On March 16, 2020, Puerto Rico’s Senate approved House Bill 2428 which grants a special paid leave of five (5) working days for private sector non-exempt employees who suffer, or are suspected to suffer, from any sickness that has resulted in the Governor or Secretary of Health of Puerto Rico declaring a “State of Emergency.”

This bill is triggered by the coronavirus 2019 (“COVID-19”) outbreak, which caused the Puerto Rico Governor to declare a “State of Emergency.”  However, if HB 2428 is approved, this special paid sick leave will also extend to any “State of Emergency” declared in the future.

HB 2428 will amend Puerto Rico’s Law No. 180-1998 (“Law 180”), which already grants and regulates mandatory paid vacation and sick leave benefits to hourly employees. Since Law No. 180 does not cover “executives,” “administrators,” or “professionals,” as such terms are defined by the Fair Labor Standards Act and Puerto Rico’s Regulation 13, such employees are also excluded from the provisions of HB 2428.

Under Law No. 180 most hourly private sector employees in Puerto Rico are already legally entitled to fifteen (15) paid vacation leave and twelve (12) paid sick leave days per year and unused days can be carried over to successive years, up to certain limits. Accordingly, the actual accumulative balance of the combined vacation and sick leave accounts may be greater than these yearly accruals.

If HB 2428 becomes law, hourly employees  affected (or suspected of being affected) of a sickness recognized by a “State of Emergency” will be entitled to use their accrued vacation and sick leave days, as well as any other paid leave or benefit the employee may be eligible to receive. Upon exhausting all these leaves, the affected employee will be entitled to this emergency paid leave of up to five (5) working days to cover his/her sickness-related absences.

The full impact of HB 2428 needs to be weighed in light of the Families First Coronavirus Response Act (“FFCRA”), which was approved by the U.S. Senate on March 18, 2020 and is expected to be signed by the President.  Notably, the paid sick leave granted to covered employees under the FFCRA is in addition to any other paid time off employers provide voluntarily or as required by any other law.  By separate newsletter O’Neill & Borges will provide a summary of the FFCRA provisions that will directly impact employers.

O’Neill & Borges will continue to monitor developments related to the approval of HB 2428. Should you need additional information on how these bills will impact your specific operations in Puerto Rico, please contact one of our labor and employment lawyers.

For any questions or inquiries regarding this topic do not hesitate to contact us at info@oneillborges.com or your prime contact attorney at O’Neill & Borges.

Note:  Because of the general nature and informative purpose of this newsletter, nothing herein should be considered as legal advice or a legal opinion.  For further information about the contents of this newsletter, or should you need further assistance in connection with these matters, please contact any of the attorneys of the firm’s Labor & Employment Group.