McV Labor & Employment Law Tidbit Series: Act 61 Compliance Deadline for Government Contractors Approaching
McV Labor & Employment Practice Group
This third installment of our Tidbit Series is dedicated to labor & employment requirements all government contractors must comply with by July 31, 2018, as established by Puerto Rico Act 61 of August 1, 2017 (“Act 61”).
Act 61 establishes that any person or corporation who is a bidder to a contract with the Government of Puerto Rico, or who is currently a government contractor, must certify to the government that:
- it has an equal pay policy in place; and
- it has completed, or at least has started, a self-audit of its compensation practices, and has achieved reasonable progress to eradicate any sex based salary disparities for comparable jobs.
These new legal requirements are intended to address and resolve gender based pay gaps in all government related projects. Pursuant to Act 61, these requirements must be complied with by July 31, 2018, and the certification must be renewed on a yearly basis.
Act 61 also requires government bidders and potential bidders to follow the Uniform Guidelines for Self-Audits published by the Puerto Rico Department of Labor in August 2017 when conducting the mandatory self-audit of their compensation practices.
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