
The measure expands paid‑time‑off benefits during a public‑health crisis, increasing labor costs and setting a precedent for emergency‑driven leave policies across jurisdictions.
The Puerto Rico Department of Health’s recent influenza alert prompted Governor Jenniffer González to invoke emergency powers under Executive Order 2026‑005. By declaring a state of emergency, the government can mobilize resources quickly, enforce public‑health measures, and, in this case, trigger labor‑law provisions designed for crisis situations. Historically, Puerto Rico has used similar declarations to address natural disasters and pandemics, but the current focus on a seasonal flu surge underscores the island’s proactive stance on protecting its workforce.
Under Act No. 37, an amendment to the 1998 Vacation and Sick Leave Act, non‑exempt employees who have exhausted both vacation and regular sick leave become eligible for up to five paid days off when they contract or are suspected of contracting the influenza virus. The leave is distinct from standard sick time; it requires documentation of the illness and must be recorded by employers as a separate entitlement. This legal framework ensures that workers are not forced to choose between income and health, aligning Puerto Rico’s labor standards with broader trends toward paid‑family‑medical leave seen in other U.S. jurisdictions.
For businesses, the new requirement introduces an additional short‑term payroll expense and administrative burden. Companies must update time‑keeping systems, train HR staff, and potentially adjust staffing plans to accommodate absent employees. While the direct cost is limited to five days per affected worker, the cumulative impact could be significant in sectors with high exposure to influenza, such as retail, hospitality, and healthcare. Moreover, the policy may influence future legislative efforts, encouraging other regions to adopt similar emergency‑leave mechanisms, thereby reshaping employer‑employee dynamics during public‑health crises.
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Following the declaration of an influenza virus epidemic by the Puerto Rico Department of Health, Governor Jenniffer González issued Executive Order 2026‑005, declaring a State of Emergency to activate extraordinary measures for the protection of the public health.
Such declaration of emergency, made on January 27, 2026, activates the requirements of Act No. 37 of April 2020, which amended the provisions of Puerto Rico’s Vacation and Sick Leave Act for non‑exempt employees (or employees covered by the aforementioned Act), Act No. 180 of July 27, 1998, to recognize the special five‑day paid leave entitlement.
This leave provides up to five paid working days for employees who suffer from, or are suspected of suffering from, the illness or epidemic that gives rise to the state of emergency, in this case, the influenza virus, and must have exhausted all leave to which they were entitled. That is, the employee must have exhausted both vacation leave and regular sick leave before being eligible to use this special leave.
Employers must ensure that this new paid leave is recognized in applicable cases.
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