Services

Why CXC

Resources

Connect

Global Hiring Contact us

Let´s talk

OUTLINE

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.

Read about EoR services

FAQ's

How do employee protection laws work in Puerto Rico?

Employees in Puerto Rico are protected against discrimination, retaliation, unequal pay, harassment and workplace bullying under both Puerto Rico and US federal laws.

Puerto Rico has its own employment protections in addition to the federal rules that apply. For example, local laws protect employees who report wrongdoing, require equal pay for comparable work and prohibit discrimination based on characteristics such as age, race, sex, sexual orientation, gender identity, political beliefs and religion. Puerto Rico law also protects additional categories and circumstances, including national or social origin, social condition, disability and, under applicable legislation, status as a victim or perceived victim of domestic violence, sexual assault or stalking, as well as certain military or veteran status.

There are also specific workplace rules covering sexual harassment, bullying and domestic violence.

For employers, the important point is that a standard US employment policy may not cover everything required in Puerto Rico. Local requirements need to be included when hiring and managing employees there.

What whistleblower protections does Act 115-1991 provide in Puerto Rico?

Act 115-1991 protects employees from being fired, threatened or treated unfairly because they reported suspected wrongdoing or provided information about it.

More precisely, Act 115 protects an employee who offers or attempts to offer testimony, expressions or information before a legislative, administrative or judicial forum in Puerto Rico, as well as an employee who provides or attempts to provide information or testimony to the employer or to a person with authority over the employee where the employee reasonably believes that the employer or another person has violated Puerto Rico law or regulation. For example, an employer should not dismiss, demote or penalise an employee because they raised a genuine concern about potentially unlawful conduct.

Employees who face retaliation can take legal action and may be entitled to remedies including reinstatement and compensation.

What anti-discrimination protections does Act 100-1959 provide in Puerto Rico?

Act 100-1959 protects employees and job applicants from discrimination in hiring, pay, dismissal and other employment decisions.

The law covers characteristics including age, race, colour, sex, sexual orientation, gender identity, national or social origin, social condition, political affiliation and political or religious beliefs.

Puerto Rico also protects people who are, or are perceived to be, victims of domestic violence, sexual assault or stalking. Protections also extend to certain military and veteran circumstances.

These rules apply to everyday employment decisions, from recruitment and salary decisions to promotions and termination. US federal anti-discrimination laws may also apply, depending on the employer and circumstances. Puerto Rico’s anti-discrimination framework is broader in some respects than federal law, particularly because political affiliation and political or religious beliefs are expressly protected under Act 100.

What employee monitoring and surveillance rules apply in Puerto Rico?

Employers in Puerto Rico can monitor employees for legitimate business purposes, but monitoring is limited by employees’ constitutional privacy rights and laws governing personal information, communications and certain forms of surveillance.

Puerto Rico’s Constitution expressly protects people against abusive attacks on their honour, reputation and private or family life. That privacy protection can be relevant in private employment, making excessive or highly intrusive monitoring more problematic than employers familiar only with US federal law may expect.

Employers should therefore have a specific business reason for monitoring email, internet use, devices, CCTV or other workplace activity and tell employees what monitoring takes place. Monitoring should be limited to what is needed for that purpose.

Puerto Rico also has specific restrictions around employee personal information, including the use and disclosure of Social Security numbers. For international employers, a generic US employee-monitoring policy should therefore be reviewed before being applied in Puerto Rico.

How are temporary, agency and non-standard workers protected in Puerto Rico?

Temporary and agency workers in Puerto Rico remain protected by employment laws covering areas such as discrimination, workplace bullying, sexual harassment, wage and hour rights and workplace safety, even when another business formally employs them.

A particularly important local rule appears in Puerto Rico’s Workplace Bullying Act. When alleged bullying involves employees of different employers, such as a temporary staffing agency, security company, maintenance provider or another contractor working at the same workplace, all employers involved have a duty to investigate the allegation, even if they are not the complainant’s direct employer.

The same principle makes responsibilities between the staffing provider and host business important. Using an agency does not allow the host company to ignore conduct affecting temporary workers at its workplace.

Independent contractors require separate analysis because employee protections do not automatically apply in the same way to a genuinely self-employed person.

What pay equity and equal pay protections apply in Puerto Rico?

Puerto Rico’s Equal Pay Act, Act 16-2017, prohibits employers from paying employees differently based on sex for comparable work that requires substantially similar skill, effort and responsibility under similar working conditions.

Pay differences may be permitted where they are based on legitimate factors such as a bona fide seniority or merit system, production quantity or quality, education, training or experience, rather than sex.

The law also restricts employers from prohibiting employees from discussing their own wages or asking about colleagues’ pay, although employees are not required to disclose their salary. Puerto Rico’s law is interpreted with reference to the federal Equal Pay Act where the provisions are similar.

Puerto Rico’s Department of Labor has also issued guidance for employers to conduct self-evaluations of compensation practices and identify unexplained sex-based pay differences.

What 3 mandatory written protocols must every Puerto Rico employer maintain under Act 82-2022, Act 90-2020, and Act 217-2006, and what happens if they are not in place?

Puerto Rico employers must maintain written workplace protocols covering sexual harassment, workplace bullying and domestic violence. These requirements come from Act 82-2022, Act 90-2020 and Act 217-2006 respectively.

Act 82-2022 requires a sexual harassment protocol. Employers can use the Puerto Rico Department of Labor’s model or adopt their own protocol that meets or exceeds the required standards. The protocol must cover matters such as reporting, complaint handling, investigation and the people responsible for handling complaints.

Act 90-2020 requires employers to adopt and implement guidelines addressing workplace bullying, including a process for employees to report allegations and for the employer to investigate them. Act 217-2006 requires employers to implement a protocol for managing domestic violence situations that affect the workplace.

Failing to have or properly implement these protocols can weaken an employer’s defence when a complaint arises and may expose the business to liability under the relevant law. Under Act 90, for example, an employer’s response to reported bullying can directly affect whether it can rely on statutory protections from liability.

What does Puerto Rico's Workplace Bullying Act require employers to do?

Puerto Rico’s Workplace Bullying Act, Act 90-2020, requires employers to adopt measures to prevent workplace bullying, investigate complaints and take appropriate action when prohibited conduct occurs.

The law covers repeated abusive or hostile conduct that is arbitrary, unreasonable and unrelated to the employer’s legitimate business interests. It is not intended to turn ordinary supervision, reasonable performance management or legitimate disciplinary action into workplace bullying.

Employers can be liable where supervisors or employees engage in bullying and management knew or should have known about the conduct but failed to take prompt corrective action. Employers may also be responsible for bullying by people who are not their employees where they knew or should have known what was happening and failed to act. Employees who report workplace bullying are also protected against retaliation.

What protections do employees have in Puerto Rico against political discrimination in the workplace?

Puerto Rico employees are protected against workplace discrimination based on political affiliation and political beliefs under Act 100-1959.

An employer cannot dismiss, refuse to hire, limit employment opportunities or discriminate in pay, terms or working conditions because of an employee’s or applicant’s political affiliation or political beliefs.

This is a notable Puerto Rico-specific protection because political affiliation is expressly included among Act 100’s protected characteristics. The protection applies alongside other categories including race, colour, sex, sexual orientation, gender identity, age, national or social origin and religious beliefs.

Employers should therefore keep hiring, promotion, disciplinary and termination decisions based on legitimate employment factors and document the reasons for those decisions.

How can CXC help international companies protect employee rights in Puerto Rico?

CXC helps international companies protect employee rights in Puerto Rico by applying local requirements across employment contracts, pay, leave and workplace policies, including protections that may not appear in a standard US employment setup.

Through our Employer of Record service, CXC acts as the legal employer and manages local employment administration while accounting for Puerto Rico-specific requirements alongside applicable US federal law. This is particularly useful for international HR teams dealing with local rules on discrimination, retaliation, equal pay, statutory leave and employee protections for the first time.

CXC also provides local employment support throughout the employee relationship, while the client continues to manage the employee’s role, performance and day-to-day work.

With more than 30 years of workforce management experience and coverage across 100+ countries, CXC can support Puerto Rico employees alongside teams in other markets.

Speak to our team to learn more about protecting employee rights in Puerto Rico with CXC.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

Our EoR solution

DISCLAIMER: The information contained on this website is provided for general informational purposes only and should not be construed as legal, tax, or other professional advice on any subject matter. While we endeavor to ensure that the content is accurate and up to date, we make no warranties or representations of any kind regarding the completeness, accuracy, reliability, suitability, or availability of the information contained herein. The content on this site is not intended to be a substitute for professional advice. Users should not act or refrain from acting based on any information on this website without seeking the appropriate legal, tax, or other professional advice tailored to their specific circumstances from qualified professionals. We expressly disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this website. Use of the information on this site does not create an attorney-client, tax advisor-client, or any other professional-client relationship between the user and the website or its authors.

BLOG

Helping businesess to compliantly engage talent since 1992