HF5104

Purpose

• Expand how inmate labor is treated under Minnesota law.
• Create a framework to use incarcerated people as workers in a way that is aligned with existing labor, labor-relations, and safety rules.
• Establish MINNCOR as a formal system for inmate employment, training, and education, while promoting humane, rehabilitative outcomes.
• Set up a statewide task force and regional subtask forces to guide implementation, monitor progress, and report on results.

Key Provisions and What They Do

• Incarcerated workers as employees and protections

  • The bill explicitly adds an incarcerated person who works in a state or local correctional facility as an employee under several major labor laws.
  • This inclusion spans:
  • Minnesota Fair Labor Standards Act (through the definition of “employee”)
  • Public Employee Labor Relations Act
  • Occupational Safety and Health Act (OSHA)
  • Other related wage and employment provisions
  • In practice, this means incarcerated workers would be covered by minimum wage protections and workplace safety rules when they work for the state, a political subdivision, or private employers under these programs.

• Public and private employment definitions

  • The definitions of “employee” and “public employee” are updated to include incarcerated workers who provide labor to public employers or others under the act.
  • This ensures incarcerated labor is recognized within the same framework used for other workers and public employees.

• MINNCOR and inmate employment program

  • Establishes MINNCOR industries as the state correctional industries program to provide employment, education, and training for inmates.
  • Purpose is to help inmates gain work skills, self-sufficiency, and a path toward successful reentry.
  • MINNCOR activities should prioritize rehabilitation and education, not just profit, and profits are to benefit inmates’ education and transition services.
  • The commissioner of corrections must ensure inmate labor is used to the greatest feasible extent, with pay close to prevailing regional wages.

• Inmate wages and how earnings are used

  • Inmates may be paid wages, with the minimum rate no less than Minnesota’s minimum wage (177.24).
  • The bill sets up a structured system for how wages are distributed:
  • The first portion goes to gate money and a personal savings account, plus taxes.
  • The next portion may repay advances or other costs.
  • A portion may go to room and board or other confinement costs (not to exceed 5% of gross wages).
  • Remaining funds can be used for restitution, court costs, victim reparations, and other court-ordered obligations.
  • A portion of wages may be set aside for the inmate’s future needs (e.g., upon conditional release or discharge).

• Private industry employment and wages

  • Inmates, and those on conditional release, may be employed by private industry and non-profit entities operating within or associated with the correctional system.
  • Wages for such work must be at least the prevailing minimum wage for similar work in the locality.
  • Deductions for confinement costs generally cannot exceed five percent of gross wages, and some funds may be set aside for the inmate’s future needs.

• Additional statutory updates

  • The bill updates several additional sections to include incarcerated workers as employees where appropriate, aligning various labor-related definitions with the new policy.

• Task force for implementation (End of Slavery Implementation Task Force)

  • Creates a governor-appointed task force to guide implementation and compliance with the act.
  • Task force composition includes business representatives, nonprofits, colleges, unions, DEED, tribal Nations, MINNCOR, and five formerly incarcerated people from each facility (plus other stakeholders).
  • Subtask forces are created for two geographic regions (Greater Metro and Northern regions) with a mix of current inmates, formerly incarcerated people, business leaders, local government, unions, and education partners.
  • Duties include establishing job targets for incarcerated individuals, ensuring most job hours come from non-DOC employers, promoting part-time and self-employment opportunities, and developing humane, rehabilitative policies.
  • The task force and subtask forces must report annually (starting February 1, 2027) on implementation progress, barriers overcome, remaining barriers, funding, and any changes in recidivism outcomes and related savings.
  • Meetings must be open to the public.

Significant Changes to Existing Law

• Expanded employee protections
  • Incarcerated people are explicitly included as employees under major labor and safety statutes (Fair Labor Standards Act, Public Employee Labor Relations Act, OSHA, and related sections).
• Creation of a formal inmate-work system
  • Establishes MINNCOR industries with a defined purpose around education, training, and humane work opportunities for inmates.
• Wage and deduction framework for inmates
  • Sets minimum wage requirements and a structured system for allocating inmate earnings (savings, gate money, taxes, restitution, victim reparations, etc.).
• Oversight and implementation structure
  • Creates a high-level task force and regional subtask forces to oversee implementation, set regional job targets, and report on progress and outcomes.

Implementation Timeline Highlights

• First task force meeting expected by September 1, 2026.
• First subtask force meetings by October 1, 2026.
• First annual progress report due February 1, 2027, with subsequent yearly reports.

Potential Impacts to Consider

• For incarcerated individuals: potential access to formal employment, wages at or above minimum wage, educational and work-skill opportunities, and structured pathways to reentry.
• For employers (public and private): clearer framework to hire and utilize incarcerated labor under minimum wage and safety rules; opportunities to participate in job pipelines.
• For taxpayers and the state: potential cost implications of wage payments, training, and program administration, balanced against potential savings from reduced recidivism and better rehabilitative outcomes.
• For safety and rights: alignment with OSHA and labor standards aims to protect inmate workers; oversight aims to ensure humane and rehabilitative practices.

Summary

• The bill broadens the definition of employee to include incarcerated people who work in correctional facilities and related settings, and it applies this status across major labor, labor-relations, and safety laws.
• It creates MINNCOR as the state correctional industry program to provide education, training, and work for inmates, with wages and profits benefiting inmate rehabilitation.
• It sets up a detailed wage and deduction system for inmate earnings, balancing fair wages with costs of confinement and court obligations.
• It establishes an extensive implementation and oversight framework, including a governor-appointed task force and regional subtask forces, with annual reporting and explicit regional job targets and reforms to support humane and rehabilitative outcomes.

Relevant Terms - incarcerated person - employee - MINNCOR industries - MINNCOR - Minnesota correctional industries - Public Employee Labor Relations Act - Occupational Safety and Health Act of 1973 (OSHA) - Minnesota minimum wage (section 177.24) - gate money - savings account - room and board - restitution - court costs - Crime Victims Reparations Board - private industry employment - end of slavery implementation task force - task force - subtask forces - Greater Metro region (Faribault, Lino Lakes, Oak Park Heights, Stillwater, Shakopee) - northern region (Moose Lake, Willow River, Togo, Rush City, St. Cloud, Red Wing) - recidivism outcomes - implementation timelines - reporting to chairs and ranking minority members