BOP Program Statement 8570.02 § 11

To determine pay for inmate group piece workers, the available “wage fund” is computed by

multiplying the units of production the group completed by the applicable rate or rates. The

hours actually worked in the 1st, 2nd, and 3rd grade jobs are to be increased by 150 percent, 100

percent, and 50 percent respectively and then added to the hours worked in 4th grade jobs to

determine basic hours. The total wage fund is divided by basic hours to determine the hourly rate

for 4th grade jobs. Rates for other grade jobs are to be determined by increasing the 4th grade

rate by the same percentages identified above.

Example: A group of workers produce 840 units during the month in 13,000 hours. The rate

established through time study or estimated using an engineering spreadsheet is $15 per unit. The

wage fund for the month is $12,600 (840 units times 15). Hours worked were: 1st grade 2,000

hours; 2nd grade 3,000 hours; 3rd grade 2,000 hours; 4th grade 6,000 hours. Pay rates are

determined as follows:

8570.02 9/3/2026 PROPERTY OF US GOVERNMENT 7

Step 1:

Job Grade Actual Hours % Added to Actual Hours

Worked (see ex.) to Compute Basic Hours

1st (2,000) + 150% (3,000) = (5,000)

2nd (3,000) + 100% (3,000) = (6,000)

3rd (2,000) + 50% (1,000) = (3,000)

4th (6,000) + None (0,000) = (6,000)

Total: (13,000) (20,000)

Step 2:

4th grade rate = total wage fund divided by basic hours. In this example, this is $12,600 divided

by 20,000 basic hours = .63 as 4th grade rate.

Step 3:

Job Grade Hourly Rate/Group Worker

1st 4th grade rate plus 150%

(.63 + 150% of .63 = .63 + .95 = $1.58)

2nd 4th grade rate plus 100%

(.63 + 100% of .63 = .63 + .63 = $1.26)

3rd 4th grade rate plus 50%

(.63 + 50% of .63 = .63 + .32 = $0.95)

4th 4th grade rate plus 0%

(.63 + 0% of .63 = .63 + .00 = $0.63)]

If sufficient work is not available to provide individual and group piece workers hourly earnings

equal to basic hourly rates, the Operations Manager, through the Warden, may request authority

from the FPI Assistant Director to change from the group piece plan to an hourly pay plan.

The wage fund may not be subsidized to bring wages up to the basic hourly rate if sufficient

work is available even though individual and group piece work hourly earnings are less than

hourly workers in the same grade.