Puerto Rico allows payroll deductions for loan repayment

Act No. 115 of 20 June 2018, amends Article 5 of Act No. 17 to allow payroll deductions to repay the employer (without interest) for any “loan, salary advance, or [the cost] of any equipment, materials, or goods provided by the employer, whose benefit, use, or enjoyment is directly related to situations in which a state of emergency has been officially declared.” The deduction is subject to a written agreement between the employer and the employee and is limited to 20 percent of the employee’s net salary.