By means of Executive Order 2018-033 (OE-2018-033), the Governor of Puerto Rico established the minimum wage of $15.00 per hour for employees that work in construction projects financed by the government.  The Executive Order includes both government agencies and public corporations.

Likewise, in order to be granted the contract, all entities must comply with the minimum wage established by the OE-2018-033.  Sub-contractors are also subject to this decree.  However, suppliers are exempt from paying the minimum wage. These include, among others: manufacturers, process managers, and transportation and delivery of materials or supplies to be used in the construction project.

On the other hand, OE-2018-033 also determines that any contract of more than two million dollars ($2,000,000) that is financed with funds from the Government of Puerto Rico must include a Labor Agreement. Such agreement must abide by the following:

  1. It must be binding for both the contractors and sub-contractors.
  2. It must be part of the contract granted.
  3. It must be included in the proposal or in the request for bids for the construction project.
  4. It must include guarantees against any labor problems; as well as efficient actions to be taken to prevent and solve any employer-worker disputes.
  5. It must provide collaborative mechanisms between workers and management that take care of any issues pertaining to productivity and occupational safety.

OE-2018-033 also determines that in order to be granted a Construction Contract Project, both contractors and sub-contractors must present a certificate that shows that the cement to be used in the project must be produced in Puerto Rico.

Employees to which the minimum wage of $15.00 per hour applies

The minimum wage determined by OE-2018-033 applies to all construction workers, skilled or non-skilled, that perform physical or manual tasks and that are due to receive the minimum wage as established by law.

It also establishes that all non-skilled workers must participate in training programs on subjects related to construction.  Compliance with this requirement is essential for them to continue receiving the $15.00 per hour wage. The Management and Budget Office of Puerto Rico (OGP) will be in charge of designing the process and issuing the criteria for the offering of the training courses.

If in case an employee has the right to earn a salary of more than $15.00 per hour, the contractor or sub-contractor is obliged to pay the highest salary.

Employees to which the minimum wage of $15.00 per hour does not apply

All professionals, executives, and managers are excluded from OE-2018-033.   Also excluded are all those employees that do not perform any manual or physical chores.  This includes surveillance/security monitors, timekeepers, mail carriers, office clerks, office assistants, messengers, guards, accounting tasks, technicians, receptionists, data processing, and any other administrative tasks. You can also access the Department of Labor and Human Resources email at:

NOTE: We remind you that TCG is available to clarify any doubts, bring you detailed information and assist you with any action to be taken in this regard. 


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