P.R. Laws tit. 29, § 702

2019-02-20 00:00:00+00
§ 702. Definitions

Unless otherwise deduced from the context, the terms expressed hereinbelow shall have the following meaning:

(a) American vessel or United States vessel.— Means any vessel documented or numbered under the laws of the United States; and any vessel which is neither documented nor numbered under the laws of the United States, nor documented under the laws of any foreign country, if its crew performs service solely for one or more citizens or residents of the United States or of the Commonwealth of Puerto Rico, or for a corporation organized under the laws of the United States or of any state or of the Commonwealth of Puerto Rico; and the term “American aircraft” or “United States aircraft” means an aircraft registered under the laws of the United States.

(b) Base period.— Means the first four (4) of the last five (5) completed calendar quarters immediately preceding the first day of an individual’s benefit year. Provided, that in case of a combined wages claim in accordance with the agreement approved by the United States Secretary of Labor, the “base period” shall be the one applicable under the provisions of the Unemployment Compensation Act of the liable state.

(bb) Alternative base period.— Means the last four (4) consecutive calendar quarters, always including the last one which immediately precedes the first day of the claimant’s benefit year. Provided, That for purposes of this chapter, all references to the “base period” shall include both the base period defined in subsection (b) of this section and the alternative base period, when applicable.

(c) Benefit.— Means the sum payable to an individual under this chapter with respect to his unemployment.

(d) Benefit year.— Means, with respect to a person who has rendered services specified in paragraphs (A), (B), (C), (D), (E), (F), (G) or (H) of subsection (k)(1) of this section, the period of fifty-two (52) consecutive weeks beginning on the Sunday of the week in which that person files a petition for the determination of his insured status; provided, that in regard to that week, said person does not have a previously established benefit year in effect.

Provided, That in the case of a combined wage claim pursuant to the agreement approved by the Secretary of Labor of the United States, the benefit year shall be that which is applicable under the provisions of the Unemployment Compensation Act of the paying state.

The filing of a notice of unemployment shall be deemed as a petition for a determination of insured status, provided a current benefit year has not been previously established.

(e) Calendar quarter.— Means the period of three (3) consecutive calendar months ending March 31, June 30, September 30, or December 31.

(f) Claimant.— Means an individual who has filed a request for a determination of insured status, a notice of unemployment, a certification for waiting-week credit or a claim for benefits.

(g) Contribution.—

(1) Means the money payments required by this chapter to be made into the Fund by an employer under § 708(b) of this title.

(2) Reimbursement in lieu of contributions.— Means an amount equal to the sum of the regular and additional benefits plus one-half of the extended benefits paid to the Fund by an employer who has elected such method of payment under subsections (e) and (f) of § 708 of this title. Provided, That for weeks of unemployment beginning on or after January 1, 1979 and which are based on the services rendered as described in subparagraphs (i)—(iii) of subsection (k)(1)(B) of this section, it shall mean an amount equal to the sum of regular, additional and extended benefits paid to the Fund by an employer who has elected such method of payment under subsections (e) and (f) of § 708 of this title.

(h) Director.— Means the Director of the Bureau of Employment Security in the Department of Labor and Human Resources of Puerto Rico.

(i) Employer.— Effective on January 1, 1972, means:

(1) Any employment unit which during any day within the current or preceding calendar year has or has had one or more persons under employment.

(2) Any employment unit for which service as defined in subsection (k)(1)(B)(ii) of this section is or had been rendered.

(3) Any employment unit for which service as defined in subsection (k)(1)(F) of this section is or has been rendered.

(4) Commencing on January 1, 1978, any employment unit for which service is or has been rendered:

(A) To the Commonwealth or any political subdivision thereof as provided by subsection (k)(1)(B)(iii) of this section.

(B) In agricultural endeavors, as defined in subsection (k)(1)(E)(ii) of this section.

(C) In domestic work, as defined in subsection (k)(1)(H) of this section.

(5) Any employment unit other than an employer by virtue of any other paragraph of this subsection, for which service is or has been rendered within the current or preceding calendar year, with respect to which such employment unit is liable for any federal tax against which credit may be granted for taxes that must be paid to a state unemployment fund; or any employment unit which under the provisions of the Federal Unemployment Tax Act (FUTA) must be an employer under this chapter as a condition for the approval of this act, so that the employers may receive full credit against the tax levied by the federal law.

(6) Any employment unit, which having become an employer under clauses (1), (2), (3), (4), or (5) of this subsection, has not ceased to be an employer subject to this chapter under the provisions of § 707(d) of this title.

(7) Any employment unit which has chosen to avail itself of the provisions of this chapter for the period granted therefor under § 707(e) of this title. The provisions of this subsection shall not apply to years preceding the effective date of this act. To determine whether an employment unit shall be considered an employer under this chapter, there shall be considered the service rendered in its totality for said unit in Puerto Rico and the service rendered for said unit in any other state by virtue of a choice made under a reciprocity agreement between the Secretary and any other agency in charge of the administration of the Federal Act on Unemployment Compensation or of any other state, under the provisions of § 715(c) of this title.

For the purpose of determining the status of an insured employer as indicated in this section and in § 707 of this title, every employer on or before filing the report or statement to determine the tax as required by § 708 of this and its “Regulation Number 1, To Regulate the Imposition and Collection of the Tax Levied by the Puerto Rico Employment Security Act”, shall be registered at the agency in the form provided for such purposes, for the designation of the employer account number for the payment of taxes or for the reimbursement of paid benefits. In order to be registered, the employer must furnish the required information fully and accurately.

(j) Employing unit.— Means:

(1) Any individual or type of organization, including agencies or instrumentalities of the Commonwealth of Puerto Rico or any political subdivision thereof organized or that may be organized hereafter to operate as private enterprises as well as those hospitals and institutions of higher education operated by the Commonwealth of Puerto Rico or any political subdivision, or any partnership, association, trust, estate, joint-stock company, insurance company, or corporation, whether domestic or foreign, or the receiver, trustee, including trustee in bankruptcy, or successor of any of the foregoing, or the legal representative of a deceased person, who or which has, or had subsequent to the effective date of this act, one or more individuals in his or its service within Puerto Rico.

(2) All workers performing service within the territorial limits of Puerto Rico for any employing unit operating two (2) or more separate establishments within said territorial limits shall for all purposes of this chapter, be deemed to be performing service for a single employing unit.

(3) Whenever an employing unit contracts with any other employing unit for any work which is part of the usual trade, occupation, profession, or business of the former employing unit, each worker who performs service in employment under such contract shall, for the purpose of determining whether the former employing unit is an employer under subsection (i) of this section, be deemed to be performing such service in employment for the former employing unit; Provided, That if the latter employing unit is not an employer under subsection (i) of this section, each such worker shall, for all purposes of this chapter, be deemed to be performing such service in employment for the former employing unit.

(4) Any individual engaged to perform or assist to perform the work of any person in the service of an employing unit shall, for all purposes of this chapter, be deemed to be engaged by such employing unit, whether such individual was engaged or paid directly by such employing unit or by such other person, provided the employing unit had actual or constructive knowledge of the work.

(k) Employment.— Means:

(1)

(A) Any service performed by a person for wages, including:

(i) Service rendered in interstate commerce and in commerce with foreign countries;

(ii) service considered “employment” under clause (5) of this subsection;

(iii) service rendered for any person as:

(I) Agent-driver, or commission driver, with regard to the distribution of meat products, vegetable products, fruit products, bakery products, beverages, or laundry or dry-cleaning services;

(II) traveling or city salesmen (other than an agent driver, or commission driver) engaged in soliciting on behalf of and transmitting to his principal, the orders of wholesalers, retailers, contractors, operators of hotels, restaurants or any other similar establishments, for merchandise for resale or materials to be used in the operation of their businesses;

(III) insurance salesmen;

(IV) homeworkers performing work according to specifications furnished by the person for whom the services are performed, with materials or goods furnished by such person, which must be returned to such person or any other person designated by him; Provided, That the term “employment” shall include the services in this subparagraph, above, only if:

a. The service contract states that substantially all of the services are to be performed personally;

b. the person does not have a substantial interest in connection with the performance of the service; except the transportation facilities or the equipment needed to perform the services; and

c. the services are not a single transaction, but are a part of a continuing relationship with the person for whom the services are performed.

For purposes of this paragraph the term “person” shall include, without it being construed as a limitation, any individual as well as any official of a corporation or member of a company, association, estate, civil, or mercantile partnership, professional, cooperative or of any other nature.

(B)

(i) Service performed by an individual for agencies or instrumentalities of the Commonwealth of Puerto Rico or of the municipalities, organized to operate as private enterprises.

(ii) Service performed by an individual for a hospital or an institution of higher education located in Puerto Rico operated by the Commonwealth of Puerto Rico or any political subdivision thereof, or an instrumentality of any or more of the foregoing which is wholly owned by the Commonwealth of Puerto Rico or by one or more of its political subdivisions.

(iii) Services performed after January 1, 1978, by a person for the Commonwealth of Puerto Rico or any political subdivision thereof, or an instrumentality of one or more of such political subdivisions not included in the foregoing subparagraphs.

(C) Service performed by an officer or crew member of an American vessel on or in connection with such vessel, provided the operating office from which the operations of such vessel operating on navigable waters within, or within and without, the United States are ordinarily and regularly supervised, managed, directed and controlled, is within Puerto Rico; and service performed by an officer or crew member of an American aircraft on or in connection with such aircraft, provided the operating office from which the operations of such aircraft operating within, or within and without, the United States, are ordinarily and regularly supervised, managed, directed and controlled, is within Puerto Rico.

(D) Notwithstanding any other provisions of this subsection, service with respect to which a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund or service performed for any employing unit which upon requirement of the Federal Unemployment Tax Act (FUTA) must be an employer under this chapter as a condition for the approval thereof in order that the employers may receive full credit against the tax imposed by the federal act.

(E) Agricultural labor.— Shall be understood to be services performed:

(i) In the agricultural phase of the sugar industry in the preparation of the soil, planting, cultivating and harvesting of the sugarcane, and the transportation of sugarcane when performed by the employer-farmer, as well as any other work or services necessary to or related to said activities.

(ii) Services performed after January 1, 1978:

(I) On an agricultural farm in the employment of any person, with respect to the cultivation of the soil or with respect to the raising, or harvesting of any agricultural or horticultural commodity, including the raising, shearing, feeding, care, training and handling of livestock, bees, poultry, fur-bearing animals whose skin is used for commercial purposes, and wildlife, or with respect to the catching, harvesting, or breeding of any kind of fish, seafood and crustaceans.

(II) In the employment of the owner or tenant or other operator of an agricultural farm, with respect to the operation, management, conservation, improvement or maintenance of such farm and its tools and equipment or in relation to the salvaging of timber or removing of brush or debris caused by a hurricane or any other act of nature, if the major part of such service is performed on a farm.

(III) With respect to the production or harvesting of any agricultural commodity as defined in § 15(g) of the Agricultural Marketing Act (46 Stat. 1550, § 3; 12 U.S.C. § 114j) or with respect to the ginning of cotton or to the operation or upkeep of ditches, canals, reservoirs or water conduits not owned or operated for profit, that are used exclusively for supplying and storing water for farming.

(IV) In the employment of a farm operator or a group of farm operators or of a farmers cooperative organization of which the operators are members, in the handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering for storage or to a market or to a carrier for transportation to the market, of any unmanufactured agricultural or horticultural commodity; but only if such operator or operators produced more than one-half of the commodity with respect to which such services are performed. The provisions of this item shall not be construed as applicable with respect to services performed in relation to commercial canning or freezing, or any agricultural or horticultural commodity after it is delivered to a specific market for distribution for consumption purposes, or with respect to the commercial processing of sugar, tobacco, coffee or fruit.

As used in this subsection, the term “farm” includes livestock, dairy, poultry, fruit, truck farms, plantations, nurseries, pasture and forest land, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural consumer commodities, and orchards.

(V) For the purposes of this subsection, any worker who is a member of a crew furnished by a crew leader to perform agricultural labor shall be treated as an employee of such crew leader:

If such crew leader holds a valid certificate of registration under the Farm Labor Contractor Registration Act of 1963, or substantially all the members of such crew operate or maintain tractors, mechanized harvesting or crop-dusting equipment, or any other mechanized equipment which is provided by such crew leader; and such worker is not an employee of such other person under clause (1)(A) of this subsection.

In the case of any worker who is furnished by a crew leader to perform work for any other person (who is not treated as an employee of such crew leader under the preceding item) it shall be understood that he is employed by such other person and this person shall be treated as having paid cash remuneration to such worker in an amount equal to the amount of cash remuneration paid to such worker by the crew leader for the services performed.

(VI) Crew leader. — Means a person who furnishes workers to perform agricultural labor for any other person, pays cash remuneration either on his behalf to such workers or on behalf of such other person for the services performed and has not entered into a written agreement with such other person under which such other person is designated as an employee of such other person.

(F) Service performed after December 31, 1971, by an individual as an employee of a corporation, institution, society, association, foundation, or any community chest created and administered exclusively for religious, charitable, scientific, literary or educational purposes, or for the prevention of cruelty to children or to animals, no part of the net earnings of which inures to the benefit of a shareholder or a private person, or any other organization described in § 501(c)(3) of the United States Internal Revenue Code of 1954, provided said organization is exempt from income tax under § 501(a) of said Code.

(G) Services performed outside the United States, except in Canada, on and after January 1, 1972, by a citizen of the United States, and in the case of the Virgin Islands, after December 31, 1971, and prior to January 1 of the year following that in which the United States Secretary of Labor approves the Unemployment Compensation Law for the Virgin Islands, pursuant to the provisions of § 3304(a) of the 1954 Internal Revenue Code, in the employ of an American employer, as this term is defined in subsection (x) of this section (other than services considered as “employment” under the provisions of clauses (2), (3) or (8) of this subsection or similar provisions of the law of another state), if:

(i) The employer’s principal place of business in the United States is located in Puerto Rico, or

(ii) the employer has no place of business in the United States, but:

(I) The employer is an individual who is a resident of Puerto Rico; or

(II) the employer is a corporation which is organized under the laws of Puerto Rico; or

(III) the employer is a partnership or a trust and the number of the partners or trustees who are residents of Puerto Rico is greater than the number of those who are residents of any other state; or

(iii) none of the criteria of subparagraphs (i) and (ii) of this paragraph is met but the employer has elected to be covered by the law of Puerto Rico, or, the employer having failed to elect coverage under the law of any state, the individual has filed a claim for benefits, based on such service, under the law of Puerto Rico.

(H) Services performed on and after January 1, 1978, in a private home for an employer who during the current or preceding calendar year paid wages in cash of one thousand dollars ($1,000) or more in any calendar quarter for domestic service.

(2) Employment.— Shall include an individual’s entire service performed within, and the entire partial service performed both within and [outside], the Commonwealth of Puerto Rico, if the service is localized in Puerto Rico. Service shall be deemed to be localized in Puerto Rico if:

(A) The service is performed entirely within Puerto Rico, or

(B) the service is performed both within and [outside] Puerto Rico but the service performed without Puerto Rico is incidental to the individual’s service performed within Puerto Rico; for example, is temporary or transitory in nature or consists of isolated transactions.

(3) Employment.— Shall include an individual’s entire service performed within or within and [outside] Puerto Rico if the service is not localized in Puerto Rico but some of the service is performed here and:

(A) The individual’s base of operations is in Puerto Rico; or

(B) if there is no base of operations, then the place from which such service is directed or controlled is in Puerto Rico, or

(C) the individual’s base of operations or place from which such service is directed or controlled is not in any place where some part of the service is performed, but the individual’s residence is in Puerto Rico.

(4) Service performed by an individual by virtue of a voluntary election approved by the Director under the provisions of § 707(e) of this title and by the Secretary under § 715(c) of this title, shall be deemed to be employment during the effective period of the election’s approval.

(5) Service performed by an individual shall be deemed to be employment subject to this chapter irrespective of whether a management-labor relationship exists, unless and until it is shown to the satisfaction of the Secretary that:

(A) Such individual has been and will continue to be free from control and direction in connection with the performance of such service, both under his contract for the performance of service, and in fact; and

(B) such service is performed either outside the usual course of the business for which the service is performed or outside of all the places of business of the enterprise for which the service is performed, and

(C) such individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as that involved in the service performed.

(6) Employment.— Shall not include:

(A) Services performed by a person in any calendar quarter outside of commercial service or the business of an employing unit, unless the cash remuneration paid for such services is fifty dollars ($50) or more, and the services are rendered by a person who is regularly employed by said employing unit to render the same. For the purposes of this paragraph, a person shall be deemed regularly employed to render services outside of commercial service or the business of any employing unit during a calendar quarter, only if:

(i) During each day of any twenty-four (24) day period, not necessarily consecutive, during said quarter, this person renders said services during some part of the day, or

(ii) this person was regularly employed by said employing unit to render said services during the previous calendar quarter (as provided in subparagraph (i)).

(B) Service performed as employee of a school, college or university, if such service is performed by a student who is enrolled and who is regularly attending classes in said school, college or university.

(C) Notwithstanding clause (2) of this subsection, service by an officer or member of the crew of a United States vessel or aircraft performed on or in connection with such vessel or aircraft, if the operating office from which the operations of the vessel or aircraft are ordinarily and regularly supervised, managed, directed and controlled, is without Puerto Rico.

(D) Service performed on or in connection with a vessel or aircraft other than a United States vessel or aircraft by an individual if he performed such service on or in connection with such vessel or aircraft when outside the United States or Puerto Rico.

(E) Service performed by an individual, officer or member of the crew while it is engaged in the catching, taking, harvesting, or cultivating, of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other forms of aquatic animal or vegetable life including service performed by any such individual as an ordinary incident to any such activity except:

(i) Service performed in connection with the catching or taking of salmon or halibut for commercial purposes, and

(ii) service performed on or in connection with a vessel of more than ten (10) net tons (determined in the manner provided for determining the registered tonnage of merchant vessels under the laws of the United States).

(F) Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of twenty-one (21), not a head of a family, in the employ of his father or mother.

(G) Service performed in the employ of the United States Government or of an instrumentality of the United States exempt under the Constitution or any other law of the United States from the contributions imposed by this chapter, except that to the extent that the Congress of the United States shall permit this Commonwealth to require any instrumentalities of the United States to make payments into the unemployment fund under this chapter, all of the provisions of this chapter shall apply to such instrumentalities, and to service performed for such instrumentalities, in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals, and service; Provided, That if this Commonwealth shall not be certified for any year by the Secretary of Labor of the United States under § 3304(c) of the Federal Unemployment Tax Act, the payments required of such instrumentalities with respect to such year shall be refunded by the Secretary from the fund in the same manner and within the same period as is provided in § 709(d) of this title with respect to contributions erroneously collected; Provided, further, That employees of any such instrumentality of the United States shall be eligible for benefits under this chapter in the same amount, on the same terms, and subject to the same conditions as benefits are payable to employees of other employers under this chapter.

(H) Service performed on an unemployment work relief project undertaken by the Government of the Commonwealth of Puerto Rico or any subdivision thereof.

(I) Service performed in the employ of any state or any political subdivision thereof or any instrumentality of any one or more of the foregoing.

(J) Service with respect to which unemployment insurance is payable under an unemployment insurance program established by an act of the United States Congress.

(K) Service performed in the employ of a foreign government, including service as a consular or other officer or employee or a non diplomatic representative.

(L) Service performed in the employ of an instrumentality wholly owned by a foreign government.

(M) Service performed in the employ of an international organization.

(N) Service covered by election of an employer with the approval of the employee so that the services of the latter are covered by the laws of another state, duly approved by the agency charged with the administration of any state or federal employment security law, in accordance with an arrangement pursuant to § 715(c) of this title during the effective period of such approval, except as provided in subsection (i)(1) of this section.

(O) Services performed by a person who is enrolled as a student in a full-time program in a public or nonprofit educational institution, accepted to receive credit in said institution, which normally maintains a regular faculty and curriculum and normally has an organized student body in attendance at the place where its educational activities are performed; which combines academic instruction with work experience, if such service is an integral part of such program and such institution has thus certified it to the employer. Except, that this paragraph shall not apply to services performed in a program established for, or in benefit of an employer or group of employers.

(P) For the purposes of subparagraphs (ii) and (iii) of subsection (k)(1)(B) of this section, the term “employment” shall not apply to services performed:

(i) In the employ of a church or convention or association of churches, or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled, or principally supported by a church or convention or association of churches; or

(ii) as a participant in a rehabilitation program for persons whose ability to obtain an income is deteriorated by age or by a physical or mental deficiency or impairment, or a program to provide remunerative work for those persons who due to their deteriorated physical or mental ability cannot be absorbed immediately into the competitive labor market; by a person who is receiving said rehabilitation or remunerative work; or

(iii) as a participant in a work or training program to relieve unemployment, aided or financed wholly or in part by any federal agency or a state agency or a political subdivision thereof, by a person receiving said assistance or training; or

(iv) for a hospital in a state prison or other state correctional institution, by an inmate of such prison or correctional institution, on and after January 1, 1978, by inmates of penal or custodial institutions;

(v) by a person in the performance of his duties such as:

(I) An elected official

(II) a member of the Legislative or Judiciary bodies

(III) a member of the State National Guard or Air National Guard

(IV) an employee hired on a temporary basis in case of fire, storm, earthquake, flood or any other similar emergency

(V) an official holding a confidential or advisory position who participates or collaborates substantially in the drawing up of public policies or services performed in an advisory position the performance of which does not require more than eight (8) hours per week.

(Q) For the purposes of subsection (k)(1)(F), the term “employment” does not apply to services rendered:

(i) As an employee of a church or congregation or association of churches, or an organization operated primarily for religious purposes, and which is operated, supervised, controlled or mainly supported by a church or congregation or association of churches; or

(ii) by a duly ordained minister of a church, commissioned or licensed in the ministry, or by a member of a religious order practicing the duties demanded by said order; or

(iii) as a participant in a rehabilitation program for persons whose ability to obtain an income is deteriorated by age or by a physical or mental deficiency or impairment or a program to provide remunerative work for those people who due to their deteriorated physical or mental ability cannot be absorbed immediately into the competitive labor market; by a person who is receiving said rehabilitation or remunerative work; or

(iv) as a participant in a work or training program to relieve unemployment, aided or financed wholly or in part by any federal agency or by a state agency or a political subdivision thereof, by an individual who receives said assistance or training; or

(v) for a hospital by an inmate of a penal, correctional or custodial institution.

(R) Services rendered by a person whose remuneration consists of or is derived from commissions, discounts or percentages exclusively, relating to orders for and from house-to-house sales of consumer products previously acquired or purchased by said person for that purpose.

(S) The services performed by a partner for the partnership of which he is a part thereof.

(T) The services performed by a real estate agent and a door-to-door salesman.

For the purposes of this paragraph:

(i) A real estate agent shall be deemed to be an individual who:

(I) Has been issued a license as a real estate agent, and

(II) receives remuneration on the basis of services performed and not on hours worked, and

(III) performs services according to a written contract with the individual for whom the services are rendered and said contract provides that such individuals shall not be deemed to be an employee for the purpose of this chapter.

(ii) A door-to-door salesman shall be deemed to be an individual who:

(I) Is engaged in the trading or sale (or in soliciting the sale) of articles of common use or consumption to any purchaser for resale (by the buyer or any other person) in his abode or any place other than an establishment or business, and

(II) receives remuneration on the basis of services performed and not on hours worked, and

(III) performs services according to a written contract with the individual provides that such individual shall not be deemed to be an employee for the purposes of this chapter.

(U) Services rendered by a full-time student at a summer camp if the camp:

(i) Does not operate for more than seven (7) months during the calendar year and did not operate for more than seven (7) months during the previous calendar year, or

(ii) had an average gross income during any six (6) months of the previous calendar year no greater than thirty-three and one third percent (33 1 / 3 %) of the average gross income for the remaining six (6) months of the previous calendar year, and

(iii) if said full-time student performed services at the camp during a period of twelve (12) calendar weeks or less during said calendar year.

For the purposes of this paragraph, a person shall be deemed to be a full-time student:

(i) In any period in which the person is enrolled as a full-time student in an educational institution, or

(ii) in the period between two academic sessions, if the person was enrolled at an educational institution as a full-time student during the school year or academic session immediately preceding and there is a reasonable certainty that the person will return to the educational institution as a full-time student at the start of the next academic year or next academic session.

(V) Services rendered by a person on a boat engaged in fishing for fish and other marine life under an agreement with the owner or operator of the boat according to which:

(i) The person does not receive cash remuneration other than that provided in subparagraph (ii);

(ii) the person receives a portion of the catch obtained by the boat (or by the boats if the operator has more than one) or a portion of the profit obtained from the sale of said catch, and

(iii) the amount of the portion depends on the quantity of the catch obtained by the boat (or by the boats, in case the fishing operation includes more than one boat), but only if the crew that operates the boat (or boats, in case the fishing operation involves more than one boat) is normally composed of less than ten (10) persons.

(7) If the service performed during one-half (1 / 2) or more of any pay period by an individual for an employing unit constitutes employment under this chapter, all the service of such individual for such period shall be deemed to be employment; but if the service performed during more than one-half (1 / 2) of any such pay period by an individual for an employing unit does not constitute employment, then none of the service of such individual for such period shall be deemed to be employment. As used in this paragraph, the term “pay period” means a period of not more than thirty-one (31) consecutive days for which a payment for service is ordinarily made to the individual by the employing unit. This paragraph shall not be applicable with respect to service performed in a pay period by an individual for an employing unit, when any of such service is excluded because it is subject to an unemployment insurance program established by an act of Congress.

(8) Employment.— Shall include an individual’s total service, performed within the United States, the Virgin Islands or Canada, if:

(A) Such service is not covered by the unemployment compensation law of any other state, the Virgin Islands or Canada, and

(B) the place from where the services are directed or controlled is in Puerto Rico.

(l) Employment office.— Means a free public employment office or branch thereof operated by the Commonwealth of Puerto Rico or by any state as a part of a state-controlled system of public employment offices, or by a federal agency.

(m) Fund.— Means the unemployment fund established by this chapter.

(n) Insured work.— Means employment by employers.

(o) Insured worker.— Means an individual who, with respect to a base period, meets the wage and employment requirements of § 703(c) of this title.

(p) Secretary.—

(1) Means the Secretary of Labor and Human Resources of the Commonwealth of Puerto Rico.

(2) Secretary of the Treasury.— Means the Secretary of the Treasury of the Commonwealth of Puerto Rico.

(q) State.—

(1) Includes the states of the United States of America, the District of Columbia, the Virgin Islands, Canada and the Commonwealth of Puerto Rico.

(2) United States.— When used in a geographical sense or for purposes of subsection (k)(1)(G) of this section means, except where otherwise provided, the states, the District of Columbia and the Commonwealth of Puerto Rico. It shall include the Virgin Islands, effective the day after the day on which the Secretary of Labor of the United States approves for the first time the Unemployment Compensation Law submitted by the Virgin Islands for his approval, pursuant to the provisions of § 3304(a) of the 1954 Internal Revenue Code.

(r) Wages.—

(1) Means:

(A) All compensation for services from whatever source, including commissions and bonuses and the cash value of all remuneration in any medium other than cash.

(B) Any payment made for vacation or sick leave.

(C) Back pay awarded under any statute of Puerto Rico or the United States.

The cash value of any remuneration in any medium other than cash shall be computed and determined as prescribed through rules by the Secretary. For the sole purpose of a determination of insured status of an individual, back-pay awards shall be allocated to the quarters with respect to which they were made. If the remuneration of an individual is not based upon a fixed period or duration of time or if his wages are paid at irregular intervals or so as not to extend regularly over the period of employment, for the sole purpose of a determination of said individual’s insured status the wages shall be allocated to weeks or quarters as the Secretary may by regulation prescribe. Such regulations shall, so far as possible, produce results reasonably similar to those which would prevail if the individual were paid his wages at regular intervals.

(2) Notwithstanding the provisions of clause (1) of this subsection the term “wages” shall not include:

(A) Gratuities, meaning money or other things customarily tendered to employees in the course of their services by persons other than his employing unit.

(B) The amount of any compensation obtained through a judgment, stipulation, transaction or the voluntary act of an employer, in addition to the salary the individual is entitled to receive.

(C) The amount paid by an employing unit covered by this chapter for retirement, hospitalization, or medical and medicine expenses under some plan established by such employing unit.

(D) The amount paid by an employing unit as premiums under some plan providing for retirement or insurance payments to its employees.

(E) Any dismissal compensation payment.

(s) Waiting week.— With respect to a person who has rendered services specified under paragraph (A), (B), (C), (D), (E), (F), (G), or (H) of subsection (k)(1) of this section means the first week of unemployment occurring in a benefit year in which the worker has complied with all the requirements of § 704 of this title.

(t) Week.— Means such period of seven (7) consecutive days as the Secretary may by regulation prescribe.

(u) Week of unemployment.— With respect to a person who has rendered the services specified under paragraph (A), (B), (C), (D), (E), (F), (G) or (H) of subsection (k)(1) of this section means any week in which he does not render services in a full workweek, and in which his wages or self-employed remuneration are less than one and one-half (1 1 / 2) times the amount of his weekly benefit.

(v) Agricultural worker.— Means a person more than fifty percent (50%) of whose salary in the base period was paid for service specified under subsection (k)(1)(E) of this section.

(w) The following terms as well as any other terms in this chapter not defined herein shall be defined by the Secretary through regulations: “permanently displaced”; “technological progress”; “permanent disappearance of an establishment, industry or occupation”; “sugar grinding season”; “full-time work”.

(x) American employer.— For the purpose of subsection (k)(1)(G) of this section, means a person who is:

(1) A resident of the United States; or

(2) a partnership if two-thirds (2 / 3) or more of the partners are residents of the United States; or

(3) a trust, if all of the trustees are residents of the United States; or

(4) a corporation organized under the laws of the United States or of any state.

(y) Education institution including an institution of higher education.—

(1) As defined by clause (2) of this subsection, is an institution or establishment:

(A) In which participants, trainees or students are offered an organized course of study or training intended to transfer to them knowledge, skills, information, doctrines, attitudes or abilities by or under the direction of a teacher or instructor;

(B) to which a license, approval or permit has been granted to operate as a school by the Department of Education of Puerto Rico or any other government agency of the Commonwealth authorized to issue said license or permit;

(C) in which the training study courses offered are of an academic, technical or preparatory nature for a trade or gainful employment in a recognized occupation.

(2) Institution of higher education.— Means an educational institution which:

(A) Admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such certificate;

(B) is legally authorized in Puerto Rico to provide a program of education beyond high school;

(C) provides an educational program for which it awards a bachelor’s or higher degree, or provides a program which is acceptable for full credit toward such a degree, a program of post-graduate or post-doctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and

(D) is a public or other nonprofit institution;

(E) notwithstanding any of the foregoing provisions of this subsection, all colleges and universities in Puerto Rico are institutions of higher education for purposes of this section.

(z) Hospital.— Means an institution which has been licensed, certified or approved by the Department of Health of the Commonwealth of Puerto Rico as a hospital pursuant to § 333d of Title 24.

History —June 21, 1956, No. 74, p. 328, § 2; June 30, 1957, J.R. No. 125; June 30, 1959, No. 104, p. 296, §§ 1, 2; June 14, 1960, No. 83, p. 147, § 1; Dec. 22, 1960, No. 1, p. 1, §§ 2—5; June 8, 1962, No. 27, p. 54, § 1; June 28, 1963, No. 93, p. 271, §§ 1, 2; June 24, 1964, No. 71, p. 213, § 1; June 24, 1964, No. 73, p. 225, § 1; June 6, 1967, No. 102, p. 330, §§ 1—6; June 6, 1967, No. 107, p. 343, § 1; June 24, 1971, No. 85, p. 257, § 1; June 15, 1972, No. 16, p. 374, § 1; Aug. 9, 1974, No. 21, Part 2, p. 646, § 1; June 30, 1975, No. 111, p. 329, § 1; June 23, 1976, No. 15, p. 721, § 1; June 24, 1977, No. 101, p. 228, § 1; Dec. 13, 1977, No. 2, p. 602, § 1; July 13, 1978, No. 35, p. 483; July 26, 1979, No. 4, p. 924, § 1; June 22, 1981, No. 15, p. 103, § 1; May 21, 1982, No. 18, p. 35, § 1; July 2, 1985, No. 53, p. 130, § 1; July 9, 1985, No. 95, p. 300, § 1; July 15, 1988, No. 102, p. 424, § 1; Sept. 16, 2005, No. 114, § 2, retroactive to July 1, 2005; Aug. 18, 2011, No. 191, § 1.