(a) Employment that an inmate of a custodial or penal institution performs for a nonprofit organization or a governmental entity is not covered employment.

(b) (1) Except as provided in paragraph (2) of this subsection, employment that an inmate of a custodial or penal institution performs for a private, for-profit employer is not covered employment.

(2) Employment that an inmate of a custodial or penal institution performs for a private, for-profit employer is covered employment if the inmate continues to be employed by the private, for-profit employing unit after being permanently released from the custodial or penal institution, including released by parole.