Fair Wages for Incarcerated Workers Act of 2026

Mar 19, 2026

Summary

Makes incarcerated individuals who work while in prison eligible for federal minimum wage and overtime pay protections.

What problem does this solve?

Currently, people in prison who work are not protected by federal wage laws and are often paid very little for their labor. This bill changes the law to include these workers, making sure they are paid at least the federal minimum wage.

What does this bill do?

Includes incarcerated workers under federal wage law

Amends the Fair Labor Standards Act to define incarcerated individuals who work as 'employees', making them eligible for minimum wage and overtime pay.

Limits deductions from incarcerated workers' wages

Prohibits prisons from deducting the cost of room and board or most court-imposed fees from the wages paid to an incarcerated worker.

Defines 'Incarcerated Worker'

Creates a legal definition for 'incarcerated worker' to include individuals in public or private prisons who perform work, including for prison industries or maintenance.

Clarifies allowable wage deductions

Specifies that deductions for child support, crime victim funds, civil judgments, or criminal fines are still allowed and are not considered 'court-imposed fees'.

Who does this affect?

Incarcerated individuals
Public and private prison operators
Taxpayers

What is the real world impact?

•

Ensures fair pay for prison work

Provides incarcerated workers with the same minimum wage protections as other employees. This aims to stop the use of very low-cost labor in prisons and promote fairness.

•

Increases costs for prisons

Requiring minimum wage for incarcerated workers will raise operating costs for prisons. This could lead to higher taxes or cuts to other prison programs, like job training, if budgets are not increased.

•

Disrupts the private prison industry

Private prisons often profit from low-cost inmate labor. By forcing them to pay minimum wage, the bill could make their business model less profitable, potentially as a strategic move against prison privatization.

When does this start?

The changes would take effect as soon as the bill is signed into law.