Employment law in Puerto Rico is unusual in that employers must take account of both US federal and Puerto Rico labour law. This dual legal system arises from the status of the Caribbean island, officially the “Commonwealth of Puerto Ricoâ€Â, as a non-incorporated territory of the US.
The Government of Puerto Rico offers tax incentives that it hopes will attract investment to boost business and create jobs. Similar incentives in the 1970s successfully attracted international companies, such as GlaxoSmithKline and Johnson & Johnson.