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The federal judge in charge of Puerto Rico's bankruptcy, Laura Taylor Swain, issued a ruling tonight in which she declared Act 41 of 2022, the labor reform law, null and void, thus validating the opinion of the Fiscal Control Board, which opposed this decree that added benefits to private sector workers.
Both the fiscal board and the Puerto Rico government held conflicting opinions regarding this decree, which also had the support of the Legislature. According to the board, the law was inconsistent with the federal Promesa Act and lacked an analysis that would shed light on what its fiscal impact would be.
"The court further permanently enjoins and enjoins the governor or others in government from taking any act to assist private entities in implementing or enforcing Act 41," Swain's order, which contains some 39 pages, details.
The judge embraced the fiscal board's argument that the government failed to provide information on the fiscal impact of Act 21 of 2022. This despite the fact that the board issued instructions under Section 204(a) of the Promesa Act that they had to submit the information in order to pass judgment...