Employment that an incarcerated individual of a custodial or penal institution performs for a nonprofit organization or a governmental entity is not covered employment. Except as provided in paragraph (2) of this subsection, employment that an incarcerated individual of a custodial or penal institution performs for a private, for–profit employer is not covered employment. Employment that an incarcerated individual of a custodial or penal institution performs for a private, for–profit employer is covered employment if the incarcerated individual 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.