Court: Labor Reform Nullified Ab Initio

Precedential Decision by Judiciary or Regulatory Agency

The District Court for the District of Puerto Rico has nullified Act No. 41-2022, enacted in June 2022, which had instituted significant changes to labor and employment laws in Puerto Rico. Employers in Puerto Rico are once again subject to the law as it was prior to the summer of 2022, when the Puerto Rico Labor Transformation and Flexibility Act, Act No. 4 of January 26, 2017, was in effect.

2023 Limits on Qualified Retirement Plans

New Regulation or Official Guidance

The Puerto Rico Department of the Treasury recently issued Internal Revenue Circular Letter No. 23-01 announcing the applicable 2023 limits for Puerto Rico qualified retirement plans. Pursuant to Section 1081.01(h) of the Puerto Rico Internal Revenue Code of 2011, as amended, the Secretary of the Treasury is required to publish the applicable limits under Section 401(a) of the Internal Revenue Code of 1986, as amended, which are incorporated by reference into the PR Code limits (e.g., annual compensation, annual benefit/contribution limits), once the IRS publishes its retirement plan limits under the U.S. Code.