Puerto Rico Labor Reform Act Voided for Failure to Show Impact

A Puerto Rico law tightening labor rules imposed on employers cannot stand because the governor failed to obtain the approval of the oversight board set up in 2016 to address the island’s fiscal crisis.

Governor Pedro Pierluisi-Urrutia failed to submit the documentation necessary to show that the act complied with the fiscal plan of the Financial Oversight and Management Board for Puerto Rico, as required pursuant to the Puerto Rico Oversight, Management, and Economic Stability Act, the US Court of Appeals for the First Circuit ruled Thursday.

Congress enacted the PROMESA in 2016, giving the board the authority to “oversee ...