Penal labor in the United States

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Penal labor in the United States is the practice of using incarcerated individuals to perform various types of work, either for government-run or private industries. Inmates typically engage in tasks such as manufacturing goods, providing services, or working in maintenance roles within prisons. Prison labor is legal under the 13th Amendment to the U.S. Constitution, which prohibits slavery and involuntary servitude, except as punishment for a crime.^[1]

Prison labor in the U.S. generates significant economic output.^[2] Incarcerated workers provide services valued at $9 billion annually and produce over $2 billion in goods.^[3][4][5] The system has undergone many transitions since the late 19th century: the Hawes-Cooper Act of 1929 imposed restrictions on the interstate trade of prison-made goods, and the establishment of the Federal Prison Industries (FPI) in 1934 helped expand prison labor during the Great Depression.^[6] In 1979, the Prison Industry Enhancement Certification Program (PIECP) was introduced,^[7] allowing inmates to work in private sector jobs. Under this program, inmates can earn market wages, which may be used for taxes, victim compensation, family support, and room and board. The program was approved by Congress in 1990 for indefinite continuation, permitting the transport of prison-made goods across state lines.^[8][9]

Firms in industries such as technology and food have received tax incentives for contracting prison labor, often at lower-than-market rates.^[10] The Work Opportunity Tax Credit (WOTC) grants employers $2,400 for every work-release employed inmate.^[11] "Prison in-sourcing" has become an alternative to outsourcing work to countries with lower labor costs. Companies such as Whole Foods, McDonald's, Target, IBM, and others participated in prison in-sourcing during the 1990s and 2000s.^[12] Following the January 6 United States Capitol attack, Federal Prison Industries was prioritized for federal purchases of replacement goods, such as office furniture, damaged in the riots.^[13]

Penal labor is permitted under the 13th Amendment to the U.S. Constitution, which prohibits slavery except as a punishment for a crime where the individual has been convicted.^[1] The courts have held that detainees awaiting trial cannot be forced to work.^[14] However, convicted criminals who are medically able to work are typically required to do so in roles such as food service, warehouse work, plumbing, painting, or as inmate orderlies.^[15] According to the Federal Bureau of Prisons, inmates earn between 12-40 cents per hour for these jobs, which is below the federal minimum wage of $7.25 per hour.^[15]

Penal labor in the United States is controversial. Critics argue that prison labor exploits incarcerated individuals, and that the practice prioritizes profits for corporations and reduces labor costs at the expense of rehabilitation.^[16] On the other hand, supporters of prison labor argue it teaches inmates valuable job skills, reduces recidivism, and helps incarcerated persons reenter society with better prospects.^[17]