BOP Program Statement 8570.02 § 12

The Warden is authorized to set the incentive piece rates, based upon the recommendations of the

Factory Manager, Operations Manager, and General Manager. Piece rates are to approximate the

standard hourly rate. Actual rates of pay will vary depending on the skills of an individual but

ordinarily are limited to no more than 20 percent above the standard rate.

The Operations Manager must explain on the monthly MOU reasons incentive rates exceed the

published maximums in any given month. The explanation is to include:

8570.02 9/3/2026 PROPERTY OF US GOVERNMENT 8

 The number of inmates receiving wages in excess of 120 percent of standard pay,

 The effective hourly rate of pay, and

 The reasons for the approval.

The local work measurement coordinator must review pay rates exceeding 120 percent of the

corresponding standard rate for the job grade for more than three consecutive months for

accuracy. The documentation for the corresponding standard rate must then be submitted for the

approval of the General Manager if any of the following conditions are met:

 Over 25 percent of the inmates assigned to the corresponding standard rate are entitled to

a wage exceeding 120 percent of the piece rate for the corresponding standard rate.

 Modifications in equipment or procedures occurred since the corresponding standard rate

was established.

The General Manager will approve or deny the request in writing and justify their action. If

approved, the pay rate of the corresponding standard rate is effective until any of the following

conditions are met:

 Over 25 percent of the inmates assigned to the corresponding standard rate are entitled to

a wage exceeding 120 percent of the regular hourly wage.

 Modifications in equipment or procedures occurred since the establishment of the

corresponding standard rate.

 One year has occurred since the General Manager approved the corresponding standard

rate.

The Operations Manager must review all pay rates exceeding 120 percent of the corresponding

standard rates for more than three consecutive months for accuracy annually, and documentation

for the corresponding standard rate must be submitted for approval by the appropriate General

Manager.