Federal Appeals Court Case Could Mandate Minimum Wage for ICE Detainees
A pivotal case in a federal appeals court may require private prison companies operating U.S. Immigration and Customs Enforcement (ICE) detention centers to pay state minimum wage to detainees participating in voluntary work programs.
Following Donald Trump’s 2024 election win, private firms managing prisons and immigration detention centers have drawn media focus. A key Trump policy involves deporting “millions and millions” of undocumented individuals, leading to ICE detention centers operating at 109 percent capacity.
Amidst this, a significant legal battle involves GEO Group, a private prison company and federal contractor. The company, which operates the Northwest Immigration and Customs Enforcement Processing Center in Tacoma, Washington, is appealing a decision requiring it to pay minimum wage to civil detainees for voluntary work.
The Tacoma facility, with 1,575 beds, is the fourth-largest immigration detention center in the U.S.
In 2021, a jury ordered GEO Group to provide $17.3 million in back pay to detainees who were paid $1 a day for their work, along with $6 million to the state for unjust enrichment. The detainees and the state contend that GEO Group’s actions violated state minimum wage laws.
The Ninth Circuit Court of Appeals affirmed the jury’s decision earlier this year. Yet, GEO Group has requested a rehearing, asserting that federal preemption principles and intergovernmental immunity should exempt them from state wage laws. Their argument hinges on the U.S. Constitution’s Supremacy Clause, which establishes federal law precedence over state law.
GEO Group’s contract with ICE mandates at least $1 a day compensation for detainee work. The firm suggests that if the Voluntary Work Program were to end, approximately 85 full-time employees would be needed to cover the detainees’ work.
The Ninth Circuit panel disagreed with GEO Group, asserting that state minimum wage laws apply to all private employers, potentially imposing financial burdens on federal contractors managing ICE facilities. Unlike these facilities, Washington’s state-run detention centers are not subject to the same requirements, as their law exempts residents and inmates from minimum wage.
GEO Group entered a 10-year management contract with ICE in 2015, anticipating $57 million in annual revenue from the Tacoma facility. In early 2024, the Biden administration’s Justice Department submitted a brief supporting GEO Group’s position against applying state wage laws to federal contractors.
Beyond Washington, GEO Group faces similar legal challenges in California and Colorado, seeking to avoid precedent that would enforce state minimum wages in its facilities. The Colorado case may reach the Tenth Circuit Court of Appeals, and differing outcomes between the circuits could prompt Supreme Court intervention.
Over 90 percent of individuals in immigrant detention are housed in facilities operated by private firms like GEO Group. Companies such as CoreCivic, MTC, and LaSalle Corrections are also potentially affected. Should they be required to pay minimum wages, these firms may look to recoup costs through future federal contract negotiations.
