Romero v. Brady

OPINION AND ORDER

FUSTE, District Judge.

Plaintiffs are federal employees performing their duties in Puerto Rico. 1 Plaintiffs are all recipients of a Cost-of-Living Adjustment (COLA), a benefit paid to federal government employees stationed at locations outside the continental United States. The COLA in Puerto Rico adds 10% to some categories of federal government salaries. The COLA is exempt from taxation under federal law, but is taxable under the laws of Puerto Rico. Pursuant to an agreement between the Commonwealth of Puerto Rico and the Treasury Department of the United States, federal…