If you’re considering hiring inmates through a work-release program, carefully weigh whether you will have to pay them as regular employees under the FLSA, or whether you may be able to pay them less. According to a recent 5th Circuit decision, prisoners specifically sentenced to hard labor may not be covered by the FLSA. Their employers may pay them less than minimum wage, and they’re not eligible for overtime pay.
Hiring work-release prisoners? Some aren’t covered by FLSA’s pay, overtime rules
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