February 2026 | Client Alert
O’Neill & Borges LLC is proud to announce that an interdepartmental team of its attorneys secured a landmark ruling from the Supreme Court of Puerto Rico (“Supreme Court”) in Kendall Hope Tucker v. Money Group, LLC, 2026 TSPR 9 (Jan. 27, 2026). This important development in employment law paves the way for broader use of arbitration to resolve workplace discrimination claims, provided certain conditions apply.
In this first-impression case, the Supreme Court held that parties must arbitrate discrimination claims under Puerto Rico’s Law No. 100-1959 when (1) a valid arbitration clause exists in a private employment agreement, and (2) the agreement affects interstate commerce in some way, thereby triggering the Federal Arbitration Act (“FAA”). The Court confirmed that, when those two statutory requirements are met, the FAA preempts the field and displaces any contrary Puerto Rico rule that would direct statutory discrimination claims to court. The Opinion approvingly cites the 2024 Guidelines issued by the Puerto Rico Department of Labor (the “Guidelines”), flagging their consistency with this interpretation when the FAA applies.
Importantly, the Court clarified that its analysis does not apply to union employees covered by collective bargaining agreements (“CBA”). Those employees remain governed by Quiñones v. Asociación, 161 D.P.R. 668 (2004), which continues to allow union workers asserting P.R. Law No. 100 claims to proceed in court—notwithstanding any arbitral language in the CBA. The Supreme Court expressly held that Quiñones is limited to the union context and does not extend to private, individual employment agreements. This distinction resolves a long-standing ambiguity in Puerto Rico employment law.
The Opinion closely follows the U.S. Supreme Court’s decision in Gilmer v. Interstate/Johnson Lane Corp., 500 U.S. 20 (1991), emphasizing that statutory discrimination claims are arbitrable unless Congress expressly prohibits arbitration—which P.R. Law No. 100 does not. The Court further relied on Article 2.13 of Law No. 4-2017, which directs Puerto Rico courts to interpret local employment laws consistently with their federal analogues absent express legislative instruction otherwise.
In so doing, the Supreme Court reaffirmed the strong federal and local policy favoring arbitration, including in the employment context. It also rejected arguments grounded in statutory forum language (such as P.R. Law No. 100’s grant of jurisdiction to the courts), explaining that those provisions do not displace contractual obligations to arbitrate when the FAA preempts the field.
This ruling provides valuable guidance for employers, employees, and practitioners. It confirms that P.R. Law No. 100 does not bar arbitration of discrimination claims when the FAA applies—indeed, it requires it. The decision highlights the importance of (1) assessing whether the employment agreement can be read as somehow affecting interstate commerce, and (2) drafting robust arbitration provisions, as these features determine if statutory employment claims must be resolved in arbitration rather than in court.
The Opinion significantly clarifies doctrine on the intersection of federal arbitration law and Puerto Rico employment statutes. O’Neill & Borges is proud to have contributed to this development through the collaborative work of our Employment Law and Litigation Departments.
O’Neill & Borges LLC remains available to assist employers in evaluating the impact of this ruling, revising employment agreements, and strengthening compliance strategies to mitigate risk.
For additional information or assistance, please contact your regular O’Neill & Borges attorney or write to info@oneillborges.com.
This O’Neill & Borges Client Alert is prepared for general information purposes only. It does not constitute legal advice or a legal opinion; nor does it establish an attorney-client relation with recipient. For further information or to establish an attorney-client relation please contact us at info@oneillborges.com or your prime contact attorney at O&B.