201—37.9 (904) Private sector employment projects.
	   37.9(1) Definitions.
“Advisory board” means the prison industries advisory board.
“Deputy director of prison industries” means the department of corrections deputy director responsible for the day-to-day operations of prison industries including private sector individuals.
“Director” means the chief executive officer of the department of corrections.
“Workforce development board” means the state workforce development board.
“Workforce development director” means the chief executive officer of the department of workforce development.
	   37.9(2) Preapplication requirement. Prior to submitting an application to the deputy director of prison industries for a private sector employment project, the employer shall place a job order with a duration of at least 30 days with the nearest workforce development center. The job order will contain the prevailing wage determined by workforce development. The job order shall be listed statewide in all centers and on the department of workforce development’s jobs Internet Web site.
	   37.9(3) Employer application.
	      a.    	 Private sector employers requesting offender labor must submit the following to the deputy director of prison industries:
	       (1)  	 Work program, including job description;
	       (2)  	 Proposed wage rate;
	       (3)  	 Description of job site;
	       (4)  	 Duration of the work; and
	       (5)  	 A copy of the job order listing with workforce development.
	      b.    	 Upon receiving a written proposal to use offenders in a private sector work program, the deputy director of prison industries shall provide a copy of the private sector work proposal including job descriptions and proposed wages to the workforce development director.
	      c.    	 The deputy director of prison industries shall send a letter to the department of workforce development requesting verification of the employer’s 30-day job listing, the average wage rate for the job(s) the offenders will perform, the current unemployment rate in the county where the employer is located, and the current employment level of the company that will employ the offenders.
	      d.    	 The deputy director of prison industries and the warden/superintendent at the proposed institution shall review the proposed projects with the board of supervisors and the sheriff in the county where the project will be located.
	   37.9(4) Verification. The workforce development director shall verify the employment levels and prevailing wages paid for similar jobs in the area and provide to the deputy director of prison industries, in writing:
	      a.    	 Verification of the employer’s 30-day job listing;
	      b.    	 The number of qualified applicant referrals and hires made as a result of the job order;
	      c.    	 The average wage rate for the proposed job(s);
	      d.    	 The wage range;
	      e.    	 The current unemployment rate for the county where the employer is located; and
	      f.    	 The current employment levels of the company that will employ the offenders based upon the most recent quarter for which data is available.
	   37.9(5) Prevailing wages. The deputy director of prison industries shall obtain employment levels in the locale of the proposed job(s) and the prevailing wages for the job(s) in question from the department of workforce development prior to authorizing any private sector work program. The deputy director of prison industries will consider the average wage rate and wage range from the department of workforce development for the appropriate geographic area for which occupational wage information is available. The appropriate geographic area may be statewide. To reduce possible displacement of civilian workers, the deputy director of prison industries shall advise prospective employers and eligible offenders of the following requirements:
	      a.    	 Offenders shall not be eligible for unemployment compensation while incarcerated.
	      b.    	 Before the employer initiates work utilizing offender labor, the deputy director of prison industries shall provide the baseline number of jobs as established by the department of workforce development.
	      c.    	 In January and July of each year, the deputy director of prison industries shall receive from the department of workforce development the actual number of civilian workers by employer and shall compile a side-by-side comparison for each employer. A copy of the side-by-side comparison will be provided to the advisory board and workforce development director semiannually.
	   37.9(6) Ineligible projects. The deputy director of prison industries shall evaluate the information from the department of workforce development to verify nondisplacement of civilian workers. Employment of offenders in private industry shall not displace employed workers, apply to skills, crafts, or trades in which there is a local surplus of labor, or impair existing contracts for employment or services.
	   37.9(7) Notification and review.
	      a.    	 The deputy director of prison industries shall provide a copy of the private sector work proposal and the department of workforce development review of the private sector work proposal to the following:
	       (1)  	 Governor’s office;
	       (2)  	 Speaker of the house;
	       (3)  	 President of the senate;
	       (4)  	 Warden/superintendent at the proposed work site;
	       (5)  	 Local labor organization(s);
	       (6)  	 Director of workforce development; and
	       (7)  	 Department of Justice, Washington, DC.
	      b.    	 Within 14 calendar days of receiving the department of workforce development review, the deputy director of prison industries will consolidate the recommendations for review and approval by the director of corrections.
	   37.9(8) Prison industries advisory board review.
	      a.    	 Following approval by the director of corrections, the deputy director of prison industries shall forward the final proposal to the prison industries advisory board with the recommendation to approve or disapprove the work program, including all correspondence from the department of workforce development, the Department of Justice, and any local official who has offered comments.
	      b.    	 The deputy director of prison industries shall provide written documentation to the prison industries advisory board confirming that the proposed work project will not displace civilian workers. If displacement occurs, the deputy director of prison industries shall advise the private employer that the employer will be given 30 days to become compliant or the department of corrections will terminate the use of offender labor.
	   37.9(9) Disputes.
	      a.    	 Anyone who believes that the private sector work program violates this rule shall advise the department of workforce development. A written complaint may be filed in accordance with workforce development board rule 877—1.5(84A). The workforce development director shall consult with the deputy director of prison industries before the workforce development board makes a final recommendation(s) to resolve any complaint.
	      b.    	 The deputy director of prison industries will assist the department of workforce development in compiling all information necessary to resolve the dispute. The workforce development board shall notify the deputy director of prison industries and interested parties in writing of the recommended action to resolve a complaint, which will be binding on all parties.
This rule is intended to implement Iowa Code section 904.809.
[ARC 2100C, IAB 8/19/15, effective 8/12/15]