[6] His father, Arcadio Pérez, was a cigar maker who joined the Merchant Marine and moved his five children to New York City in 1948, when José was eight.

He grew up in Manhattan's Hell's Kitchen neighborhood,[10] where he worked as a shoeshine boy and carried bags at the Greyhound bus terminal.

[11] He began acting at the age of nine, after a counselor from the East Side Boys’ Club approached him outside Lindy's Broadway delicatessen[12] (or, by another account, the restaurant was "Toffenetti"),[13] where he was shining shoes and opening car-doors for tips, and asked him if he would like to be in a show, and if he could sing.

[32] In 1982, he took the role of Police Inspector Carmona, opposite Robert Mitchum in the TV movie One Shoe Makes it Murder, where his performance was described as "steal[ing] every scene he's in."

Perez had a featured role in the 1st portion of the 1985 film Stick opposite Burt Reynolds playing his friend who was then killed by the hero's nemesis.

[9]: 976 Pérez’ career included supporting roles on assorted TV series (including Miami Vice, Law & Order, Resurrection Blvd., The Adventures of Brisco County, Jr. and Murder, She Wrote), a few more off-Broadway plays, two TV movies and in ten more theatrically released movies through 2003.

As an adult, Pérez, described as "a very serious ... man who would rather talk Shakespeare and Chekhov than television",[35] stated "I'm not in this for money" and "My goal now is to … make a statement".

[36] By the time he was 35, Pérez regretted the roles he had taken as a "member of a switchblade gang" as a youth, that he saw as reinforcing negative stereotypes about Latinos.

[37] He saw his portrayal of the role of the character Juan in the movie Short Eyes as a chance to "say something as an artist that he [felt needed] to be said" and to "help right the image of Puerto Ricans on the screen."

"[38]One reason Pérez took the role in On the Rocks was, having read about the Attica Prison riot, which had taken place a few years previously, he wanted to "speak for the guys inside.