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Puerto Rico Employers Offering Internship Programs Must Comply With New Law – Employee Benefits & Compensation



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By Irene Viera Matta and Ruy Diaz Gonzalez* on December
29, 2022

On December 27, 2022, Gov. Pedro Pierluisi signed Act 114 of
2022, known as the “Puerto Rico Fair Internships Act”
(Act. 114) into law. Act 114 seeks to offer compensatory
protections to students who are part of internship programs where
existing state and labor legislation do not.

Article 4 of the Act states that the term “internship”
refers to any program of either public or private institutions that
offer learning or work experiences to high school students,
students pursuing higher education degrees, or recent graduates
within a year of graduating. For an internship to be subject to
this Act, its must also meet the following criteria: (1) the
internship must require ten or more hours per week, (2) the
duration of the program must be defined before it begins, (3) the
participants must have a direct supervisor, (4) supervisors must
provide midterm and final evaluations to their participants and
discuss the results with the participants to offer assistance for
their development; and (5) the program must include an educational
component and mentoring initiatives related to skill development,
networking, and professional development.

Internships meeting the abovementioned criteria must offer
compensation to its participants. The compensation is to be
calculated using the federal minimum wage or the state minimum
wage, whichever is higher, or a global stipend based on the time
worked that represents a sum equivalent to the minimum wage that
would have been received during that period.

Act 114 also includes several exemptions for the following:

  1. Programs that are requisites for graduation or in exchange for
    university credits.

  2. Volunteer programs, which are also defined in the Act.

  3. Programs where the participant is limited to only observing
    employees (commonly referred to as “shadowing” programs)
    or where the assigned work does not require any specific skills or
    particular knowledge.

  4. Any volunteer or internship programs offered by federal or
    state departments/agencies.

  5. Non-profit organizations if they can meet certain
    criteria.

Entities seeking exemption must provide certain information,
including: program descriptions, work/task descriptions, duration
of the program, proof of economic burdens, reasons for the need of
assistance, among others.

The Act and its provisions came into effect immediately after
being signed by the Governor.

Footnote

* Mr. Ruy Gonzalez is pending bar admission.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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