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Puerto Rico - Compensation & Benefit Legislation

PUERTO - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the Territory.

PUERTO RICO - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: For income tax purposes, only qualified pension plan employee deferrals are tax-free. All other employee deferrals are taxed and are subject to withholding. For Unemployment Insurance purposes, the total amount of employees' salary reductions and any cash that the employee has the option to receive (whether or not the employee chooses the cash option) must be treated as wages. Employer contributions are not taxable.

PUERTO RICO - LEAVES OF ABSENCE

See U.S. Federal Family and Medical Leave Act

PUERTO RICO - LONG TERM DISABILITY CODE ADDITIONS

Territory does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

PUERTO RICO - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

See SECTION 206 oF FAIR LABOR STANDARDS ACT and U.S. Minimum Wage

PUERTO RICO - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

PUERTO RICO - PRE-EXISTING CONDITIONS

See U.S. Federal Health Insurance Portability & Accountability Act

PUERTO RICO - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

PUERTO RICO - SHORT TERM DISABILITY CODE ADDITIONS

Covered Employers: 1 or more employees.

Employer Contribution: Cost of plan minus employee contribution.

Covered Employees: Earning $150 or more in wages in base period, and at least $37.50 in high quarter.

Employee Contribution: Maximum $0.3% of the first $9,000 in taxable wages.

Weekly Benefit Amount: Average $12-$113 per week for non-farm labor; $12-$55 per week for farm labor.

Waiting Period: 7 days, but waived if employee is in the hospital for more than 24 consecutive hours the first week.

Coordinated with Workers' Compensation: Yes.

Responsible Agency:  

Department of Labor

Bureau of Employment Security

505 Munoz-Radier Avenue

San Juan, PR 00918

PUERTO RICO - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employments.

Public Employers: Mandatory coverage to all salaried public employments.

Exceptions: Casual and domiciliary workers.

Special Coverage Provisions: Voluntary for sole proprietors and their families when supervising or engaging in their business or farm.

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)