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

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.

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 whollyowned 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 § 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, § 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.
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations 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 § 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

§ 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 § 345.11, where the definitions of

Federal Prison Industries, Inc. and of

UNICOR have been consolidated.

Further changes to § 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

§ 345.50.

The provisions in paragraph (a) of

§ 345.32 regarding the use of waiting

lists have been revised to clarify that

ordinarily these are used in the

selection process.

In § 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 § 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 § 345.10.

In § 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

§ 354.11. Provisions in proposed

§ 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

§ 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 § 345.66 has been added

containing the provisions on claim

limitations previously proposed in

§ 345.50 (c)(1). Proposed § 345.66 on

retention of benefits accordingly has

been redesignated as § 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.
15828 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations

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

§ 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

§ 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

§ 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

§ 345.31 Recruitment.

Inmate workers for FPI locations may

be recruited through admission and

orientation lectures or through direct

recruiting.

§ 345.32 Hiring.

(a) Inmate workers are ordinarily

hired through waiting lists. Except as

noted in § 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.

§ 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.
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations 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 intraindustry 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.

§ 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.

§ 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

§ 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.

§ 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 § 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-ingrade (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.

§ 345.42 Inmate worker dismissal.

The SOI may remove an inmate from

Industries work status in cooperation

with the unit team.
15830 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations

(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

§ 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.

§ 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 § 345.66.

(2) Inmate workers may be eligible for

premium pay as specified in § 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.

§ 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.

§ 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).

§ 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.

§ 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.
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations 15831

§ 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.

§ 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.

§ 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.

§ 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.

§ 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 preindustrial training.

§ 345.61 Inmate earnings statement.

Each inmate worker in FPI shall be

given a monthly earnings statement

while actively working for FPI.

§ 345.62 Inmate accident compensation.

An inmate worker shall be paid losttime 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).

§ 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.

§ 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.

§ 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.

§ 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.

§ 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.
15832 Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations

(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

§ 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 selfdevelopment.

§ 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.

§ 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.

§ 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.

§ 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

§ 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.

§ 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 preindustrial training program.

(a) Pre-industrial program trainees

shall ordinarily begin at the entry level

pay grade (grade 5). Positions for preindustrial 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
Federal Register / Vol. 60, No. 58 / Monday, March 27, 1995 / Rules and Regulations 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.

§ 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.

§ 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.

§ 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 §§ 545.40 through 545.43,

subpart F, consisting of §§ 545.50

through 545.56, and subpart G,

consisting of §§ 545.60 through 545.64,

are removed.

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

BILLING CODE 4410–05–P