2023 Laws of Puerto Rico › TITLE TWENTY-NINE - Labor (§§ 1 — 3004) › PART III - Social Security (§§ 611 — 726f) › Chapter 47 - Employment Security Act (§§ 701 — 717) › § 707 - Determinations on employment units

(a) Determinations and reconsiderations.—
(1) The Director shall, on the basis of his findings of fact, either motu proprio or on request of any employment unit or of one or more of the employees thereof, determine whether the employing unit is an employer and whether service performed for it constitutes employment. The determination shall be made within five (5) years after occurrence of the facts originating it.
(2) Within one year after he has made a determination under clause (1) of this subsection, the Director may, motu proprio, reconsider his determination in the light of further evidence, and make a redetermination.
(3) A notice of the Director’s determination made under clause (1) or (2) of this subsection, which shall include a statement of the supporting facts found by the Director, shall be mailed or otherwise delivered to the last known address of the corresponding employing unit and of the applicant employee or employees.
(4) Within fifteen (15) days after a notice of a determination made under clause (1) or (2) of this subsection was mailed or otherwise delivered to the last known address of an employing unit and of the applicant employee or employees, the employing unit or any of the employees thereof may apply to the Director to reconsider his determination in the light of additional evidence and to issue a redetermination. The Director shall, if the request is granted, mail or otherwise deliver to the last known address of the corresponding employing unit or of the applicant employee or employees a notice of the redetermination, which shall include a statement of the supporting facts found by the Director; if the request is denied, he shall furnish a notice of the denial of the application.
(5) Within fifteen (15) days after a notice of a determination made under clause (1), (2) or (4) of this subsection or a denial of the petition under clause (4) of this subsection was mailed or otherwise delivered to the employing unit and to the petitioning employee or employees, said employing unit or applicant employee or employees may appeal from the determination to the Secretary. The Secretary shall afford the parties a reasonable opportunity for a fair hearing as provided in § 706 of this title, in the case of hearings before referees. The Secretary’s decision shall be final, unless thirty (30) days after the decision was mailed or otherwise delivered to the last known address of a party, that party initiates judicial review proceedings in accordance with § 706(i) of this title. When the appellant is the employing unit, the court may require it to file a bond to guarantee the payment of any taxes and interest that such court may finally determine are due by the appellant.
(b) Conclusiveness of determination.— A determination of the status of an employing unit by the Director under subsection (a) of this section, in the absence of appeal therefrom, and a final determination of the Secretary upon an appeal, together with the record of the proceeding, shall be admissible in any subsequent proceeding under this chapter. If supported by substantial evidence and in the absence of fraud, the determination shall be conclusive, except as to errors of law, upon any employing unit which was a party to such proceeding.
(c) Period of coverage.— Any employing unit which is or becomes an employer, subject to this chapter, shall be deemed an employer from the date on which he employs one or more persons, except that unit which becomes an employer under § 702(k)(1)(H) of this title, who shall be considered an employer for the whole year. The provisions of this subsection shall not apply to what is provided in subsection (e) of this section.
(d) Termination of coverage.— Except as otherwise provided in subsection (e) of this section, an employing unit shall cease to be an employer subject to this chapter, as of the first day of the calendar quarter following the quarter during which it did not have employees only:
(1) If a written request is presented to the Director for the termination of the period covered by the statute, or
(2) if the Director has arrived at this decision motu proprio.
Provided, That the employment unit which becomes an employer under § 702(k)(1)(H) of this title shall cease to be an employer covered by this chapter from the first day of any calendar year if:
(1) During the preceding calendar year it did not pay wages in cash of one thousand dollars ($1,000) or more in any quarter, and
(2) if no later than March 15 of said year it presented to the Director a written request to terminate the applicability period of this chapter.
(e) Elective coverage of excluded service.—
(1) Any service performed for an employing unit, which is excluded under the definition of employment in § 702(k)(6) of this title and with respect to which no payments are required under the Employment Security Act of another state or of the federal government may be deemed to constitute employment for all purposes of this chapter, provided the Director has approved a written election to that effect filed by the employing unit for which the service is performed, as of the date stated in such approval. No election shall be approved by the Director unless it (A) includes all the service of the type specified in each establishment or place of business for which the election is made, and (B) is made for not less than two (2) calendar years.
(2) Any service which because of an election by an employing unit under subsection (e)(1) of this section is employment under this chapter shall cease to be employment under this chapter as of January 1 of any calendar year subsequent to the two (2) calendar years of the election, only if not later than March 15 of such year, either such employing unit has filed with the Director a written notice to that effect, or the Director has motu proprio given notice of termination of such coverage.
History —June 21, 1956, No. 74, p. 328, § 7; Dec. 22, 1960, No. 1, p. 1, § 8; June 24, 1971, No. 85, p. 257, § 5; June 15, 1972, No. 16, p. 374, § 6; July 26, 1979, No. 4, p. 924, § 5; June 22, 1981, No. 15, p. 103, § 5; May 21, 1982, No. 18, p. 35, § 3; July 9, 1985, No. 95, p. 300, § 4.