The Labor Reform adopted by Puerto Rico in Act No. 21 of 2022 was enjoined and declared null ab initio. On March 3, 2023, the USDC Judge Laura Taylor Swain in charge of the Commonwealth of Puerto Rico PROMESA proceedings declared null and void ab initio the amendments to the labor reform adopted by Puerto Rico Act 21-2022 and any actions that have been taken to implement it. Furthermore, the Court permanently prohibited and enjoined the Governor or other persons who are in active concert or participation with the Governor from taking any acts to help private parties implement or enforce Act 41. In essence, the decision reverts the legal status before Act 41-2022 was adopted, thereby reinstating the labor reform implemented by Act 4-2017 in its entirety. Employers should review their personnel policies and procedures in order to verify compliance with the provisions of Act 4-2017. Please note that the court ruling is not yet firm and final until any appellate procedures are exhausted, but the order directed at the governor prohibiting and enjoining any implementation or enforcement of Act 41-2022 is in effect. Contact an experienced employment lawyer on why and what it means for you.
