Convict labor is the work of prison inmates on a construction site. Convict labor restricts competition since convict labor can be furnished at rates well below market labor costs or force account rates; therefore, federal regulations place limitations on using convict labor on a federal-aid highway project. states:

“No construction work shall be performed by convict labor at the site or within the limits of any Federal-aid highway construction project from the time of award of the contract or the start of work on force account until final acceptance of the work by the State Transportation Agency (TxDOT) unless it is labor performed by convicts who are on parole, supervised release, or probation.”

This same principal applies to projects involving federal funding and administered by a LG.

The terms “parole, supervised release or probation” refer to the status of a person who has completed the condition of imprisonment. “Supervised release” does not include inmates currently serving their imprisonment terms while performing supervised work either inside or outside the walls of the incarcerating facility. Thus, it is not acceptable to have inmates who are currently serving the terms of their incarceration performing work on a project where convict labor is prohibited.

The Texas Transportation Code allows the use of inmate labor on highway projects involving state funding.

In general, the LG must obtain TxDOT concurrence before using convict or inmate labor on projects. The required practices that must be followed are described in the .