Federal Prison Industries (FPI) Inmate Work Programs

SUMMARY: In this document, the Bureau of Prisons is revising its rule

on Federal Prison Industries (FPI) Inmate Work Programs (formerly

entitled UNICOR Inmate Work Programs). This amendment reorganizes into

one part existing provisions on inmate hiring procedures, pay, and

scholarship and incentive awards programs. It updates Bureau policy by

adding provisions on position classification and recruitment, physical

and medical work limitations, inmate worker standards, performance

appraisal, dismissal procedures, benefit retention, and training

programs. The intent of this amendment is to enable the Bureau to

continue to employ and train inmates in a manner that will assist the

inmate in post-release employment.

EFFECTIVE DATE: April 26, 1995.

ADDRESSES: Office of General Counsel, Bureau of Prisons, HOLC Room 754,

320 First Street, NW., Washington, DC 20534.

FOR FURTHER INFORMATION CONTACT: Roy Nanovic, Office of General

Counsel, Bureau of Prisons, phone (202) 514-6655.

SUPPLEMENTARY INFORMATION: The Bureau of Prisons is amending its

regulations on Federal Prison Industries (FPI) Inmate Work Programs

(formerly entitled UNICOR Inmate Work Programs). UNICOR is the

commercial or ``trade'' name of Federal Prison Industries, Inc. (FPI).

FPI, a component of the Bureau of Prisons, is a wholly-owned government

corporation whose mission is to provide institution work assignments

and training opportunities for inmates confined in Federal correctional

facilities. A proposed rule on this subject was published in the

Federal Register on December 16, 1992 (57 FR 59866). The comment period

closed on February 1, 1993. The Bureau received only one response from

the general public. A summary of that comment and agency response

follows.

The commenter criticized the proposed rule on administrative

grounds. First, the commenter stated that any major policy change in

the Bureau's regulations ought to be the prerogative of the new

administration. Second, the commenter stated that the proposed rule

should have originated with the Board of Directors of Federal Prison

Industries, Inc. The commenter then claimed that the published document

did not reflect that the Board of Directors was aware of the proposed

policy being enacted on its behalf. In response to these points, the

Bureau notes that both the proposed rule and this final rule received

appropriate clearances. With respect to the first point, clearance of

the final rule is in and of itself sufficient guarantee of the final

policies expressed therein. With respect to the second point, the

Bureau notes that the proposed rule was signed by the Director under

her titles as the Director of the Bureau of Prisons and the

Commissioner of Federal Prison Industries. Furthermore, the authority

citation for the proposed revision included a reference that the rule

was promulgated pursuant to a resolution by the Board of Directors of

Federal Prison Industries, Inc. Sufficient authority exists under 28

CFR 0.99 for the Commissioner of Federal Prison Industries, as the

officer designated by the Board, to prescribe regulations governing the

payment of compensation to inmates, and in order to eliminate any

confusion, this final rule makes that designation explicit.

The commenter also took issue with the statement in the proposed

rule that the mission of Federal Prison Industries, Inc. was to provide

institution work assignments and training opportunities for inmates

confined in Federal correctional facilities. The commenter alleged that

FPI assignments did not qualify as job training programs. More

specifically, the commenter claimed that over an eight year period he

was aware of only one person who left prison and entered a job doing

exactly the same thing. In response, the Bureau notes that its Post-

Release Employment Project (PREP), a research study completed in

January of 1992, concluded that inmates who participated in FPI work

and other vocational programming during their imprisonment showed

better institutional adjustment, were less likely to be returned to

custody at the end of their first year back in the community, were more

likely to be employed in the halfway house and community, and earned

slightly more money than inmates who had similar background

characteristics, but who did not participate in work and vocational

training programs. Further Bureau research on mobility issues--the

impact of prison work and vocational training on changes in occupations

before, during, and after release from prison--is still in process.

Preliminary results from these studies confirm the Bureau's belief that

the commenter's anecdotal evidence is misrepresentative. In any event,

the Bureau notes that FPI work assignments perform essential vocational

training needs even if they only serve to instill habits of work and

responsibility suitable for any occupational category.

The commenter characterized almost all of the proposed rule changes

as being less favorable for the inmates than existing rules. The

commenter claimed that the proposed rule gave inmates in FPI

assignments less job security and weaker longevity retention rights.

More specifically, the commenter noted that under the current

regulations an inmate may be removed virtually only for an FPI-related

disciplinary problem. The Bureau takes issue with the characterization

that almost all the rule changes are less favorable. The Bureau

believes that these revisions benefit inmates by standardizing policies

in such areas as position classification, physical and medical work

limitations, benefit retention provisions, recruitment procedures, work

standards, performance appraisal, etc.

With respect to the effects of disciplinary actions, the Bureau

notes that revised provisions covering the effects of non-FPI

disciplinary actions is both logical and supportive of correctional

management. As noted in proposed Sec. 345.42(c), an inmate found to

have committed a prohibited act (whether or not it is FPI related)

resulting in segregation or disciplinary transfer is also to be

dismissed from Industries based on an unsatisfactory performance rating

for failure to be at work. The Bureau believes it is not unreasonable

to apply the same sanction in response to similar circumstances. As

revised, Sec. 345.42(c) serves as an additional incentive for inmates

to avoid committing any prohibited act.

The commenter also objected to the proposed rule stating that it

vested much more discretion in the hands of the Superintendents of

Industry (SOIs) at individual facilities. In the opinion of the

commenter, FPI Superintendents were not professional managers and had

no training in the field of management. The Bureau notes that

appropriate training is made available to FPI staff, and that the

comprehensive nature of the revisions in this rulemaking help to ensure

the successful operation of FPI programs. [[Page 15827]]

The commenter also objected to provisions for premium pay, claiming

that this served to reward informants rather than to reward

productivity. The commenter also claimed that the display of leadership

by inmates was in direct conflict with Bureau policy prohibiting an

inmate from exercising responsibilities over another inmate. As noted

in proposed Sec. 345.52(e), premium pay is not a form of bonus or

incentive pay for highly productive inmates. Other pay provisions (for

example, piecework rates) serve as incentive for productivity. The

proposed rule had explained that premium pay is a recognition of the

value of the leadership and citizenship traits in FPI operation.

Contrary to the commenter's allegation, premium pay is not intended to

be a reward for informants nor does it place an inmate in a position of

authority over another inmate. As a clarification of this point,

paragraph (b) has been revised to specify that the selection criteria

must be posted and paragraph (e) has been revised to note that premium

pay is a means of recognizing the value of those traits supportive of

morale and good institutional adjustment.

The commenter did approve of the proposed safeguards provided in

Sec. 345.66 provided for inmates placed in Administration Detention who

are later determined not to have committed a prohibited act. As

proposed, these safeguards included the retention of job and pay grade,

with actual pay suspended, for up to the first thirty days in

Administrative Detention, and for reimbursing the inmate if the inmate

was found not to have committed a prohibited act. No provisions were

made for reimbursing inmates in similar circumstances (e.g., while on

writ or on medical idle). In this final rule, the Bureau has therefore

removed the proposed provision for reimbursing inmates in

Administrative Detention when they have been found not to have

committed a prohibitive act.

In adopting the proposed rules as final, the Bureau has made

various editorial or organizational changes in addition to the change

discussed above. These further changes are discussed below.

The organization of the regulation into subparts has been slightly

adjusted for editorial reasons. Revisions to certain subpart headings

necessitated conforming revisions to pertinent section headings. In

neither case, however, is there any change in the intent of the

regulation.

Throughout the regulation the term ``Federal Prison Industries''

and its acronym ``FPI'' have been used more consistently in place of

the trade name ``UNICOR.'' This change is also reflected in

Sec. 345.11, where the definitions of Federal Prison Industries, Inc.

and of UNICOR have been consolidated. Further changes to Sec. 345.11

include the removal of the definition of ``Federal Prison Industries

Board of Directors'' which was deemed to be unnecessary for inclusion

in the regulations, editorial changes to the definition of

``Superintendent of Industries,'' and the addition of definitions

regarding work status which had appeared in proposed Sec. 345.50.

The provisions in paragraph (a) of Sec. 345.32 regarding the use of

waiting lists have been revised to clarify that ordinarily these are

used in the selection process.

In Sec. 345.33, paragraph (a) has been revised to remove

unnecessary gender references. Paragraph (b) has been revised to

conform to separately stated provisions on the effects of disciplinary

action. Paragraph (e) has been revised to broaden the scope of special

needs with respect to recommendations for priority placement on the

waiting list.

Section 345.35 has been reorganized and revised to clarify that the

Supervisor of Industries makes the assignment with the concurrence of

the unit team. In stating the Bureau's policy of nondiscrimination in

paragraph (a), the phrase ``physical handicap'' has been replaced with

the word ``disability'' to conform to the terminology used in current

statutes.

In Sec. 345.40, the introductory text has been amended to include

provision for reasonable accommodation of inmates with disabilities.

Similar reference to the use of reasonable accommodation for inmates

with disabilities has also been added to the statement of purpose and

scope in Sec. 345.10.

In Sec. 345.41, paragraph (b) has been amended to include reference

to time in grade requirements.

Section 345.50 has been revised and reorganized for the sake of

conciseness. As noted above, definitions relating to work status have

been transferred to Sec. 354.11. Provisions in proposed Sec. 345.50

relating to specific benefits have been transferred to the appropriate

section.

Section 345.51 has been revised to remove unnecessary references to

time in grade provisions and to include summary provisions on

eligibility previously contained in proposed Sec. 345.50.

Section 345.56 has been amended to include reference to the amount

of time needed to process written requests for vacation time.

Section 345.64 has been revised to more accurately describe the

SOI's role in ensuring that necessary information on medical

limitations are made available to line supervisory staff.

A new Sec. 345.66 has been added containing the provisions on claim

limitations previously proposed in Sec. 345.50 (c)(1). Proposed

Sec. 345.66 on retention of benefits accordingly has been redesignated

as Sec. 345.67.

Members of the public may submit comments concerning this rule by

writing to the previously cited address. These comments will be

considered, but will not receive response in the Federal Register.

The Bureau of Prisons has determined that this rule is not a

significant regulatory action for the purpose of E.O. 12866, and

accordingly this rule was not reviewed by the Office of Management and

Budget. After review of the law and regulations, the Director, Bureau

of Prisons has certified that this rule, for the purpose of the

Regulatory Flexibility Act (Pub. L. 96-354), does not have a

significant impact on a substantial number of small entities.

List of Subjects in 28 CFR Parts 345, 545

Prisoners.

Kathleen M. Hawk,

Director, Bureau of Prisons, and Commissioner of Federal Prison

Industries.

Accordingly, pursuant to the rulemaking authority vested in the

Attorney General in 5 U.S.C. 552(a) and delegated to the Director,

Bureau of Prisons and the Board of Directors, Federal Prison Industries

in 28 CFR 0.96(p) and 0.99, part 345 in chapter III of 28 CFR is

revised and part 545 in subchapter C of 28 CFR, chapter V is amended as

set forth below.

1. 28 CFR part 345 is revised to read as follows:

PART 345--FEDERAL PRISON INDUSTRIES (FPI) INMATE WORK PROGRAMS

Subpart A--Purpose and Scope

Sec.

345.10 Purpose and scope.

Subpart B--Definitions

345.11 Definitions.

Subpart C--Position Classification

345.20 Position classification.

Subpart D--Recruitment and Hiring Practices

345.31 Recruitment.

345.32 Hiring.

345.33 Waiting list hiring exceptions.

345.34 Refusal to employ.

345.35 Assignments to FPI. [[Page 15828]]

Subpart E--Inmate Worker Standards and Performance Appraisal

345.40 General.

345.41 Performance appraisal for inmate workers.

345.42 Inmate worker dismissal.

Subpart F--Inmate Pay and Benefits

345.50 General.

345.51 Inmate pay.

345.52 Premium pay.

345.53 Piecework rates.

345.54 Overtime compensation.

345.55 Longevity pay.

345.56 Vacation pay.

345.57 Administrative pay.

345.58 Holiday pay.

345.59 Inmate performance pay.

345.60 Training pay.

345.61 Inmate earnings statement.

345.62 Inmate accident compensation.

345.63 Funds due deceased inmates.

345.64 Referral of releasable medical data to FPI staff.

345.65 Inmate medical work limitation.

345.66 Claims limitation.

345.67 Retention of benefits.

Subpart G--Awards Program

345.70 General.

345.71 Official commendations.

345.72 Cash bonus or cash award.

345.73 Procedures for granting awards for suggestions or

inventions.

345.74 Awards for special achievements for inmate workers.

Subpart H--FPI Inmate Training and Scholarship Programs

345.80 General.

345.81 Pre-industrial training.

345.82 Apprenticeship training.

345.83 Job safety training.

345.84 The FPI scholarship fund.

Authority: 18 U.S.C. 4126, 28 CFR 0.99, and by resolution of the

Board of Directors of Federal Prison Industries, Inc.

Subpart A--Purpose and Scope

Sec. 345.10 Purpose and scope.

It is the policy of the Bureau of Prisons to provide work to all

inmates (including inmates with a disability who, with or without

reasonable accommodations, can perform the essential tasks of the work

assignment) confined in a federal institution. Federal Prison

Industries, Inc. (FPI) was established as a program to provide

meaningful work for inmates. This work is designed to allow inmates the

opportunity to acquire the knowledge, skills, and work habits which

will be useful when released from the institution. There is no

statutory requirement that inmates be paid for work in an industrial

assignment. 18 U.S.C. 4126, however, provides for discretionary

compensation to inmates working in Industries. Under this authority,

inmates of the same grade jobs, regardless of the basis of pay (hourly,

group piece, or individual piece rates) shall receive approximately the

same compensation. All pay rates under this part are established at the

discretion of Federal Prison Industries, Inc. Any alteration or

termination of the rates shall require the approval of the Federal

Prison Industries' Board of Directors. While the Warden is responsible

for the local administration of Inmate Industrial Payroll regulations,

no pay system is initiated or changed without prior approval of the

Assistant Director, Industries, Education and Vocational Training

(Assistant Director).

Subpart B--Definitions

Sec. 345.11 Definitions.

(a) Federal Prison Industries, Inc. (FPI)--A government corporation

organizationally within the Bureau of Prisons whose mission is to

provide work simulation programs and training opportunities for inmates

confined in Federal correctional facilities. The commercial or

``trade'' name of Federal Prison Industries, Inc. is UNICOR. Most

factories or shops of Federal Prison Industries, Inc. are commonly

referred to as ``UNICOR'' or as ``Industries''. Where these terms are

used, they refer to FPI production locations and to the corporation as

a whole. UNICOR, FPI, and Industries are used interchangeably in this

manner. For these purposes, Federal Prison Industries, Inc. will

hereinafter be referred to as FPI.

(b) Superintendent of Industries (SOI)--The Superintendent of

Industries, also referred to as Associate Warden/Industries and

Education, is responsible for the efficient management and operation of

an FPI factory. Hereinafter, referred to as SOI.

(c) FPI Work Status--Assignment to an Industries work detail.

(1) An inmate is in FPI work status if on the job, on furlough, on

vacation, for the first thirty days on writ, for the first 30 days in

administrative detention, or for the first 30 days on medical idle for

FPI work-related injury so long as the injury was not intentional and

did not result from a violation of safety regulations. An inmate on

sick call, however, is not considered to be in FPI work status.

(2) Full-Time Work Status. A work schedule for an inmate consisting

of 90% or more of the normal FPI factory work week.

(3) Part-Time Work Status. A work schedule of less than 90% of the

normal FPI factory work week.

(d) Unit Team--Bureau of Prisons staff responsible for the

management of inmates and the delivery of programs and services. The

Unit Team may consist of a unit manager, case manager, correctional

counselor, unit secretary, unit officer, education representative, and

psychologist.

(e) Unit Discipline Committee (UDC)--The term Unit Discipline

Committee refers to one or more institution staff members delegated by

the Warden with the authority and duty to hold an initial hearing upon

completion of the investigation concerning alleged charge(s) of inmate

misconduct (see 28 CFR 541.15). The Warden shall authorize these staff

members to impose minor sanctions for violation of prohibited act(s).

(f) Discipline Hearing Officer (DHO)--This term refers to an

independent discipline hearing officer who is responsible for

conducting Institution Discipline Hearings and who imposes appropriate

sanctions for incidents of inmate misconduct referred for disposition

following the hearing required by 28 CFR 541.15 before the UDC.

Subpart C--Position Classification

Sec. 345.20 Position classification.

(a) Inmate worker positions must be assigned an appropriate level

of pay. All inmate workers shall be informed of the objectives and

principles of pay classification as a part of the routine orientation

of new FPI inmate workers.

(b) The Warden and SOI have the responsibility for position

classification at each location.

Subpart D--Recruitment and Hiring Practices

Sec. 345.31 Recruitment.

Inmate workers for FPI locations may be recruited through admission

and orientation lectures or through direct recruiting.

Sec. 345.32 Hiring.

(a) Inmate workers are ordinarily hired through waiting lists.

Except as noted in Sec. 345.33, inmates are to be placed on the waiting

lists in order of receipt of applications for work with Industries, and

are to be hired in the same sequence.

(b) Waiting lists are to be maintained and kept available for

scrutiny by auditors and other staff with a need to know. SOI's are

encouraged to maintain a waiting list for each FPI factory.

Sec. 345.33 Waiting list hiring exceptions.

(a) Needed Skills. An inmate may be hired ahead of other inmates on

the waiting list if the inmate possesses needed skills and the SOI

documents the reasons for the action in the position classification

files. [[Page 15829]]

(b) Prior FPI Work Assignment. An inmate with prior FPI work

experience during the inmate's current commitment and with no break in

custody will ordinarily be placed within the top ten percent of the

waiting lists unless the inmate was transferred for disciplinary

reasons, was placed in segregation, or voluntarily left the FPI work

assignment for non-program reasons (i.e. for some reason other than

formal education, vocational training, drug abuse or similar formal

programs). For example, an inmate transferred administratively for

nondisciplinary reasons, and who has documented credit as a prior

worker, is covered under the provisions of this paragraph.

(c) Industry Closing and Relocation. When an FPI factory closes in

a location with two or more FPI factories, an inmate worker affected

may be transferred to remaining FPI factories ahead of the top portion

of the inmates on the waiting lists, so there is no break in active

duty with FPI. Such actions are also in order where the work force of

an industry is reduced to meet institution or FPI needs. An inmate

transferred under the provisions of this part will have the same

benefits as any intra-industry transfer.

(d) Disciplinary Transfers. An inmate who is a disciplinary

transfer from the last institution designated and who wishes re-

assignment in FPI at the receiving institution may be hired on a case-

by-case basis at the discretion of the SOI, who should consider the

security level and reasons for the misconduct. Such an inmate, despite

prior experience, is not due special placement on the waiting list, is

not given advance hiring preference, and does not receive consideration

for accelerated promotion back to the grade held at time of transfer.

(e) Special Needs. For special needs, such as Inmate Financial

Responsibility assignment to assist in paying a significant financial

obligation or for release preparation, the unit team may recommend an

inmate for priority placement on the waiting list. Such placement must

be documented and include the reason for the exception.

Sec. 345.34 Refusal to employ.

(a) The SOI has authority to refuse an FPI assignment to an inmate

who, in the judgment of the SOI, would constitute a serious threat to

the orderly and safe operation of the FPI factory. A refusal to assign

must be documented by a memorandum to the unit team listing reasons for

the refusal, with a copy to the position classification files in FPI.

Typically, the reasons should include other earlier (ordinarily within

the past twelve months) documented violations of the FPI inmate worker

standards or institution disciplinary regulations.

(b) The refusal to assign is to be rescinded when, in the judgment

of the SOI, the worker no longer constitutes a serious threat to the

FPI industrial operation.

Sec. 345.35 Assignments to FPI.

(a) Any request by an inmate for consideration must be made through

the unit team. All inmates may be considered for assignment with FPI.

FPI does not discriminate on the bases of race, color, religion, ethnic

origin, age, or disability.

(b) The SOI ordinarily makes assignments based on the

recommendation of the unit team.

(1) New workers are ordinarily assigned at pay grade five. All

first-time inmate workers shall enter at pay grade five and may be

required to successfully complete a course in pre-industrial training

or on-the-job training (as available) before promotion to pay grade

four.

(2) An inmate who has not successfully completed pre-industrial or

on-the-job training remains at pay grade five for at least 30 days.

(3) An inmate hired after having resigned voluntarily from FPI may

be excused from pre-industrial training and may be hired at a pay grade

based on previous training and experience.

Subpart E--Inmate Worker Standards and Performance Appraisal

Sec. 345.40 General.

This subpart authorizes the establishment of minimum work standards

for inmate workers assigned to the Industries program at all field

locations. The SOI may reproduce these standards and may also develop

additional local guidelines to augment these standards and to adapt

them to local needs and conditions. Local Industries shall place these

standards and any additional local guidelines on display at appropriate

locations within the industrial sites. Inmates shall be provided with a

copy of these standards and local guidelines, and shall sign receipts

acknowledging they have received and understand them before beginning

work in the Industries program. In the case of a disabled inmate,

alternate media or means of communicating this information and

indicating the inmate's receipt may be provided, if necessary as a

reasonable accommodation.

(a) At a minimum, each industrial location is to have work

standards for each of the following areas:

(1) Safety--ensuring the promotion of workplace safety and the

avoidance of activities that could result in injury to self or others.

(2) Quality Assurance--ensuring that work is done as directed by

the supervisor in an attentive manner so as to minimize the chance of

error.

(3) Personal Conduct and Hygiene--ensuring the promotion of harmony

and sanitary conditions in the workplace through observation of good

hygiene and full cooperation with other inmate workers, work

supervisors, and training staff.

(4) Punctuality and Productivity--ensuring the productive and

efficient use of time while the inmate is on work assignment or in

training.

(b) Compliance With Work Standards. Each inmate assigned to FPI

shall comply with all work standards pertaining to his or her work

assignment. Adherence to the standards should be considered in

evaluating the inmate's work performance and documented in individual

hiring, retention, and promotion/demotion situations.

Sec. 345.41 Performance appraisal for inmate workers.

Work supervisors should complete a performance appraisal form for

each inmate semi-annually, by March 31 and September 30, or upon

termination or transfer from the industrial work assignment. Copies

shall be sent to the unit team. Inmate workers should discuss their

appraisals with their supervisors at a mutually agreeable time in order

to improve their performance. Satisfactory and unsatisfactory

performance ratings shall be based on the standards in Sec. 345.40(a).

(a) The SOI is to ensure that evaluations are done and are

submitted to unit teams in a timely manner.

(b) The SOI or a designee may promote an inmate to a higher grade

level if an opening exists when the inmate's skills, abilities,

qualifications, and work performance are sufficiently developed to

enable the inmate to carry out a more complex FPI factory assignment

successfully, when the inmate has met the institution's time-in-grade

(unless waived by the SOI), and when the inmate has abided by the

inmate worker standards. Conversely, the SOI or SOI designee may demote

an inmate worker for failing to abide by the inmate worker standards.

Such demotions shall be fully documented.

Sec. 345.42 Inmate worker dismissal.

The SOI may remove an inmate from Industries work status in

cooperation with the unit team.

[[Page 15830]]

(a) The SOI may remove an inmate from FPI work status according to

the conditions outlined in the pay and benefits section of this policy

and in cooperation with the unit team.

(b) An inmate may be removed from FPI work status for failure to

comply with any court-mandated financial responsibility. (See 28 CFR

545.11(d)).

(c) An inmate found to have committed a prohibited act (whether or

not it is FPI related) resulting in segregation or disciplinary

transfer is also to be dismissed from Industries based on an

unsatisfactory performance rating for failure to be at work.

Subpart F--Inmate Pay and Benefits

Sec. 345.50 General.

Title 18 U. S. Code Section 4126 authorizes FPI to compensate

inmates under rules and regulations promulgated by the Attorney

General. It is the policy of FPI to provide compensation to FPI inmate

workers through various conditions of pay and benefits, except as

otherwise provided in these regulations.

Sec. 345.51 Inmate pay.

(a) Grade levels. Inmate workers in FPI locations receive pay at

five levels ranging from 5th grade pay (lowest) to 1st grade pay

(highest).

(b) Eligibility. (1) An inmate shall accrue vacation time,

longevity service credit, and shall receive holiday pay for the period

of time the inmate is officially assigned to the Industries work

detail. For limitations on claims, refer to Sec. 345.66.

(2) Inmate workers may be eligible for premium pay as specified in

Sec. 345.52. Eligibility for other pay and benefits are described

separately in this subpart.

(3) FPI pay and benefits are lost in cases of disciplinary transfer

and segregation.

(4) An inmate returned to the institution due to program failure at

a Community Corrections Center or while on parole or escape is not

entitled to credit for time spent in Industries prior to said program

failure. This rule also applies to any other program failure which

results in a break in confinement status.

Sec. 345.52 Premium pay.

Payment of premium pay to selected inmates is authorized. The total

number of qualifying inmates may not exceed 15% of first grade inmates

at a location.

(a) Eligibility. Inmates in first grade pay status may be

considered for premium pay.

(b) The Selection Process. Candidates for premium pay must be

nominated by a foreman on the FPI staff, and recommended on the basis

of specific posted criteria by a selection committee assigned by the

SOI.

(1) The SOI, as the chief selecting official, must sign approval

for all premium pay inmate selections. This authority may not be

delegated below the level of Acting SOI.

(2) The selected candidate(s) are notified by the FPI Manager or by

a posted list on the FPI bulletin board. A record of the selection and

who was on the selection board is kept for documentation purposes. An

inmate nominated to be a premium pay inmate may refuse the appointment

without prejudice.

(c) [Reserved]

(d) Pay Rate. Premium pay inmates receive a specified amount over

and above all other pay and benefits to which they may be entitled

(e.g., longevity pay, overtime, piecework rates, etc.). Premium pay is

also paid for vacation, holiday, and administrative hours.

(e) Duties of Premium Pay Inmates. Premium pay is a means of

recognizing the value of those traits supportive of morale and good

institutional adjustment. It is not a form of bonus or incentive pay

for highly productive inmates.

(f) Transfer Status Of Premium Pay Inmates. Premium pay status may

not be transferred from institution to institution with the inmate

worker. Premium pay status must be earned at each location.

(g) Removals From Premium Pay Status. Removal from premium pay

status may occur for failure to demonstrate the premium pay selection

traits or for failure to abide by the inmate worker standards set forth

in this policy. All removals from premium pay status shall be

documented on the inmate's evaluation form. The following conditions

also may result in removal from premium pay status:

(1) Any premium pay inmate found to have committed any level 100 or

200 series offense by the DHO is automatically removed from premium pay

status whether or not the offense was FPI-related.

(2) Inmates absent from work for more than 30 consecutive calendar

days may be removed from premium pay status by the SOI.

Sec. 345.53 Piecework rates.

Piecework rates are incentives for workers to strive for higher pay

and production benefiting both the worker and FPI. Piecework rates may

be of two major types: individual piecework (in which an individual's

pay goes up or down depending upon his/her own output) or Group Wage

Fund (in which all members of a group strive for higher rates or

production output as a unit, and all share in a pool of funds

distributed among work group members equally).

Sec. 345.54 Overtime compensation.

An inmate worker is entitled to overtime pay at a rate of two times

the hourly or unit rate for hourly, individual, and group piecework

rate workers, when the total hours worked (including administrative

pay) exceed the FPI factory's regularly scheduled workday. Hours worked

on days other than the scheduled work week (e.g., Saturday) shall be

compensated at the overtime rate.

Sec. 345.55 Longevity pay.

(a) Except as provided in paragraph (b) of this section, an inmate

earns longevity pay raises after 18 months spent in FPI work status

regardless of whether or not the work was continuous. The service may

have occurred in one or more FPI factories or shops. An inmate

qualifies for longevity pay raises as provided in the table below:

Length of Service With FPI

After 18 months of service and payable in the 19th month

After 30 months of service and payable in the 31st month

After 42 months of service and payable in the 43rd month

After 60 months of service and payable in the 61st month

After 84 months of service (& more) and payable in the 85th month

Longevity pay allowances shall be added after the wages for each

actual hour in pay status have been properly computed.

(b) Exceptions.

(1) FPI work status during service of a previous sentence with a

subsequent break in custody may not be considered in determining

longevity pay.

(2) An inmate in segregation or who is given a disciplinary

transfer loses any longevity status previously achieved.

(3) An inmate who voluntarily transfers to a non-FPI work

assignment loses any longevity status previously achieved. An inmate

who leaves FPI to enter education, vocational training, or drug abuse

treatment programs, however, generally retains longevity and pay grade

status upon return to FPI, unless the inmate withdraws from those

programs without a good faith effort to complete them. The decision on

whether there was a good faith effort is to be made by the SOI in

concert with the staff member in charge of the program. [[Page 15831]]

Sec. 345.56 Vacation pay.

Inmate workers are granted FPI vacation pay by the SOI when their

continued good work performance justifies such pay, based on such

criteria as quality of work, attendance and punctuality, attentiveness,

and adherence to industry operating regulations. The inmate must submit

a written request for vacation time, ordinarily two weeks in advance of

the requested vacation time. The work supervisor must recommend to the

SOI the vacation time to be taken or paid. Eligibility for vacation pay

must be verified by the Business Office prior to approval by the SOI.

The SOI may declare an inmate ineligible for vacation credit because of

an inmate's unsatisfactory work performance during the month in which

such credit was to occur.

(a) An inmate may take accrued vacation time for visits,

participation in institution programs or for other good reasons at the

discretion of the SOI. Industrial managers should make every reasonable

attempt to schedule an inmate worker's vacations so as not to conflict

with the workforce requirements of FPI factory production schedules and

Inmate Systems Management requirements.

(b) An inmate temporarily assigned to the Industrial detail, e.g.,

on construction details, also earns vacation credit which he or she

must take or be paid for at the end of the temporary assignment.

(c) An inmate must take and/or be paid for vacation credit within

sixty days after each annual eligibility date of the inmate's most

recent date of assignment to FPI. An inmate who elects not to take

vacation time must indicate this in writing. That inmate shall receive

pay for the annual vacation credit in a lump sum on the regular monthly

payroll. This amount is ordinarily paid within sixty days after the

annual eligibility date of the inmate's most recent date of assignment

to FPI. An inmate whose employment is terminated by release,

reassignment, transfer, or other reasons, and who has unused vacation

credit shall be paid for this credit on the monthly payroll.

Sec. 345.57 Administrative pay.

An inmate excused from a job assignment may receive administrative

pay for such circumstances as a general recall for an institution,

power outages, blood donations, or other situations at the discretion

of the SOI. Such pay may not exceed an aggregate of three hours per

month.

Sec. 345.58 Holiday pay.

An inmate worker in FPI work status shall receive pay at the

standard hourly rate, plus longevity where applicable, for all Federal

holidays provided the inmate is in work status on the day before and

the day after the holiday occurs. Full-time workers receive one full

day's pay. Part-time workers receive one-half day's pay.

Sec. 345.59 Inmate performance pay.

Inmate workers for FPI may also receive Inmate Performance Pay for

participation in programs where this award is made. However, inmate

workers may not receive both Industries Pay and Performance Pay for the

same program activity. For example, an inmate assigned to a pre-

industrial class may not receive FPI pay as well as inmate performance

pay for participation in the class.

Sec. 345.60 Training pay.

Inmates directed by the SOI to take a particular type of training

in connection with a FPI job are to receive FPI pay if the training

time occurs during routine FPI factory hours of operation. This does

not include ABE/GED or pre-industrial training.

Sec. 345.61 Inmate earnings statement.

Each inmate worker in FPI shall be given a monthly earnings

statement while actively working for FPI.

Sec. 345.62 Inmate accident compensation.

An inmate worker shall be paid lost-time wages while hospitalized

or confined to quarters due to work-related injuries (including

occupational disease or illnesses directly caused by the worker's job

assignments) as specified by the Inmate Accident Compensation Program

(28 CFR part 301).

Sec. 345.63 Funds due deceased inmates.

Funds due a deceased inmate for work performed for FPI are payable

to a legal representative of the inmate's estate or in accordance with

the law of descent and distribution of the state of domicile.

Sec. 345.64 Referral of releasable medical data to FPI staff.

The SOI is responsible for ensuring that appropriate releasable

information pertaining to an inmate's medical limitation (e.g., back

injury) is made available to the FPI staff member who directly

supervises the assignment.

Sec. 345.65 Inmate medical work limitation.

In addition to any prior illnesses or injuries, medical limitations

also include any illness or injury sustained by an inmate which

necessitates removing the ill worker from an FPI work assignment. If an

inmate worker is injured more than once in a comparatively short time,

and the circumstances of the injury suggest an awkwardness or

ineptitude which in turn indicates that further danger exists, the

inmate may be removed to another FPI detail or to a non-FPI detail.

Sec. 345.66 Claims limitation.

Claims relating to pay and/or benefits must occur within one

calendar year of the period of time for which the claim is made. Inmate

claims submitted more than one year after the time in question require

the approval of the Assistant Director before an inmate may receive

such pay and/or benefit.

Sec. 345.67 Retention of benefits.

(a) Job Retention. Ordinarily, when an inmate is absent from the

job for a significant period of time, the SOI will fill that position

with another inmate, and the first inmate will have no entitlement to

continued FPI employment.

(1) For up to the first 30 days when an inmate is in medical idle

status, that inmate will retain FPI pay grade status, with suspension

of actual pay, and will be able to return to FPI when medically able,

provided the absence was not because of a FPI work-related injury

resulting from the inmate's violation of safety standards. If the

medical idle lasts longer than 30 days, was not caused by a violation

of safety standards, and the unit team approves the inmate's return to

FPI, the SOI shall place that inmate within the top ten percent of the

FPI waiting list.

(2) Likewise, for up to the first 30 days when an inmate is in

Administrative Detention, that inmate may retain FPI pay grade status,

with actual pay suspended, and will be able to return to FPI, provided

the inmate is not found to have committed a prohibited act. If

Administrative Detention lasts longer than 30 days, and the inmate is

not found to have committed a prohibited act, and the unit team

approves the inmate's return to FPI, the SOI shall place that inmate

within the top ten percent of the FPI waiting list.

(3) An inmate in Administrative Detention, and found to have

committed a prohibited act, may return to FPI work status at the

discretion of the SOI.

(4) If an inmate is injured and absent from the job because of a

violation of FPI safety standards, the SOI may reassign the inmate

within FPI or recommend that the unit team reassign the inmate to a

non-FPI work assignment. [[Page 15832]]

(5) If an inmate is transferred from one institution to another for

administrative (not disciplinary) reasons, and the unit team approves

the inmate's return to FPI, the SOI shall place that inmate within the

top ten percent of the FPI waiting list.

(b) Longevity and vacation credit. Ordinarily, when an inmate's FPI

employment is interrupted, the inmate loses all accumulated longevity

and vacation credit with the following exceptions:

(1) The inmate retains longevity and vacation credit when placed in

medical idle status, provided the medical idle is not because of a FPI

work-related injury resulting from the inmate's violation of safety

standards. If the medical idle results from a FPI work-related injury

where the inmate was not at fault, the inmate also continues to earn

longevity and vacation credit.

(2) Likewise, the inmate retains, and continues earning for up to

30 days, longevity and vacation credit if placed in Administrative

Detention, provided the inmate is not found to have committed a

prohibited act.

(3) The inmate retains, but does not continue earning, longevity

and vacation credit when transferring from one institution to another

for administrative (not disciplinary) reasons, when absent from the

institution on writ, or when placed in administrative detention and

found to have committed a prohibited act.

(c) Pay grade retention. Ordinarily, when an inmate's FPI

employment is interrupted, that inmate is not entitled to retain his or

her pay grade, with the following exceptions.

(1) An inmate retains pay grade status, with actual pay suspended,

for up to 30 days in Administrative Detention. However, the inmate is

not reimbursed for the time spent in detention.

(2) Likewise, an inmate retains pay grade status for up to 30 days

while absent from the institution on writ, with actual pay suspended.

The SOI may approve pay grade retention when an inmate is on writ for

longer than 30 days on a case-by-case basis.

(3) If an inmate is absent because of a FPI work-related injury

where the inmate was not at fault, the inmate retains his or her pay

grade, with actual pay suspended.

Subpart G--Awards Program

Sec. 345.70 General.

FPI provides incentive awards of various types to inmate workers

for special achievements in their work, scholarship, suggestions, for

inventions which improve industry processes or safety or which conserve

energy or materials consumed in FPI operations, and for outstanding

levels of self-development.

Sec. 345.71 Official commendations.

An inmate worker may receive an official written commendation for

any suggestion or invention adopted by FPI, or for any special

achievement, as determined by the SOI, related to the inmate's

industrial work assignment. A copy of the commendation is to be placed

in the inmate's central file.

Sec. 345.72 Cash bonus or cash award.

An inmate worker may receive a cash bonus or cash award for any

suggestion or invention which is adopted by FPI and produces a net

savings to FPI of at least $250.00. Cash awards shall be one percent of

the net estimated savings during the first year, with the minimum award

being $25.00, and the maximum award being $1,000.00.

Sec. 345.73 Procedures for granting awards for suggestions or

inventions.

Inmate suggestions for improvements in operations or safety, or for

conservation of energy or material, must be submitted in writing.

(a) The inmate's immediate supervisor shall review the suggestion

and forward it with comments and award recommendation to the SOI.

(b) The SOI shall ensure that all inmate suggestions and/or

inventions formally submitted are considered for incentive awards by a

committee comprised of Industries personnel designated by the SOI.

(1) The committee is authorized to award a cash award of up to

$100.00 or an equivalent gift not to exceed $100.00 in value to an

inmate whose suggestion has been adopted. A recommendation for an award

in excess of $100.00 shall be forwarded to the Assistant Director for a

final decision.

(2) The committee shall forward all recommendations for awards for

inventions through the SOI to the Warden. The Warden may choose to add

his or her comments before forwarding to the Assistant Director for a

final decision.

(3) Incentive awards are the exclusive methods for recognizing

inmates for suggestions or inventions.

Sec. 345.74 Awards for special achievements for inmate workers.

While recognition of inmate worker special achievements may

originate from any FPI staff member, the achievement ordinarily will be

submitted in writing by the inmate's immediate supervisor.

(a) The SOI shall appoint a local institution committee to consider

inmates for special achievement awards.

(b) The committee shall forward its recommendations to the SOI, who

is authorized to approve individual awards (cash or gifts) not to

exceed $100 in value. A recommendation for an award in excess of $100

(cash or gifts) shall be forwarded, with the Superintendent's

recommendation and the justification for it, through the Warden to the

Assistant Director. The Warden may submit comments on the

recommendation.

Subpart H--FPI Inmate Training and Scholarship Programs

Sec. 345.80 General.

As earnings permit, FPI provides appropriate training for inmates

which is directly related to the inmate worker's job assignment.

Additionally, FPI administers a scholarship program to provide inmates

with an opportunity to begin, or to continue with business and industry

courses or vocational training.

(a) An applicant for FPI-funded training programs should be

evaluated to determine sufficient interest and preparation to

successfully complete the course content. The evaluation may be done by

the Education Department, unit team, or other qualified personnel.

(b) An inmate selected to participate in FPI-funded training

programs ordinarily must have enough sentence time remaining to serve

to complete the training.

Sec. 345.81 Pre-industrial training.

FPI encourages the development and use of pre-industrial training

programs. Such training ordinarily provides benefits to the inmate and

to the FPI factory. Pre-industrial training also provides an additional

management tool for replacing inmate idleness with constructive

activity. Accordingly, each FPI factory location may provide a pre-

industrial training program.

(a) Pre-industrial program trainees shall ordinarily begin at the

entry level pay grade (grade 5). Positions for pre-industrial training

programs are filled in the same manner as other grade five positions.

(b) Pre-industrial training is not a prerequisite for work

placement if the inmate already possesses the needed skill.

(c) If pre-industrial training is available and the worker has not

completed both the skill training and orientation phases of pre-

industrial training, the inmate should be put into the first available

training class.

(d) When pre-industrial training is not available, new FPI

assignees will receive [[Page 15833]] on-the-job training in pre-

industrial pay status for a period of at least 30 days before being

promoted into available fourth grade jobs.

Sec. 345.82 Apprenticeship training.

FPI provides inmate workers with an opportunity to participate in

apprenticeship training programs to the extent practicable. Such

programs help prepare workers for post-release employment in a variety

of trades. Apprentices are given related trades classroom instruction

in addition to the skill training during work hours, where necessary.

Sec. 345.83 Job safety training.

FPI provides inmates with regular job safety training which is

developed and scheduled in coordination with the institution Safety

Manager. Participation in the training shall be documented in a safety

training record signed by the inmate.

Sec. 345.84 The FPI scholarship fund.

FPI shall award post-secondary school scholarships to selected,

qualified inmate workers. These scholarships provide an inmate with the

opportunity to begin or continue with business and industry courses or

vocational training as approved and deemed appropriate by the

Supervisor of Education.

(a) Eligibility Requirements. The SOI and the Supervisor of

Education at each institution shall develop application procedures to

include, at a minimum, the following criteria:

(1) The inmate shall be a full-time FPI worker.

(2) The inmate has a favorable recommendation for participation

from his or her work supervisor.

(3) The inmate meets all relevant institution requirements for

participation (e.g. disciplinary record, custody level).

(4) The inmate is accepted by the institution of higher learning

offering the course or program which is requested.

(5) The inmate must maintain a verifiable average of ``C'' or

better to continue program eligibility.

(6) Before beginning the course of study, the inmate must sign an

agreement to provide the SOI with an unaltered, original copy of his or

her grades.

(b) Scholarship Selection Procedures. FPI scholarship awards shall

be made by a three member Selection Committee comprised of the SOI, the

Supervisor of Education, and one other person designated by the SOI.

(c) Scholarship Program Operation.

(1) Ordinarily, one scholarship may be awarded per school period

for every fifty workers assigned. At least one scholarship may be

awarded at each institution location, regardless of the number of

inmates assigned.

(2) Individual scholarships ordinarily should not exceed the cost

of tuition and books for one course. Where several courses may be taken

for the same cost as one, the inmate worker may be allowed to take more

than one course.

(3) Scholarship monies are to be paid only to the institution

providing instruction, or to the Education Department for transfer of

funds to the college, university, or technical institution providing

instruction.

(4) An inmate may not receive more than one scholarship per school

period.

(5) An inmate must maintain at least a ``C'' average to be

continued as eligible for further assistance. An inmate earning less

than ``C'' must wait one school period of eligibility before reapplying

for further assistance. Where a course grade is based on a ``pass/

fail'' system, the course must be ``passed'' to be eligible for further

assistance.

(6) An inmate awarded a correspondence course must successfully

complete the course during a school year (e.g., 2 semesters, 3

quarters).

(7) An inmate receiving scholarship aid must have approval from the

SOI and the Supervisor of Education before withdrawing from classes for

good reason. An inmate withdrawing or ``dropping'' courses without

permission shall wait one school year before applying for further

scholarship assistance. An inmate may withdraw from courses without

penalty for medical or non-disciplinary administrative reasons such as

transfer, writ, release, etc., without first securing permission,

although withdrawals for medical reasons must be certified in writing

by the Hospital Administrator.

SUBCHAPTER C--INSTITUTIONAL MANAGEMENT

PART 545--WORK AND COMPENSATION

2. The authority citation for 28 CFR part 545 continues to read as

follows:

Authority: 5 U.S.C. 301; 18 U.S.C. 3013, 3571, 3572, 3621, 3622,

3624, 3663, 4001, 4042, 4081, 4082 (Repealed in part as to offenses

committed on or after November 1, 1987), 4126, 5006-5024 (Repealed

October 12, 1984 as to offenses committed after that date), 5039; 28

U.S.C. 509, 510; 28 CFR 0.95-0.99.

Subpart E [Removed]

Subpart F [Removed]

Subpart G [Removed]

3. In 28 CFR part 545, subpart E, consisting of Secs. 545.40

through 545.43, subpart F, consisting of Secs. 545.50 through 545.56,

and subpart G, consisting of Secs. 545.60 through 545.64, are removed.

[FR Doc. 95-7463 Filed 3-24-95; 8:45 am]

BILLING CODE 4410-05-P