Employer Model – PIE Program

In this model, your business is responsible for equipment, inmate training & the facility manufacturing your products.

The Details

The Employer Model is a form of PIECP management structure. In this model, the private sector owns and operates the Cost Accounting Center (CAC) by controlling the hiring, firing, training, supervision, and payment of the inmate work force. Correction Enterprises assures no major role in industry operations, does not direct production, and exercises minimum control over inmate labor performance. These functions are preformed by the private sector. Correction Enterprises does provide security for the production facility.

Prevailing Wages

Inmates must be paid a prevailing wages (Wage rate which is not less than that for work of a similar nature in the locality in which the work is to be performed.) Prevailing wage verification must be obtained through the NC Employment Security Commission and will require annual wage re -verification for each occupation. Prevailing wages can not be set below the Federal minimum wage, as defined in the Fair Labor Standards Act (FLSA), 29 U.S.C. 201 et seq. Overtime at one and a half times the rate of regular or prevailing wage , must be paid for inmate hours worked in excess of 40 hours per week.

Non Inmate Worker Displacement

Operation must not result in displacement of employed workers; be applied in skills, crafts, or trades in which there is a surplus of available labor in the locality: or significantly impair existing contracts.

Benefits

PIECP projects must provide inmates with benefits comparable to those made available by Federal or State Government to private sector employees.

  • A. Social Security
  • B. Workers' Compensation

Deductions

Deductions from gross wages only for the following authorized purposes.

  • A. Taxes (Federal, State, Local)
  • B. Room and Board (reasonable charges for room and board as determined by regulations issued by the Chief State Correctional Officer)
  • C. Family Support (court ordered or agreement by the offender)
  • D. Victims of Crime (Contributions of not more that 20 percent, but not less than 5 percent of gross wages to any fund established by law to compensate the victims of crime.)
  • Deductions, in aggregated can not exceed 80% of inmate's gross wages / inmates must be paid, credited with, or otherwise benefit legally from the 20% gross remainder. Cost Accounting Center (CAC) may direct the 20% to an Inmate Worker's expense account, savings account, or toward the settling of the worker's legal obligations, including the payment of fines and restitution.

Voluntary

The Inmate Worker must indicate, in writing, that he or she agrees voluntarily to participate in the PIECP project, and agrees voluntarily, and in advance to specific deductions made from gross wages, as well as all other financial arrangements as to earned PIECP wages.

Labor Consultation (conducted with Correction Enterprises)

  • A. Consult with representatives of local union central bodies or similar labor union organizations prior to the initiation of any certified or designed CAC project.
  • B. Consult with as many of such organizations as may have an interest in the trade or skill to be performed by the PIECP inmates.
  • C. Provide adequate information about the contemplated PIECP participation such as, at a minimum, an identification of the scope of the intended CAC and projected initiation date.

Consultation With Local Private Industry (conducted with Correction Enterprises)

  • A. Consult with representatives of local business that may be economically impacted by production prior to beginning operations.
  • B. Provide adequate information about the contemplated PIECP participation such as minimum, an identification of the scope of the intended CAC and projected initiation date.

Compliance With The National Environmental Policy Act (NEPA)

  • A. Submit for Bureau of Justice Assistance (BJA) review environmental data information regarding their proposed activities and, if necessary, environmental assessments.
  • B. Assist BJA in the preparation of any required environmental impact statements.

Lease Agreement

The CAC / Private Sector Partner will enter into a lease agreement with the Department to be approved by the Governor and Council of State. Price per square foot will be determined by the Office of State Properties. Price will be based on the square footage for similar industrial space in the same locality.

Contract

CAC / Private Sector Partner will enter into a contract with the department. Contract will cover building size, utilities, custody control, department responsibilities, conditions related to employment of inmates, compliance of PIE regulations, use agreement, governing laws, contract period, default and breach, indemnification agreement, insurance requirements, liability, assignments, affirmative action, etc.