OVERSIGHT BOARD MAKES PROMESA SECTION 205 RECOMMENDATION REGARDING EXECUTIVE ORDER RAISING MINIMUM WAGE FOR CONSTRUCTION PROJECTS

OVERSIGHT BOARD MAKES PROMESA SECTION 205 RECOMMENDATION REGARDING EXECUTIVE ORDER RAISING MINIMUM WAGE FOR CONSTRUCTION PROJECTS

(San Juan, PR – August 28, 2018) – The Financial Oversight and Management Board for Puerto Rico (the “Oversight Board” or the “Board”), created by Congress under the bipartisan Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”), today sent a letter to the Governor and the Legislature of Puerto Rico making a Section 205 recommendation under PROMESA. In the letter, the Oversight Board recommends that the Governor rescind Executive Order 2018-033, which sets a minimum wage of $15 per hour for those performing work for federally-funded construction projects.

“It is the Oversight Board’s view that policies to increase the rate of employment should be foremost in the Government’s mind as it crafts economic policies for Puerto Rico,” said José Carrión, Chairman of the Oversight Board. “In this context, the more prudent course would be to let the market dictate wages for federally funded construction projects, and as demand rises for workers, we would expect wages to increase accordingly.”

The letter is available here.