Fair Wages for Incarcerated Workers Act of 2026
- Sponsor
- Sen. Booker, Cory A. [D-NJ]
- Committees
- Health, Education, Labor, and Pensions Committee (primary)
- Last action
- Mar 19, 2026
Bottom line
This bill aims to ensure incarcerated individuals performing work are paid at least the federal minimum wage and receive standard labor protections, significantly altering the economic model of prison labor.
What it actually does
This bill amends the Fair Labor Standards Act of 1938 (FLSA) to extend federal minimum wage and overtime protections to incarcerated workers, regardless of whether they are employed by public agencies operating correctional facilities or by private entities contracting with such agencies. It also explicitly prohibits deductions from these workers' wages for board, lodging, other facilities, and court-imposed fees.
Proponents argue
Proponents argue this bill addresses a long-standing loophole in labor law that allows for the exploitation of incarcerated individuals, often paid pennies an hour or nothing at all. They contend it promotes fair labor practices, reduces recidivism by providing marketable skills and fair wages, and aligns prison labor with broader American labor standards.
Opponents contend
Opponents might argue that extending FLSA coverage to incarcerated workers would impose significant financial burdens on state and federal correctional systems, potentially leading to the reduction or elimination of valuable prison work programs. They may also raise concerns about the administrative complexity of implementing such a system and the potential for increased costs to taxpayers or consumers.
The bill is concise and can be read quickly, allowing for a straightforward understanding of its core provisions.
Section 2(1)(A) amending FLSA Section 3(e)(2)
Coverage of Incarcerated Workers Employed by Public Agencies
This provision expands the definition of 'employee' under the Fair Labor Standards Act to explicitly include any individual employed as an incarcerated worker by a public agency that operates the correctional facility where they are held. This means these workers would be entitled to federal minimum wage and overtime protections.
Supporters argue
Supporters argue this closes a major loophole that has allowed public agencies to exploit incarcerated labor for minimal or no pay, ensuring basic human dignity and fair compensation for work performed.
Critics contend
Critics may argue that this will dramatically increase the operational costs for public correctional facilities, potentially leading to the reduction or elimination of beneficial work programs, or requiring significant tax increases to cover the new expenses.
Tradeoffs
Balances the ethical imperative of fair wages for labor against the fiscal realities and operational costs of public correctional systems.
Section 2(1)(B) adding FLSA Section 3(e)(6)
Coverage of Incarcerated Workers Employed by Private Entities
This provision further expands the definition of 'employee' to include incarcerated workers employed by private entities that operate correctional facilities under contract with a public agency. This ensures that private prison operators and companies utilizing incarcerated labor are also subject to federal minimum wage and overtime requirements for their incarcerated workforce.
Section 2(2) amending FLSA Section 3(m)(1)
Prohibition on Deductions for Board, Lodging, and Court-Imposed Fees
This amendment specifies that for incarcerated workers, the cost of board, lodging, or other facilities, and any amount taken for payment of a court-imposed fee, shall not be included in the wage paid to such employee. This prevents employers from deducting these costs from the minimum wage, ensuring the worker receives the full wage.
Section 2(3) adding FLSA Sections 3(z), (aa), and (bb)
Key Definitions for Incarcerated Worker Protections
This section adds several key definitions to the FLSA. 'Incarcerated worker' is broadly defined to include individuals performing work offered or required by a correctional facility, encompassing various prison work programs. 'Correctional facility' references existing law. 'Court-imposed fee' is defined to include various court-related charges from criminal convictions, explicitly excluding child support, crime victim compensation, civil judgments, or criminal fines.
This sub-provision clarifies that while general court-imposed fees cannot be deducted from an incarcerated worker's wages, payments for child support, crime victim compensation, civil judgments, or criminal fines are *not* considered 'court-imposed fees' for the purpose of this Act's deduction prohibition.
Section 2(3) adding FLSA Section 3(bb)(2)
Why it matters:This is standard legislative practice to refine definitions and prevent unintended consequences, ensuring that the bill's primary aim of preventing wage deductions for administrative fees doesn't inadvertently interfere with other critical financial obligations.
Case for: Proponents would argue this ensures that incarcerated individuals still meet their crucial financial responsibilities, such as supporting their children or compensating victims, while protecting their earned wages from being diminished by administrative court costs.
Case against: Critics might argue that by allowing these specific deductions, the bill still permits a significant portion of an incarcerated worker's earnings to be diverted, potentially undermining the goal of financial rehabilitation or accumulation of savings upon release.
Estimated impact: This provision ensures that potentially significant financial obligations (child support, victim restitution) can still be met from an incarcerated worker's earnings, while protecting against deductions for other court-related administrative fees. Its impact would be on the distribution of earnings for those with such obligations.