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The total of the amounts to be paid by reason of said bonus should not exceed 15% of the net annual profit of the employer for the period from October 1 of the preceding year to September 30 of the current year. 29, §§171 , establishes the requirements for the payment of wages to non-exempt employees. (See the "TERMINATION OF EMPLOYMENT" section below.) In Puerto Rico, employee handbooks describing the rights and responsibilities of employees are construed to be part of the employment contract between the employer and the employee. PROBATIONARY PERIODThe probationary employment contract is regulated by Article 8 of Act No. When employees are members of a labor union, the extension may be executed through a collective bargaining agreement or a written contract between the union and the employer, without the consent of the Secretary of Labor and Human Resources. Nevertheless, a valid contract: (1) must be executed in writing; (2) must be signed by the employee during his or her first shift or, in the case of employees hired through temporary employment agencies, within 10 days of beginning the assignment; and (3) must set forth the purpose of the employee's hire. Employers not covered by the FLSA are required to pay an overtime rate of two times the regular rate for any hours worked by an employee in excess of eight during the workday. An employee should never be required to work more than five consecutive hours without pausing for a meal period. It provides that courts should enforce the literal sense of a written contract unless the words are contrary to the intent of the parties. 6019 of September 23, 1999, provides, among other things, the requirements with which the employer must comply to request the extension. There is no statutory limit as to the maximum duration of a contract for a fixed term. Any work performed in excess of these limits will be considered overtime work and must be compensated accordingly. However, this higher daily overtime rate is available only to those employees who were working for an employer before August 1, 1995, in an industry covered by a mandatory decree that provided a higher overtime rate for hours worked in excess of eight during the workday and who have remained employed uninterruptedly with that employer. 29, §283, requires an employer to grant all non-exempt employees a meal period commencing not before the end of the third hour of work and not later than before the beginning of the sixth hour of work.Should the total exceed that percentage, the employer may submit a request for an exemption to the Secretary of Labor and Human Resources. 201 (FLSA) currently establishes a minimum wage for non-exempt employees of .25 per hour. The payment of wages may be executed on a weekly basis, on a biweekly basis or every 15 days.The request must include a general balance sheet and a profit and loss statement, duly certified by a certified public accountant, for the 12-month period from October 1 of the preceding year to September 30 of the current year. On February 12, 2014, the President of the United States signed Executive Order 13658, which provides for an increase in the minimum wage to the employees of federal contractors to .10 per hour for contracts that began as of January 1, 2015. If the employment ends during any given pay period, the employer is obligated to make the payment for the total number of hours worked by no later than the next official pay day. 17, the employer is allowed to make the payment of wages by check without the consent of the employees and without having to give them time off with pay to cash their checks.If a check is returned for insufficient funds or because the employer has closed the bank account, an employee may file a complaint with the Secretary of Labor and Human Resources requesting that the employer be required to post a bond approved by the Commissioner of Insurance to guarantee the payment of wages to the employee. Other deductions that are required or authorized by law include those for normal payroll taxes (income taxes, Social Security and Medicare), child support and garnishment of wages, among others. 32, §1130(7), establishes an exemption for the garnishment of wages in the execution of civil judgments. Among the services that ASUME provides are locating fathers and mothers whose whereabouts are unknown and whose attendance is necessary to conduct the child support proceedings; establishing paternity and child support; and establishing, modifying, and revising child support garnishment orders, among others.
If an employee selects the electronic transfer or direct deposit method, the employer is required to provide the employee with information regarding electronic fraud and the degree of responsibility of the employee, the employer and the bank in such cases. Failure to comply with this statute could lead to significant liability for the employer, such as the employee claiming reimbursement of the amounts illegally deducted. Except for garnishments to collect taxes, child support payments and payments due to bankruptcy trustees under Puerto Rico and federal law, only 25% of any unpaid earned income may be garnished pursuant to a court order. A court or ASUME may require employers to withhold or deduct from an employee's income the amount indicated in the child support garnishment order to satisfy the payment of support and of any debt for due and unpaid support.
This statement must be submitted by no later than November 30 of the year to which the bonus corresponds. Furthermore, for contracts that began as of January 1, 2016, the minimum wage of said employees shall be determined annually by the U. Secretary of Labor, based on the parameters set forth in the executive order. 180 of July 27, 1998, establishes that every employer not covered by the FLSA has to pay a minimum wage to non-exempt employees of at least 70% of the applicable federal minimum wage. Wages can also be paid by electronic transfer of funds or by direct deposit in a bank account, including payments to a "payroll card" as defined by the statute, but only with the consent of the employees involved; however, although there is no case law on this matter, several Puerto Rico Department of Labor and Human Resources opinions suggest that these payment methods may be presented to new employees as a condition for employment.
The Department of Labor and Human Resources has the authority to conduct an investigation on the financial situation of any employer that requests an exemption. Under the recent federal law known as PROMESA, the Governor of Puerto Rico, subject to the approval of the Financial Oversight and Management Board established by the statute, set a subminimum wage of .25 an hour for employees who are initially employed after the date of enactment of the Act and who are younger than 25. The employer shall bear the costs of the electronic transfer or direct deposit, if any, and shall submit to the employee a receipt of the funds paid or deposited.
In addition, if the employer does not reimburse the employee for the amount of the check within 10 days after the official pay day, the employer will commit a criminal offense that can carry up to five days in prison for each dollar not paid. This legislation also adopted the maximum garnishment limits set in Section 303(b) of the Federal Consumer Credit Protection Act, 15 USCA §1673(b), which vary from 50% to 65% depending on the particular facts of each case. 5 created the Child Support Administration (ASUME, by its acronym in Spanish).
The issuance of each check constitutes a separate criminal offense. 29, §175 All of the above deductions, except the one for salary advances, must be previously authorized in writing by the employee before the deduction is made. ASUME is an agency established under Title IV-D of the Federal Social Security Act that is in charge of enforcing child support obligations and the Commonwealth of Puerto Rico's public policy regarding child support and the Support of the Elderly Program (PROSPERA, by its acronym in Spanish).
The law mentions many commercial establishments that are excluded from its coverage. The bonus must be paid to each employee between December 1 and December 15 of each year, subject to a penalty should it be paid late.