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Posts from December 2006

12/23/2006

SEXUAL HARASSMENT BY EMAIL

The law in Puerto Rico now recognizes that sexual harassment in the workplace can be perpetrated through emails. Act No. 252 of November 30, 2006, amended the Island's sexual harassment statute.  It broadened the definition of sexual harassment to include acts committed via Internet and  all electronic means including email.

Businesses in Puerto Rico need to reexamine their email  and sexual harassment policies to take into consideration these changes.

12/21/2006

TEN REASONS A BUSINESS NEEDS TO CONSULT AN EMPLOYMENT ATTORNEY BEFORE FIRING ANYONE

It used to be that in Puerto Rico if a business  wanted to discharge a worker, it only had to pay the indemnity provided by the Wrongful Discharge Act,  No. 80 of May 30, 1976 as amended; which by the way was quite modest. Things have changed over time and now it pays enormously to consult an employment attorney before you decide to fire someone. 

Here are 10 reasons why:

1. IT'S HOW YOU FIRE: Even if there is cause for a discharge; the business may turn the case into a wrongful discharge by terminating the worker the wrong way. For example, under certain circumstances, external libelous communications by a business about the worker to third parties may result in liability. Also, an improperly conducted investigation may raise issues of fault and negligence and related causes of action.

2. DISCRIMINATION: The worker may belong to a protected class and the discharge may create a presumption of discrimination bringing additional legal exposure. For example, the worker is over the age of 40; of a foreign country; or disabled.

3. EMPLOYMENT RESERVE: The worker may be protected by laws that require employers to hold the job for workers under particular circumstances such as workers' compensation, maternity leave, SINOT and ACCA.

4. STRENGTH OF YOUR CASE: While analyzing the case, the attorney will look over the worker's file, the business' employment procedures, rules of conduct and manuals.  This will enable the attorney to give the employer a good idea of its chances of prevailing in an eventual claim.  Many good cases are lost for lack of proper evidence.  In Puerto Rico employers bear the burden of proof.

5. PLAN: The attorney can advise the business in terms of what's the better course of action and how to accomplish it- terminate, don't terminate, terminate at a later time following a plan; negotiate a settlement,  among other alternatives.

6. ALTERNATIVES: If the attorney recommends the business not to terminate the worker, he may be able to develop a strategy to either lawfully terminate the worker or remedy the situation.

7. PREPARATION: The attorney will prepare the company for any future litigation in a way that it will more likely prevail in an eventual claim.

8. INFORMATION: The business will gain valuable information that will be useful in future termination.

9. COST BENEFIT: The initial expense for consultation and planning far exceeds the exposure, liability and legal fees associated with defending a case in court. Experienced employment attorneys- particularly those who also litigate cases know what it takes to win a case and most zealously defend their clients' interests as if it was their own.

10. LEARNING CURVE: The more the business consults and follows the labor attorney's advice, the less it will need him/her.

12/14/2006

CAPITAL GAINS TAX RATE

Some people have asked about the current rate for long-term capital gains. A year and a half ago, Puerto Rico's Internal Revenue Code was amended to increase the capital gains tax from 10% to 12.5% for  individuals and for 12.5% to 20% for regular corporations and partnerships. See, Act No. 40 of August 1, 2005. This law became effective January 1, 2006.

12/08/2006

UNION OFFICIAL SENTENCED TO SEVENTEEN YEARS IN PRISION

Prison_cell Sentenced to pay 2 million in restitution and serve 17 years of prison is Hector Rene Lugo- the former President of the largest union in the Aqueduct and Sewer Authority of Puerto Rico (AAA). As a lawyer for the AAA, I repeatedly dealt with him and his closest aids- Andres Carrasquillo and Elba García (both will also serve jail time); this was many years ago when as a young lawyer I represented the AAA in arbitration.   I still recall the way he used to sneer at us during  the hearings. He seemed to silently say to everyone present,"you fools, don't you know I own this place?" Hector Rene faced a very different hearing this time around and things  did not go as he expected.

For many years Hector Rene was a dominant force in the AAA.  With an absolute grip over the most influential union in the AAA - the Union Independiente Autentica (UIA)- Hector Rene's shoved his influence everywhere-  from the mechanic shops all the way to the Executive Director's Office. It was someone few attempted to mess with; except - of course- the U.S. Justice Department  which charged him (and 11 other union officials) with embezzling over 15 million dollars from the Union's medical plan.

I don't wish for anyone to spend his/her retirement behind bars but unfortunately that seems to be what Hector Rene will be facing.  Hector Rene received his sentence chained and handcuffed; a reminder  to all that the high flying agenda of the most powerful man in the AAA is now clipped to the bare bones activity  of grinding jail time.

ESPAÑOL: COACHING EJECUTIVO Y DE NEGOCIOS

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