In the 1980s, there was a renewed interest in private prisons which proliferated during the 20th century. However, with the establishment of a growing number of private correctional institutions, several legal and operational questions emerged. One of which was the legal status of employees working for a private entity while performing the public function of incapacitation ordered by Federal and State courts. In June 1997, in Richardson v. McKnight, the U.S. Supreme Court by a five to four majority decided that employees of private correctional companies do not have the same qualified immunity that workers in government correctional institutions have. This article presents the theoretical, penological, and legal issues concerning the majority and minority arguments and some of the opinions expressed in the reviews concerning this decision. In addition, the possible effects of the case are reviewed showing the inconsistencies in both the majority and minority opinions. Notes, references