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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 GarcĂ­a (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.

12/05/2006

TIPS FOR DEPONENTS IN CIVIL CASES

Depositions are  important discovery tools in litigation.  In a deposition,  a party or witness will be  called to answer under oath questions relating to the case.  All questions and answers are recorded by a court reporter who then prepares a written transcript.  The reporter then provides copies of the transcript to the parties. Depositions 'freeze' the testimony of  witnesses. In trial a deposition can be used against the witness if the court testimony  varies from the one given at the deposition.

If you are called  as witness in a deposition here are some tips to help you understand the process and deliver a proper testimony:

  • Always tell the truth.
  • Do not memorize answers; at the end you will probably forget and get confused.
  • If you are uncertain about an answer say so.
  • Answer a question once you understand it; listen carefully and stop; avoid volunteering information that is not specifically  requested.
  • Avoid speaking in general terms; review beforehand all dates, places an people involved so that you can be specific when asked to do so.
  • Do not supply information not requested; avoid volunteering information.
  • Do not guess; if you don't know the answer or remember  say so.
  • Be polite and dress neatly. You will be under constant evaluation by opposing counsel.
  • Do not interpret  silence   in response to your answer  as dissatisfaction or request for more information by opposing counsel.
  • Speak up and slowly so that the record can be transcribed properly.
  • There is nothing wrong to admit that you had previous meeting with your lawyer about the case. 
  • If asked by opposing counsel whether you know of anything else that has not been  discussed regarding the claim simply state that you cannot remember everything but will gladly answer specific questions.
  • Avoid being calculating or trying to look for traps or underlying meanings to  questions; leave that to your attorney.
  • Be vigilant for loaded questions (those that already assume an answer); compound (multiple questions in one) or double negative questions.  In such cases request clarification.

EMPLOYERS MUST PREPARE FOR DOMESTIC VIOLENCE IN THE WORKPLACE

Act No. 217 of September 29, 2006 requires all employers in Puerto Rico to adopt an internal process to deal with domestic violence  in the workplace  This  odd law  presuposes that there is a likelihood that domestic violence will spill into the workplace.  Therefore legislators expect employers to be prepared for chaos at work by outlining managerial responsibilities and enacting specific procedures in a written document called - 'protocol'.  Employers are advised to contact an employment attorney to discuss this new legal requirement.

You can access a copy of the law here Download protocol_domestic_violence_in_the_workplace.pdf





 

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