HR Management & Compliance

New Overtime Regulation Won’t Apply in Puerto Rico

By Kate McGovern Tornone, Editor

The new Fair Labor Standards Act (FLSA) salary threshold will not apply in Puerto Rico when it takes effect for the rest of the country this winter.

The new rule will “have no force or effect” in the commonwealth, under a provision of the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) signed June 30 by President Obama. PROMESA was aimed at resolving Puerto Rico’s debt crisis but lawmakers added the overtime rule exception to the legislation in recent weeks.

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