Judge Laura Taylor Swain declares 2022 Labor Reform Act null and void

The content originally appeared on: News Americas Now

Black Immigrant Daily News

The content originally appeared on: El Nuevo Día

The federal court declared the 2022 Labor Reform Act null and void.

This reform reinstated some of the rights that employees lost upon the approval of Act 4-2017, known as the Labor Transformation and Flexibility Act.

The court notes in its decision that the local government never provided the impact that Act 41-2022 would have despite requests and instructions from the Fiscal Oversight Board.

“This Court has previously explained that “a ‘formal estimate’ under section 204(a) means a complete and accurate estimate ‘covering revenue and expenditure effects of new legislation’ over the entire period of the fiscal plan,” reads Swain’s ruling.

“The Governor’s argument that the required fiscal impact assessment is impossible and his suggestion that the law remain in place while the Oversight Board and the Government take a “wait and see” approach to assessing its impact fall far short of the requirements of PROMESA, and are unavailing,” Judge Laura Taylor Swain’s order adds.

“Act 41, and any actions that have been taken to implement it, are null and void ab initio. The Court further permanently prohibits and enjoins the Governor or other persons who are in active concert or participation with the Governor from taking any acts to help private parties implement or enforce Act 41? the judge determined.

Puerto Rico’s business associations had expressed their support for the Board in this case, the group includes the United Retailers Center; the Restaurant Association (Asore, Spanish acronym); the Puerto Rico Chamber of Marketing, Industry and Food Distribution (MIDA), Spanish acronym); the Puerto Rico Hotel & Tourism Association; and the Puerto Rico Hospital Association. The list continues with The Puerto Rico Association of Automobile Dealers and Distributors; the Hecho en Puerto Rico Association; the Puerto Rico Chamber of Commerce; the Puerto Rico Manufacturers Association; and the Puerto Rico Builders Association.