§ 187. Earnings of incarcerated individuals. 1. Every incarcerated individual confined in a state correctional facility, subject to the rules and regulations of the department of corrections and community supervision, and every incarcerated individual confined in a local correctional facility, in the discretion of the sheriff thereof, may receive compensation for work performed during his or her imprisonment. Such compensation shall be graded by the department of corrections and community supervision with regard to incarcerated individuals employed in prison industries, based upon the work performed by such prisoners for prisoners confined in state correctional facilities, and by the sheriffs in all local correctional facilities for incarcerated individuals confined therein.

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2. The department of corrections and community supervision shall adopt rules, subject to the approval of the director of the budget, for establishing in all of the state correctional facilities a system of compensation for the incarcerated individuals confined therein. Such rules shall provide for the payment of compensation to each incarcerated individual, who shall meet the requirements established by the department of corrections and community supervision, based upon the work performed by such incarcerated individuals.

3. The department shall prepare graded wage schedules for incarcerated individuals, which schedules shall be based upon classifications according to the value of work performed by each. Such schedules need not be uniform in all institutions. The rules of the department shall also provide for the establishment of a credit system for each incarcerated individual and the manner in which such earnings shall be paid to the incarcerated individual or his or her dependents or held in trust for him or her until his or her release.

4. Any compensation paid to an incarcerated individual under this article shall be based on the work performed by such incarcerated individual. Compensation may be paid from moneys appropriated to the department and available to facilities for nonpersonal service.