2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 114 - Government of the Commonwealth of Puerto Rico Special Fiscal and Operational Sustainability Act (§§ 9101 — 9153) › Subchapter II - Measures To Cut Back On Spending In The Executive Branch (§§ 9111 — 9129) › § 9117 - Increase of economic benefits or special monetary compensations

(a) As of the effective date and during the effectiveness of this Act, the economic benefits or special monetary compensations granted to the employees of the Entities of the Executive Branch shall not be increased, except as provided in subsection (d) of this section.
(b) An increase of economic benefits shall be deemed to be the following:
(1) Salary raises for years of service, merit pay, additional compensation for skills or competency, and general raises.
(2) Increase of employer contributions for fringe benefits such as health, life, and other insurance.
(3) Increase of retirement plan contributions beyond those provided by law for government retirement systems.
(4) Increase of Christmas, summer or other bonuses.
(5) Raises for promotions or transfers, unless such promotion or transfers results in net savings for the Entity of the Executive Branch, thus satisfying the need to recruit an additional net employee; provided that such recruitment meets the requirements to fill vacancies provided in § 9115 of this title.
(6) Raises for reinstated employees.
(7) Payment of salary differentials due to special circumstances or due to acting assignments, unless said differential results in net savings, thus satisfying the need to recruit an additional net employee; provided that such recruitment meets the requirements to fill vacancies provided in § 9115 of this title.
(c) A special monetary compensation shall be deemed to be the following:
(1) Cash liquidations of vacation leave accrued in excess in the case of final liquidations upon the employee’s separation from public service. Provided, That during the effectiveness of this Act, the maximum of days subject to liquidation upon separation from service shall be sixty (60) days. Likewise, during the effectiveness of this Act, any public employee who accrues more than sixty (60) days at the end of each calendar year shall use such excess within the nearest date on or before the next six (6) months of the following calendar year. Provided, further, That every Entity of the Executive Branch shall pay, on or before August 31st of each year, any excess accrued as of the effective date of this Act and during the effectiveness thereof, when the employee has been unable to use such leave within the term provided herein due to special service circumstances beyond his/her control. All that pertains to vacation leave, in the case of public corporations, shall be addressed as provided in § 9123 of this title.
(2) Cash liquidations for sick leave accrued in excess in the case of liquidations upon the employee’s separation from public service. Provided, That during the effectiveness of this Act, the maximum of days subject to liquidation upon separation from service shall be ninety (90) days. The employee shall keep the balance accrued as of the effective date of this Act, but accrual over such maximum balance shall be eliminated during the effective term of this Act. Provided, further, That, during the effectiveness of this Act, any excess annual accrual not used on or before December 31st of the corresponding year shall be forfeited. All that pertains to sick leave, in the case of public corporations, shall be addressed as provided in § 9123 of this title.
(3) Christmas Bonus in excess of six hundred dollars ($600).
(4) Summer Bonus in excess of two hundred dollars ($200).
(5) Payment of bonuses in any amount due to productivity, performance, attendance, punctuality, retirement, special holiday, ratification or anniversary of ratification of collective bargaining agreements, or any other payment of bonuses for any other reason or account other than the Christmas or Summer bonus within the limits of this section.
(6) Paid leaves and time off without charge to any leave.
(7) Paid leaves that are not statutorily established.
(d) The following shall not be deemed as an increase of economic benefits or special monetary compensation:
(1) Paid leaves to pursue education, attend seminars, courses, or workshops, provided that an agreement is executed whereby the benefited employee commits to provide services for twice the time it takes him/her to complete education, seminars, courses, or workshops and to return any paid leave in the event of noncompliance;
(2) Employee Scholarship Programs;
(3) Employee Assistance Programs;
(4) Child care programs;
(5) Training, skill-building, and development plans up to a maximum of six hundred dollars ($600) per employee.
Notwithstanding the foregoing, except for the Employee Assistance Programs and the training provided by the Training and Labor Affairs Advisory and Human Resources Administration Office (OCALARH, Spanish acronym), the appointing authority or his/her authorized representative shall consider that the aforementioned situations constitute an increase of economic benefits or special monetary compensation when they are necessary to adjust the expenditures of the Entity of the Executive Branch to the approved budget or to deal with a projected operating deficit.
(e) If the Entity of the Executive Branch has questions as to whether or not the granting or continuance of an economic benefit or special monetary compensation constitutes an increase of economic benefits or special monetary compensation, the appointing authority or authorized representative of the Entity of the Executive Branch shall submit a consultation to the Office of Management and Budget, which shall reply to the same within sixty (60) days or less; the reply to the consultation shall be binding for the Entity of the Executive Branch submitting the same.
(f) The limitations established in this section shall apply to all employees of the Entities of the Executive Branch, regardless of their classification as a trust, regular, career, transitory or irregular employee; and regardless of their specific duties within the Entity of the Executive Branch.
(g) The limitations established in this section shall apply to all employees of the Entities of the Executive Branch, regardless of any provision to the contrary of any law, standard, regulations, collective bargaining, policy, employee handbook, circular letter, contract letter, certifications, regulations, employment rules and conditions, policy letters, classification, or compensation plans. This includes, but is not limited to, §§ 1461 et seq of this title, known as the “Public Service Human Resources Administration Act”; and the regulations issued and adopted in the case of public corporations, by the corresponding board of directors or appointing authority; or in the case of other public entities, by the corresponding board of governors or appointing authority.
(h) The Office of Management and Budget may implement regulatory provisions as are necessary to enforce the provisions of this section.
(i) Recognizing the importance of public employees union affiliation, not only in representation of the economic wellbeing of workers, but also in taking public service to its highest level and keeping labor peace, an alternative and uniform participatory process is hereby established to achieve the goals of the public policy set forth in this subchapter, including the necessary savings within the parameters set forth in subsections (j) and (k), as the case may be, following collective bargaining as guiding principle. The agreements reached by the authorized representatives of union employees, and ratified in writing by the members of the corresponding labor union and the authorized representative of the Entity of the Executive Branch through and in accordance with the collective bargaining parameters allowed herein, shall replace the provisions of subsections (a), (b), (c), and (d) of this section and any other pertinent provision of this subchapter and that have been object of the bargaining. For every alternative participatory process recognized under this subchapter leading to a bargaining between Entities of the Executive Branch and labor unions, any necessary information, such as a report of audited financial statements of the Entity of the Executive Branch, a report of all contracts and the sums thereof, a report of all trust positions and the sums thereof, among other pertinent data shall be provided. The Entities of the Executive Branch shall agree to a labor union’s request to begin the alternative participatory process.
Once the period of the participatory process provided in this subchapter concludes, the Entity of the Executive Branch and the labor union shall notify the Secretary of Labor and Human Resources of any impasse reached, if any, during the bargaining process. The Secretary shall grant the parties fifteen (15) additional days to conclude the bargaining efforts.
(j) In the case of Entities of the Executive Branch subject to §§ 1451 et seq. of this title, the Governor or the person to whom he/she delegates, and the Director of the Office of Management and Budget and the Secretary of the Department of Labor and Human Resources are hereby authorized to enter into, beginning on or before July 1st, 2014, one or various negotiations, personally or through their authorized representatives, to amend by mutual agreement the collective bargaining agreements in effect establishing modifications to the financial job conditions that replace the provisions of subsections (a), (b), (c), and (d) of this section, but that achieve an average savings per union employee comparable to the savings that would have been achieved should the aforementioned subsections had been applied, as estimated at the discretion and in the judgment of the Office of Management and Budget. The negotiated amendments shall take effect only for appropriate units that adopt and ratify the same and, in any case, shall take effect retroactively to July 1st, 2014. The provisions of subsections (a), (b), (c), and (d) of this section shall apply retroactively to July 1st, 2014 and be final and binding for any appropriate unit that fails to adopt and ratify any amendment under this subsection on or before August 31st, 2014. The appointing authority or authorized representative of an Entity of the Executive Branch is hereby authorized to make the corresponding payroll adjustments to enforce this subsection.
(k) In the case of Entities of the Executive Branch with union employees that are not subject to§§ 1451 et seq. of this title, the appointing authority or authorized representative of an Entity of the Executive Branch may negotiate amendments to collective bargaining agreements in effect establishing modifications to the financial job conditions that replace the provisions of subsections (a), (b), (c), and (d) of this section, provided that such amendments are approved and ratified by all the parties on or before July 31st, 2014; that are retroactive to July 1st, 2014; and that the average savings achieved per union employee by implementing said amendments are comparable to the savings that would have been achieved should the aforementioned subsections had been applied.
The savings goal of the negotiation, as well as the achievement thereof as a result of the proposed amendments, shall be determined by the Board of Directors or other governing body of the Entity of the Executive Branch concerned, whose final approval shall be necessary to prevent subsections (a), (b), (c), and (d) of this section from being applied. If the amendments are not signed and ratified by August 31st, 2014, the provisions of subsections (a), (b), (c), and (d) of this section shall apply retroactively to July 1st, 2014. The appointing authority or authorized representative of an Entity of the Executive Branch is hereby authorized to make the corresponding payroll adjustments to enforce this subsection.
History —June 17, 2014, No. 66, § 11.