[Federal Register Volume 60, Number 58 (Monday, March 27, 1995)]
[Rules and Regulations]
[Pages 15826-15833]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-7463]




[[Page 15825]]

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Part III





Department of Justice





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Bureau of Prisons, Federal Prison Industries, Inc.



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28 CFR Parts 345 and 545



Federal Prison Industries (FPI) Inmate Work Programs; Final Rule

  Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules 
and Regulations   
[[Page 15826]] 

DEPARTMENT OF JUSTICE

Bureau of Prisons, Federal Prison Industries, Inc.

28 CFR Parts 345 and 545

[BOP-1003-F]
RIN 1120-AA04


Federal Prison Industries (FPI) Inmate Work Programs

AGENCY: Federal Prison Industries, Inc., Bureau of Prisons, Justice.

ACTION: Final rule.

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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