The minimum wage in prison is, in most cases, nothing like a minimum wage at all. Incarcerated workers in the United States typically earn between a few cents and about $1.15 per hour, and at least seven states pay nothing for ordinary institutional work. The federal minimum of $7.25 per hour does not reach inside prison walls, because federal courts have ruled for decades that inmates are not “employees” under the Fair Labor Standards Act.1U.S. Department of Labor. State Minimum Wage Laws
Why the Federal Minimum Wage Doesn’t Apply
The Thirteenth Amendment abolished slavery but kept one exception open: involuntary servitude is still permitted “as a punishment for crime whereof the party shall have been duly convicted.”2Congress.gov. U.S. Constitution – Thirteenth Amendment That single clause is the constitutional foundation for mandatory prison labor.
On top of that, federal courts have consistently held that the Fair Labor Standards Act doesn’t cover inmate labor. The Fourth Circuit, in a leading case on the question, said Congress has operated for more than fifty years on the assumption that the FLSA doesn’t apply inside prison walls, and that if coverage is to be extended, Congress has to say so. No other circuit has broken from that view. Correctional agencies set their own pay scales with no external wage floor.
Work in most prisons is not optional. Inmates who refuse an assignment can lose good-time credits that would shorten their sentence, be moved to solitary confinement, or lose commissary and visitation privileges. The labor is treated as part of the sentence, not a job someone takes.
What Inmates Actually Earn
Roughly 791,500 people incarcerated in U.S. prisons work as part of their sentence. Most of them perform institutional maintenance: cooking, laundry, cleaning, groundskeeping, and the day-to-day tasks that keep a facility running. A smaller number work in prison industries or, rarely, for private companies.
Regular Institutional Jobs
These are the lowest-paying positions and the ones most inmates hold. In the federal Bureau of Prisons, maintenance work pays about $0.12 to $0.40 per hour across performance-based grade levels. Seven states pay nothing at all for this kind of work: Alabama, Arkansas, Florida, Georgia, Mississippi, South Carolina, and Texas. In states that do pay, average hourly wages for non-industry jobs top out around $0.52 per hour. At that rate, an inmate would need to work roughly 14 hours to earn what a minimum-wage worker makes in one.
Prison Industries and UNICOR
Many state correctional systems run their own manufacturing or service operations, producing goods such as office furniture, textiles, and license plates for government agencies, universities, and nonprofits. These positions pay more than maintenance work but still a small fraction of outside wages. Some state industry jobs pay under $0.30 per hour at the low end; a few states push toward roughly half the state minimum wage for the most skilled positions.
The federal equivalent is Federal Prison Industries, operating as UNICOR. It’s a wholly owned government corporation that receives no appropriated funding and sells primarily to federal agencies. UNICOR workers earn between $0.23 and $1.15 per hour across five pay grades. Access is limited: around 25,000 federal inmates sit on the waitlist, and only about 8% of work-eligible federal inmates hold a UNICOR position.3Federal Bureau of Prisons. UNICOR – About
Private-Sector Work Through PIECP
A much smaller group of inmates work for private companies through the Prison Industry Enhancement Certification Program. PIECP lets certified state and local correctional programs partner with private businesses to produce goods sold across state lines. The Bureau of Justice Assistance currently certifies 45 programs managing at least 222 business partnerships nationwide.4Bureau of Justice Assistance. Prison Industry Enhancement Certification Program Overview PIECP is the one setting where inmates must be paid the prevailing local wage for comparable work. On paper, that can approach or match the civilian minimum wage. In practice, deductions take most of it.
Deductions That Shrink the Paycheck
Gross pay and take-home pay are two very different numbers in prison. Correctional authorities withhold a range of items before anything reaches an inmate’s account.
PIECP deductions are set by federal statute. Under 18 U.S.C. § 1761, total deductions cannot exceed 80% of gross pay, and the inmate must receive at least 20%.5Office of the Law Revision Counsel. 18 U.S. Code 1761 – Transportation or Importation The law limits withholdings to four categories:
- Federal, state, and local income taxes
- Room and board charges set by the chief state correctional officer
- Family support ordered by a court or required by state statute
- Victim compensation fund contributions or court-ordered restitution, ranging from 5% to 20% of gross wages
Each inmate must agree in advance to the deductions, and no combination can push the total above the 80% ceiling.6Bureau of Justice Assistance. PIECP Compliance Guide So a PIECP worker nominally paid $10 an hour may see as little as $2 reach their account.
For regular prison jobs and non-PIECP industry positions, deduction rules vary by state and by the federal Bureau of Prisons. Common withholdings include court-ordered restitution, child support, and room-and-board charges. Some systems also direct a portion of earnings into a release savings account. Because base pay for these jobs is already measured in cents, even modest deductions can leave almost nothing behind.
What Those Wages Actually Buy
Prisons provide food and shelter, but inmates who want anything beyond the basics — supplemental food, hygiene products, writing supplies, phone time — pay for it through the commissary. That is where prison wages collide with reality.
A recent federal prison commissary list prices a single packet of ramen noodles at $0.50 and a three-pack of bar soap between $3.90 and $6.75.7Federal Bureau of Prisons. USMCFP Springfield Commissary List An inmate earning $0.12 per hour at a federal maintenance job would need to work more than four hours for one packet of ramen and over 30 hours for a three-pack of soap. Phone calls to family carry per-minute charges that can exceed a full day’s wages. In the seven states that pay nothing, every commissary purchase depends on money sent in from the outside.
Injuries on the Job
Pay isn’t the only labor protection inmates lack. Most states exclude incarcerated workers from their workers’ compensation systems, either by statute or through court decisions. Some states carve out narrow exceptions for work-release participants or those employed directly by private companies, but the general rule is exclusion.
In the federal system, injured inmates cannot sue under the Federal Tort Claims Act for work-related injuries.8Federal Bureau of Prisons. Federal Tort Claims Act Program Statement 1320.07 Their only route is the Inmate Accident Compensation system under 28 C.F.R. Part 301.9eCFR. Inmate Accident Compensation Awards are calculated based on the federal minimum wage, not on actual lost wages or earning capacity.10eCFR. 28 CFR 301.314 – Establishing the Amount of Award The minimum wage shows up here, in other words, only as a ceiling on what a prison worker’s injury is worth.
Reform Efforts
Legislative pressure on prison wages has grown, but the actual rules haven’t moved much. The Fair Wages for Incarcerated Workers Act has been introduced in Congress to extend FLSA minimum wage protections to inmates. It hasn’t passed, and similar proposals have stalled repeatedly over concerns about correctional budgets and the viability of prison industry programs that depend on low-cost labor.
At the state level, Colorado, Nebraska, Utah, Alabama, Oregon, Tennessee, and Vermont have passed amendments removing the involuntary servitude exception from their state constitutions. Removing the language, however, has not automatically translated into higher wages or an end to mandatory work assignments. The practical effects are still being worked out through policy and litigation.
Until Congress or the courts change course, prison wages sit in a self-contained labor market where pay is set by correctional policy rather than by any external legal standard — and where cents per hour remain the norm.