Carrasquillo-Ortiz v. American Airlines, Inc., No. 15-1424 (1st Cir. 2016)
Annotate this CaseArticle 3 of Puerto Rico’s Law No. 80 requires companies that operate in Puerto Rico to pay a “mesada” - or a statutory severance - to employees who are terminated without “just cause.” Specifically, if the employer terminates a more senior employee without just cause and retains a less senior employee within the same job category, the employer must pay the terminated employee a mesada. Plaintiffs here were seven former employees of American Airlines, Inc. who worked in American’s sole Puerto Rico office. Plaintiffs were the least senior employees in the Puerto Rico office when American let them go. Plaintiffs could be entitled to a mesada only if their seniority was computed in relation to America’s offices worldwide. The district court ruled in favor of American on the basis that the Puerto Rico Supreme Court has construed Article 3 to count only those transfers that occur in Puerto Rico and to count none that are made to or from an office outside of it. The First Circuit certified the proper interpretation of Article 3 to the Puerto Rico Supreme Court, concluding that the precedent relied upon by the district court was less definitive on the issue than the district court deemed it to be.
The court issued a subsequent related opinion or order on January 27, 2016.
The court issued a subsequent related opinion or order on June 9, 2016.
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