AB 726

Current law provides that the Department of Corrections sets the rate of pay for inmates of state prisons or residents working in state correctional institutions and the Prison Industries Board sets wages for inmates employed by the Bureau of Correctional Enterprises. Under current law, BCE employees may be paid an hourly rate plus an incentive wage based on productivity in some instances, but wages may not be set at a rate that would cause a deficit on operations.

The bill provides that all inmates and residents that perform labor must be paid a wage and, in addition to the standards under current law, provides that no inmate or resident of a state correctional institution may be paid a wage that is less than the rate for tipped workers, which is currently $2.33 per hour. The bill removes the provision that wages may not be set at a rate that would cause a deficit on operations.

The bill increases all wages established by PIB for payment to inmates employed by BCE by $2.33 on the effective date of the bill.

The bill provides that any prisoner in a county jail, house of correction, huber facility, or work camp must be paid a wage that is not less than the rate for tipped workers, which is currently $2.33 per hour.

The bill also provides to DOC $58,933,600 in fiscal year 2025-26 and $88,400,400 in fiscal year 2026-27 to pay the wages of inmates in state correctional institutions and $873,300 in fiscal year 2025-26 and $1,310,000 in fiscal year 2026-27 to pay the wages of inmates engaged in labor under BCE.