Apprenticeship Programs, Labor Standards for Registration, 62966-62978 [2021-24786]

Download as PDF 62966 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules Number of responses Description of information collection Responses per year Total annual responses Hours per response Total hours Form HUD–50058—Family Report (OMB No. 2577–0083) Monitoring Review Self-Assessment Checklist ................... PBRA FSS Program Reporting ........................................... 750 750 200 100 .20 1 75,000 150 200 0 2 1 0 300 200 Total .............................................................................. ........................ ........................ ........................ 33.7 71,126 * HUD–1044, Award/Amendment is completed by HUD staff, signed by the recipient of the grant, and returned to HUD. This form is a certification, and HUD ascribes no burden to its use. 1 Burden hours for forms showing zero burden hours in this collection are reflected in the OMB approval number cited or do not have a reportable burden. III. Questions for Public Comment In accordance with 5 CFR 1320.8(d)(1), HUD is soliciting comments from members of the public and affected agencies concerning the information collection requirements in this supplemental notice of proposed rulemaking regarding: (1) Whether the proposed collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (2) The accuracy of the agency’s estimate of the burden of the proposed collection of information; (3) Whether the proposed collection of information enhances the quality, utility, and clarity of the information to be collected; and (4) Whether the proposed information collection minimizes the burden of the collection of information on those who are to respond; including through the use of appropriate automated collection techniques or other forms of information technology (e.g., permitting electronic submission of responses). Aaron Santa Anna, Associate General Counsel for Legislation and Regulations. [FR Doc. 2021–24636 Filed 11–12–21; 8:45 am] BILLING CODE 4210–67–P DEPARTMENT OF LABOR 29 CFR Part 29 [Docket No. ETA–2021–0007] RIN 1205–AC06 Apprenticeship Programs, Labor Standards for Registration Employment and Training Administration, Labor. ACTION: Proposed rule; request for comments. khammond on DSKJM1Z7X2PROD with PROPOSALS AGENCY: The U.S. Department of Labor (DOL or the Department) proposes to rescind its regulation regarding Standards Recognition Entities (SREs) of Industry-Recognized Apprenticeship SUMMARY: VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 Programs (IRAPs). Specifically, the proposed rule would rescind the regulatory framework for the Department’s recognition of SREs and SREs’ role in recognizing IRAPs, and make necessary conforming changes to the Department’s registered apprenticeship regulations. DATES: To be ensured consideration, comments must be received on or before January 14, 2022. ADDRESSES: You may submit written comments electronically by the following method: • Federal eRulemaking Portal: https://www.regulations.gov. Follow the instructions on the website for submitting comments. Label all submissions with docket number ETA– 2021–0007 and RIN 1205–AC06. Instructions. Include docket number ETA–2021–0007 in your comments as well as RIN 1205–AC06. You may submit comments, identified by docket number ETA–2021–0007 and RIN 1205–AC06, by using the Federal eRulemaking portal: https:// www.regulations.gov. Follow the website instructions for submitting comments (under ‘‘Help’’ > ‘‘How to use Regulations.gov’’). Please be advised that the Department will post all comments received that relate to this proposed rule on https:// www.regulations.gov without making any change to the comments or redacting any information. The https:// www.regulations.gov website is the Federal eRulemaking portal, and all comments posted there are available and accessible to the public. Therefore, the Department recommends that commenters remove personal information, such as Social Security numbers, personal addresses, telephone numbers, and email addresses, included in their comments, as such information may become easily available to the public via the https:// www.regulations.gov website. It is the responsibility of the commenter to safeguard personal information. FOR FURTHER INFORMATION CONTACT: Heidi Casta, Acting Administrator, Office of Policy Development and PO 00000 Frm 00007 Fmt 4702 Sfmt 4702 Research, U.S. Department of Labor, 200 Constitution Avenue NW, Room N– 5641, Washington, DC 20210, Telephone: (202) 693–3700 (voice) (this is not a toll-free number) or 1–800–326– 2577 (TDD). SUPPLEMENTARY INFORMATION: I. Background The National Apprenticeship Act of 1937 (NAA), 29 U.S.C. 50, authorizes the Secretary of Labor (Secretary) to: (1) Formulate and promote the use of labor standards necessary to safeguard the welfare of apprentices and to encourage their inclusion in apprenticeship contracts; (2) bring together employers and labor for the formulation of programs of apprenticeship; and (3) cooperate with State agencies engaged in the formulation and promotion of standards of apprenticeship. 29 U.S.C. 50. The Department promulgated regulations to implement the NAA at 29 CFR part 30 (equal employment opportunity in apprenticeship) in 1963 and part 29 (labor standards for the registration of apprenticeship programs) in 1977. The part 30 regulations prohibit discrimination in registered apprenticeship based on race, color, religion, national origin, sex, sexual orientation, age (40 or older), genetic information, and disability, and they require sponsors of registered apprenticeship programs (RAPs) to take affirmative action to provide equal opportunity in such programs. The part 29 regulations set forth labor standards safeguarding the welfare of apprentices, including: Prescribing policies and procedures concerning the registration, cancellation, and deregistration of apprenticeship programs; recognizing State Apprenticeship Agencies (SAAs) as Registration Agencies; and matters relating thereto. The Department significantly updated 29 CFR part 29 in 2008 to ‘‘increase flexibility, enhance program quality and accountability, and promote apprenticeship opportunity in the 21st century, while continuing to safeguard the welfare of apprentices’’ (73 FR 64402, Oct. 29, 2008), and updated 29 CFR part 30 in 2016 ‘‘to E:\FR\FM\15NOP1.SGM 15NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules modernize equal employment opportunity regulations’’ (81 FR 92026, Dec. 19, 2016). These regulations provide the framework for the registered apprenticeship system. On June 15, 2017, President Trump issued Executive Order (E.O.) 13801, ‘‘Expanding Apprenticeships in America’’ (82 FR 28229), which directed the Secretary to consider issuing regulations that promote the development of IRAPs by third parties. Section 8(b)(iii) of E.O. 13801 also established a Task Force on Apprenticeship Expansion (Task Force) to identify strategies and proposals to promote apprenticeships, to include ‘‘the most effective strategies for creating industry-recognized apprenticeships.’’ Based on E.O. 13801 and the Task Force’s recommendations, the Department issued a new rule entitled ‘‘Apprenticeship Programs, Labor Standards for Registration, Amendment of Regulations’’ (IRAP rule), codified at 29 CFR part 29, subpart B, which established the IRAP system. 85 FR 14294 (Mar. 11, 2020). The IRAP rule established a process for DOL’s Office of Apprenticeship (OA) Administrator (Administrator) to recognize qualified third-party entities, known as SREs, which would, in turn, evaluate and recognize IRAPs. The IRAP rule set forth the requirements for thirdparty entities applying for Departmental recognition as SREs. It also identified certain requirements apprenticeship programs must meet in order to obtain recognition from SREs as IRAPs. The IRAP rule was published on March 11, 2020, and went into effect on May 11, 2020. As of the date of this proposed rule, the Department has recognized 27 SREs, which have, in turn, recognized 175 IRAPs, with 165 of these programs recognized by a single SRE. On February 17, 2021, President Biden issued E.O. 14016, ‘‘Revocation of Executive Order 13801’’ (86 FR 11089), which in section 2 directed Federal agencies to ‘‘promptly consider taking steps to rescind any orders, rules, regulations, guidelines, or policies’’ implementing E.O. 13801. Pursuant to E.O. 14016, on February 17, 2021, the Department announced it would be undertaking a review of the IRAP system and as a result suspended the acceptance of new applications to become a recognized SRE and suspended making final determinations for organizations that had already submitted an application to become a recognized SRE.1 The Department advised that all SREs already approved 1 https://www.dol.gov/newsroom/releases/eta/ eta20210217. VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 by the Department and all IRAPs recognized by an SRE could continue to perform their functions as described in the regulation, to include the recognition of new IRAPs. The Department’s review of the IRAP system and proposed rescission of the IRAP rule has been informed by the Administration’s priority to create jobs ‘‘to be filled by diverse, local, welltrained workers who have a choice to join a union’’ through strengthening RAPs.2 The Department is focused on rebuilding the middle class, connecting a diverse workforce to family-sustaining jobs, and playing an active role in the rebuilding of the workforce to address the effects of the 2019 Coronavirus Disease pandemic in a manner consistent with its mission to ‘‘foster, promote, and develop the welfare of the wage earners, job seekers, and retirees of the United States; improve working conditions; advance opportunities for profitable employment; and assure work-related benefits and rights.’’ 3 As such, the Department plays an important role in ensuring workers are paid a fair wage, provided a safe workplace, and provided the tools and training necessary to access equitable economic opportunity and success. This mission is always important, but even more so as the country emerges and begins to recover from the 2019 Coronavirus Disease pandemic.4 The pandemic has led to millions of workers becoming unemployed, and it has exposed vulnerabilities and fissures in our economy as a result of systemic racism and economic inequality, of which the burdens were felt greatest by low-wage earners and communities of color. The Department views the registered apprenticeship system—a system that has benefited thousands of 2 White House, ‘‘Fact Sheet: Biden Administration to Take Steps to Bolster Registered Apprenticeships’’ (Feb. 17, 2021), available at https://www.whitehouse.gov/briefing-room/ statements-releases/2021/02/17/fact-sheet-bidenadministration-to-take-steps-to-bolster-registeredapprenticeships/. 3 https://www.dol.gov/general/aboutdol. 4 The IRAP rule was published on March 11, 2020, which is the same day that the World Health Organization declared COVID–19 a pandemic and 2 days before the President declared a national emergency concerning the COVID–19 pandemic. See World Health Organization Director General’s opening remarks at the media briefing on COVID– 19 (Mar. 11, 2020), available at https:// www.who.int/director-general/speeches/detail/whodirector-general-s-opening-remarks-at-the-mediabriefing-on-covid-19---11-march-2020; Proclamation 9994, Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID–19) Outbreak, 85 FR 15337 (Mar. 13, 2020). The declaration of a national emergency continues as of the date of the publication of this proposed rule. Continuation of the National Emergency Concerning the Coronavirus Disease 2019 (COVID– 19) Pandemic, 86 FR 11599 (Feb. 24, 2021). PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 62967 workers and employers throughout its existence—as a far more effective system than IRAPs for delivering on DOL’s mission to help workers access family-sustaining jobs, protect the safety and welfare of apprentices, and reach out to underserved communities. The IRAP rule, conversely, does not align with the Administration’s and Department’s priorities for several reasons, as discussed in further detail below. Among them is that IRAPs have fewer quality training and worker protection standards than RAPs and, contrary to the conclusions in the IRAP rule, the Department no longer considers it appropriate or necessary to create an additional apprenticeship model, particularly one that does not guarantee the same protections for apprentices. The IRAP rule also threatens to undermine the robust and successful registered apprenticeship system by creating a duplicative system that lacks sufficient oversight and quality necessary to ensure the Department endorses programs meeting the needs of the American workforce and economy. Although the IRAP rule was premised on the idea that parallel apprenticeship systems were preferable as a means to better grow apprenticeship generally, upon further consideration and review the Department thinks that the existence of two parallel systems overseen by the Department is an inefficient and ineffective use of its resources. In the IRAP rule, IRAPs were touted as a more flexible, industry-driven model that would enable expansion of apprenticeship into new industries and occupations. However, as explained in greater detail below, the Department has reconsidered this conclusion and now thinks that the IRAP rule is redundant and not necessary to broaden the scope of apprenticeship coverage by industry. In addition, upon review the Department now thinks that the IRAP rule does not provide adequate focus on worker needs and protections, does not ensure adequate program quality standards, does not provide sufficient equal employment opportunity protections for apprentices, and does not provide a proven pathway to familysustaining jobs. The Department therefore believes that focusing its efforts and resources on expanding the registered apprenticeship system will more effectively meet the needs of industry and workers alike, and has concluded that the best path forward is to rescind the IRAP rule and focus on further strengthening the successful registered apprenticeship system. E:\FR\FM\15NOP1.SGM 15NOP1 62968 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules II. The Registered Apprenticeship System is Highly Successful for Industry khammond on DSKJM1Z7X2PROD with PROPOSALS For over 80 years, the registered apprenticeship system has met the demands from industry to provide quality work-based training. RAPs combine paid on-the-job learning (OJL) with related instruction to progressively increase workers’ skill levels and wages. With this ‘‘earn and learn’’ model, apprentices are employed and earn wages from the first day on the job. Industries that have adopted RAPs as part of their work-based learning models have cited the standards, skillsets, and retention offered by skilled workers associated with RAPs as advantageous to their bottom line. In one survey, nearly three-fourths of surveyed employers stated that registered apprenticeships drove increased worker productivity.5 RAPs are a flexible training strategy that can be customized to meet the needs of any business, including allowing employers to partner with workforce partners and educators to develop and apply industry standards to training programs, thereby increasing the quality and productivity of the workforce. A skilled workforce is foundational to a strong economy, and registered apprenticeship provides a proven avenue by which to deliver much needed talent development to various industry sectors, including as the economy recovers from the disruption cause by the COVID–19 pandemic. Employers have continued to turn to registered apprenticeship to hire and train new employees, with over 221,000 new registered apprentices over the past year across several industries, including cybersecurity, healthcare, advanced manufacturing, transportation, energy, and information technology (IT).6 This growth is not an anomaly. Since its establishment, the registered apprenticeship system has, with few exceptions, shown strong growth. The past 5 years saw the creation of over 13,500 new RAPs. In 2020 alone, there 5 Urban Institute Research Report, ‘‘The Benefits and Challenges of Registered Apprenticeship: The Sponsors’ Perspective’’ (June 12, 2009), available at https://www.urban.org/research/publication/ benefits-and-challenges-registered-apprenticeshipsponsors-perspective. 6 The 25 federally administered States and 18 federally recognized SAAs use the Employment and Training Administration’s Registered Apprenticeship Partners Information Database System (RAPIDS) to provide individual apprentice and sponsor data. These data represent registered apprenticeship national results for Fiscal Year (FY) 2020 (Oct. 1, 2019–Sept. 30, 2020), as reported by these entities, and are available at https:// www.dol.gov/agencies/eta/apprenticeship/about/ statistics/2020. VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 were nearly 26,000 RAPs active across the nation, and 3,143 new apprenticeship programs were established nationwide, representing 73percent growth from 2009 levels.7 Despite the COVID–19 pandemic, 2020 represents the third-highest year of new RAP development over the past decade. As a result of these programs, more than 221,000 new workers became apprentices in 2020. In total, there were over 636,000 apprentices across the Nation who were obtaining skills while earning the wages they need to build financial security, and over 80,000 apprentices have successfully completed their program and received a certificate of completion recognized by industries across the Nation.8 Apprentices who have successfully completed their program and received their certificate of completion have high career retention rates, with over 94 percent of graduates retaining employment.9 The continued, sustained growth of registered apprenticeship demonstrates it remains a trusted and successful framework that industry can leverage to develop and retain a skilled workforce. The Department expects this broadbased growth to continue as the registered apprenticeship system is an important part of the Administration’s workforce development strategy, including its COVID–19 recovery strategy in which registered apprenticeship can provide a bridge to businesses to an economic recovery. Thus, registered apprenticeship has been, and will continue to be, an important long-term education and talent development strategy for all workers, and in turn for industry. III. The Registered Apprenticeship System is Highly Successful for Workers In addition to the demonstrated success of the registered apprenticeship system as a workforce training model for industry, it has proven to be highly successful and beneficial to workers because of its emphasis on both highquality training and apprentice safety and welfare. Registered apprenticeship is designed to ensure high-quality training through mentorship, OJL, and related instruction while also prioritizing safety, wage progression, 7 OA 2020 Data and Statistics, available at https:// www.dol.gov/agencies/eta/apprenticeship/about/ statistics/2020. 8 OA 2020 Data and Statistics, available at https:// www.dol.gov/agencies/eta/apprenticeship/about/ statistics/2020. 9 OA Career Seeker Fact Sheet (Sept. 2020), available at https://www.apprenticeship.gov/sites/ default/files/Career_Seeker_Fact_Sheet.pdf. PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 and equal employment opportunity for apprentices. Registered apprenticeships follow federally approved industry standards for workplaces, and programs must abide by set ratios for supervision to further enhance safety in the program. During training, apprentices are guaranteed progressive wage increases, and research shows that Registered Apprenticeship program completers earn over $300,000 (including benefits) more over their lifetimes as compared with individuals who do not complete a registered apprenticeship.10 Further, the Department has taken significant steps to increase the participation of women and individuals from underrepresented groups through the robust requirements in 29 CFR part 30. With registered apprenticeship, there is also an added level of accountability because the Department can exercise its enforcement authority to intervene and ensure employers provide industry-established prevailing wages, ensure stringent safety standards are in place, and monitor program quality to protect workers. In contrast, the IRAP model was designed in a way that does not incorporate these same benefits and protections. IRAPs do not ensure that programs uniformly produce a high quality of training recognized across the Nation, are not designed to promote and advance diversity in the apprenticeship system, and do not include the same apprentice safety and welfare requirements as the RAP model. The IRAP model was designed as a handsoff approach, requiring SREs to play the primary role in program monitoring and intervention. The Department no longer views this as a reasonable or effective alternative to the standards and oversight that are the hallmarks of the registered apprenticeship system. While SREs are responsible for establishing and enforcing the individual standards of the programs under their purview, each SRE may have differing standards and views on acceptable levels for performance. For example, IRAPs’ lack of uniform requirements regarding a progressively increasing wage, enhanced safety standards, and affirmative action goals mean there is no 10 See, e.g., Mathematica Policy Research, ‘‘An Effectiveness Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 10 States: Final Report’’ (July 25, 2012), https://wdr.doleta.gov/ research/FullText_Documents/ETAOP_2012_ 10.pdf. The study cautions against interpreting its results, which do not control for unobservable skill or motivation, as having conclusively identified the effects of registered apprenticeships on earnings. Moreover, the estimates do not represent increments between registered apprenticeships and IRAPs (the latter not having been implemented at the time the study was conducted). E:\FR\FM\15NOP1.SGM 15NOP1 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules uniformity across different IRAPs and SREs. This is fundamentally inconsistent with the Department’s goal of expanding quality apprenticeships in a manner that both ensures a high level of quality while also retaining industry input and flexibility to adapt the apprenticeship model to different industries and occupations. RAPs—which can be, and have been, adapted to different occupations and are recognized for their high quality and effective worker protections—have proven effective in striking an appropriate balance between the structure necessary to ensure highquality training and the flexibility necessary to adapt the apprenticeship model to different industries and occupations. Further, the Department’s ability to intervene to address disparities in quality and worker protections across IRAPs is limited because the Department does not have the ability to directly monitor or oversee IRAPs, and such disparities may cause confusion for apprentices and promote inequitable outcomes among program participants. khammond on DSKJM1Z7X2PROD with PROPOSALS A. Registered Apprenticeships Uniformly Provide More Rigorous, Higher Quality Training As described further below, registered apprenticeships must adhere to rigorous training requirements, to include OJL and related instruction. When compared to registered apprenticeships, IRAPs do not have the same standards for minimum skill level or competency baselines in their respective occupations. 1. On-the-Job Learning A structured OJL model is a hallmark of a high-quality apprenticeship program, as this framework provides standardized evaluation of apprentice proficiency using a time-based model, competency-based model, or a hybrid of both, with benchmarks that ensure mastery in the apprentice’s respective occupation and flexibility in the approach used that ensures apprenticeships can be developed and customized to a variety of occupations. Registered apprenticeships generally require a minimum of 2,000 hours (or 1 year) of OJL for time-based and hybrid programs. Registered apprenticeships can also be measured against skillsbased competencies, and the amount of OJL typically amounts to 1 year but may take more or less time depending on the individual. The standardized approach to OJL employed in registered apprenticeships ensures apprentices have the necessary time, within a structured framework, to apply their VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 skills and training in practice and apprentices meet minimum skill level or competency baselines before entering the workforce. Further, registered apprenticeships are assessed based, in part, on whether OJL is available for all phases of an apprentice’s training. Because OJL is a critical component for the apprentice’s learning experience, the Department considers a structured mentorship requirement as a strength for high-quality apprenticeship programs. Registered apprenticeships pair apprentices with experienced employees (also referred to as Journeyworkers) who have already mastered the skills and competencies associated with the occupation such that these individuals can mentor apprentices with on-the-job guidance and direction that ensures safety and quality training. In contrast, IRAPs are not required to have a robust, structured OJL model. Instead, IRAPs need only follow the written training plan established by the SRE—a plan that has no requirements other than that it be formulated using consensus-based competency standards. Because not all IRAPs provide the same structured, standardized framework for OJL as RAPs, the quality of training can vary across SREs and, in turn, IRAPs. As a result, apprentices participating in IRAPs may lack access to rigorous, structured OJL—a critical component of a high-quality apprenticeship program because it equips registered apprentices to enter the workforce. Although the training provisions of the IRAP rule were based on the assumption that SREs are in the best position to establish OJL frameworks, the Department now views this lack of uniformity in OJL as inconsistent with the goal of growing a highly skilled workforce through apprenticeship as it could too easily lead to apprenticeship programs that do not provide sufficient training to apprentices. The Department thinks that the existing OJL models available under the registered apprenticeship system— which can be adapted to different occupations and are recognized for their high quality and effective worker protections—have proven effective in striking an appropriate balance between the structure necessary to ensure highquality training and the flexibility necessary to adapt the apprenticeship model to different industries and occupations. 2. Related Instruction As important as OJL is the related instruction 11 component of an 11 ‘‘Related instruction’’ is an organized and systematic form of instruction designed to provide PO 00000 Frm 00010 Fmt 4702 Sfmt 4702 62969 apprenticeship program. By requiring related instruction as part of registered apprenticeship, the Department ensures employers are equipping apprentices with the theoretical and technical knowledge in subjects related to their respective occupations. This is essential to a high-quality apprenticeship program, and it is the Department’s priority that minimum related instruction standards are integrated into the apprenticeship programs it recognizes. A minimum of 144 hours of related instruction is recommended for registered apprenticeships, and recognizing the benefit of robust related instruction, most registered apprenticeships exceed the 144-hour recommendation. This approach ensures apprentices uniformly receive meaningful and substantive knowledge in their respective occupations, creating a well-rounded training experience that provides the educational foundation necessary for success in practical settings, while also retaining flexibility based on different industries and occupations that may require varying amounts of related instruction. In contrast, the IRAP requirements lack standards on minimum related instruction hours, and do not articulate how SREs monitor or evaluate related instruction. As a matter of design, apprentices in an IRAP may lack access to this key component of a high-quality apprenticeship program and apprentices and the program therefore may not provide sufficient educational experiences for the foundational knowledge that is necessary in their occupations. In the IRAP rule, the Department viewed SREs as best-placed to develop the standards and frameworks on related instruction, but it no longer finds this approach consistent with the goal of expanding high-quality apprenticeships. Instead the Department finds that the conspicuous absence of minimum standards and an articulated approach to evaluation for related instruction in IRAPs means the Department cannot uniformly ensure apprentices in those programs receive the theoretical and technical knowledge necessary in their respective occupations, which is a hallmark of a high-quality apprenticeship program and necessary to developing a highly skilled workforce. Accordingly, the Department cannot ensure IRAPs are the apprentice with the knowledge of the theoretical and technical subjects related to the apprentice’s occupation. Such instruction may be given in a classroom, through occupational or industrial courses, or by correspondence courses of equivalent value, electronic media, or other forms of self-study approved by the Registration Agency. 29 CFR 29.2. E:\FR\FM\15NOP1.SGM 15NOP1 62970 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules providing the quality of related instruction necessary to ensure apprentices are competent in these occupations, which conflicts with the Department’s goal of expanding highquality apprenticeships. khammond on DSKJM1Z7X2PROD with PROPOSALS B. Registered Apprenticeships Provide Better Safety and Welfare Protections The importance of apprentice safety and welfare cannot be overstated. As discussed further below, the registered apprenticeship system includes requirements related to safety, equal employment, progressive wages, and other worker protections that provide apprentices with meaningful employment opportunities while also guaranteeing rights and protections on the job. In contrast, the requirements of the IRAP rule fall short in these areas. As discussed further below, the requirements include basic compliance with existing laws but do not create additional obligations that focus on safeguarding the welfare of apprentices, especially with respect to progressively increasing wages, safety requirements, and equal employment opportunity (EEO). The IRAP rule also dilutes the Department’s role in overseeing apprenticeships, tasking SREs with this oversight role instead and retaining only a minimal role in overseeing the SREs. 1. Workplace Safety Enhanced safety standards are an essential element of a successful apprenticeship program. While the additional requirements of RAPs are designed to keep apprentices safe, this does not mean each RAP requires the same training or same safety precautions—these are workplace- and industry-specific requirements within the framework of the registered apprenticeship system. RAPs require several safety protections designed to both teach apprentices how to work safely within their occupation and create safe workplaces for apprentices. RAPs must specify a numeric ratio of apprentices to Journeyworkers ‘‘consistent with proper supervision, training, safety, and continuity of employment.’’ 29 CFR 29.5(b)(7). They must also have ‘‘[a]dequate and safe equipment and facilities for training and supervision’’ in addition to ‘‘safety training for apprentices on the job and in related instruction.’’ 29 CFR 29.5(b)(9). Though broad, these safety requirements focus on both physical workplace safety and safety through training and mentorship. Further, they are meant to protect the safety of apprentices in each RAP by being tailored to the specific conditions VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 in which those apprentices will be working and learning. In contrast, IRAPs are not necessarily covered by enhanced safety standards beyond generally applicable Federal, State, and local safety laws and regulations and any additional safety requirements of the SRE. While a SRE may require an IRAP to have stricter, more tailored safety standards than required by applicable law, this discretionary requirement is insufficient to protect the safety of apprentices who, by definition, are being trained on the job and therefore would benefit from additional workplace protections, particularly for less skilled workers training in occupations that pose a higher risk of injury or death. Although the safety provisions of the IRAP rule were based on the assumptions that SREs would be able to better determine the safety standards relevant to their IRAPs and that compliance with generally applicable workplace safety standards was a sufficient baseline requirement, the Department now disagrees with leaving such a determination to the SRE, especially without the important safety parameters requirements of the registered apprenticeship system. The registered apprenticeship regulations require a ratio of apprentices to journeyworkers, safe equipment and facilities for training and supervision, and the provision of safety training on the job and in related instruction. However, the registered apprenticeship regulations do not prescribe how to meet these requirements, leaving sufficient flexibility for implementation. This ensures a process for taking into consideration both industry needs and apprentice safety that is not present in the IRAP rule. The Department views this as the more appropriate approach given that apprentices are learning on the job and therefore benefit from enhanced training and protections. 2. Progressive Wages It is a priority of the Department to grow opportunities to help workers access family-sustaining jobs. Registered apprenticeship’s earn-as-you-learn model accomplishes this priority by providing for progressively increasing wages for apprentices as they progress in their apprenticeship experience, learning, and skills. In registered apprenticeship, the graduated scale of wages and any compensation for related instruction is set forth in the apprenticeship agreement required for each apprentice. Not only is this type of wage progression guaranteed per the terms of the apprenticeship agreement, but it also serves as an important PO 00000 Frm 00011 Fmt 4702 Sfmt 4702 incentive to attract apprentices and sets them on a path to potential lifetime earnings (including benefits) that, according to research, exceed by more than $300,000 those who do not complete a registered apprenticeship.12 In contrast, there is no such guaranteed wage progression for apprentices of IRAPs—an apprentice could be earning the same wages over the course of the apprenticeship, and any wage progression is solely at the discretion of the IRAP. Because the IRAP regulation is silent on one of the most valuable features of apprenticeship to apprentices, there is no requirement for SREs to play any role in an IRAP’s wage-setting, other than to affirm compliance with applicable laws, such as minimum wage. Although the IRAP rule is premised upon the assumption that market forces and apprentice choice will drive wage decisions, the Department notes that RAP wages are also influenced by market forces and apprentice choice, including an apprentice’s option to enroll in a RAP where a progressive wage is required. The important difference is the prioritization of wage increases commensurate with skill increases, which is in line with the Department’s priorities to help workers access familysustaining jobs and the idea that apprentices should be paid a wage commensurate with the skills they have attained. 3. Equal Employment Opportunity The Department views equity and equal opportunity as essential to the success of an apprenticeship program, and it notes its responsibility under E.O. 13985, ‘‘Advancing Racial Equity and Support for Underserved Communities Through the Federal Government,’’ 86 FR 7009 (Jan. 20, 2021), to advance equity, civil rights, racial justice, and equal opportunity. Such a responsibility necessitates action, intentional infusion of equity into workforce development programs, and critical thinking about how to reduce barriers to workforce entry. The registered apprenticeship system’s 29 CFR part 30 regulations acknowledge that mere passive nondiscrimination is insufficient and 12 See, e.g., Mathematica Policy Research, ‘‘An Effectiveness Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 10 States: Final Report’’ (July 25, 2012), https://wdr.doleta.gov/ research/FullText_Documents/ETAOP_2012_ 10.pdf. The study cautions against interpreting its results, which do not control for unobservable skill or motivation, as having conclusively identified the effects of registered apprenticeships on earnings. Moreover, the estimates do not represent increments between registered apprenticeships and IRAPs (the latter not having been implemented at the time the study was conducted). E:\FR\FM\15NOP1.SGM 15NOP1 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS require affirmative steps to promote diversity and equity in apprenticeship. 29 CFR 30.3, 30.4. Accordingly, the registered apprenticeship system has structured and specific requirements regarding equal opportunity, antiharassment, affirmative action, utilization analyses and goals, targeted recruitment, outreach and retention, compliance, and enforcement. Through the equal opportunity regulations at 29 CFR part 30, the registered apprenticeship system provides enhanced opportunities for apprentices to access and succeed in RAPs and gives sponsors tools to reduce barriers to equal opportunity within their programs. In contrast, the IRAP model simply requires programs to affirm their adherence to applicable Federal, State, and local laws and regulations pertaining to EEO. 29 CFR 29.22(a)(4). Requiring IRAPs to do the bare minimum, especially when a model framework for EEO in apprenticeship is already in place in 29 CFR part 30, is a disservice to apprentices and apprenticeship programs, and contrary to the goals of the Department to promote equity in apprenticeship. Although the SREs do have minimal additional responsibilities to develop policies requiring IRAP adherence to EEO law, facilitating such adherence, and reflecting comprehensive outreach strategies to reach diverse populations that may participate in IRAPs, the IRAP rule lacks specific requirements and provides no framework for equity principles or goals. 29 CFR 29.22(i). The requirements of the IRAP model fail to ensure meaningful action will be taken to expand equal employment opportunity in apprenticeship. 4. Worker Empowerment The Department generally thinks the relationship between workers and employers must be balanced so workers have a voice in ensuring fair and safe work conditions. For registered apprentices, there are many avenues to realize worker empowerment. The apprenticeship agreement plays a crucial role in articulating the standards of apprenticeship and the terms and conditions of employment. The registered apprenticeship agreement must contain specific terms, including a statement of the occupation for which the apprentice is training, the duration of the apprenticeship, the number of hours in the program to include related instruction hours, the schedule of work processes, the graduated scale of wages to be paid, the standards of the apprenticeship program, and an EEO statement. 29 CFR 29.7. The registered VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 apprenticeship agreement must also contain information about dispute resolution should a controversy or difference arise out of the agreement, id., and must be accepted and recorded either by OA or an SAA. 29 CFR 29.2. The requirement that registered apprenticeship agreements include specific terms ensures the apprentices have knowledge of their rights and responsibilities and empowers them to be informed participants in the employment relationship. Although IRAPs also contain a written apprenticeship agreement requirement, each IRAP may determine which terms and conditions to include as long as the agreement is consistent with the SRE’s requirements. Each SRE may determine its own requirements as it sees fit, potentially creating a wide variety in apprenticeship agreements across SREs and no requirement for a uniform set of terms and conditions for apprentices. There is also no requirement to submit the agreement to be accepted or recorded by the SRE. Without parameters, this requirement contains little more than an honor system to ensure apprentices have meaningful information about the terms and conditions of their apprenticeship and how they can voice their concerns. One of the key justifications of the 2020 rule was that the IRAP model would help address a purported ‘‘skills gap’’ in the labor market. While providing training to job seekers is a key component to addressing any ‘‘skills gaps’’ or ‘‘skills mismatches,’’ evidence suggests that training alone is not the answer. Employer investments in workforce development, competitive and rising wages to attract and retain workers, commitments to opportunity and diversity, and worker empowerment are key factors to addressing industry labor needs.13 14 The well-established RAP model—with its role in and focus on employer investment in training, specific equal employment opportunity recruitment requirements and protections for apprentices, as well as its requirement that a progressive wage (beyond the minimum wage) be paid to apprentices during their apprenticeship reflecting their acquisition of occupational and workplace competencies, and worker 13 Annelies Goger and Luther Jackson, ‘‘The labor market doesn’t have a ‘skills gap’—it has an opportunity gap,’’ Sept. 9, 2020, https:// www.brookings.edu/blog/the-avenue/2020/09/09/ the-labor-market-doesnt-have-a-skills-gap-it-has-anopportunity-gap/. 14 Kate Bahn, ‘‘ ’Skills gap’ arguments overlook collective bargaining and low minimum wages,’’ May 9, 2019, https://equitablegrowth.org/skills-gaparguments-overlook-collective-bargaining-and-lowminimum-wages/. PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 62971 empowerment and safety provisions— provides a more promising and effective framework for addressing and closing persistent inefficiencies in the labor market. Conversely, the very deficiencies inherent to the IRAP model discussed above—workplace safety, progressive wages, equal employment opportunity, and worker empowerment—severely reduce the ability of IRAPs to address any current or future labor shortages that might exist. Job quality is key to recruiting, training, and retaining workers in a specific occupation or industry.15 16 Thus, the lack of requirements for IRAPs to address these critical issues limits their ability to help fulfill labor market demands. IV. The IRAP System is Redundant of the Registered Apprenticeship System One of the main justifications behind the development of IRAPs was the necessity to grow and expand apprenticeship into industries and occupations that have traditionally not used the registered apprenticeship system because of the insufficient flexibility in program requirements within RAPs to meet the varying needs of different industries and the administrative burden posed by these requirements. However, the premise that registered apprenticeship is too inflexible to meet the needs of industry is fundamentally flawed and contrary to the above-mentioned demonstrated success of registered apprenticeship for industry and workers and its continued growth in expanding into new industries and occupations. Although registered apprenticeship has historically been associated with the construction sector, it has successfully been adopted across a diverse range of industry sectors, with significant growth in recent years. The Department has used a variety of strategies to drive registered apprenticeship growth beyond those industries historically associated with registered apprenticeship. One strategy driving this expansion and growth is the Industry Intermediaries concept, where the Department has used contracted entities with specific industry expertise to further the Department’s efforts to 15 Livia Y. Lam, ‘‘A Multiple Measures Approach to Workforce Equity: How Improving Job Quality in Workforce Accountability Can Help Close Equity Gaps,’’ Center for American Progress, October 20, 2020, at: https://www.americanprogress.org/issues/ economy/reports/2020/10/20/491998/multiplemeasures-approach-workforce-equity/. 16 Society for Human Resource Management (SHRM), ‘‘Managing for Employee Retention,’’ 2017, at: https://www.shrm.org/resourcesandtools/toolsand-samples/toolkits/pages/managingforemployee retention.aspx. E:\FR\FM\15NOP1.SGM 15NOP1 62972 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS expand registered apprenticeship opportunities in high-growth sectors. From 2016 to 2020, Departmentcontracted Industry Intermediaries created 271 new RAPs in 232 highdemand occupations for a total of 867 employers. Of the occupations developed under these contracts, 37 percent were in the manufacturing sector, 15 percent were in the healthcare sector, and 15 percent were in the transportation sector.17 Another strategy that has helped expand registered apprenticeship is the Department’s 2015 American Apprenticeship Initiative (AAI), which aimed to register new apprentices in high-growth and high-tech industries, such as health care, IT, and advanced manufacturing, especially from populations traditionally underrepresented in apprenticeship, including women and people of color. AAI grantees, which included labor unions, industry associations, local workforce boards and nonprofit organizations, have successfully expanded the RAP model into new industries and extended to more diverse populations. As of June 2020, the 44 AAI grantees initiated 2,019 new programs and registered 24,675 apprentices, of which 14,486 were from underrepresented populations.18 This use of targeted investments and intermediaries to extend registered apprenticeship to new industry sectors and occupations, as well as underrepresented populations, undermines the rationale for the IRAP system and underscores the redundant and duplicative aspect of the IRAP model. More broadly, the expansion of registered apprenticeship into ‘‘nontraditional’’ industry sectors where IRAPs are operating and for which SREs have been certified demonstrates that the IRAP effort is superfluous and not a good use of government resources that could support the proven activities already underway. Based on Federal program data from 2019 and 2020, which were unavailable at the time the IRAP rule was issued, the health care and social assistance industry sector saw an 18-percent rise in the number of 17 National Industry and Equity Apprenticeship Intermediaries Fact Sheet, ‘‘Advancing Registered Apprenticeship for Business and Workers in the U.S.’’ (Jan. 19, 2021), available at https:// www.apprenticeship.gov/sites/default/files/ Industry-and-Equity-IntermediaryAccomplishment-Fact-Sheet.pdf. 18 National Governors’ Association, ‘‘Registered Apprenticeship Reimagined: Lessons Learned From the American Apprenticeship Initiative’’ (Nov. 9, 2020), available at https://www.nga.org/center/ publications/registered-apprenticeship-reimagined. VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 active RAPs.19 Similarly, the information industry sector saw a 31percent increase in the number of active RAPs during this same period, while the manufacturing industry sector saw a 14percent increase in the number of active RAPs, as well. Within the same time frame, equally impressive growth has taken place in the following industry sectors not historically associated with the registered apprenticeship system: Accommodation and food services (31 percent); arts, entertainment and recreation (45 percent); finance and insurance (39 percent); professional, scientific and technical services (41 percent) and transportation and warehousing (19 percent).20 Based on the most recent data, and in conjunction with historical data about registered apprenticeship’s steady growth, the Department is departing from the IRAP rule’s assertion that IRAPs are necessary for expansion of apprenticeship into non-traditional occupations. Instead, the Department is convinced that the registered apprenticeship system is capable of effectively and efficiently expanding into non-traditional occupations, while at the same time maintaining high-quality labor standards. This expansion demonstrates that the design of the registered apprenticeship system is capable of adapting successfully to a wide range of industry needs and that registered apprenticeship’s requirements on industry set forth important parameters for the successful growth of apprenticeship programs without being overly burdensome. The Department’s actual experience administering the IRAP system highlights the duplicative nature of the two systems. There is clear overlap between the occupations that SREs were approved to recognize IRAPs in and the occupations the Department has determined are appropriate for the registered apprenticeship system. A majority of the occupations in the IRAP system are occupations that have already been deemed as apprenticeable under the registered apprenticeship system. Similarly, the top five occupations in the IRAP system (machinist; maintenance workers, machinery; manufacturing production technicians; information security analysts; and web developers) all are currently regarded as apprenticeable 19 OA Data and Statistics, available at https:// www.dol.gov/agencies/eta/apprenticeship/about/ statistics/2020. 20 Federal Data: Apprenticeship Statistics by Industry for FY 2019 and FY 2020, available at https://www.dol.gov/agencies/eta/apprenticeship/ about/statistics/2019 and https://www.dol.gov/ agencies/eta/apprenticeship/about/statistics/2020. PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 occupations and used within the registered apprenticeship system. Moreover, comparing the approved occupations for IRAP SREs with currently apprenticeable occupations in registered apprenticeship shows a majority of the top 20 occupations recognized by industry for training under the IRAP model have been determined suitable under the registered apprenticeship system.21 The concurrent recognition of these occupations as both IRAPs and registered apprenticeship occupations is likely to lead to confusion and disparate outcomes, particularly as it allows a single entity to simultaneously operate as an SRE or IRAP and sponsor a RAP, with the IRAP allowed to provide lower quality training and fewer worker protections. This result is unquestionably a poor use of government resources because it imposes duplicative costs to the government to support a redundant program that may not be advancing the Department’s mission and goals for apprenticeship. Furthermore, it is likely to sow confusion among prospective apprentices and employers, who will struggle to understand how they should interact with these duplicative systems. V. The Effect of the Department’s Proposed Rescission of the IRAP Rule As discussed above, the Department has determined that the establishment of a duplicative and parallel IRAP system will not ensure access to highquality job skills and training to American workers, while at the same time safeguarding the welfare of apprentices. Accordingly, the Department believes that the IRAP system is not a prudent use of Government resources, would diminish the quality and coherence of American apprenticeship efforts, and would not allow the Department to ensure that employers, prospective apprentices, or the general public are effectively served. The Department also determined that amending the IRAP rule would not solve any of these issues. As discussed in detail above, registered apprenticeship provides for apprentice safety and welfare and continues to grow apprenticeship opportunities without sacrificing crucial requirements for quality or worker protections. Amending the IRAP rule to align with the Department’s goals and priorities so 21 OA Registered Apprenticeship Occupations, available at https://www.apprenticeship.gov/ apprenticeship-occupations; OA Recognized Standards Recognition Entities, available at https:// www.apprenticeship.gov/employers/industryrecognized-apprenticeship-program/approvedstandards-recognition-entities. E:\FR\FM\15NOP1.SGM 15NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules that it possesses more of the qualities of the registered apprenticeship system would not serve the interests of employers and apprentices given that they already have access to the registered apprenticeship system. Further, the Department can better utilize its resources and provide better service to the public by supporting and strengthening one robust apprenticeship system that has been designed to incorporate the needs of both industry and the workforce and has a demonstrated record of successfully doing so. The Department acknowledges this proposal would, if finalized, immediately affect current SREs, IRAPs, and any apprentices participating in IRAPs. The Department understands SREs devoted resources to developing their applications and infrastructure necessary to effectively operate for a period of 5 years, and IRAPs and their apprentices may have been drawn to the program given the indication of approval from the Department. However, the Department thinks the impact of this proposal is limited given the total number of SREs and IRAPs. Over the 9-month period between May 2020, when the IRAP rule became effective, and February 2021, when the Department paused the consideration of SRE applications, the Department received a total of 45 SRE applications, including from two organizations that resubmitted applications. Of these applications, the Department ultimately recognized 27 SREs.22 In turn, as of September 30, 2021, the recognized SREs have only recognized a reported 175 IRAPs, with the vast majority recognized by a single SRE.23 With respect to the potential impact of this proposed rule on apprentices that are or may become enrolled in IRAPs, because apprenticeship programs may operate even without DOL recognition, IRAP apprentices would not be precluded under this proposal from continuing their participation in such training programs. Alternatively, apprentices enrolled in IRAPs may elect instead to enroll in a RAP that provides training for their desired occupation; in such instances, they may qualify for advanced standing or credit in those registered programs. 22 Applications Received by the Department of Labor for Standards Recognition Entities. Approved SREs published at https://www.apprenticeship.gov/ employers/industry-recognized-apprenticeshipprogram/approved-standards-recognition-entities. 23 According to the IRAP Program and Performance Reporting System, as of September 30, 2021, of the 175 IRAPs approved, 165 were recognized by the same SRE. VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 The Department considered other options with respect to the currently recognized SREs or IRAPs, including a proposed ‘‘sunset’’ period during which SREs and IRAPs would operate for a set number of years before the Department ceased its recognition, and recasting IRAPs as Certified Work-Based Learning. However, in light of the concerns discussed above, the Department believes that rescinding the regulation, including the immediate cessation of recognition for currently recognized SREs or IRAPs, is the best approach. If this proposal is finalized, the Department will provide technical assistance and support to SREs or IRAPs who are interested in becoming program sponsors or intermediaries under the registered apprenticeship system. Similarly, as a component of the Department’s technical assistance to SREs, the Department will provide SREs with information and resources the SREs can share with any IRAP apprentices who may seek placement in a RAP. Although the Department recognizes that immediate rescission of the rule, if finalized, will likely have minimal impact, the Department seeks comments on how to address the effects of the proposed immediate cessation of recognition on SREs, IRAPs, and IRAP apprentices, including comments on the alternatives considered, but ultimately not adopted, by the Department. VI. Regulatory Analysis and Review A. Executive Orders 12866 (Regulatory Planning and Review) and 13563 (Improving Regulation and Regulatory Review) Under E.O. 12866, the Office of Management and Budget’s (OMB) Office of Information and Regulatory Affairs determines whether a regulatory action is significant and, therefore, subject to the requirements of the E.O. and review by OMB. See 58 FR 51735 (Oct. 4, 1993). Section 3(f) of E.O. 12866 defines a ‘‘significant regulatory action’’ as an action that is likely to result in a rule that: (1) Has an annual effect on the economy of $100 million or more, or adversely affects in a material way a sector of the economy, productivity, competition, jobs, the environment, public health or safety, or State, local, or tribal governments or communities (also referred to as economically significant); (2) creates serious inconsistency or otherwise interferes with an action taken or planned by another agency; (3) materially alters the budgetary impacts of entitlement grants, user fees, or loan programs, or the rights PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 62973 and obligations of recipients thereof; or (4) raises novel legal or policy issues arising out of legal mandates, the President’s priorities, or the principles set forth in the E.O. Id. This proposed rule is an economically significant regulatory action under section 3(f) of E.O. 12866. E.O. 13563 directs agencies to propose or adopt a regulation only upon a reasoned determination that its benefits justify its costs; the regulation is tailored to impose the least burden on society, consistent with achieving the regulatory objectives; and in choosing among alternative regulatory approaches, the agency has selected those approaches that maximize net benefits. E.O. 13563 recognizes that some benefits are difficult to quantify and provides that, where appropriate and permitted by law, agencies may consider and discuss qualitatively values that are difficult or impossible to quantify, including equity, human dignity, fairness, and distributive impacts. 1. Preliminary Economic Analysis E.O. 14016, ‘‘Revocation of Executive Order 13801,’’ instructed the Director of OMB and the heads of executive departments and agencies to ‘‘promptly consider taking steps to rescind any orders, rules, regulations, guidelines, or policies, or portions thereof, implementing or enforcing’’ E.O. 13801. Accordingly, the Department identified for review the IRAP rule published on March 11, 2020. The Department is issuing this proposed rule because the Department has determined that a single apprenticeship system, namely, the registered apprenticeship system, would provide clearer messaging and more consistent outcomes than two parallel apprenticeship systems that would likely lead to disparate outcomes and incur duplicative costs. In accordance with the regulatory analysis guidance articulated in OMB Circular A–4 and consistent with the Department’s practices in previous rulemakings, this regulatory analysis focuses on the likely consequences of the proposed rule. The Department anticipates that the proposed rule would result in cost savings for SREs and IRAPs since they would no longer need to comply with the provisions of the March 2020 rule. The Department has estimated the cost savings of the proposed rule relative to the existing baseline (i.e., 27 SREs and 175 IRAPs). The analysis covers 10 years to ensure it captures the major cost savings that are likely to accrue over time. The Department expresses the quantifiable impacts in 2020 dollars and uses discount rates of E:\FR\FM\15NOP1.SGM 15NOP1 62974 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules 3 and 7 percent, pursuant to OMB Circular A–4. The Department also considered an alternative baseline in which the Department’s February 17th suspension of consideration of SRE applications was temporary and would be removed. That analysis is discussed qualitatively in the Total Cost Savings section below. a. Number of SREs, IRAPs, and Apprentices To calculate the annual cost savings, the Department first needed to estimate the number of SREs and IRAPs over the 10-year analysis period. The Department used the number of SREs (27) and the number of IRAPs (175) as of September 30, 2021, for this analysis. The Department does not have data on the number of apprentices per IRAP because that information is not due from SREs until 45 days after the end of FY 2021, which will be November 15, 2021. One calculation in the March 2020 rule was based on the number of apprentices: IRAPs’ preparation and signing of written apprenticeship agreements, which was estimated at 10 minutes per apprentice. Given the lack of data on the number of apprentices, this cost savings estimate should be emphasized as preliminary: If there are three apprentices per IRAP, which is the median number per RAP, and signing the written apprenticeship agreement requires 10 minutes per apprentice, then 175 IRAPs × 3 apprentices × 10 minutes × $121.08 hourly compensation adds $10,806 per year, which would increase the cost savings estimate from $9.1 million (explained below) to $9.2 million over 10 years. khammond on DSKJM1Z7X2PROD with PROPOSALS b. Compensation Rates The compensation rates used to quantify the cost savings of the proposed rule are based on the compensation rates in the IRAP rule published on March 11, 2020. The Department updated the compensation rates with 2020 data. The Department anticipates that the bulk of the workload for private sector workers would have been performed by employees in occupations similar to those associated with the following Standard Occupational Classification (SOC) codes: SOC 11–3131 (Training and Development Managers) and SOC 43– 0000 (Office and Administrative Support Occupations). VerDate Sep<11>2014 17:42 Nov 12, 2021 Jkt 256001 According to the U.S. Bureau of Labor Statistics (BLS), the mean hourly wage rate for Training and Development Managers in May 2020 was $60.54.24 For this analysis, the Department used a fringe benefits rate of 46 percent 25 and an overhead rate of 54 percent,26 resulting in a fully loaded hourly compensation rate for Training and Development Managers of $121.08 [= $60.54 + ($60.54 × 0.46) + ($60.54 × 0.54)]. According to BLS, the mean hourly wage rate for Office and Administrative Support Occupations in May 2020 was $20.38.27 The Department used a fringe benefits rate of 46 percent and an overhead rate of 54 percent, resulting in a fully loaded hourly compensation rate for Office and Administrative Support Occupations of $40.76 [= $20.38 + ($20.38 × 0.46) + ($20.38 × 0.54)]. The Department estimated the compensation rate for a Program Analyst in OA using the midpoint (Step 5) for Grade 13 of the General Schedule, which is $55.75 in the Washington, DC, locality area.28 The Department used a fringe benefits rate of 69 percent 29 and 24 BLS, ‘‘Occupational Employment and Wages, May 2020,’’ available at https://www.bls.gov/oes/ current/oes113131.htm. 25 BLS, ‘‘Employer Costs for Employee Compensation’’ (ECEC), available at https:// www.bls.gov/ncs/data.htm. Wages and salaries averaged $26.22 per hour worked in 2020, while benefit costs averaged $11.99, which is a benefits rate of 46 percent. 26 U.S. Department of Health and Human Services (HHS), ‘‘Guidelines for Regulatory Impact Analysis’’ (2016), available at https://aspe.hhs.gov/system/ files/pdf/242926/HHS_RIAGuidance.pdf. In its guidelines, HHS states, as ‘‘an interim default, while HHS conducts more research, analysts should assume overhead costs (including benefits) are equal to 100 percent of pre-tax wages.’’ HHS explains that 100 percent is roughly the midpoint between 46 and 150 percent, with 46 percent based on ECEC data that suggest benefits average 46 percent of wages and salaries, and 150 percent based on the private sector ‘‘rule of thumb’’ that fringe benefits plus overhead equal 150 percent of wages. To isolate the overhead costs from HHS’s 100-percent assumption, the Department subtracted the 46-percent benefits rate that HHS references, resulting in an overhead rate of approximately 54 percent. 27 BLS, ‘‘Occupational Employment and Wages, May 2020,’’ available at https://www.bls.gov/oes/ current/oes430000.htm. 28 Office of Personnel Management, ‘‘General Schedule (GS) Locality Pay Tables,’’ available at https://www.opm.gov/policy-data-oversight/payleave/salaries-wages/salary-tables/pdf/2020/DCB_ h.pdf. 29 Congressional Budget Office, ‘‘Comparing the Compensation of Federal and Private-Sector Employees, 2011 to 2015’’ (Apr. 25, 2017), available PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 an overhead rate of 54 percent, resulting in a fully loaded hourly compensation rate for Program Analysts of $124.32 [= $55.75 + ($55.75 × 0.69) + ($55.75 × 0.54)]. c. Time Estimates The hourly time burdens used to quantify the cost savings of the proposed rule are based on the Department’s time estimates in the IRAP rule published on March 11, 2020. The following time burdens are annual estimates. Cost Savings Components for SREs • Notifying the Administrator of any major change to processes or programs: 10 hours (50 percent of SREs) • Informing the Administrator of IRAP recognition, suspension, or derecognition: 30 minutes • Provision of data or information to the Administrator: 2 hours (10 percent of SREs) • Provision of written attestation to the Administrator: 10 minutes per IRAP • Disclosure of the credentials that apprentices will earn: 30 minutes • Quality control of IRAPs: 4 hours per IRAP • Submission of performance data to the Administrator: 4 hours per IRAP • Making publicly available IRAP performance data: 2 hours per IRAP • Recordkeeping: 20 hours per IRAP Cost Savings Components for IRAPs • Submission of performance data to the SRE: 25 hours Cost Savings Components for the Federal Government • Compliance assistance reviews of SREs: 10 hours per SRE (5 percent of SREs) • Maintenance of online application form and internal review system: $125,000 • Maintenance of online resource for performance measures: $245,909 • Maintenance of online resource for list of SREs and IRAPs: $18,000 d. Total Cost Savings at https://www.cbo.gov/publication/52637. The wages of Federal workers averaged $38.30 per hour over the study period, while the benefits averaged $26.50 per hour, which is a benefits rate of 69 percent. E:\FR\FM\15NOP1.SGM 15NOP1 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules Exhibit 1 shows the total estimated cost savings of the proposed rule over 10 years (2022–2031) at discount rates of 3 percent and 7 percent.30 The proposed rule is expected to have first- 62975 total, over the first 10 years, the proposed rule is estimated to result in cost savings of $9.1 million at a discount rate of 7 percent in 2020 dollars. year cost savings of $1.3 million in 2020 dollars. Over the 10-year analysis period, the annualized cost savings are estimated at $1.3 million at a discount rate of 7 percent in 2020 dollars. In Exhibit 1: Estimated Cost Sawags (20lO dollars) alized,, 7% discount rat~ 10 years $1,.298.733 $11,,078,4S8 $9,,121,.75 The Department also contemplated including an alternative baseline that assumed the Department’s February 17th suspension of consideration of SRE applications would be removed. If the suspension were to be removed, there could be additional SREs and IRAPs in future years. OMB Circular A–4 defines a no action baseline as ‘‘what the world will be like if the proposed rule is not adopted.’’ If the world did not include this proposed rule, but included the removal of the February 17th suspension as well as decision making by potential SREs in the manner anticipated in the 2020 rule, it is possible that there would be more than 27 SREs and 175 IRAPs in each year of the analysis period. Given the potential temporary nature of the February 17th suspension, some members of the public may believe there will be an opportunity to participate in the program again in the absence of this proposed rule. Under such a scenario, 27 SREs and 175 IRAPs may be only fractions of the numbers of SREs and IRAPs that would come into existence, and perhaps those numbers would continue to grow throughout the analysis period. As such, this proposed rule would then prevent some of the eventual effects of the 2020 rule. The Department is unable, however, to provide a quantitative analysis of this alternative baseline. The Department does not have a way to accurately estimate the number of SREs or IRAPs that would be established in the absence of this proposed rule and the removal of the February 17th suspension. Specifically, the Department is unable to estimate a reasonable growth rate for SREs over the analysis period or a realistic number of IRAPs per SRE each year. Without these two key data points, a quantitative analysis is not possible. The Department believes that the numbers of SREs and IRAPs estimated in the 2020 rule are not an appropriate source for quantifying an alternative baseline in this proposed rule. Over the 9-month period between May 2020, when the IRAP rule became effective, and February 2021, when the Department paused the consideration of SRE applications, data indicate that participation was far lower than what was projected in the 2020 rule. To begin with, the number of SRE applications was far fewer than the number anticipated in the 2020 rule. For the 2020 rule, the Department used the number of entities that submitted grant applications under AAI grant program in FY 2016 as a guidepost for estimating the number of SRE applications. It now seems that this guidepost was unrealistic because millions of dollars were awarded to each successful AAI grant application whereas similar grant funds were not available to SREs. The 30 The 2022 start year accounts for the time involved in the Administrative Procedure Act rulemaking process, with the final rule expected to be published in 2022. VerDate Sep<11>2014 17:42 Nov 12, 2021 Jkt 256001 PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 lack of Federal funding may largely explain the low number of SREs (27) and IRAPs (175) compared to the numbers anticipated in the 2020 rule (203 SREs and 2,030 IRAPS in Year 1). While the estimated number of SRE applications in the 2020 rule was based on the number of entities that submitted AAI grant applications, the estimated number of IRAPs was not based on a specific source of data because the IRAP system was a new concept in the United States. Accordingly, the Department does not have a guidepost to realistically estimate the number of IRAPs for an alternative baseline that assumes the absence of this proposed rule and the removal of the February 17th suspension. The Department invites comments on the potential number of SREs and IRAPs in the absence of this proposed rule and the removal of the February 17th suspension. Without a reasonable way to estimate these numbers and quantify the cost savings, benefits, and transfer payments, the Department acknowledges that this proposed rule may have an annual effect on the economy of $100 million or more; therefore, this rule has been designated as an economically significant regulatory action under section 3(f) of E.O. 12866. e. Nonquantifiable Effects E:\FR\FM\15NOP1.SGM 15NOP1 EP15NO21.013</GPH> khammond on DSKJM1Z7X2PROD with PROPOSALS Total, 3%discountrat~ 10 years Total, 7%discountrat~ 10 ears 62976 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS The Department proposes rescinding the IRAP rule and, instead, refocusing efforts on expanding the registered apprenticeship system. As explained in the previous sections, the registered apprenticeship system is highly successful for industry. Industries that have adopted RAPs have cited the standards, skillsets, and retention offered by skilled workers associated with RAPs as advantageous to their bottom line. In one survey, nearly threefourths of surveyed employers stated that registered apprenticeships drove increased worker productivity.31 A skilled workforce is foundational to a strong economy, and registered apprenticeship provides a proven avenue by which to deliver talent development to various industry sectors. In addition to the demonstrated success of registered apprenticeship as a workforce training model for industry, it has proven to be highly beneficial to workers because of its emphasis on high-quality training as well as apprentice safety and welfare. During training, apprentices are guaranteed wage increases, and research shows that registered apprenticeship completers earn over $300,000 (including benefits) more over their lifetimes as compared with individuals who do not complete a RAP.32 Registered apprenticeship has successfully been adopted across a diverse range of sectors, with significant growth in recent years. The expansion of registered apprenticeship into ‘‘nontraditional’’ sectors indicates that the 31 Urban Institute Research Report, ‘‘The Benefits and Challenges of Registered Apprenticeship: The Sponsors’ Perspective’’ (June 12, 2009), available at https://www.urban.org/research/publication/ benefits-and-challenges-registered-apprenticeshipsponsors-perspective. 32 See, e.g., Mathematica Policy Research, ‘‘An Effectiveness Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 10 States: Final Report’’ (July 25, 2012), https://wdr.doleta.gov/ research/FullText_Documents/ETAOP_2012_ 10.pdf. This report categorizes reduced payments of unemployment insurance, welfare, and food stamps as benefits (separate from productivity increases) associated with registered apprenticeships; however, for purposes of E.O. 12866 analysis, adding these effects would constitute doublecounting and they should instead be presented as an assessment of who, other than workers themselves, receives some portion of productivity benefits. Moreover, as noted earlier in this regulatory preamble, the report does not speak to the relative effects of RAPs and IRAPs. VerDate Sep<11>2014 17:42 Nov 12, 2021 Jkt 256001 IRAP effort may be superfluous and not a good use of government resources that could support the proven activities of the registered apprenticeship system. 2. Regulatory Alternatives OMB Circular A–4 directs agencies to analyze alternatives if such alternatives best satisfy the philosophy and principles of E.O. 12866. Accordingly, the Department considered two regulatory alternatives. Under the first alternative, the Department would allow the SREs and any related IRAPs to operate with the Department’s recognition for a transitional period not to exceed the previously approved 5year period. As noted above, the approach of permitting the continued recognition of SREs and any related IRAPs would continue to temporarily retain a parallel system that does not ensure sufficient protections for apprentices, would diminish Departmental resources available for expansion of registered apprenticeship, and would generate confusion among both entities interested in establishing apprenticeship programs and the potential apprentices in such programs. This alternative would result in lower cost savings over the 10-year analysis period than the cost savings presented in Exhibit 1 because SREs and IRAPs would be obligated to follow the provisions of the IRAP rule published on March 11, 2020, for a longer period of time. Therefore, the costs of the March 2020 rule would accumulate for a longer duration and the cost savings would be delayed. Under the second alternative, the Department would recast IRAPs as Certified Work-Based Learning. The Department considers the most effective and efficient use of its resources is to oversee a national system of registered apprenticeship that is more protective of the welfare of apprentices and that has demonstrated its capacity to grow and adapt across a range of industries and sectors. Similarly, recasting IRAPs as a type of Certified Work-Based Learning would not address the concerns identified in the discussions above regarding an indirect and insufficient oversight role for the Department in IRAPs. This alternative would also result in lower cost savings over the 10year analysis period than the cost PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 savings presented in Exhibit 1 because SREs and IRAPs would incur costs under the revised program. The Department cannot estimate the costs without details about the provisions of such a program. The Department invites comments on these or other possible alternatives with the goal of ensuring a thorough consideration and discussion at the final rule stage. B. Regulatory Flexibility Act, Small Business Regulatory Enforcement Fairness Act of 1996, and Executive Order 13272 (Proper Consideration of Small Entities in Agency Rulemaking) In accordance with the Regulatory Flexibility Act, 5 U.S.C. ch. 6 (as amended), the Department examined the regulatory requirements of the proposed rule to determine whether they would have a significant economic impact on a substantial number of small entities. As explained in the E.O. 12866 preliminary economic analysis above, the proposed rule is expected to lead to cost savings for IRAPs because these entities would no longer be required to comply with the provisions of the IRAP rule published on March 11, 2020. Cost savings for IRAPs would primarily arise from no longer needing to submit performance data to the SRE. In the March 2020 rule, the Department estimated that it would take IRAPs approximately 25 hours per year to collect and provide the relevant data. To estimate the cost savings per IRAP under this proposed rule, the Department multiplied 25 hours by the hourly compensation rate for Training and Development Managers ($121.08 per hour). The first-year cost savings per IRAP is estimated at $2,829 at a discount rate of 7 percent. The annualized cost savings per IRAP is estimated at $3,027 at a discount rate of 7 percent. As of September 30, 2021, the number of IRAPs recognized by SREs stands at 175. Of the 175 IRAPs, 165 are in the health care industry; specifically, the vast majority of the 165 IRAPs are associated with hospitals and medical centers. As shown in Exhibit 2, the firstyear and annualized cost savings for IRAPs in the hospitals subsector are not expected to have a significant economic impact (3 percent or more) on small entities of any size. E:\FR\FM\15NOP1.SGM 15NOP1 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules 62977 Exhibit 2: Hospitals (NAICS 622) Small Business Size Standard: $8.0million-$41.5 million Annuali:,ed Number of Fir.tYear First Year Annualized Awrage Firms as Cost Savings Cost Savings Co.t Savings Cost Savings Total Number Annual Number of Percent of Receipts per per Firm with per Firm as per Firm with per Firm as Firms* of Employees• Receipts* Firm Small Firms 7% Percent of 7% Percent of inhtdu....., Recelnts Receints Dlscountln" Dlscountln" NIA 23 1.6% 0 $0 $0 $2,829 $3,027 NIA Finns with receipts below $100,000 Firms with receipts of$100,000 to $499,999 35 2.4% 145 $8,838,000 $252,514 $2,829 1.1% $3,027 1.2% Firms with receipts of$500,000 to $999,999 20 1.4% 136 $14,654,000 $732,700 $2,829 0.4% $3,027 0.4% Finns with receipts of$1,000,000 to $2,499,999 19 1.3% 515 $30,189,000 $1,588,895 $2,829 0.2% $3,027 0.2% Finns with receipts of$2,500,000 to $4,999,999 65 4.4% 3,616 $251,405,000 $3,867,769 $2,829 0.1% $3,027 0.1% Finns with receipts of$5,000,000 to $7,499,999 100 6.8% 7,135 $598,696,000 $5,986,960 $2,829 0.0% $3,027 0.1% Finns with receipts of $7,500,000 to $9,999,999 125 8.5% 12,010 $1,076,343,000 $8,610,744 $2,829 0.0% $3,027 0.0% Finns with receipts of $10,000,000 to $14,999,999 218 14.8% 28,209 $2,599,739,000 $11,925,408 $2,829 0.0% $3,027 0.0% Finns with receipts of $15,000,000 to $19,999,999 213 14.5% 36,660 $3,593,092,000 $16,868,977 $2,829 0.0% $3,027 0.0% Finns with receipts of $20,000,000 to $24,999,999 171 11.6% 36,287 $3,640,858,000 $21,291,567 $2,829 0.0% $3,027 0.0% Finns with receipts of $25,000,000 to $29,999,999 133 9.0% 31,171 $3,507,932,000 $26,375,429 $2,829 0.0% $3,027 0.0% Finns with receipts of$30,000,000 to $34,999,999 120 8.2% 31,175 $3,675,365,000 $30,628,042 $2,829 0.0% $3,027 0.0% Finns with receipts of$35,000,000 to $39,999,999 97 6.6% 30,001 $3,547,170,000 $36,568,763 $2,829 0.0% $3,027 0.0% Finns with receipts of$40,000,000 to $49,999,999 132 9.0% 48,369 $5,577,594,000 $42,254,500 $2,829 0.0% $3,027 0.0% Similarly, the proposed rule would result in cost savings for SREs. The cost savings would arise from SREs no longer needing to perform the activities listed in the E.O. 12866 preliminary economic analysis above: Notifying the Administrator of any major change to processes or programs; informing the Administrator of IRAP recognition, suspension, or derecognition; provision of data or information to the Administrator; provision of written attestation to the Administrator; disclosure of the credentials that apprentices will earn; quality control of IRAPs; submission of performance data to the Administrator; making publicly available IRAP performance data; and recordkeeping. The first-year cost savings per SRE is estimated at $13,099 at a discount rate of 7 percent. The annualized cost savings per SRE is estimated at $14,016 at a discount rate of 7 percent. As of the date of this proposed rule, the Department has recognized 27 SREs. Only 5 of the 27 SREs have recognized IRAPs, and of those 5 SREs, only 1 so far has indicated that it has IRAP apprentices. This particular SRE is unlikely to be considered a small entity based on its annual revenue,33 which exceeds the Small Business Administration’s Small Business Size Standard of $16.5 million for professional organizations (North American Industry Classification System code 813920).34 33 IRS Form 990 filing data available from the Internal Revenue Service, ‘‘Tax Exempt Organization Search,’’ https://apps.irs.gov/app/eos. 34 U.S. Small Business Administration, ‘‘Table of Small Business Size Standards’’ (Aug. 19, 2019), VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 Accordingly, the Department certifies that the proposed rule would not have a significant economic impact on a substantial number of small entities. Moreover, any economic impact experienced by IRAPs or SREs would be cost savings. C. Paperwork Reduction Act As explained in the ‘‘Background’’ section above, the Department is proposing to rescind subpart B, ‘‘Standards Recognition Entities of Industry-Recognized Apprenticeship Programs,’’ from title 29 CFR part 29, the regulatory framework for the Department’s recognition of SREs and SREs’ role in recognizing IRAPs. As part of the implementation and rollout of the IRAP rule the Department developed and received OMB approval for two information collection requests (ICRs), an application form and a performance report. The first active ICR is entitled ‘‘Industry-Recognized Apprenticeship Program Standards Recognition Entity Regulation and Application’’ (OMB Control Number 1205–0536) and includes an annual approved burden of 141,819 responses and 285,310 hours. There is no additional cost burden. The second active ICR is entitled ‘‘IRAP Program and Performance Report for Standards Recognition Entities’’ (OMB Control Number 1205–0545) and includes an annual approved burden of 12,447 responses and 111,118 hours. There is no additional cost burden. If a final rule rescinds subpart B, on the effective date of the regulation, the available at https://www.sba.gov/document/ support--table-size-standards. PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 Department will withdraw its recognition of SREs and any SRErecognized apprenticeship program would no longer be an IRAP as described in subpart B. The Department will no longer use the ‘‘IndustryRecognized Apprenticeship Program Standards Recognition Entity Regulation and Application’’ ICR and the ‘‘IRAP Program and Performance Report for Standards Recognition Entities’’ ICR. Upon publication of a final rule, DOL will submit requests to discontinue both OMB Control Number 1205–0536 and OMB Control Number 1205–0545, eliminating all paperwork burden associated with the ICRs. D. Executive Order 13132: Federalism This proposed rule, if finalized, does not have federalism implications because it does not have substantial direct effects on the States, on the relationship between the National Government and the States, or on the distribution of power and responsibilities among the various levels of government. Accordingly, E.O. 13132, Federalism, requires no further agency action or analysis. E. Unfunded Mandates Reform Act of 1995 Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C. 1532, requires each Federal agency to prepare a written statement assessing the effects of any Federal mandate in a proposed agency rule that may result in $100 million or more in expenditures (adjusted annually for inflation) in any one year by State, local, and tribal governments, in the aggregate, or by the private sector. E:\FR\FM\15NOP1.SGM 15NOP1 EP15NO21.014</GPH> khammond on DSKJM1Z7X2PROD with PROPOSALS "'Source: U.S. Cem11sBureau, Statistics of U.S. Businesses. https:/lwww.census.gov/data/tablesl2017/econ/susb/2017-suEti-annualhtml. 62978 Federal Register / Vol. 86, No. 217 / Monday, November 15, 2021 / Proposed Rules This proposed rule, if finalized, does not exceed the $100-million expenditure in any one year when adjusted for inflation, and this rulemaking does not contain such a mandate. The requirements of title II of UMRA, therefore, do not apply, and the Department has not prepared a statement under the Act. F. Executive Order 13175 (Indian Tribal Governments) The Department has reviewed this proposed rule in accordance with E.O. 13175 and has determined that it does not have tribal implications. The proposed rule does not have substantial direct effects on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes. List of Subjects in 29 CFR Part 29 Apprenticeability criteria, Apprentice agreements and complaints, Apprenticeship programs, Program standards, Registration and deregistration, Sponsor eligibility, State apprenticeship agency recognition and derecognition. For the reasons stated in the preamble, the Department proposes to amend 29 CFR part 29 as follows: PART 29—LABOR STANDARDS FOR THE REGISTRATION OF APPRENTICESHIP PROGRAMS 1. The authority citation for part 29 is revised to read as follows: ■ Authority: 9 U.S.C. 50; 40 U.S.C. 3145; 5 U.S.C. 301; 5 U.S.C. App. P. 534. 2. Remove the designation of subpart A and the associated heading. ■ 3. Amend § 29.1 by: ■ a. Revising the section heading; and ■ b. In paragraph (b), removing the word ‘‘subpart’’ and adding the word ‘‘part’’ in its place. The revision reads as follows: khammond on DSKJM1Z7X2PROD with PROPOSALS § 29.2 * * § 29.14 [Amended] 6. Amend § 29.14 by: a. In the introductory text, removing the citation ‘‘part 29 subpart A, and part 30’’ and adding the citation ‘‘this part and 29 CFR part 30’’ in its place; and ■ b. In paragraphs (e)(1) and (i), removing the word ‘‘subpart’’ and adding the word ‘‘part’’ in its place. ■ ■ § § 29.3, 29.6, 29.10, and 29.11 [Amended] 7. In addition to the amendments set forth above, in 29 CFR part 29, remove the word ‘‘subpart’’ and add in its place the word ‘‘part’’ in the following places: ■ a. Section 29.3(b)(1), (g) introductory text, and (h); ■ b. Section 29.6(b)(2); ■ c. Section 29.10(a)(2); and ■ d. Section 29.11 introductory text. ■ Subpart B—[Removed] Angela Hanks, Acting Assistant Secretary for Employment and Training, Labor. [FR Doc. 2021–24786 Filed 11–12–21; 8:45 am] BILLING CODE 4510–FR–P DEPARTMENT OF THE TREASURY Office of Investment Security Purpose and scope. * [Amended] 5. Amend § 29.13 by: a. In paragraph (a)(1), removing the citation ‘‘29 CFR part 29 subpart A, and part 30’’ and adding the citation ‘‘this part and 29 CFR part 30’’ in its place; ■ b. In paragraph (b)(1), removing the citation ‘‘29 CFR part 29 subpart A’’ and adding ‘‘this part’’ in its place; ■ c. In paragraphs (c) and (e) introductory text, removing the word ‘‘subpart’’ and adding the word ‘‘part’’ in its place; and ■ d. In paragraph (e)(4), removing the citation ‘‘part 29 subpart A’’ and adding ‘‘this part’’ in its place. ■ ■ 8. Remove subpart B, consisting of §§ 29.20 through 29.31. ■ * § 29.13 ■ Subpart A—[Amended] § 29.1 c. In the definition of Technical assistance, removing the word ‘‘subpart’’ and adding the word ‘‘part’’ in its place. ■ * 31 CFR Parts 800 and 802 [Amended] 4. Amend § 29.2 by: a. In the introductory text, removing the word ‘‘subpart’’ and adding the word ‘‘part’’ in its place; ■ b. In the definitions of Apprenticeship program and Registration agency, removing the citation ‘‘29 CFR part 29 subpart A, and part 30’’ and adding the citation ‘‘this part and 29 CFR part 30’’ in its place; and ■ ■ VerDate Sep<11>2014 17:19 Nov 12, 2021 Jkt 256001 Regulations Pertaining to Certain Investments in the United States by Foreign Persons and Regulations Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States Office of Investment Security, Department of the Treasury. ACTION: Proposed rule. AGENCY: PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 This proposed rule would modify the definitions of ‘‘excepted foreign state’’ and ‘‘excepted real estate foreign state’’ by extending by one year the effective date of one of two criteria set forth in the definitions in the regulations implementing certain provisions of Section 721 of the Defense Production Act of 1950, as amended. DATES: Written comments must be received by December 15, 2021. ADDRESSES: Written comments on this proposed rule may be submitted through one of two methods: • Electronic Submission: Comments may be submitted electronically through the Federal government eRulemaking portal at https://www.regulations.gov. Electronic submission of comments allows the commenter maximum time to prepare and submit a comment, ensures timely receipt, and enables the Department of the Treasury (Treasury Department) to make the comments available to the public. Please note that comments submitted through https:// www.regulations.gov will be public, and can be viewed by members of the public. • Mail: Send to U.S. Department of the Treasury, Attention: Laura Black, Director of Investment Security Policy and International Relations, 1500 Pennsylvania Avenue NW, Washington, DC 20220. Please submit comments only and include your name and company name (if any), and cite ‘‘Proposed Regulations Pertaining to Certain Investments in the United States by Foreign Persons and Proposed Regulations Pertaining to Certain Transactions by Foreign Persons Involving Real Estate in the United States’’ in all correspondence. In general, the Treasury Department will post all comments to https:// www.regulations.gov/ without change, including any business or personal information provided, such as names, addresses, email addresses, or telephone numbers. All comments received, including attachments and other supporting material, will be part of the public record and subject to public disclosure. You should only submit information that you wish to make publicly available. FOR FURTHER INFORMATION CONTACT: Laura Black, Director of Investment Security Policy and International Relations, or Richard Rowe, Senior Policy Advisor, at U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW, Washington, DC 20220; telephone: (202) 622–3425; email: CFIUS.FIRRMA@treasury.gov. SUPPLEMENTARY INFORMATION: SUMMARY: E:\FR\FM\15NOP1.SGM 15NOP1

Agencies

[Federal Register Volume 86, Number 217 (Monday, November 15, 2021)]
[Proposed Rules]
[Pages 62966-62978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24786]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

29 CFR Part 29

[Docket No. ETA-2021-0007]
RIN 1205-AC06


Apprenticeship Programs, Labor Standards for Registration

AGENCY: Employment and Training Administration, Labor.

ACTION: Proposed rule; request for comments.

-----------------------------------------------------------------------

SUMMARY: The U.S. Department of Labor (DOL or the Department) proposes 
to rescind its regulation regarding Standards Recognition Entities 
(SREs) of Industry-Recognized Apprenticeship Programs (IRAPs). 
Specifically, the proposed rule would rescind the regulatory framework 
for the Department's recognition of SREs and SREs' role in recognizing 
IRAPs, and make necessary conforming changes to the Department's 
registered apprenticeship regulations.

DATES: To be ensured consideration, comments must be received on or 
before January 14, 2022.

ADDRESSES: You may submit written comments electronically by the 
following method:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions on the website for submitting comments. Label 
all submissions with docket number ETA-2021-0007 and RIN 1205-AC06.
    Instructions. Include docket number ETA-2021-0007 in your comments 
as well as RIN 1205-AC06.
    You may submit comments, identified by docket number ETA-2021-0007 
and RIN 1205-AC06, by using the Federal eRulemaking portal: https://www.regulations.gov. Follow the website instructions for submitting 
comments (under ``Help'' > ``How to use Regulations.gov'').
    Please be advised that the Department will post all comments 
received that relate to this proposed rule on https://www.regulations.gov without making any change to the comments or 
redacting any information. The https://www.regulations.gov website is 
the Federal eRulemaking portal, and all comments posted there are 
available and accessible to the public. Therefore, the Department 
recommends that commenters remove personal information, such as Social 
Security numbers, personal addresses, telephone numbers, and email 
addresses, included in their comments, as such information may become 
easily available to the public via the https://www.regulations.gov 
website. It is the responsibility of the commenter to safeguard 
personal information.

FOR FURTHER INFORMATION CONTACT: Heidi Casta, Acting Administrator, 
Office of Policy Development and Research, U.S. Department of Labor, 
200 Constitution Avenue NW, Room N-5641, Washington, DC 20210, 
Telephone: (202) 693-3700 (voice) (this is not a toll-free number) or 
1-800-326-2577 (TDD).

SUPPLEMENTARY INFORMATION:

I. Background

    The National Apprenticeship Act of 1937 (NAA), 29 U.S.C. 50, 
authorizes the Secretary of Labor (Secretary) to: (1) Formulate and 
promote the use of labor standards necessary to safeguard the welfare 
of apprentices and to encourage their inclusion in apprenticeship 
contracts; (2) bring together employers and labor for the formulation 
of programs of apprenticeship; and (3) cooperate with State agencies 
engaged in the formulation and promotion of standards of 
apprenticeship. 29 U.S.C. 50. The Department promulgated regulations to 
implement the NAA at 29 CFR part 30 (equal employment opportunity in 
apprenticeship) in 1963 and part 29 (labor standards for the 
registration of apprenticeship programs) in 1977. The part 30 
regulations prohibit discrimination in registered apprenticeship based 
on race, color, religion, national origin, sex, sexual orientation, age 
(40 or older), genetic information, and disability, and they require 
sponsors of registered apprenticeship programs (RAPs) to take 
affirmative action to provide equal opportunity in such programs. The 
part 29 regulations set forth labor standards safeguarding the welfare 
of apprentices, including: Prescribing policies and procedures 
concerning the registration, cancellation, and deregistration of 
apprenticeship programs; recognizing State Apprenticeship Agencies 
(SAAs) as Registration Agencies; and matters relating thereto. The 
Department significantly updated 29 CFR part 29 in 2008 to ``increase 
flexibility, enhance program quality and accountability, and promote 
apprenticeship opportunity in the 21st century, while continuing to 
safeguard the welfare of apprentices'' (73 FR 64402, Oct. 29, 2008), 
and updated 29 CFR part 30 in 2016 ``to

[[Page 62967]]

modernize equal employment opportunity regulations'' (81 FR 92026, Dec. 
19, 2016). These regulations provide the framework for the registered 
apprenticeship system.
    On June 15, 2017, President Trump issued Executive Order (E.O.) 
13801, ``Expanding Apprenticeships in America'' (82 FR 28229), which 
directed the Secretary to consider issuing regulations that promote the 
development of IRAPs by third parties. Section 8(b)(iii) of E.O. 13801 
also established a Task Force on Apprenticeship Expansion (Task Force) 
to identify strategies and proposals to promote apprenticeships, to 
include ``the most effective strategies for creating industry-
recognized apprenticeships.'' Based on E.O. 13801 and the Task Force's 
recommendations, the Department issued a new rule entitled 
``Apprenticeship Programs, Labor Standards for Registration, Amendment 
of Regulations'' (IRAP rule), codified at 29 CFR part 29, subpart B, 
which established the IRAP system. 85 FR 14294 (Mar. 11, 2020).
    The IRAP rule established a process for DOL's Office of 
Apprenticeship (OA) Administrator (Administrator) to recognize 
qualified third-party entities, known as SREs, which would, in turn, 
evaluate and recognize IRAPs. The IRAP rule set forth the requirements 
for third-party entities applying for Departmental recognition as SREs. 
It also identified certain requirements apprenticeship programs must 
meet in order to obtain recognition from SREs as IRAPs. The IRAP rule 
was published on March 11, 2020, and went into effect on May 11, 2020. 
As of the date of this proposed rule, the Department has recognized 27 
SREs, which have, in turn, recognized 175 IRAPs, with 165 of these 
programs recognized by a single SRE.
    On February 17, 2021, President Biden issued E.O. 14016, 
``Revocation of Executive Order 13801'' (86 FR 11089), which in section 
2 directed Federal agencies to ``promptly consider taking steps to 
rescind any orders, rules, regulations, guidelines, or policies'' 
implementing E.O. 13801.
    Pursuant to E.O. 14016, on February 17, 2021, the Department 
announced it would be undertaking a review of the IRAP system and as a 
result suspended the acceptance of new applications to become a 
recognized SRE and suspended making final determinations for 
organizations that had already submitted an application to become a 
recognized SRE.\1\ The Department advised that all SREs already 
approved by the Department and all IRAPs recognized by an SRE could 
continue to perform their functions as described in the regulation, to 
include the recognition of new IRAPs.
---------------------------------------------------------------------------

    \1\ https://www.dol.gov/newsroom/releases/eta/eta20210217.
---------------------------------------------------------------------------

    The Department's review of the IRAP system and proposed rescission 
of the IRAP rule has been informed by the Administration's priority to 
create jobs ``to be filled by diverse, local, well-trained workers who 
have a choice to join a union'' through strengthening RAPs.\2\ The 
Department is focused on rebuilding the middle class, connecting a 
diverse workforce to family-sustaining jobs, and playing an active role 
in the rebuilding of the workforce to address the effects of the 2019 
Coronavirus Disease pandemic in a manner consistent with its mission to 
``foster, promote, and develop the welfare of the wage earners, job 
seekers, and retirees of the United States; improve working conditions; 
advance opportunities for profitable employment; and assure work-
related benefits and rights.'' \3\ As such, the Department plays an 
important role in ensuring workers are paid a fair wage, provided a 
safe workplace, and provided the tools and training necessary to access 
equitable economic opportunity and success. This mission is always 
important, but even more so as the country emerges and begins to 
recover from the 2019 Coronavirus Disease pandemic.\4\ The pandemic has 
led to millions of workers becoming unemployed, and it has exposed 
vulnerabilities and fissures in our economy as a result of systemic 
racism and economic inequality, of which the burdens were felt greatest 
by low-wage earners and communities of color. The Department views the 
registered apprenticeship system--a system that has benefited thousands 
of workers and employers throughout its existence--as a far more 
effective system than IRAPs for delivering on DOL's mission to help 
workers access family-sustaining jobs, protect the safety and welfare 
of apprentices, and reach out to underserved communities.
---------------------------------------------------------------------------

    \2\ White House, ``Fact Sheet: Biden Administration to Take 
Steps to Bolster Registered Apprenticeships'' (Feb. 17, 2021), 
available at https://www.whitehouse.gov/briefing-room/statements-releases/2021/02/17/fact-sheet-biden-administration-to-take-steps-to-bolster-registered-apprenticeships/.
    \3\ https://www.dol.gov/general/aboutdol.
    \4\ The IRAP rule was published on March 11, 2020, which is the 
same day that the World Health Organization declared COVID-19 a 
pandemic and 2 days before the President declared a national 
emergency concerning the COVID-19 pandemic. See World Health 
Organization Director General's opening remarks at the media 
briefing on COVID-19 (Mar. 11, 2020), available at https://www.who.int/director-general/speeches/detail/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19---11-march-2020; 
Proclamation 9994, Declaring a National Emergency Concerning the 
Novel Coronavirus Disease (COVID-19) Outbreak, 85 FR 15337 (Mar. 13, 
2020). The declaration of a national emergency continues as of the 
date of the publication of this proposed rule. Continuation of the 
National Emergency Concerning the Coronavirus Disease 2019 (COVID-
19) Pandemic, 86 FR 11599 (Feb. 24, 2021).
---------------------------------------------------------------------------

    The IRAP rule, conversely, does not align with the Administration's 
and Department's priorities for several reasons, as discussed in 
further detail below. Among them is that IRAPs have fewer quality 
training and worker protection standards than RAPs and, contrary to the 
conclusions in the IRAP rule, the Department no longer considers it 
appropriate or necessary to create an additional apprenticeship model, 
particularly one that does not guarantee the same protections for 
apprentices. The IRAP rule also threatens to undermine the robust and 
successful registered apprenticeship system by creating a duplicative 
system that lacks sufficient oversight and quality necessary to ensure 
the Department endorses programs meeting the needs of the American 
workforce and economy. Although the IRAP rule was premised on the idea 
that parallel apprenticeship systems were preferable as a means to 
better grow apprenticeship generally, upon further consideration and 
review the Department thinks that the existence of two parallel systems 
overseen by the Department is an inefficient and ineffective use of its 
resources.
    In the IRAP rule, IRAPs were touted as a more flexible, industry-
driven model that would enable expansion of apprenticeship into new 
industries and occupations. However, as explained in greater detail 
below, the Department has reconsidered this conclusion and now thinks 
that the IRAP rule is redundant and not necessary to broaden the scope 
of apprenticeship coverage by industry. In addition, upon review the 
Department now thinks that the IRAP rule does not provide adequate 
focus on worker needs and protections, does not ensure adequate program 
quality standards, does not provide sufficient equal employment 
opportunity protections for apprentices, and does not provide a proven 
pathway to family-sustaining jobs.
    The Department therefore believes that focusing its efforts and 
resources on expanding the registered apprenticeship system will more 
effectively meet the needs of industry and workers alike, and has 
concluded that the best path forward is to rescind the IRAP rule and 
focus on further strengthening the successful registered apprenticeship 
system.

[[Page 62968]]

II. The Registered Apprenticeship System is Highly Successful for 
Industry

    For over 80 years, the registered apprenticeship system has met the 
demands from industry to provide quality work-based training. RAPs 
combine paid on-the-job learning (OJL) with related instruction to 
progressively increase workers' skill levels and wages. With this 
``earn and learn'' model, apprentices are employed and earn wages from 
the first day on the job. Industries that have adopted RAPs as part of 
their work-based learning models have cited the standards, skillsets, 
and retention offered by skilled workers associated with RAPs as 
advantageous to their bottom line. In one survey, nearly three-fourths 
of surveyed employers stated that registered apprenticeships drove 
increased worker productivity.\5\ RAPs are a flexible training strategy 
that can be customized to meet the needs of any business, including 
allowing employers to partner with workforce partners and educators to 
develop and apply industry standards to training programs, thereby 
increasing the quality and productivity of the workforce.
---------------------------------------------------------------------------

    \5\ Urban Institute Research Report, ``The Benefits and 
Challenges of Registered Apprenticeship: The Sponsors' Perspective'' 
(June 12, 2009), available at https://www.urban.org/research/publication/benefits-and-challenges-registered-apprenticeship-sponsors-perspective.
---------------------------------------------------------------------------

    A skilled workforce is foundational to a strong economy, and 
registered apprenticeship provides a proven avenue by which to deliver 
much needed talent development to various industry sectors, including 
as the economy recovers from the disruption cause by the COVID-19 
pandemic. Employers have continued to turn to registered apprenticeship 
to hire and train new employees, with over 221,000 new registered 
apprentices over the past year across several industries, including 
cybersecurity, healthcare, advanced manufacturing, transportation, 
energy, and information technology (IT).\6\
---------------------------------------------------------------------------

    \6\ The 25 federally administered States and 18 federally 
recognized SAAs use the Employment and Training Administration's 
Registered Apprenticeship Partners Information Database System 
(RAPIDS) to provide individual apprentice and sponsor data. These 
data represent registered apprenticeship national results for Fiscal 
Year (FY) 2020 (Oct. 1, 2019-Sept. 30, 2020), as reported by these 
entities, and are available at https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020.
---------------------------------------------------------------------------

    This growth is not an anomaly. Since its establishment, the 
registered apprenticeship system has, with few exceptions, shown strong 
growth. The past 5 years saw the creation of over 13,500 new RAPs. In 
2020 alone, there were nearly 26,000 RAPs active across the nation, and 
3,143 new apprenticeship programs were established nationwide, 
representing 73-percent growth from 2009 levels.\7\ Despite the COVID-
19 pandemic, 2020 represents the third-highest year of new RAP 
development over the past decade. As a result of these programs, more 
than 221,000 new workers became apprentices in 2020. In total, there 
were over 636,000 apprentices across the Nation who were obtaining 
skills while earning the wages they need to build financial security, 
and over 80,000 apprentices have successfully completed their program 
and received a certificate of completion recognized by industries 
across the Nation.\8\ Apprentices who have successfully completed their 
program and received their certificate of completion have high career 
retention rates, with over 94 percent of graduates retaining 
employment.\9\ The continued, sustained growth of registered 
apprenticeship demonstrates it remains a trusted and successful 
framework that industry can leverage to develop and retain a skilled 
workforce.
---------------------------------------------------------------------------

    \7\ OA 2020 Data and Statistics, available at https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020.
    \8\ OA 2020 Data and Statistics, available at https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020.
    \9\ OA Career Seeker Fact Sheet (Sept. 2020), available at 
https://www.apprenticeship.gov/sites/default/files/Career_Seeker_Fact_Sheet.pdf.
---------------------------------------------------------------------------

    The Department expects this broad-based growth to continue as the 
registered apprenticeship system is an important part of the 
Administration's workforce development strategy, including its COVID-19 
recovery strategy in which registered apprenticeship can provide a 
bridge to businesses to an economic recovery. Thus, registered 
apprenticeship has been, and will continue to be, an important long-
term education and talent development strategy for all workers, and in 
turn for industry.

III. The Registered Apprenticeship System is Highly Successful for 
Workers

    In addition to the demonstrated success of the registered 
apprenticeship system as a workforce training model for industry, it 
has proven to be highly successful and beneficial to workers because of 
its emphasis on both high-quality training and apprentice safety and 
welfare. Registered apprenticeship is designed to ensure high-quality 
training through mentorship, OJL, and related instruction while also 
prioritizing safety, wage progression, and equal employment opportunity 
for apprentices. Registered apprenticeships follow federally approved 
industry standards for workplaces, and programs must abide by set 
ratios for supervision to further enhance safety in the program. During 
training, apprentices are guaranteed progressive wage increases, and 
research shows that Registered Apprenticeship program completers earn 
over $300,000 (including benefits) more over their lifetimes as 
compared with individuals who do not complete a registered 
apprenticeship.\10\ Further, the Department has taken significant steps 
to increase the participation of women and individuals from 
underrepresented groups through the robust requirements in 29 CFR part 
30. With registered apprenticeship, there is also an added level of 
accountability because the Department can exercise its enforcement 
authority to intervene and ensure employers provide industry-
established prevailing wages, ensure stringent safety standards are in 
place, and monitor program quality to protect workers.
---------------------------------------------------------------------------

    \10\ See, e.g., Mathematica Policy Research, ``An Effectiveness 
Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 
10 States: Final Report'' (July 25, 2012), https://wdr.doleta.gov/research/FullText_Documents/ETAOP_2012_10.pdf. The study cautions 
against interpreting its results, which do not control for 
unobservable skill or motivation, as having conclusively identified 
the effects of registered apprenticeships on earnings. Moreover, the 
estimates do not represent increments between registered 
apprenticeships and IRAPs (the latter not having been implemented at 
the time the study was conducted).
---------------------------------------------------------------------------

    In contrast, the IRAP model was designed in a way that does not 
incorporate these same benefits and protections. IRAPs do not ensure 
that programs uniformly produce a high quality of training recognized 
across the Nation, are not designed to promote and advance diversity in 
the apprenticeship system, and do not include the same apprentice 
safety and welfare requirements as the RAP model. The IRAP model was 
designed as a hands-off approach, requiring SREs to play the primary 
role in program monitoring and intervention. The Department no longer 
views this as a reasonable or effective alternative to the standards 
and oversight that are the hallmarks of the registered apprenticeship 
system. While SREs are responsible for establishing and enforcing the 
individual standards of the programs under their purview, each SRE may 
have differing standards and views on acceptable levels for 
performance. For example, IRAPs' lack of uniform requirements regarding 
a progressively increasing wage, enhanced safety standards, and 
affirmative action goals mean there is no

[[Page 62969]]

uniformity across different IRAPs and SREs.
    This is fundamentally inconsistent with the Department's goal of 
expanding quality apprenticeships in a manner that both ensures a high 
level of quality while also retaining industry input and flexibility to 
adapt the apprenticeship model to different industries and occupations. 
RAPs--which can be, and have been, adapted to different occupations and 
are recognized for their high quality and effective worker 
protections--have proven effective in striking an appropriate balance 
between the structure necessary to ensure high-quality training and the 
flexibility necessary to adapt the apprenticeship model to different 
industries and occupations. Further, the Department's ability to 
intervene to address disparities in quality and worker protections 
across IRAPs is limited because the Department does not have the 
ability to directly monitor or oversee IRAPs, and such disparities may 
cause confusion for apprentices and promote inequitable outcomes among 
program participants.

A. Registered Apprenticeships Uniformly Provide More Rigorous, Higher 
Quality Training

    As described further below, registered apprenticeships must adhere 
to rigorous training requirements, to include OJL and related 
instruction. When compared to registered apprenticeships, IRAPs do not 
have the same standards for minimum skill level or competency baselines 
in their respective occupations.
1. On-the-Job Learning
    A structured OJL model is a hallmark of a high-quality 
apprenticeship program, as this framework provides standardized 
evaluation of apprentice proficiency using a time-based model, 
competency-based model, or a hybrid of both, with benchmarks that 
ensure mastery in the apprentice's respective occupation and 
flexibility in the approach used that ensures apprenticeships can be 
developed and customized to a variety of occupations. Registered 
apprenticeships generally require a minimum of 2,000 hours (or 1 year) 
of OJL for time-based and hybrid programs. Registered apprenticeships 
can also be measured against skills-based competencies, and the amount 
of OJL typically amounts to 1 year but may take more or less time 
depending on the individual. The standardized approach to OJL employed 
in registered apprenticeships ensures apprentices have the necessary 
time, within a structured framework, to apply their skills and training 
in practice and apprentices meet minimum skill level or competency 
baselines before entering the workforce. Further, registered 
apprenticeships are assessed based, in part, on whether OJL is 
available for all phases of an apprentice's training. Because OJL is a 
critical component for the apprentice's learning experience, the 
Department considers a structured mentorship requirement as a strength 
for high-quality apprenticeship programs. Registered apprenticeships 
pair apprentices with experienced employees (also referred to as 
Journeyworkers) who have already mastered the skills and competencies 
associated with the occupation such that these individuals can mentor 
apprentices with on-the-job guidance and direction that ensures safety 
and quality training.
    In contrast, IRAPs are not required to have a robust, structured 
OJL model. Instead, IRAPs need only follow the written training plan 
established by the SRE--a plan that has no requirements other than that 
it be formulated using consensus-based competency standards. Because 
not all IRAPs provide the same structured, standardized framework for 
OJL as RAPs, the quality of training can vary across SREs and, in turn, 
IRAPs. As a result, apprentices participating in IRAPs may lack access 
to rigorous, structured OJL--a critical component of a high-quality 
apprenticeship program because it equips registered apprentices to 
enter the workforce. Although the training provisions of the IRAP rule 
were based on the assumption that SREs are in the best position to 
establish OJL frameworks, the Department now views this lack of 
uniformity in OJL as inconsistent with the goal of growing a highly 
skilled workforce through apprenticeship as it could too easily lead to 
apprenticeship programs that do not provide sufficient training to 
apprentices. The Department thinks that the existing OJL models 
available under the registered apprenticeship system--which can be 
adapted to different occupations and are recognized for their high 
quality and effective worker protections--have proven effective in 
striking an appropriate balance between the structure necessary to 
ensure high-quality training and the flexibility necessary to adapt the 
apprenticeship model to different industries and occupations.
2. Related Instruction
    As important as OJL is the related instruction \11\ component of an 
apprenticeship program. By requiring related instruction as part of 
registered apprenticeship, the Department ensures employers are 
equipping apprentices with the theoretical and technical knowledge in 
subjects related to their respective occupations. This is essential to 
a high-quality apprenticeship program, and it is the Department's 
priority that minimum related instruction standards are integrated into 
the apprenticeship programs it recognizes. A minimum of 144 hours of 
related instruction is recommended for registered apprenticeships, and 
recognizing the benefit of robust related instruction, most registered 
apprenticeships exceed the 144-hour recommendation. This approach 
ensures apprentices uniformly receive meaningful and substantive 
knowledge in their respective occupations, creating a well-rounded 
training experience that provides the educational foundation necessary 
for success in practical settings, while also retaining flexibility 
based on different industries and occupations that may require varying 
amounts of related instruction.
---------------------------------------------------------------------------

    \11\ ``Related instruction'' is an organized and systematic form 
of instruction designed to provide the apprentice with the knowledge 
of the theoretical and technical subjects related to the 
apprentice's occupation. Such instruction may be given in a 
classroom, through occupational or industrial courses, or by 
correspondence courses of equivalent value, electronic media, or 
other forms of self-study approved by the Registration Agency. 29 
CFR 29.2.
---------------------------------------------------------------------------

    In contrast, the IRAP requirements lack standards on minimum 
related instruction hours, and do not articulate how SREs monitor or 
evaluate related instruction. As a matter of design, apprentices in an 
IRAP may lack access to this key component of a high-quality 
apprenticeship program and apprentices and the program therefore may 
not provide sufficient educational experiences for the foundational 
knowledge that is necessary in their occupations. In the IRAP rule, the 
Department viewed SREs as best-placed to develop the standards and 
frameworks on related instruction, but it no longer finds this approach 
consistent with the goal of expanding high-quality apprenticeships. 
Instead the Department finds that the conspicuous absence of minimum 
standards and an articulated approach to evaluation for related 
instruction in IRAPs means the Department cannot uniformly ensure 
apprentices in those programs receive the theoretical and technical 
knowledge necessary in their respective occupations, which is a 
hallmark of a high-quality apprenticeship program and necessary to 
developing a highly skilled workforce. Accordingly, the Department 
cannot ensure IRAPs are

[[Page 62970]]

providing the quality of related instruction necessary to ensure 
apprentices are competent in these occupations, which conflicts with 
the Department's goal of expanding high-quality apprenticeships.

B. Registered Apprenticeships Provide Better Safety and Welfare 
Protections

    The importance of apprentice safety and welfare cannot be 
overstated. As discussed further below, the registered apprenticeship 
system includes requirements related to safety, equal employment, 
progressive wages, and other worker protections that provide 
apprentices with meaningful employment opportunities while also 
guaranteeing rights and protections on the job.
    In contrast, the requirements of the IRAP rule fall short in these 
areas. As discussed further below, the requirements include basic 
compliance with existing laws but do not create additional obligations 
that focus on safeguarding the welfare of apprentices, especially with 
respect to progressively increasing wages, safety requirements, and 
equal employment opportunity (EEO). The IRAP rule also dilutes the 
Department's role in overseeing apprenticeships, tasking SREs with this 
oversight role instead and retaining only a minimal role in overseeing 
the SREs.
1. Workplace Safety
    Enhanced safety standards are an essential element of a successful 
apprenticeship program. While the additional requirements of RAPs are 
designed to keep apprentices safe, this does not mean each RAP requires 
the same training or same safety precautions--these are workplace- and 
industry-specific requirements within the framework of the registered 
apprenticeship system.
    RAPs require several safety protections designed to both teach 
apprentices how to work safely within their occupation and create safe 
workplaces for apprentices. RAPs must specify a numeric ratio of 
apprentices to Journeyworkers ``consistent with proper supervision, 
training, safety, and continuity of employment.'' 29 CFR 29.5(b)(7). 
They must also have ``[a]dequate and safe equipment and facilities for 
training and supervision'' in addition to ``safety training for 
apprentices on the job and in related instruction.'' 29 CFR 29.5(b)(9). 
Though broad, these safety requirements focus on both physical 
workplace safety and safety through training and mentorship. Further, 
they are meant to protect the safety of apprentices in each RAP by 
being tailored to the specific conditions in which those apprentices 
will be working and learning.
    In contrast, IRAPs are not necessarily covered by enhanced safety 
standards beyond generally applicable Federal, State, and local safety 
laws and regulations and any additional safety requirements of the SRE. 
While a SRE may require an IRAP to have stricter, more tailored safety 
standards than required by applicable law, this discretionary 
requirement is insufficient to protect the safety of apprentices who, 
by definition, are being trained on the job and therefore would benefit 
from additional workplace protections, particularly for less skilled 
workers training in occupations that pose a higher risk of injury or 
death. Although the safety provisions of the IRAP rule were based on 
the assumptions that SREs would be able to better determine the safety 
standards relevant to their IRAPs and that compliance with generally 
applicable workplace safety standards was a sufficient baseline 
requirement, the Department now disagrees with leaving such a 
determination to the SRE, especially without the important safety 
parameters requirements of the registered apprenticeship system. The 
registered apprenticeship regulations require a ratio of apprentices to 
journeyworkers, safe equipment and facilities for training and 
supervision, and the provision of safety training on the job and in 
related instruction. However, the registered apprenticeship regulations 
do not prescribe how to meet these requirements, leaving sufficient 
flexibility for implementation. This ensures a process for taking into 
consideration both industry needs and apprentice safety that is not 
present in the IRAP rule. The Department views this as the more 
appropriate approach given that apprentices are learning on the job and 
therefore benefit from enhanced training and protections.
2. Progressive Wages
    It is a priority of the Department to grow opportunities to help 
workers access family-sustaining jobs. Registered apprenticeship's 
earn-as-you-learn model accomplishes this priority by providing for 
progressively increasing wages for apprentices as they progress in 
their apprenticeship experience, learning, and skills. In registered 
apprenticeship, the graduated scale of wages and any compensation for 
related instruction is set forth in the apprenticeship agreement 
required for each apprentice. Not only is this type of wage progression 
guaranteed per the terms of the apprenticeship agreement, but it also 
serves as an important incentive to attract apprentices and sets them 
on a path to potential lifetime earnings (including benefits) that, 
according to research, exceed by more than $300,000 those who do not 
complete a registered apprenticeship.\12\
---------------------------------------------------------------------------

    \12\ See, e.g., Mathematica Policy Research, ``An Effectiveness 
Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 
10 States: Final Report'' (July 25, 2012), https://wdr.doleta.gov/research/FullText_Documents/ETAOP_2012_10.pdf. The study cautions 
against interpreting its results, which do not control for 
unobservable skill or motivation, as having conclusively identified 
the effects of registered apprenticeships on earnings. Moreover, the 
estimates do not represent increments between registered 
apprenticeships and IRAPs (the latter not having been implemented at 
the time the study was conducted).
---------------------------------------------------------------------------

    In contrast, there is no such guaranteed wage progression for 
apprentices of IRAPs--an apprentice could be earning the same wages 
over the course of the apprenticeship, and any wage progression is 
solely at the discretion of the IRAP. Because the IRAP regulation is 
silent on one of the most valuable features of apprenticeship to 
apprentices, there is no requirement for SREs to play any role in an 
IRAP's wage-setting, other than to affirm compliance with applicable 
laws, such as minimum wage. Although the IRAP rule is premised upon the 
assumption that market forces and apprentice choice will drive wage 
decisions, the Department notes that RAP wages are also influenced by 
market forces and apprentice choice, including an apprentice's option 
to enroll in a RAP where a progressive wage is required. The important 
difference is the prioritization of wage increases commensurate with 
skill increases, which is in line with the Department's priorities to 
help workers access family-sustaining jobs and the idea that 
apprentices should be paid a wage commensurate with the skills they 
have attained.
3. Equal Employment Opportunity
    The Department views equity and equal opportunity as essential to 
the success of an apprenticeship program, and it notes its 
responsibility under E.O. 13985, ``Advancing Racial Equity and Support 
for Underserved Communities Through the Federal Government,'' 86 FR 
7009 (Jan. 20, 2021), to advance equity, civil rights, racial justice, 
and equal opportunity. Such a responsibility necessitates action, 
intentional infusion of equity into workforce development programs, and 
critical thinking about how to reduce barriers to workforce entry. The 
registered apprenticeship system's 29 CFR part 30 regulations 
acknowledge that mere passive nondiscrimination is insufficient and

[[Page 62971]]

require affirmative steps to promote diversity and equity in 
apprenticeship. 29 CFR 30.3, 30.4. Accordingly, the registered 
apprenticeship system has structured and specific requirements 
regarding equal opportunity, anti-harassment, affirmative action, 
utilization analyses and goals, targeted recruitment, outreach and 
retention, compliance, and enforcement. Through the equal opportunity 
regulations at 29 CFR part 30, the registered apprenticeship system 
provides enhanced opportunities for apprentices to access and succeed 
in RAPs and gives sponsors tools to reduce barriers to equal 
opportunity within their programs.
    In contrast, the IRAP model simply requires programs to affirm 
their adherence to applicable Federal, State, and local laws and 
regulations pertaining to EEO. 29 CFR 29.22(a)(4). Requiring IRAPs to 
do the bare minimum, especially when a model framework for EEO in 
apprenticeship is already in place in 29 CFR part 30, is a disservice 
to apprentices and apprenticeship programs, and contrary to the goals 
of the Department to promote equity in apprenticeship. Although the 
SREs do have minimal additional responsibilities to develop policies 
requiring IRAP adherence to EEO law, facilitating such adherence, and 
reflecting comprehensive outreach strategies to reach diverse 
populations that may participate in IRAPs, the IRAP rule lacks specific 
requirements and provides no framework for equity principles or goals. 
29 CFR 29.22(i). The requirements of the IRAP model fail to ensure 
meaningful action will be taken to expand equal employment opportunity 
in apprenticeship.
4. Worker Empowerment
    The Department generally thinks the relationship between workers 
and employers must be balanced so workers have a voice in ensuring fair 
and safe work conditions. For registered apprentices, there are many 
avenues to realize worker empowerment. The apprenticeship agreement 
plays a crucial role in articulating the standards of apprenticeship 
and the terms and conditions of employment. The registered 
apprenticeship agreement must contain specific terms, including a 
statement of the occupation for which the apprentice is training, the 
duration of the apprenticeship, the number of hours in the program to 
include related instruction hours, the schedule of work processes, the 
graduated scale of wages to be paid, the standards of the 
apprenticeship program, and an EEO statement. 29 CFR 29.7. The 
registered apprenticeship agreement must also contain information about 
dispute resolution should a controversy or difference arise out of the 
agreement, id., and must be accepted and recorded either by OA or an 
SAA. 29 CFR 29.2. The requirement that registered apprenticeship 
agreements include specific terms ensures the apprentices have 
knowledge of their rights and responsibilities and empowers them to be 
informed participants in the employment relationship.
    Although IRAPs also contain a written apprenticeship agreement 
requirement, each IRAP may determine which terms and conditions to 
include as long as the agreement is consistent with the SRE's 
requirements. Each SRE may determine its own requirements as it sees 
fit, potentially creating a wide variety in apprenticeship agreements 
across SREs and no requirement for a uniform set of terms and 
conditions for apprentices. There is also no requirement to submit the 
agreement to be accepted or recorded by the SRE. Without parameters, 
this requirement contains little more than an honor system to ensure 
apprentices have meaningful information about the terms and conditions 
of their apprenticeship and how they can voice their concerns.
    One of the key justifications of the 2020 rule was that the IRAP 
model would help address a purported ``skills gap'' in the labor 
market. While providing training to job seekers is a key component to 
addressing any ``skills gaps'' or ``skills mismatches,'' evidence 
suggests that training alone is not the answer. Employer investments in 
workforce development, competitive and rising wages to attract and 
retain workers, commitments to opportunity and diversity, and worker 
empowerment are key factors to addressing industry labor 
needs.13 14 The well-established RAP model--with its role in 
and focus on employer investment in training, specific equal employment 
opportunity recruitment requirements and protections for apprentices, 
as well as its requirement that a progressive wage (beyond the minimum 
wage) be paid to apprentices during their apprenticeship reflecting 
their acquisition of occupational and workplace competencies, and 
worker empowerment and safety provisions--provides a more promising and 
effective framework for addressing and closing persistent 
inefficiencies in the labor market.
---------------------------------------------------------------------------

    \13\ Annelies Goger and Luther Jackson, ``The labor market 
doesn't have a `skills gap'--it has an opportunity gap,'' Sept. 9, 
2020, https://www.brookings.edu/blog/the-avenue/2020/09/09/the-labor-market-doesnt-have-a-skills-gap-it-has-an-opportunity-gap/.
    \14\ Kate Bahn, `` 'Skills gap' arguments overlook collective 
bargaining and low minimum wages,'' May 9, 2019, https://equitablegrowth.org/skills-gap-arguments-overlook-collective-bargaining-and-low-minimum-wages/.
---------------------------------------------------------------------------

    Conversely, the very deficiencies inherent to the IRAP model 
discussed above--workplace safety, progressive wages, equal employment 
opportunity, and worker empowerment--severely reduce the ability of 
IRAPs to address any current or future labor shortages that might 
exist. Job quality is key to recruiting, training, and retaining 
workers in a specific occupation or industry.15 16 Thus, the 
lack of requirements for IRAPs to address these critical issues limits 
their ability to help fulfill labor market demands.
---------------------------------------------------------------------------

    \15\ Livia Y. Lam, ``A Multiple Measures Approach to Workforce 
Equity: How Improving Job Quality in Workforce Accountability Can 
Help Close Equity Gaps,'' Center for American Progress, October 20, 
2020, at: https://www.americanprogress.org/issues/economy/reports/2020/10/20/491998/multiple-measures-approach-workforce-equity/.
    \16\ Society for Human Resource Management (SHRM), ``Managing 
for Employee Retention,'' 2017, at: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/managingforemployeeretention.aspx.
---------------------------------------------------------------------------

IV. The IRAP System is Redundant of the Registered Apprenticeship 
System

    One of the main justifications behind the development of IRAPs was 
the necessity to grow and expand apprenticeship into industries and 
occupations that have traditionally not used the registered 
apprenticeship system because of the insufficient flexibility in 
program requirements within RAPs to meet the varying needs of different 
industries and the administrative burden posed by these requirements. 
However, the premise that registered apprenticeship is too inflexible 
to meet the needs of industry is fundamentally flawed and contrary to 
the above-mentioned demonstrated success of registered apprenticeship 
for industry and workers and its continued growth in expanding into new 
industries and occupations. Although registered apprenticeship has 
historically been associated with the construction sector, it has 
successfully been adopted across a diverse range of industry sectors, 
with significant growth in recent years.
    The Department has used a variety of strategies to drive registered 
apprenticeship growth beyond those industries historically associated 
with registered apprenticeship. One strategy driving this expansion and 
growth is the Industry Intermediaries concept, where the Department has 
used contracted entities with specific industry expertise to further 
the Department's efforts to

[[Page 62972]]

expand registered apprenticeship opportunities in high-growth sectors. 
From 2016 to 2020, Department-contracted Industry Intermediaries 
created 271 new RAPs in 232 high-demand occupations for a total of 867 
employers. Of the occupations developed under these contracts, 37 
percent were in the manufacturing sector, 15 percent were in the 
healthcare sector, and 15 percent were in the transportation 
sector.\17\
---------------------------------------------------------------------------

    \17\ National Industry and Equity Apprenticeship Intermediaries 
Fact Sheet, ``Advancing Registered Apprenticeship for Business and 
Workers in the U.S.'' (Jan. 19, 2021), available at https://www.apprenticeship.gov/sites/default/files/Industry-and-Equity-Intermediary-Accomplishment-Fact-Sheet.pdf.
---------------------------------------------------------------------------

    Another strategy that has helped expand registered apprenticeship 
is the Department's 2015 American Apprenticeship Initiative (AAI), 
which aimed to register new apprentices in high-growth and high-tech 
industries, such as health care, IT, and advanced manufacturing, 
especially from populations traditionally underrepresented in 
apprenticeship, including women and people of color. AAI grantees, 
which included labor unions, industry associations, local workforce 
boards and nonprofit organizations, have successfully expanded the RAP 
model into new industries and extended to more diverse populations. As 
of June 2020, the 44 AAI grantees initiated 2,019 new programs and 
registered 24,675 apprentices, of which 14,486 were from 
underrepresented populations.\18\ This use of targeted investments and 
intermediaries to extend registered apprenticeship to new industry 
sectors and occupations, as well as underrepresented populations, 
undermines the rationale for the IRAP system and underscores the 
redundant and duplicative aspect of the IRAP model.
---------------------------------------------------------------------------

    \18\ National Governors' Association, ``Registered 
Apprenticeship Reimagined: Lessons Learned From the American 
Apprenticeship Initiative'' (Nov. 9, 2020), available at https://www.nga.org/center/publications/registered-apprenticeship-reimagined.
---------------------------------------------------------------------------

    More broadly, the expansion of registered apprenticeship into 
``non-traditional'' industry sectors where IRAPs are operating and for 
which SREs have been certified demonstrates that the IRAP effort is 
superfluous and not a good use of government resources that could 
support the proven activities already underway. Based on Federal 
program data from 2019 and 2020, which were unavailable at the time the 
IRAP rule was issued, the health care and social assistance industry 
sector saw an 18-percent rise in the number of active RAPs.\19\ 
Similarly, the information industry sector saw a 31-percent increase in 
the number of active RAPs during this same period, while the 
manufacturing industry sector saw a 14-percent increase in the number 
of active RAPs, as well. Within the same time frame, equally impressive 
growth has taken place in the following industry sectors not 
historically associated with the registered apprenticeship system: 
Accommodation and food services (31 percent); arts, entertainment and 
recreation (45 percent); finance and insurance (39 percent); 
professional, scientific and technical services (41 percent) and 
transportation and warehousing (19 percent).\20\ Based on the most 
recent data, and in conjunction with historical data about registered 
apprenticeship's steady growth, the Department is departing from the 
IRAP rule's assertion that IRAPs are necessary for expansion of 
apprenticeship into non-traditional occupations. Instead, the 
Department is convinced that the registered apprenticeship system is 
capable of effectively and efficiently expanding into non-traditional 
occupations, while at the same time maintaining high-quality labor 
standards. This expansion demonstrates that the design of the 
registered apprenticeship system is capable of adapting successfully to 
a wide range of industry needs and that registered apprenticeship's 
requirements on industry set forth important parameters for the 
successful growth of apprenticeship programs without being overly 
burdensome.
---------------------------------------------------------------------------

    \19\ OA Data and Statistics, available at https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020.
    \20\ Federal Data: Apprenticeship Statistics by Industry for FY 
2019 and FY 2020, available at https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2019 and https://www.dol.gov/agencies/eta/apprenticeship/about/statistics/2020.
---------------------------------------------------------------------------

    The Department's actual experience administering the IRAP system 
highlights the duplicative nature of the two systems. There is clear 
overlap between the occupations that SREs were approved to recognize 
IRAPs in and the occupations the Department has determined are 
appropriate for the registered apprenticeship system. A majority of the 
occupations in the IRAP system are occupations that have already been 
deemed as apprenticeable under the registered apprenticeship system. 
Similarly, the top five occupations in the IRAP system (machinist; 
maintenance workers, machinery; manufacturing production technicians; 
information security analysts; and web developers) all are currently 
regarded as apprenticeable occupations and used within the registered 
apprenticeship system. Moreover, comparing the approved occupations for 
IRAP SREs with currently apprenticeable occupations in registered 
apprenticeship shows a majority of the top 20 occupations recognized by 
industry for training under the IRAP model have been determined 
suitable under the registered apprenticeship system.\21\ The concurrent 
recognition of these occupations as both IRAPs and registered 
apprenticeship occupations is likely to lead to confusion and disparate 
outcomes, particularly as it allows a single entity to simultaneously 
operate as an SRE or IRAP and sponsor a RAP, with the IRAP allowed to 
provide lower quality training and fewer worker protections. This 
result is unquestionably a poor use of government resources because it 
imposes duplicative costs to the government to support a redundant 
program that may not be advancing the Department's mission and goals 
for apprenticeship. Furthermore, it is likely to sow confusion among 
prospective apprentices and employers, who will struggle to understand 
how they should interact with these duplicative systems.
---------------------------------------------------------------------------

    \21\ OA Registered Apprenticeship Occupations, available at 
https://www.apprenticeship.gov/apprenticeship-occupations; OA 
Recognized Standards Recognition Entities, available at https://www.apprenticeship.gov/employers/industry-recognized-apprenticeship-program/approved-standards-recognition-entities.
---------------------------------------------------------------------------

V. The Effect of the Department's Proposed Rescission of the IRAP Rule

    As discussed above, the Department has determined that the 
establishment of a duplicative and parallel IRAP system will not ensure 
access to high-quality job skills and training to American workers, 
while at the same time safeguarding the welfare of apprentices. 
Accordingly, the Department believes that the IRAP system is not a 
prudent use of Government resources, would diminish the quality and 
coherence of American apprenticeship efforts, and would not allow the 
Department to ensure that employers, prospective apprentices, or the 
general public are effectively served. The Department also determined 
that amending the IRAP rule would not solve any of these issues. As 
discussed in detail above, registered apprenticeship provides for 
apprentice safety and welfare and continues to grow apprenticeship 
opportunities without sacrificing crucial requirements for quality or 
worker protections. Amending the IRAP rule to align with the 
Department's goals and priorities so

[[Page 62973]]

that it possesses more of the qualities of the registered 
apprenticeship system would not serve the interests of employers and 
apprentices given that they already have access to the registered 
apprenticeship system. Further, the Department can better utilize its 
resources and provide better service to the public by supporting and 
strengthening one robust apprenticeship system that has been designed 
to incorporate the needs of both industry and the workforce and has a 
demonstrated record of successfully doing so.
    The Department acknowledges this proposal would, if finalized, 
immediately affect current SREs, IRAPs, and any apprentices 
participating in IRAPs. The Department understands SREs devoted 
resources to developing their applications and infrastructure necessary 
to effectively operate for a period of 5 years, and IRAPs and their 
apprentices may have been drawn to the program given the indication of 
approval from the Department. However, the Department thinks the impact 
of this proposal is limited given the total number of SREs and IRAPs. 
Over the 9-month period between May 2020, when the IRAP rule became 
effective, and February 2021, when the Department paused the 
consideration of SRE applications, the Department received a total of 
45 SRE applications, including from two organizations that resubmitted 
applications. Of these applications, the Department ultimately 
recognized 27 SREs.\22\ In turn, as of September 30, 2021, the 
recognized SREs have only recognized a reported 175 IRAPs, with the 
vast majority recognized by a single SRE.\23\ With respect to the 
potential impact of this proposed rule on apprentices that are or may 
become enrolled in IRAPs, because apprenticeship programs may operate 
even without DOL recognition, IRAP apprentices would not be precluded 
under this proposal from continuing their participation in such 
training programs. Alternatively, apprentices enrolled in IRAPs may 
elect instead to enroll in a RAP that provides training for their 
desired occupation; in such instances, they may qualify for advanced 
standing or credit in those registered programs.
---------------------------------------------------------------------------

    \22\ Applications Received by the Department of Labor for 
Standards Recognition Entities. Approved SREs published at https://www.apprenticeship.gov/employers/industry-recognized-apprenticeship-program/approved-standards-recognition-entities.
    \23\ According to the IRAP Program and Performance Reporting 
System, as of September 30, 2021, of the 175 IRAPs approved, 165 
were recognized by the same SRE.
---------------------------------------------------------------------------

    The Department considered other options with respect to the 
currently recognized SREs or IRAPs, including a proposed ``sunset'' 
period during which SREs and IRAPs would operate for a set number of 
years before the Department ceased its recognition, and recasting IRAPs 
as Certified Work-Based Learning. However, in light of the concerns 
discussed above, the Department believes that rescinding the 
regulation, including the immediate cessation of recognition for 
currently recognized SREs or IRAPs, is the best approach.
    If this proposal is finalized, the Department will provide 
technical assistance and support to SREs or IRAPs who are interested in 
becoming program sponsors or intermediaries under the registered 
apprenticeship system. Similarly, as a component of the Department's 
technical assistance to SREs, the Department will provide SREs with 
information and resources the SREs can share with any IRAP apprentices 
who may seek placement in a RAP.
    Although the Department recognizes that immediate rescission of the 
rule, if finalized, will likely have minimal impact, the Department 
seeks comments on how to address the effects of the proposed immediate 
cessation of recognition on SREs, IRAPs, and IRAP apprentices, 
including comments on the alternatives considered, but ultimately not 
adopted, by the Department.

VI. Regulatory Analysis and Review

A. Executive Orders 12866 (Regulatory Planning and Review) and 13563 
(Improving Regulation and Regulatory Review)

    Under E.O. 12866, the Office of Management and Budget's (OMB) 
Office of Information and Regulatory Affairs determines whether a 
regulatory action is significant and, therefore, subject to the 
requirements of the E.O. and review by OMB. See 58 FR 51735 (Oct. 4, 
1993). Section 3(f) of E.O. 12866 defines a ``significant regulatory 
action'' as an action that is likely to result in a rule that: (1) Has 
an annual effect on the economy of $100 million or more, or adversely 
affects in a material way a sector of the economy, productivity, 
competition, jobs, the environment, public health or safety, or State, 
local, or tribal governments or communities (also referred to as 
economically significant); (2) creates serious inconsistency or 
otherwise interferes with an action taken or planned by another agency; 
(3) materially alters the budgetary impacts of entitlement grants, user 
fees, or loan programs, or the rights and obligations of recipients 
thereof; or (4) raises novel legal or policy issues arising out of 
legal mandates, the President's priorities, or the principles set forth 
in the E.O. Id. This proposed rule is an economically significant 
regulatory action under section 3(f) of E.O. 12866.
    E.O. 13563 directs agencies to propose or adopt a regulation only 
upon a reasoned determination that its benefits justify its costs; the 
regulation is tailored to impose the least burden on society, 
consistent with achieving the regulatory objectives; and in choosing 
among alternative regulatory approaches, the agency has selected those 
approaches that maximize net benefits. E.O. 13563 recognizes that some 
benefits are difficult to quantify and provides that, where appropriate 
and permitted by law, agencies may consider and discuss qualitatively 
values that are difficult or impossible to quantify, including equity, 
human dignity, fairness, and distributive impacts.
1. Preliminary Economic Analysis
    E.O. 14016, ``Revocation of Executive Order 13801,'' instructed the 
Director of OMB and the heads of executive departments and agencies to 
``promptly consider taking steps to rescind any orders, rules, 
regulations, guidelines, or policies, or portions thereof, implementing 
or enforcing'' E.O. 13801. Accordingly, the Department identified for 
review the IRAP rule published on March 11, 2020. The Department is 
issuing this proposed rule because the Department has determined that a 
single apprenticeship system, namely, the registered apprenticeship 
system, would provide clearer messaging and more consistent outcomes 
than two parallel apprenticeship systems that would likely lead to 
disparate outcomes and incur duplicative costs.
    In accordance with the regulatory analysis guidance articulated in 
OMB Circular A-4 and consistent with the Department's practices in 
previous rulemakings, this regulatory analysis focuses on the likely 
consequences of the proposed rule. The Department anticipates that the 
proposed rule would result in cost savings for SREs and IRAPs since 
they would no longer need to comply with the provisions of the March 
2020 rule.
    The Department has estimated the cost savings of the proposed rule 
relative to the existing baseline (i.e., 27 SREs and 175 IRAPs). The 
analysis covers 10 years to ensure it captures the major cost savings 
that are likely to accrue over time. The Department expresses the 
quantifiable impacts in 2020 dollars and uses discount rates of

[[Page 62974]]

3 and 7 percent, pursuant to OMB Circular A-4. The Department also 
considered an alternative baseline in which the Department's February 
17th suspension of consideration of SRE applications was temporary and 
would be removed. That analysis is discussed qualitatively in the Total 
Cost Savings section below.
a. Number of SREs, IRAPs, and Apprentices
    To calculate the annual cost savings, the Department first needed 
to estimate the number of SREs and IRAPs over the 10-year analysis 
period. The Department used the number of SREs (27) and the number of 
IRAPs (175) as of September 30, 2021, for this analysis.
    The Department does not have data on the number of apprentices per 
IRAP because that information is not due from SREs until 45 days after 
the end of FY 2021, which will be November 15, 2021. One calculation in 
the March 2020 rule was based on the number of apprentices: IRAPs' 
preparation and signing of written apprenticeship agreements, which was 
estimated at 10 minutes per apprentice. Given the lack of data on the 
number of apprentices, this cost savings estimate should be emphasized 
as preliminary: If there are three apprentices per IRAP, which is the 
median number per RAP, and signing the written apprenticeship agreement 
requires 10 minutes per apprentice, then 175 IRAPs x 3 apprentices x 10 
minutes x $121.08 hourly compensation adds $10,806 per year, which 
would increase the cost savings estimate from $9.1 million (explained 
below) to $9.2 million over 10 years.
b. Compensation Rates
    The compensation rates used to quantify the cost savings of the 
proposed rule are based on the compensation rates in the IRAP rule 
published on March 11, 2020. The Department updated the compensation 
rates with 2020 data. The Department anticipates that the bulk of the 
workload for private sector workers would have been performed by 
employees in occupations similar to those associated with the following 
Standard Occupational Classification (SOC) codes: SOC 11-3131 (Training 
and Development Managers) and SOC 43-0000 (Office and Administrative 
Support Occupations).
    According to the U.S. Bureau of Labor Statistics (BLS), the mean 
hourly wage rate for Training and Development Managers in May 2020 was 
$60.54.\24\ For this analysis, the Department used a fringe benefits 
rate of 46 percent \25\ and an overhead rate of 54 percent,\26\ 
resulting in a fully loaded hourly compensation rate for Training and 
Development Managers of $121.08 [= $60.54 + ($60.54 x 0.46) + ($60.54 x 
0.54)].
---------------------------------------------------------------------------

    \24\ BLS, ``Occupational Employment and Wages, May 2020,'' 
available at https://www.bls.gov/oes/current/oes113131.htm.
    \25\ BLS, ``Employer Costs for Employee Compensation'' (ECEC), 
available at https://www.bls.gov/ncs/data.htm. Wages and salaries 
averaged $26.22 per hour worked in 2020, while benefit costs 
averaged $11.99, which is a benefits rate of 46 percent.
    \26\ U.S. Department of Health and Human Services (HHS), 
``Guidelines for Regulatory Impact Analysis'' (2016), available at 
https://aspe.hhs.gov/system/files/pdf/242926/HHS_RIAGuidance.pdf. In 
its guidelines, HHS states, as ``an interim default, while HHS 
conducts more research, analysts should assume overhead costs 
(including benefits) are equal to 100 percent of pre-tax wages.'' 
HHS explains that 100 percent is roughly the midpoint between 46 and 
150 percent, with 46 percent based on ECEC data that suggest 
benefits average 46 percent of wages and salaries, and 150 percent 
based on the private sector ``rule of thumb'' that fringe benefits 
plus overhead equal 150 percent of wages. To isolate the overhead 
costs from HHS's 100-percent assumption, the Department subtracted 
the 46-percent benefits rate that HHS references, resulting in an 
overhead rate of approximately 54 percent.
---------------------------------------------------------------------------

    According to BLS, the mean hourly wage rate for Office and 
Administrative Support Occupations in May 2020 was $20.38.\27\ The 
Department used a fringe benefits rate of 46 percent and an overhead 
rate of 54 percent, resulting in a fully loaded hourly compensation 
rate for Office and Administrative Support Occupations of $40.76 [= 
$20.38 + ($20.38 x 0.46) + ($20.38 x 0.54)].
---------------------------------------------------------------------------

    \27\ BLS, ``Occupational Employment and Wages, May 2020,'' 
available at https://www.bls.gov/oes/current/oes430000.htm.
---------------------------------------------------------------------------

    The Department estimated the compensation rate for a Program 
Analyst in OA using the midpoint (Step 5) for Grade 13 of the General 
Schedule, which is $55.75 in the Washington, DC, locality area.\28\ The 
Department used a fringe benefits rate of 69 percent \29\ and an 
overhead rate of 54 percent, resulting in a fully loaded hourly 
compensation rate for Program Analysts of $124.32 [= $55.75 + ($55.75 x 
0.69) + ($55.75 x 0.54)].
---------------------------------------------------------------------------

    \28\ Office of Personnel Management, ``General Schedule (GS) 
Locality Pay Tables,'' available at https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2020/DCB_h.pdf.
    \29\ Congressional Budget Office, ``Comparing the Compensation 
of Federal and Private-Sector Employees, 2011 to 2015'' (Apr. 25, 
2017), available at https://www.cbo.gov/publication/52637. The wages 
of Federal workers averaged $38.30 per hour over the study period, 
while the benefits averaged $26.50 per hour, which is a benefits 
rate of 69 percent.
---------------------------------------------------------------------------

c. Time Estimates
    The hourly time burdens used to quantify the cost savings of the 
proposed rule are based on the Department's time estimates in the IRAP 
rule published on March 11, 2020. The following time burdens are annual 
estimates.
Cost Savings Components for SREs
 Notifying the Administrator of any major change to processes 
or programs: 10 hours (50 percent of SREs)
 Informing the Administrator of IRAP recognition, suspension, 
or derecognition: 30 minutes
 Provision of data or information to the Administrator: 2 hours 
(10 percent of SREs)
 Provision of written attestation to the Administrator: 10 
minutes per IRAP
 Disclosure of the credentials that apprentices will earn: 30 
minutes
 Quality control of IRAPs: 4 hours per IRAP
 Submission of performance data to the Administrator: 4 hours 
per IRAP
 Making publicly available IRAP performance data: 2 hours per 
IRAP
 Recordkeeping: 20 hours per IRAP
Cost Savings Components for IRAPs
 Submission of performance data to the SRE: 25 hours
Cost Savings Components for the Federal Government
 Compliance assistance reviews of SREs: 10 hours per SRE (5 
percent of SREs)
 Maintenance of online application form and internal review 
system: $125,000
 Maintenance of online resource for performance measures: 
$245,909
     Maintenance of online resource for list of SREs and IRAPs: 
$18,000
d. Total Cost Savings

[[Page 62975]]

    Exhibit 1 shows the total estimated cost savings of the proposed 
rule over 10 years (2022-2031) at discount rates of 3 percent and 7 
percent.\30\ The proposed rule is expected to have first-year cost 
savings of $1.3 million in 2020 dollars. Over the 10-year analysis 
period, the annualized cost savings are estimated at $1.3 million at a 
discount rate of 7 percent in 2020 dollars. In total, over the first 10 
years, the proposed rule is estimated to result in cost savings of $9.1 
million at a discount rate of 7 percent in 2020 dollars.
---------------------------------------------------------------------------

    \30\ The 2022 start year accounts for the time involved in the 
Administrative Procedure Act rulemaking process, with the final rule 
expected to be published in 2022.
[GRAPHIC] [TIFF OMITTED] TP15NO21.013

    The Department also contemplated including an alternative baseline 
that assumed the Department's February 17th suspension of consideration 
of SRE applications would be removed. If the suspension were to be 
removed, there could be additional SREs and IRAPs in future years. OMB 
Circular A-4 defines a no action baseline as ``what the world will be 
like if the proposed rule is not adopted.'' If the world did not 
include this proposed rule, but included the removal of the February 
17th suspension as well as decision making by potential SREs in the 
manner anticipated in the 2020 rule, it is possible that there would be 
more than 27 SREs and 175 IRAPs in each year of the analysis period. 
Given the potential temporary nature of the February 17th suspension, 
some members of the public may believe there will be an opportunity to 
participate in the program again in the absence of this proposed rule. 
Under such a scenario, 27 SREs and 175 IRAPs may be only fractions of 
the numbers of SREs and IRAPs that would come into existence, and 
perhaps those numbers would continue to grow throughout the analysis 
period. As such, this proposed rule would then prevent some of the 
eventual effects of the 2020 rule.
    The Department is unable, however, to provide a quantitative 
analysis of this alternative baseline. The Department does not have a 
way to accurately estimate the number of SREs or IRAPs that would be 
established in the absence of this proposed rule and the removal of the 
February 17th suspension. Specifically, the Department is unable to 
estimate a reasonable growth rate for SREs over the analysis period or 
a realistic number of IRAPs per SRE each year. Without these two key 
data points, a quantitative analysis is not possible.
    The Department believes that the numbers of SREs and IRAPs 
estimated in the 2020 rule are not an appropriate source for 
quantifying an alternative baseline in this proposed rule. Over the 9-
month period between May 2020, when the IRAP rule became effective, and 
February 2021, when the Department paused the consideration of SRE 
applications, data indicate that participation was far lower than what 
was projected in the 2020 rule. To begin with, the number of SRE 
applications was far fewer than the number anticipated in the 2020 
rule. For the 2020 rule, the Department used the number of entities 
that submitted grant applications under AAI grant program in FY 2016 as 
a guidepost for estimating the number of SRE applications. It now seems 
that this guidepost was unrealistic because millions of dollars were 
awarded to each successful AAI grant application whereas similar grant 
funds were not available to SREs. The lack of Federal funding may 
largely explain the low number of SREs (27) and IRAPs (175) compared to 
the numbers anticipated in the 2020 rule (203 SREs and 2,030 IRAPS in 
Year 1).
    While the estimated number of SRE applications in the 2020 rule was 
based on the number of entities that submitted AAI grant applications, 
the estimated number of IRAPs was not based on a specific source of 
data because the IRAP system was a new concept in the United States. 
Accordingly, the Department does not have a guidepost to realistically 
estimate the number of IRAPs for an alternative baseline that assumes 
the absence of this proposed rule and the removal of the February 17th 
suspension.
    The Department invites comments on the potential number of SREs and 
IRAPs in the absence of this proposed rule and the removal of the 
February 17th suspension. Without a reasonable way to estimate these 
numbers and quantify the cost savings, benefits, and transfer payments, 
the Department acknowledges that this proposed rule may have an annual 
effect on the economy of $100 million or more; therefore, this rule has 
been designated as an economically significant regulatory action under 
section 3(f) of E.O. 12866.
e. Nonquantifiable Effects

[[Page 62976]]

    The Department proposes rescinding the IRAP rule and, instead, 
refocusing efforts on expanding the registered apprenticeship system. 
As explained in the previous sections, the registered apprenticeship 
system is highly successful for industry. Industries that have adopted 
RAPs have cited the standards, skillsets, and retention offered by 
skilled workers associated with RAPs as advantageous to their bottom 
line. In one survey, nearly three-fourths of surveyed employers stated 
that registered apprenticeships drove increased worker 
productivity.\31\ A skilled workforce is foundational to a strong 
economy, and registered apprenticeship provides a proven avenue by 
which to deliver talent development to various industry sectors.
---------------------------------------------------------------------------

    \31\ Urban Institute Research Report, ``The Benefits and 
Challenges of Registered Apprenticeship: The Sponsors' Perspective'' 
(June 12, 2009), available at https://www.urban.org/research/publication/benefits-and-challenges-registered-apprenticeship-sponsors-perspective.
---------------------------------------------------------------------------

    In addition to the demonstrated success of registered 
apprenticeship as a workforce training model for industry, it has 
proven to be highly beneficial to workers because of its emphasis on 
high-quality training as well as apprentice safety and welfare. During 
training, apprentices are guaranteed wage increases, and research shows 
that registered apprenticeship completers earn over $300,000 (including 
benefits) more over their lifetimes as compared with individuals who do 
not complete a RAP.\32\
---------------------------------------------------------------------------

    \32\ See, e.g., Mathematica Policy Research, ``An Effectiveness 
Assessment and Cost-Benefit Analysis of Registered Apprenticeship in 
10 States: Final Report'' (July 25, 2012), https://wdr.doleta.gov/research/FullText_Documents/ETAOP_2012_10.pdf. This report 
categorizes reduced payments of unemployment insurance, welfare, and 
food stamps as benefits (separate from productivity increases) 
associated with registered apprenticeships; however, for purposes of 
E.O. 12866 analysis, adding these effects would constitute double-
counting and they should instead be presented as an assessment of 
who, other than workers themselves, receives some portion of 
productivity benefits. Moreover, as noted earlier in this regulatory 
preamble, the report does not speak to the relative effects of RAPs 
and IRAPs.
---------------------------------------------------------------------------

    Registered apprenticeship has successfully been adopted across a 
diverse range of sectors, with significant growth in recent years. The 
expansion of registered apprenticeship into ``non-traditional'' sectors 
indicates that the IRAP effort may be superfluous and not a good use of 
government resources that could support the proven activities of the 
registered apprenticeship system.
2. Regulatory Alternatives
    OMB Circular A-4 directs agencies to analyze alternatives if such 
alternatives best satisfy the philosophy and principles of E.O. 12866. 
Accordingly, the Department considered two regulatory alternatives. 
Under the first alternative, the Department would allow the SREs and 
any related IRAPs to operate with the Department's recognition for a 
transitional period not to exceed the previously approved 5-year 
period. As noted above, the approach of permitting the continued 
recognition of SREs and any related IRAPs would continue to temporarily 
retain a parallel system that does not ensure sufficient protections 
for apprentices, would diminish Departmental resources available for 
expansion of registered apprenticeship, and would generate confusion 
among both entities interested in establishing apprenticeship programs 
and the potential apprentices in such programs. This alternative would 
result in lower cost savings over the 10-year analysis period than the 
cost savings presented in Exhibit 1 because SREs and IRAPs would be 
obligated to follow the provisions of the IRAP rule published on March 
11, 2020, for a longer period of time. Therefore, the costs of the 
March 2020 rule would accumulate for a longer duration and the cost 
savings would be delayed.
    Under the second alternative, the Department would recast IRAPs as 
Certified Work-Based Learning. The Department considers the most 
effective and efficient use of its resources is to oversee a national 
system of registered apprenticeship that is more protective of the 
welfare of apprentices and that has demonstrated its capacity to grow 
and adapt across a range of industries and sectors. Similarly, 
recasting IRAPs as a type of Certified Work-Based Learning would not 
address the concerns identified in the discussions above regarding an 
indirect and insufficient oversight role for the Department in IRAPs. 
This alternative would also result in lower cost savings over the 10-
year analysis period than the cost savings presented in Exhibit 1 
because SREs and IRAPs would incur costs under the revised program. The 
Department cannot estimate the costs without details about the 
provisions of such a program. The Department invites comments on these 
or other possible alternatives with the goal of ensuring a thorough 
consideration and discussion at the final rule stage.

B. Regulatory Flexibility Act, Small Business Regulatory Enforcement 
Fairness Act of 1996, and Executive Order 13272 (Proper Consideration 
of Small Entities in Agency Rulemaking)

    In accordance with the Regulatory Flexibility Act, 5 U.S.C. ch. 6 
(as amended), the Department examined the regulatory requirements of 
the proposed rule to determine whether they would have a significant 
economic impact on a substantial number of small entities. As explained 
in the E.O. 12866 preliminary economic analysis above, the proposed 
rule is expected to lead to cost savings for IRAPs because these 
entities would no longer be required to comply with the provisions of 
the IRAP rule published on March 11, 2020. Cost savings for IRAPs would 
primarily arise from no longer needing to submit performance data to 
the SRE. In the March 2020 rule, the Department estimated that it would 
take IRAPs approximately 25 hours per year to collect and provide the 
relevant data. To estimate the cost savings per IRAP under this 
proposed rule, the Department multiplied 25 hours by the hourly 
compensation rate for Training and Development Managers ($121.08 per 
hour). The first-year cost savings per IRAP is estimated at $2,829 at a 
discount rate of 7 percent. The annualized cost savings per IRAP is 
estimated at $3,027 at a discount rate of 7 percent.
    As of September 30, 2021, the number of IRAPs recognized by SREs 
stands at 175. Of the 175 IRAPs, 165 are in the health care industry; 
specifically, the vast majority of the 165 IRAPs are associated with 
hospitals and medical centers. As shown in Exhibit 2, the first-year 
and annualized cost savings for IRAPs in the hospitals subsector are 
not expected to have a significant economic impact (3 percent or more) 
on small entities of any size.

[[Page 62977]]

[GRAPHIC] [TIFF OMITTED] TP15NO21.014

    Similarly, the proposed rule would result in cost savings for SREs. 
The cost savings would arise from SREs no longer needing to perform the 
activities listed in the E.O. 12866 preliminary economic analysis 
above: Notifying the Administrator of any major change to processes or 
programs; informing the Administrator of IRAP recognition, suspension, 
or derecognition; provision of data or information to the 
Administrator; provision of written attestation to the Administrator; 
disclosure of the credentials that apprentices will earn; quality 
control of IRAPs; submission of performance data to the Administrator; 
making publicly available IRAP performance data; and recordkeeping. The 
first-year cost savings per SRE is estimated at $13,099 at a discount 
rate of 7 percent. The annualized cost savings per SRE is estimated at 
$14,016 at a discount rate of 7 percent.
    As of the date of this proposed rule, the Department has recognized 
27 SREs. Only 5 of the 27 SREs have recognized IRAPs, and of those 5 
SREs, only 1 so far has indicated that it has IRAP apprentices. This 
particular SRE is unlikely to be considered a small entity based on its 
annual revenue,\33\ which exceeds the Small Business Administration's 
Small Business Size Standard of $16.5 million for professional 
organizations (North American Industry Classification System code 
813920).\34\
---------------------------------------------------------------------------

    \33\ IRS Form 990 filing data available from the Internal 
Revenue Service, ``Tax Exempt Organization Search,'' https://apps.irs.gov/app/eos.
    \34\ U.S. Small Business Administration, ``Table of Small 
Business Size Standards'' (Aug. 19, 2019), available at https://www.sba.gov/document/support--table-size-standards.
---------------------------------------------------------------------------

    Accordingly, the Department certifies that the proposed rule would 
not have a significant economic impact on a substantial number of small 
entities. Moreover, any economic impact experienced by IRAPs or SREs 
would be cost savings.

C. Paperwork Reduction Act

    As explained in the ``Background'' section above, the Department is 
proposing to rescind subpart B, ``Standards Recognition Entities of 
Industry-Recognized Apprenticeship Programs,'' from title 29 CFR part 
29, the regulatory framework for the Department's recognition of SREs 
and SREs' role in recognizing IRAPs.
    As part of the implementation and rollout of the IRAP rule the 
Department developed and received OMB approval for two information 
collection requests (ICRs), an application form and a performance 
report. The first active ICR is entitled ``Industry-Recognized 
Apprenticeship Program Standards Recognition Entity Regulation and 
Application'' (OMB Control Number 1205-0536) and includes an annual 
approved burden of 141,819 responses and 285,310 hours. There is no 
additional cost burden. The second active ICR is entitled ``IRAP 
Program and Performance Report for Standards Recognition Entities'' 
(OMB Control Number 1205-0545) and includes an annual approved burden 
of 12,447 responses and 111,118 hours. There is no additional cost 
burden.
    If a final rule rescinds subpart B, on the effective date of the 
regulation, the Department will withdraw its recognition of SREs and 
any SRE-recognized apprenticeship program would no longer be an IRAP as 
described in subpart B. The Department will no longer use the 
``Industry-Recognized Apprenticeship Program Standards Recognition 
Entity Regulation and Application'' ICR and the ``IRAP Program and 
Performance Report for Standards Recognition Entities'' ICR.
    Upon publication of a final rule, DOL will submit requests to 
discontinue both OMB Control Number 1205-0536 and OMB Control Number 
1205-0545, eliminating all paperwork burden associated with the ICRs.

D. Executive Order 13132: Federalism

    This proposed rule, if finalized, does not have federalism 
implications because it does not have substantial direct effects on the 
States, on the relationship between the National Government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government. Accordingly, E.O. 13132, Federalism, 
requires no further agency action or analysis.

E. Unfunded Mandates Reform Act of 1995

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 
U.S.C. 1532, requires each Federal agency to prepare a written 
statement assessing the effects of any Federal mandate in a proposed 
agency rule that may result in $100 million or more in expenditures 
(adjusted annually for inflation) in any one year by State, local, and 
tribal governments, in the aggregate, or by the private sector.

[[Page 62978]]

    This proposed rule, if finalized, does not exceed the $100-million 
expenditure in any one year when adjusted for inflation, and this 
rulemaking does not contain such a mandate. The requirements of title 
II of UMRA, therefore, do not apply, and the Department has not 
prepared a statement under the Act.

F. Executive Order 13175 (Indian Tribal Governments)

    The Department has reviewed this proposed rule in accordance with 
E.O. 13175 and has determined that it does not have tribal 
implications. The proposed rule does not have substantial direct 
effects on one or more Indian tribes, on the relationship between the 
Federal Government and Indian tribes, or on the distribution of power 
and responsibilities between the Federal Government and Indian tribes.

List of Subjects in 29 CFR Part 29

    Apprenticeability criteria, Apprentice agreements and complaints, 
Apprenticeship programs, Program standards, Registration and 
deregistration, Sponsor eligibility, State apprenticeship agency 
recognition and derecognition.

    For the reasons stated in the preamble, the Department proposes to 
amend 29 CFR part 29 as follows:

PART 29--LABOR STANDARDS FOR THE REGISTRATION OF APPRENTICESHIP 
PROGRAMS

0
1. The authority citation for part 29 is revised to read as follows:

    Authority: 9 U.S.C. 50; 40 U.S.C. 3145; 5 U.S.C. 301; 5 U.S.C. 
App. P. 534.

Subpart A--[Amended]

0
2. Remove the designation of subpart A and the associated heading.
0
3. Amend Sec.  29.1 by:
0
a. Revising the section heading; and
0
b. In paragraph (b), removing the word ``subpart'' and adding the word 
``part'' in its place.
    The revision reads as follows:


Sec.  29.1  Purpose and scope.

* * * * *


Sec.  29.2  [Amended]

0
4. Amend Sec.  29.2 by:
0
a. In the introductory text, removing the word ``subpart'' and adding 
the word ``part'' in its place;
0
b. In the definitions of Apprenticeship program and Registration 
agency, removing the citation ``29 CFR part 29 subpart A, and part 30'' 
and adding the citation ``this part and 29 CFR part 30'' in its place; 
and
0
c. In the definition of Technical assistance, removing the word 
``subpart'' and adding the word ``part'' in its place.


Sec.  29.13  [Amended]

0
5. Amend Sec.  29.13 by:
0
a. In paragraph (a)(1), removing the citation ``29 CFR part 29 subpart 
A, and part 30'' and adding the citation ``this part and 29 CFR part 
30'' in its place;
0
b. In paragraph (b)(1), removing the citation ``29 CFR part 29 subpart 
A'' and adding ``this part'' in its place;
0
c. In paragraphs (c) and (e) introductory text, removing the word 
``subpart'' and adding the word ``part'' in its place; and
0
d. In paragraph (e)(4), removing the citation ``part 29 subpart A'' and 
adding ``this part'' in its place.


Sec.  29.14  [Amended]

0
6. Amend Sec.  29.14 by:
0
a. In the introductory text, removing the citation ``part 29 subpart A, 
and part 30'' and adding the citation ``this part and 29 CFR part 30'' 
in its place; and
0
b. In paragraphs (e)(1) and (i), removing the word ``subpart'' and 
adding the word ``part'' in its place.


Sec.  Sec.  29.3,  29.6, 29.10, and 29.11 [Amended]

0
7. In addition to the amendments set forth above, in 29 CFR part 29, 
remove the word ``subpart'' and add in its place the word ``part'' in 
the following places:
0
a. Section 29.3(b)(1), (g) introductory text, and (h);
0
b. Section 29.6(b)(2);
0
c. Section 29.10(a)(2); and
0
d. Section 29.11 introductory text.

Subpart B--[Removed]

0
8. Remove subpart B, consisting of Sec. Sec.  29.20 through 29.31.

Angela Hanks,
Acting Assistant Secretary for Employment and Training, Labor.
[FR Doc. 2021-24786 Filed 11-12-21; 8:45 am]
BILLING CODE 4510-FR-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.