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Prison Officials Scramble To Close Unemployment Loophole
By KITV
Published: 02/14/2003

Hawaii prison officials are scrambling to fix a loophole in state law that could shut down work programs in Hawaii's prisons. 
For years inmates have been working in vocational programs, where they are learning the tricks of the garment industry. They get paid and learn new skills to help them once they are out of jail. 
State officials said the inmates aren't considered employees. So, it came as a surprise when a former inmate was able to claim his job behind bars in order to get unemployment benefits. 
'He was able to apply part of his work time to his other job and he was laid off,' acting public safety director James Propotnick said. 
The Labor Department said at the time it was not aware inmates worked with private industry. Public safety said it only learned the former inmate collected unemployment after the fact, which triggered a review of state law. 
Officials discovered that while federal law exempts inmates from unemployment benefits state law apparently does not. 
'The correctional industries would be required to pay unemployment benefits which was never intended. We don't have that kind of money,' Propotnick said. 
If the loophole isn't closed officials said they will close down the programs.



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