respond promptly and effectively to reported incidents may avoid liability.

The law also extends protections to workers across different employers. For example, if a contractor or vendor harasses an employee, both businesses involved are required to investigate the claim and take appropriate action.

Pay equity laws in Puerto Rico

The Puerto Rico Equal Pay Act (Act 16-2017) was created to eliminate wage discrimination and promote workplace fairness, ensuring that employees performing substantially similar work receive equal pay.

Under this law, employers cannot pay employees differently based on gender if they are doing work that requires similar skills, effort, and responsibility under comparable working conditions. This means that two employees doing the same job must be paid equally, regardless of whether they are male or female.

However, there are some exceptions where wage differences may be allowed, such as:

Seniority: Employees with more years of experience may earn a higher salary.
Merit-based pay: Employees who perform exceptionally well may receive higher wages.
Productivity and performance: Differences in pay may be based on measurable work performance.
Education and training: Employees with specialised education or certifications may qualify for higher pay.

To comply with the law, particularly Puerto Rico’s Equal Pay Act 16, employers must regularly evaluate their pay structures to ensure there is no unfair wage gap between employees.

Moreover, employers cannot prohibit employees from discussing their salaries with coworkers—a common workplace policy in the past that often hid wage disparities.

Employers who violate the Equal Pay Act may face legal penalties, fines, and lawsuits from employees. If an employee proves that they were paid unfairly due to gender discrimination, the employer may be required to pay double the unpaid wages as compensation.

Safeguard your business with our compliance expertise

Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in Puerto Rico. Get it wrong, and you could face legal action and damage to your reputation.

Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.

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