National Apprenticeship System Enhancements, 3118-3298 [2023-27851]
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
DEPARTMENT OF LABOR
Employment and Training
Administration
29 CFR Parts 29 and 30
[Docket No. ETA–2023–0004]
RIN 1205–AC13
National Apprenticeship System
Enhancements
Employment and Training
Administration, Labor.
ACTION: Proposed rule.
AGENCY:
The Department of Labor
(DOL or the Department) is proposing
issuing this notice of proposed
rulemaking (NPRM or proposed rule) to
revise the regulations for registered
apprenticeship by enhancing worker
protections and equity, improving the
quality of registered apprenticeship
programs, revising the State governance
provisions, and more clearly
establishing critical pipelines to
registered apprenticeship programs,
such as registered career and technical
education (CTE) apprenticeships. The
proposed rule would improve the
capacity of the National Apprenticeship
System to respond to evolving employer
needs, provide workers equitable
pathways to good jobs, and increase the
system’s long-term resilience.
DATES: Interested persons are invited to
submit written comments on the
proposed rule on or before March 18,
2024.
ADDRESSES: You may send comments,
identified by Docket No. ETA–2023–
0004 and Regulatory Identification
Number (RIN) 1205–AC13, by any of the
following methods:
• Federal eRulemaking Portal:
https://www.regulations.gov. Search for
the above-referenced RIN, open the
proposed rule, and follow the on-screen
instructions for submitting comments.
• Instructions: All submissions
received must include the agency name
and docket number for this rulemaking
or ‘‘RIN 1205–AC13.’’
Please be advised that the Department
will post all comments received that
relate to this NPRM without changes to
https://www.regulations.gov, including
any personal information provided. 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 (either about themselves or
others) such as Social Security numbers,
personal addresses, telephone numbers,
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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.
Docket: For access to the docket to
read background documents or
comments received, go to https://
www.regulations.gov (search using RIN
1205–AC13 or Docket No. ETA–2023–
0004). The Department also will make
all the comments it receives available
for public inspection by appointment
during normal business hours at the
Office of Policy Development and
Research, U.S. Department of Labor,
Employment and Training
Administration, 200 Constitution
Avenue NW, Room N–5641,
Washington, DC 20210. If you need
assistance to review the comments, the
Department will provide appropriate
aids such as readers or print magnifiers.
The Department will make copies of this
NPRM available, upon request, in large
print and electronic file. To schedule an
appointment to review the comments or
obtain the NPRM in an alternative
format or both, contact the Office of
Policy Development and Research at
202–693–3700 (this is not a toll-free
number). You may also contact this
office at the address listed above.
Comments under the Paperwork
Reduction Act (PRA): In addition to
filing comments on any aspect of this
proposed rule with the Department,
interested parties may submit comments
that concern the information collection
(IC) aspects of this NPRM to: Office of
Information and Regulatory Affairs,
Attn: OMB Desk Officer for DOL-ETA,
Office of Management and Budget, 725
17th Street NW, Washington, DC 20503,
Fax: 202–395–6881 (this is not a tollfree number), Email: OIRA_submission@
omb.eop.gov.
Docket: Go to the Federal
eRulemaking Portal at: https://
www.regulations.gov/document/ETA2023-0004-0001 for access to the
rulemaking docket, including any
background documents and the plainlanguage summary of the proposed rule
of not more than 100 words in length
required by the Providing
Accountability Through Transparency
Act of 2023.
FOR FURTHER INFORMATION CONTACT:
Michelle Paczynski, Administrator,
Office of Policy Development and
Research, U.S. Department of Labor,
Employment and Training
Administration, 200 Constitution
Avenue NW, Room N–5641,
Washington, DC 20210, Telephone:
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202–693–3700 (voice) (this is not a tollfree number). For persons with a
hearing or speech disability who need
assistance to use the telephone system,
please dial 711 to access
telecommunications relay services.
SUPPLEMENTARY INFORMATION:
Preamble Table of Contents
I. Acronyms and Abbreviations
II. Executive Summary
III. Background
A. Introduction to Registered
Apprenticeship
B. Statutory and Regulatory History of
Registered Apprenticeship
C. Need for the Proposed Rulemaking
D. Stakeholder Outreach
E. Vision and Goals of This Rulemaking
IV. Section-by-Section Discussion of the
Proposed Changes
A. Introduction to the Regulations for the
National Apprenticeship System Under
the National Apprenticeship Act of 1937
B. Subpart A—Standards for Registered
Apprenticeship Programs
C. Subpart B—Career and Technical
Education Apprenticeship
D. Subpart C—Administration and
Coordination of the National
Apprenticeship System
E. Part 30 Revisions
V. Regulatory Analysis and Review
A. Executive Orders 12866 (Regulatory
Planning and Review), 14094
(Modernizing Regulatory Review), and
13563 (Improving Regulation and
Regulatory Review)
B. Regulatory Flexibility Act, Small
Business Regulatory Enforcement
Fairness Act of 1996, and Executive
Order 13272 (Proper Consideration of
Small Entities in Agency Rulemaking)
C. Paperwork Reduction Act
D. Executive Order 13132 (Federalism)
E. Unfunded Mandates Reform Act of 1995
F. Executive Order 13175 (Indian Tribal
Governments)
G. Internet Address of NPRM Summary (5
U.S.C. 553(b)(4))
I. Acronyms and Abbreviations
AAI American Apprenticeship Initiative
ACA Advisory Committee on
Apprenticeship
ARB Administrative Review Board
BLS U.S. Bureau of Labor Statistics
CHIPS Act Creating Helpful Incentives to
Produce Semiconductors Act of 2022
COVID–19 coronavirus disease of 2019
CTE career and technical education
DEIA diversity, equity, inclusion, and
accessibility
DOL or the Department U.S. Department of
Labor
E.O. Executive Order
ED Department of Education
EDP Energy Document Portal
EEO equal employment opportunity
ERISA Employee Retirement Income
Security Act
ETA Employment and Training
Administration
ETP Eligible Training Providers
FTC Federal Trade Commission
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FY fiscal year
HR human resources
IC information collection
ICR information collection request
ILO International Labour Organization
IRA Inflation Reduction Act of 2022
IRFA initial regulatory flexibility analysis
IT information technology
LEA local educational agency
NAA National Apprenticeship Act of 1937
NASTAD National Association of State and
Territorial Apprenticeship Directors
NCES National Center for Education
Statistics
NPRM or proposed rule notice of proposed
rulemaking
O*NET Occupational Information Network
OA Office of Apprenticeship
OALJ Office of Administrative Law Judges
OIRA Office of Information and Regulatory
Affairs
OMB Office of Management and Budget
Perkins Carl D. Perkins Career and
Technical Education Act of 2006, as
amended by the Strengthening Career and
Technical Education for the 21st Century
Act
PRA Paperwork Reduction Act of 1995
RAPIDS Registered Apprenticeship Partners
Information Data System
RFA Regulatory Flexibility Act
RIA regulatory impact analysis
ROI return on investment
SAA State Apprenticeship Agency
TEGL Training and Employment Guidance
Letter
TEN Training and Employment Notice
UMRA Unfunded Mandates Reform Act
VALOR Veterans Apprenticeship and Labor
Opportunity Reform Act
WANTO Women in Apprenticeship and
Nontraditional Occupations
WIOA Workforce Innovation and
Opportunity Act
II. Executive Summary
The Department’s current regulations
at 29 CFR part 29 addressing labor
standards of apprenticeship and the
governance of the National
Apprenticeship System were last
updated in a final rule published on
October 29, 2008 (73 FR 64402). In this
proposed rule, the Department seeks to
strengthen, expand, modernize, and
diversify the National Apprenticeship
System by enhancing worker
protections and equity, improving the
quality of registered apprenticeship
programs, and revising the State
Apprenticeship Agency (SAA)
governance provisions so that the
National Apprenticeship System is more
navigable and responsive to current
worker and employer needs.
The proposed rule would enhance the
ability of the Employment and Training
Administration’s (ETA) Office of
Apprenticeship (OA) to implement and
administer the National Apprenticeship
Act of 1937 (NAA), Act of Aug. 16,
1937, 75th Cong., ch. 663, 50 Stat. 664
(codified as amended at 29 U.S.C. 50),
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including approving apprenticeship
programs and standards as a
Registration Agency and recognizing
SAAs, to protect the safety and welfare
of apprentices, and to meet the 21st
century skill needs of industry. Central
to the expanded role is the ability to
promote the value of apprenticeship,
advance the benefits of apprenticeship
as a diversity, equity, inclusion, and
accessibility (DEIA) strategy for program
sponsors, maintain National
Apprenticeship System data for
Registration Agencies, facilitate
registered apprenticeship across the
United States, and develop partnerships
with stakeholders throughout the
National Apprenticeship System.
Essential to strengthening,
modernizing, expanding, and
diversifying the National
Apprenticeship System is the
advancement of worker protections and
equity. The Department’s proposal
would create more safeguards for
apprentices to ensure that they have
healthy and safe working and learning
environments as well as just and
equitable opportunities throughout their
participation in a registered
apprenticeship program. This emphasis
on worker protections and equity for
apprentices is founded on the
recognition that some populations, such
as women and people of color, have
historically faced systemic barriers to
successfully access, participate in, and
complete a registered apprenticeship
program. This proposed rule seeks to
mitigate barriers and facilitate equal
access and greater success for
underserved communities, as defined in
proposed § 29.2. Additionally, the
proposed rule seeks to enhance
opportunities for younger workers to
safely and equitably participate in
registered apprenticeship programs.
Through this proposed rule, the
Department is proposing to modernize
and standardize the criteria and process
for developing quality labor standards
for apprenticeship. To maintain the
integrity of registered apprenticeship as
an industry-driven workforce
development model, the Department
recognizes that all apprenticeship
programs must maintain labor standards
that are objective, accountable, flexible
and efficient. The Department seeks to
fulfill this modernization effort by
creating a framework for developing
minimum labor standards of
apprenticeship that combines the key
attributes of the competency- and timebased approaches to on-the-job training
into a unitary, coherent training model
across all programs. The Department
anticipates that modernizing and
standardizing the labor standards for all
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registered apprenticeship programs
would support the expansion of
registered apprenticeships into new
industries and occupations that do not
have an established history with
registered apprenticeship: programs in
these industries new to apprenticeship
would benefit from increased avenues to
contribute to the development of
industry- and occupation-specific
training regimens, and from the
increased clarity established by the
universal baseline standards the
Department seeks to apply across all
registered programs. In addition, the
Department is institutionalizing
National Program Standards for
Apprenticeship and National Guidelines
for Apprenticeship Standards and
aligning them with National
Occupational Standards for
Apprenticeship, a product that would
further standardize industry-validated
occupational standards for
apprenticeship.
The Department’s proposal would
also create a more objective, proactive,
and transparent process for the
determination of occupations suitable
for registered apprenticeship that
balances the flexibility needed to
accommodate programs in new and
emerging industries while establishing
safeguards against adverse impacts to
existing, established registered
apprenticeship programs. The
Department’s proposed updates to the
suitability process are designed to
include flexibilities that would support
expansion of the registered
apprenticeship model to emergent
occupations in non-traditional
apprenticeship industries while
providing protections against the
splintering of existing programs
covering occupations previously
established as suitable for
apprenticeship training (which could
have a negative impact on workers’
wages and job quality). The Department
seeks to reinforce that new occupations
suitable for registered apprenticeship
meet industry-recognized criteria that
support apprentices’ ability to access a
lifelong career pathway and attain
economic mobility. Ensuring that
registered apprenticeship programs lead
to quality careers and enhance
apprentices’ economic mobility is one of
the Department’s guiding principles in
overseeing the National Apprenticeship
System, grounded in its statutory
responsibility to protect the welfare of
apprentices and the Administration’s
priority to promote economic
opportunity for underrepresented or
underserved populations. To help
ensure that apprentices obtain the
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requisite skills and competencies for
proficiency in an occupation suitable for
registered apprenticeship, the
Department has also proposed a new
requirement in their approved quality
labor standards for the assessment of
apprentice progress by means of an endpoint assessment.
The Department is also proposing to
revise the framework for collecting
program sponsor and apprentice data to
ensure greater accountability,
transparency, and equity, and would
utilize the information collected to
oversee program reviews, improve
apprentice demographic data, and
establish new program- and systemlevel metrics and indicators.
The Department has consulted, where
appropriate, with the U.S. Department
of Education (ED) in the development of
the proposed registered CTE
apprenticeship model, which seeks to
align with secondary and postsecondary
State-approved CTE programs, namely
those funded by the Carl D. Perkins
Career and Technical Education Act of
2006,1 as amended by the Strengthening
Career and Technical Education for the
21st Century Act 2 (as codified at 20
U.S.C. 2301 et seq.) (Perkins). This new
model would establish specific
standards of apprenticeship for students
enrolled in high school or in community
and technical colleges who seek to
continue their education while
participating in the labor market, and
would provide students opportunities to
attain a recognized postsecondary
credential, complete college coursework
and a registered apprenticeship
program, and participate in paid on-thejob learning. This model is intended to
result in participating students’
enrollment in a postsecondary
educational program, an apprenticeship
program registered under subpart A,
placement into employment, or a
combination thereof. The registered CTE
apprenticeship regulations as proposed
would not govern or otherwise impact
the operation of ED’s Perkins CTE
program, but rather the program would
offer State-approved CTE programs as
an additional discretionary program,
which could provide students the
benefits of participation in both CTE
and an aligned registered CTE
apprenticeship program.
Finally, the Department is proposing
to revise State governance requirements
for States seeking to be recognized by
OA as an SAA State, and for renewing
such status. The Department proposes
revising the governance process to
promote greater uniformity and
1 Public
Law 109–270, 120 Stat. 683 (2006).
2 Public Law 115–224, 132 Stat. 1563 (2018).
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accountability, including the
establishment of a State planning
requirement involving the development
of a strategic vision and goals to expand
and diversify registered apprenticeship,
as well as robust data collection and
reporting to track the achievement of
systemwide goals. Through this
proposed revision, the Department also
sees an opportunity for States to lead on
innovation and partner with
intermediaries to create an
interconnected ecosystem that can
support existing and new industries and
career seekers in the National
Apprenticeship System.
The Department also proposes to
make technical and conforming
adjustments to the current text of 29
CFR part 30 (governing equal
employment opportunity (EEO) in
apprenticeships) as appropriate.
III. Background
A. Introduction to Registered
Apprenticeship
For nearly a century, registered
apprenticeship has been an effective
and successful workforce development
model that has helped employers
recruit, train, and retain highly
proficient, diverse workers in the skilled
occupations employers need, and that
has provided job seekers with access to
high-quality training and stable, wellpaying careers. Registered
apprenticeship is a structured, industrydriven, flexible workforce training
model, and employers and industry
stakeholders have updated and
customized the model over decades to
meet evolving workforce needs and
address occupational skill needs that
arise as incoming workers seek to
establish or enhance successful careers.
From the perspective of the apprentice,
registered apprenticeship represents an
affordable pathway to a high-quality,
high-paying career. Apprentices obtain
paid work experience and training so
that they can sustain themselves and
their families while training and
preparing for success in their career of
interest. Apprentices entering into a
registered apprenticeship program share
several common indicia: they enter into
a paid job from the outset; they receive
progressive wage increases reflecting
their progress through a training
regimen developed by industry
stakeholders; they participate in related
instruction informing them of the
theoretical or academic concepts that
underpin the work processes and
competencies critical to success in their
chosen career; and they ultimately
develop a set of portable, in-demand job
skills culminating with the awarding of
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a nationally recognized certificate of
completion of a registered
apprenticeship that benefit them
throughout their careers.
As an earn-and-learn workforce
development strategy, registered
apprenticeship combines on-the-job
training with related (classroom)
instruction, blending the practical and
theoretical aspects of training for highly
skilled occupations. On-the-job training
and related instruction are critical,
definitional elements of registered
apprenticeship that provide practical
benefits to both employers and
apprentices. Apprentices training in an
occupation apply occupational
techniques and theoretical concepts
throughout their training and, later,
throughout their careers, which helps
them develop into the productive,
skilled, and safety-conscious workers
whom employers need. Registered
apprenticeship is an effective tool for
both providing the training necessary
for a worker’s success in an occupation,
and for measuring an apprentice’s
developing proficiency in the
occupation. Because registered
apprenticeship is primarily driven by
industry needs, and employers are able
to specifically tailor their workforce
training regimen to such needs,
registered apprenticeship provides
assurances to employers that their
incoming workforce is prepared and set
up for success.
Registered apprenticeship programs
are sponsored voluntarily by a wide
range of organizations, including
individual small to large employers,
employer associations, joint labormanagement organizations, workforce
intermediaries, and educational
institutions. These and other
stakeholders comprise the National
Apprenticeship System, a voluntary
system of registered apprenticeship
programs and their sponsors, SAAs, and
the industry stakeholders that drive the
formulation of apprenticeship training
regimens that best fit their industry.3
The National Apprenticeship System is
further supported by the experts in
workforce development policy that
provide advice and counsel to the
Department on matters relating to
registered apprenticeship. These experts
include the Advisory Committee on
Apprenticeship (ACA); other workforce
development programs that connect job
seekers and employers (such as those
programs funded through the Workforce
Investment Act of 1998,4 as amended by
the Workforce Innovation and
3 In registered apprenticeships, such training
plans are referred to as ‘‘work process schedules.’’
4 Public Law 105–220, 112 Stat. 936 (1998).
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Opportunity Act 5 (as codified at 29
U.S.C. ch. 32) (WIOA)); and educational
institutions that prepare students for
quality careers.
Apprenticeship is an international
workforce development strategy that
provides high-quality training for
desirable careers in many countries.6
The Department engages in ongoing
consultations and discussions with
other national governments,
international labor organizations, and
other international stakeholders to
further inform oversight of the system of
registered apprenticeship in the United
States. For example, the Department
follows and contributes to the
deliberations of the International Labour
Organization (ILO) and the International
Labour Conference that informs the
ILO’s recommendations and statements
on best practices in labor policy
(including the elements of quality
apprenticeships). In addition, through
joint declarations of intent and
memoranda of understanding with
foreign nations with sophisticated
apprenticeship systems (such as with
Austria, Germany, and Switzerland), the
Department continues to engage with
international partners to learn about the
elements of successful apprenticeships
across the globe, and to explore
strategies for applying such lessons so
as to improve the overall quality of
training provided within the National
Apprenticeship System.
Apprentices who complete a
registered apprenticeship program
receive an industry-recognized
credential and a long-lasting economic
benefit. Registered apprenticeship
provides high-quality on-the-job
training and related instruction, while
conferring a nationally recognized
credential upon successful completion
of the program.7 The success of this
workforce development model with
respect to apprentice outcomes is
clearly validated by the data; for
example, 90 percent of apprentices who
complete a registered apprenticeship
program retain employment with the
employer connected to the program, and
5 Public
Law 113–128, 128 Stat. 1425 (2014).
example, the ILO serves as an international
repository of workforce development expertise from
around the globe. See ILO, ‘‘Apprenticeships,’’
https://www.ilo.org/global/topics/apprenticeships/
lang-en/index.htm (last visited July 20, 2023).
7 The Certificate of Completion, conferred to
apprentices who complete a registered
apprenticeship program, represents the universal,
nationally recognized credential available in all
registered apprenticeship programs. In addition,
many registered apprenticeship programs provide
interim credentials upon the successful completion
of interim trainings related to the development of
occupation- or industry-critical job skills, or an
occupational credential recognized throughout an
industry (i.e., a portable credential).
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apprentices who complete such
programs earn an average annual salary
of $77,000.8 One study of registered
apprenticeship programs in ten States
found that the estimated lifetime career
earnings of registered apprenticeship
participants in those States average
$98,718 more than similar individuals
who did not participate in a registered
apprenticeship program. In the study,
apprentices who completed the program
in those States on average have lifetime
earnings $240,037 greater than similar
individuals who did not participate in
a registered apprenticeship program.9
Everyone benefits from enhanced
systems to develop skilled workers in
high-paying occupations, including job
seekers and their families, employers,
and communities. Education, industry,
and government can work together to
support quality training programs,
supporting a national economy that
provides opportunities for workers and
businesses alike.
B. Statutory and Regulatory History of
Registered Apprenticeship
The NAA (29 U.S.C. 50) authorizes
the Secretary of the Department of Labor
(the Secretary) to ‘‘formulate and
promote the furtherance of labor
standards necessary to safeguard the
welfare of apprentices, to extend the
application of such standards by
encouraging the inclusion thereof in
contracts of apprenticeship, to bring
together employers and labor for the
formulation of programs of
apprenticeship, [and] to cooperate with
State agencies engaged in the
formulation and promotion of standards
of apprenticeship.’’ Under this
authority, the Department has
established the registered
apprenticeship program. The
Department has set forth labor standards
designed to facilitate these statutory
directives through its implementing
regulations at 29 CFR part 29. Those
regulations prescribe minimum quality
and content requirements with respect
to a program’s standards of
apprenticeship and its apprenticeship
agreements; establish procedures
concerning the registration,
cancellation, and deregistration of
apprenticeship programs; and set forth a
mechanism for the recognition of SAAs
as Registration Agencies authorized to
8 OA, ‘‘Explore Registered Apprenticeship,’’ Aug.
2022, https://www.apprenticeship.gov/sites/default/
files/dol-industry-factsheet-apprenticeship101v10.pdf.
9 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.
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register and oversee registered
apprenticeship programs in a State. A
companion regulation, at 29 CFR part
30, also implements the NAA by setting
forth minimum EEO requirements that
registered apprenticeship programs
must follow in order to obtain and
maintain registration status. The first
version of the labor standards of
apprenticeship regulation at 29 CFR part
29 was issued by the Department in
1977 and was subsequently revised in
2008. The part 30 regulations were last
updated in a final rule published in the
Federal Register in December 2016.10
Within the Department, the
responsibility for administering the
requirements of the NAA and its
implementing regulations rests with
OA. OA oversees the National
Apprenticeship System and currently
serves as the Registration Agency for
registered apprenticeship programs
operating in 22 States and Puerto Rico.11
OA also provides recognition, oversight,
and technical assistance on the
requirements of 29 CFR parts 29 and 30
to SAAs in the other States, and in the
District of Columbia, the Virgin Islands,
and Guam. In these ‘‘SAA States,’’ the
SAA has requested and received
recognition from the Department to
serve as the entity authorized to register
and oversee State and local
apprenticeship programs for Federal
purposes. In SAA States, SAAs must
work closely with OA to implement
registered apprenticeship programs
consistent with the Federal regulations
to maintain their recognition status.
In the 15 years since the current
version of 29 CFR part 29 was
published, the scope and visibility of
registered apprenticeship in the United
States has expanded significantly. Since
2008, when the registered
apprenticeship regulations were last
updated, significant developments in
technology, including its capabilities
and centrality to business’ priorities and
Americans’ daily lives, have altered the
landscape for the primary stakeholders
in the apprenticeship system.
Historically, registered apprenticeship
has been a successful model for the
construction industry and for the skilled
trades. For example, Federal benefits are
tied to the use of apprentices in
registered apprenticeship programs on
construction projects under the DavisBacon and related Acts. The Davis
Bacon and Related Acts regulations
allow employers on certain construction
10 81 FR 92026 (Jan 18, 2017) (2016 EEO final
rule).
11 For a list of States and Territories where OA
serves as the Registration Agency, see OA, ‘‘About
Us,’’ https://www.apprenticeship.gov/about-us/
apprenticeship-system (last visited July 20, 2023).
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projects to pay apprentices participating
in a registered apprenticeship program
at less than the prevailing wage.12 More
recently, because the registered
apprenticeship model has shown
tangible benefits for both workers and
employers in industries beyond the
traditional trades, both Federal and
State laws are increasingly promoting
the utilization of registered
apprenticeship for the training and
employment of workers.13 For example,
at the Federal level, WIOA promoted the
benefits of registered apprenticeship to
increase economic opportunities for
workers. Registered apprenticeship
programs are automatically eligible to be
listed as Eligible Training Providers
(ETPs) within the Federally funded
workforce development system under
WIOA,14 an important signal to job
seekers, workforce policy stakeholders,
and employers that registered
apprenticeship programs offer quality
occupational skills training intended to
equip workers with the skills local
employers are looking for. Additionally,
since 2016, the Department has been
appropriated specific resources for the
purposes of expanding registered
apprenticeship programs. Most recently,
the Inflation Reduction Act of 2022
(IRA) signed into law by President
Biden provided for the first Federal tax
credit directly tied to the utilization of
apprentices in registered apprenticeship
programs on certain clean energy
projects. In addition, several agencies
funded under the Bipartisan
Infrastructure Law and CHIPS and
Science Acts, respectively, have
prioritized applications that partner
with registered apprenticeship programs
in certain funding opportunities.15
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C. Need for the Proposed Rulemaking
Registered apprenticeship is growing
and diversifying. It has maintained its
status as the ‘‘gold standard’’ for
workforce development in the
12 Wage and Hour Division, ‘‘Fact Sheet #66: The
Davis-Bacon and Related Acts (DBRA),’’ Mar. 2022,
https://www.dol.gov/agencies/whd/fact-sheets/66dbra.
13 For a list of States that offer tax credits and
tuition support for apprentices, see OA, ‘‘State Tax
Credits and Tuition Support,’’ https://
www.apprenticeship.gov/investments-tax-creditsand-tuition-support/state-tax-credits-and-tuitionsupport (last visited July 20, 2023).
14 Abt. Associates and Urban Institute,
‘‘Challenges and Opportunities for Expanding
Registered Apprenticeship with Workforce
Innovation and Opportunity Act (WIOA) Title I:
Findings from the American Apprenticeship
Initiative Evaluation,’’ Aug. 2022, https://
wdr.doleta.gov/research/FullText_Documents/
ETAOP2022-39_AAI_Brief-WIOA_Final_508_92022.pdf.
15 DOL, ‘‘The Good Jobs Initiative Impact,’’
https://www.dol.gov/general/good-jobs/gji-impact
(last visited Oct. 2, 2023).
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construction and skilled trades sectors
where registered apprenticeship has
been prevalent and successful for
decades. In addition, it is increasingly
seen as a viable option for employers to
develop the incoming workforce, and
for job seekers to identify and pursue
quality career paths in a wide range of
new and emerging industries. In 2009,
the year after the last update to the part
29 regulations was finalized, there were
420,140 active apprentices in the United
States, participating in 26,622 active
programs (of which, 1,456 were new
programs started within the previous
year).16 In 2022, there were 599,246
active apprentices participating in
24,400 active programs (of which, 2,343
were new).17 Registered apprenticeship
has proven resilient as well—though the
coronavirus disease of 2019 (COVID–19)
pandemic caused a 12-percent decrease
in new apprentices between fiscal years
(FY) 2019 and 2020, the program
bounced back with a 9-percent increase
in new apprentices in FY21.18 Still,
despite its growth and resiliency,
registered apprenticeship is
underutilized as a workforce
development solution in the United
States, where apprentices have
constituted a significantly smaller share
of the overall workforce than in other
countries (such as Australia, Canada,
Germany, and the United Kingdom).19
Working with stakeholders like the
ACA,20 the Department continues to
identify strategies and opportunities to
16 Apprenticeship data by fiscal year is accessible
at OA, ‘‘About Apprenticeship,’’ https://
www.dol.gov/agencies/eta/apprenticeship/about
(last visited July 20, 2023).
17 Ibid.
18 Ibid.
19 See ‘‘Apprenticeships and their potential in the
U.S.,’’ Keith Rolland, Federal Reserve Bank of
Philadelphia, Winter 2015, https://
www.philadelphiafed.org/community-development/
workforce-and-economic-development/
apprenticeships-and-their-potential-in-the-us
(citing at footnote 14 a presentation by Professor
Robert I. Lerman of the Urban Institute, which
noted that apprentices constituted only 0.2% of the
U.S. labor force, compared with 2.2% in Canada,
2.7% in Great Britain, and 3.7% in Australia and
Germany). See also Lerman, ‘‘Proposal 7: Expand
Apprenticeship Opportunities in the United
States,’’ The Hamilton Project of the Brookings
Institution, 2015, at p. 3, https://
www.hamiltonproject.org/assets/legacy/files/
downloads_and_links/expand_apprenticeship_
opportunities_united_states_lerman.pdf.
20 Expansion into new and emerging industries
was a significant focus of the most recent term of
the ACA. The ACA organized a subcommittee
entirely focused on such expansion efforts, and
workforce development experts from the employer,
labor, and public sectors came together to deliberate
and deliver recommendations on this topic in the
ACA’s 2023 Biennial Report. ACA, ‘‘Biennial
Report to the Secretary of Labor,’’ May 10, 2023,
https://www.apprenticeship.gov/sites/default/files/
Final%20ACA%20Biennial%20Report%20%20May%2010%202023.pdf.
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expand registered apprenticeship into
new sectors. The Department views
registered apprenticeship as an
important piece of America’s workforce
development system and Americans’
economic well-being, and is committed
to meeting the moment by updating and
modernizing the regulations in part 29.
Ultimately, the Department’s goal in
pursuing this rulemaking is to facilitate
the evolution of a National
Apprenticeship System that maintains
the hallmarks of apprenticeship quality
developed over the past century, keeps
pace with the evolving needs of a
growing set of industries, and
incorporates flexibilities and system
modernizations to facilitate the
expansion and growth of registered
apprenticeship.
In this proposal to revise the part 29
regulations, the Department seeks to
advance several interrelated goals that
shape the Department’s vision for an
improved National Apprenticeship
System. Foremost among these goals is
the preservation of quality throughout
all registered apprenticeship programs,
both existing programs and new
programs that will enter the system in
the coming years. Throughout the
proposal, the Department seeks to
improve the quality of apprenticeship
training and the quality of working
conditions for apprentices, and to
further promote DEIA principles and
goals throughout the National
Apprenticeship System. In line with the
Department’s statutory responsibility to
safeguard the welfare of apprentices, the
Department is proposing quality
improvements throughout the system to
improve the protection, safety, and
welfare of apprentices, such as proposed
prohibitions on non-compete and nondisclosure provisions in apprenticeship
agreements between sponsors and
apprentices and enhanced protections
against unreasonable participation costs
for apprentices.
Relatedly, the Department has
determined that establishing improved
accountability measures throughout the
system is a necessary component of
maintaining the high level of quality
that makes registered apprenticeship
such a useful tool for job seekers and
employers in the United States.
Accordingly, the Department proposes
several accountability enhancements
throughout this proposal, including a
clearer assignment of responsibilities for
employers that participate in a
registered apprenticeship program (but
do not serve as a program sponsor). In
line with its goals to maintain quality
and improve accountability throughout
the National Apprenticeship System,
the Department is also proposing
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reforms to the governance structure and
the relationship between OA and SAAs,
including clarifying the respective roles
and duties of SAAs and State
Apprenticeship Councils.
In addition to the foregoing proposed
enhancements to the registered
apprenticeship model, the Department
has determined that the core concepts of
earn and learn, quality labor standards,
and skill development can be expanded
to benefit many additional groups,
including in-school youth and
individuals from underserved
communities who have often faced
barriers to the job market. The
Department proposes to establish
regulations for an additional model of
apprenticeship that aligns Stateapproved CTE programs, in particular
those funded under the Perkins
program, with foundational elements of
apprenticeship. This model, which the
proposed rule defines as registered CTE
apprenticeship, would deliver the
industry-specific portions of the paid
on-the-job training and related
instruction components of registered
apprenticeship through a Stateapproved CTE program. The Department
envisions that registered CTE
apprenticeship programs would be most
accessible and propitious for secondary
and postsecondary students, and would
generally target individuals at the
earliest stages of their career
development or who are transitioning
into a different career.
Accordingly, the Department’s
proposed baseline requirements for
registered CTE apprenticeship programs
would account for this target population
and the increased alignment with
educational institutions (as compared to
registered apprenticeship). The
Department’s vision for the possible
outcomes of registered CTE
apprenticeship programs also aligns
with the unique considerations of those
in the earliest stages of career
development—registered CTE
apprenticeship programs would place
apprentices in employment, a
postsecondary educational program, or a
registered apprenticeship program
under subpart A, potentially with
advanced standing or credit to
accelerate their progress through the
program. This new model would bridge
the existing education and workforce
development systems to build a skilled
talent pipeline.
Lastly, in the Department’s view, the
National Apprenticeship System and its
diverse stakeholders would be better
served by a more uniform and
nationally applicable approach to
system governance. Employers whose
operations extend nationwide, or
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throughout a multistate region, face
challenges when engaging with
Registration Agencies across the
National Apprenticeship System
wherein the approach, parameters, and
outcomes of such engagement may
differ from State to State. Throughout
this proposal, the Department seeks to
establish a more uniform, national
system, including by retaining the
ultimate authority and responsibility to
make determinations regarding an
occupation’s suitability for registered
apprenticeship training and through the
introduction of a State planning process
for SAAs to establish transparency and
alignment throughout the system. The
Department also views the improved
collection and analysis of
apprenticeship data as a critically
important goal of its proposal to update
the part 29 regulations. To maximize the
benefits of improved data collection for
all stakeholders in the National
Apprenticeship System, including
apprentices, program sponsors, and
employers, the Department seeks to
establish a truly national and
comprehensive database of information
about registered apprenticeship
programs and apprentices in order to
accurately assess the performance and
equity of these important workforce
development programs.
D. Stakeholder Outreach
The Department has been
continuously engaged with
apprenticeship stakeholders to pursue
improvements and growth throughout
the system, and such engagement has
been particularly useful in the
development of this proposal. The
Department has sought advice,
recommendations, and guidance from a
number of external sources, research,
and stakeholder inputs, including:
• The 2022 interim
recommendations 21 of the ACA and its
2023 Biennial Report,22 which
incorporates the ACA’s 2022 Interim
Report recommendations and includes
additional guideposts for OA to
consider related to registered
apprenticeship;
• Virtual Listening Sessions in 2021
coordinated by OA in partnership with
various partners and stakeholders to
hear perspectives on the current state of
the National Apprenticeship System
21 ACA, ‘‘Interim Report to the Secretary of
Labor,’’ May 16, 2022, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
22 ACA, ‘‘Biennial Report to the Secretary of
Labor,’’ May 10, 2023, https://www.
apprenticeship.gov/sites/default/files/Final
%20ACA%20Biennial%20Report%20%20May%2010%202023.pdf.
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3123
and to gather ideas and suggestions on
ways to modernize registered
apprenticeship programs; 23
• National Online Dialogue in 2022,
led by OA and launched by
ePolicyWorks (entitled ‘‘Advancing the
National Apprenticeship System’’),
which asked participants, including
various partners and stakeholders, to
describe what they believed to be the
optimal implementation of the
registered apprenticeship model; 24
• Virtual Listening Sessions in 2023,
coordinated by OA, wherein partners
and stakeholders were given the
opportunity to share perspectives on the
current state of the National
Apprenticeship System and to share
policy recommendations for ways to
strengthen and modernize the system.
Questions for these sessions were
developed, in part, by reviewing the
ACA’s 2022 Interim Report;
• The 2023 Quality Apprenticeships
Recommendation (ILO
Recommendation No. 208), adopted by
the 111th International Labour
Conference on June 16, 2023, which
describes the fundamental attributes of
quality apprenticeships;25 and
• Regular stakeholder engagements
related to the expansion of the
registered apprenticeship model,
including with industry groups, labor
unions, worker advocates, State and
local workforce partners, education
systems, and intermediaries.
Ongoing oversight of the National
Apprenticeship System conducted by
OA’s staff at the national and regional
level, including technical assistance and
support provided to registered
apprenticeship program sponsors,
potential sponsors interested in
apprenticeship, and other stakeholders,
as well as formal reviews of individual
programs, internal processes, and
apprenticeship’s place in national
workforce development, has also been
an important source of data that
underpins this proposal. Analyzing
lessons learned from OA’s outreach and
support provided to potential program
sponsors has helped OA better
23 OA, ‘‘2021 Apprenticeship Listening Sessions,’’
Dec. 2021, https://www.apprenticeship.gov/sites/
default/files/APPROVED%20Listening%20Session
%20Report%20%2812-6-22%29%20%
28002%29.pdf.
24 Entries in the Advancing the National
Apprenticeship System dialogue are available at
Ideascale Feedback Software, ‘‘Advancing the
National Apprenticeship System,’’ https://
advancingapprenticeships.ideascale.com/c (last
visited June 26, 2023).
25 ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), June 16, 2023, https://www.ilo.org/dyn/
normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
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understand the misconceptions or
barriers that employers perceive as they
inquire about or pursue setting up a
registered apprenticeship program. The
Department considered these data in
developing key priorities for the
proposed regulation and to advance the
Department’s goal of expanding
registered apprenticeship’s footprint in
new and emerging industries. Key
reforms in this proposal that the
Department expects will support this
goal include system modernization and
the definition and dissemination of new
tools and resources to ease the program
onboarding process.
OA’s role providing oversight of the
National Apprenticeship System by
conducting reviews of programs,
working with Federal, State, and local
partners to resolve issues or disputes,
and otherwise monitoring stakeholder
compliance with the existing
regulations, has also been informative
and instrumental in developing the
enhanced quality elements in this
proposed rule. Program and system
oversight has influenced OA’s
identification of the hallmarks of quality
registered apprenticeship programs,
persistent issues that impact programs,
and gaps or weaknesses in the existing
regulatory framework. Analyzing these
data has informed the development of
key quality and accountability aspects
of this proposal, including the proposed
protections for apprentices against
undue costs of participation and
restrictions on their labor market
mobility and clarifications regarding the
appropriate roles and responsibilities of
stakeholders within the system (such as
clearly articulating the roles and
responsibilities of participating
employers and clarifications on the
appropriate role of State Apprenticeship
Councils in system governance).
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E. Vision and Goals of This Rulemaking
Overall, outreach and engagement
with the National Apprenticeship
System’s many diverse stakeholders has
been a central element of OA’s efforts to
identify high-level priorities for this
proposed update to the part 29
regulations. These priorities reflect OA’s
consideration, synthesis, and proposed
approach to the implementation of the
recommendations and priorities arising
from engagement with stakeholders
holding diverse perspectives based on
their backgrounds from different sectors
of the economy and roles within the
National Apprenticeship System.26 The
26 For
example, the ACA comprises equal
numbers of representatives from the public, private,
and labor sectors. Later in this NPRM, the
Department proposes a parallel requirement for the
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resulting NPRM reflects a balance of
priorities and perspectives that, in the
Department’s view, would result in a
National Apprenticeship System that is
responsive to industry needs, promote
and maintain the hallmarks of highquality apprenticeships, and clearly
define and facilitate the roles and
responsibilities of stakeholders. The
following discusses this NPRM’s
guiding priorities, including the issues
that give rise to each and the
Department’s proposed approach to
addressing those issues.
Expansion With Quality
Stakeholders throughout the National
Apprenticeship System, as well as
potential stakeholders representing new
industries or expressing interest in
developing new opportunities for the
system’s growth, have consistently
advised the Department that
systemwide modernization is essential
for advancing the Department’s goal of
expanding registered apprenticeship.
The current regulations were finalized
during an era in which the economy as
a whole and the landscape for registered
apprenticeship in particular were very
different. The Department intends to
modernize the regulations to reflect the
contemporary era and the expanded
potential for registered apprenticeship.
The proposed rule would position
registered apprenticeship as a
mainstream, high-quality postsecondary
training strategy that offers a career path
across industries and sectors.
First, the scope of business sectors,
industries, and occupations that have
benefitted and would benefit from
registered apprenticeship has expanded,
including both the emergence of entirely
new industries and occupations (within
the IT and education sectors, for
example), as well as evolutions within
existing industries and occupations.
Economic and technological evolution
have also greatly impacted the outlook
for existing and potential apprentices,
including how they are made aware of
registered apprenticeship and other
workforce training programs, how they
access such programs, their options for
participation and interaction with such
programs, and the scope of careers and
job skills they can pursue.
Second, the advent of increased
funding opportunities to support the
development of registered
apprenticeship programs has further
expanded registered apprenticeship’s
potential scope. As Federal and State
makeup of State Apprenticeship Councils to ensure
that these diverse perspectives (and the natural
tension thereof) are considered as State
Apprenticeship Councils deliberate and offer nonbinding advice to SAAs.
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resources are made available to support
the expansion of registered
apprenticeship, this is a critical
opportunity to strengthen and reinforce
the labor standards to affirm the core
guarantees of registered apprenticeship
for workers and employers in an
evolving labor market. Beginning in
2015, the Department began announcing
the availability of funding for registered
apprenticeship through several different
vehicles. This included approximately
$175 million to expand apprenticeship
into sectors with few apprenticeships
and to populations traditionally
underrepresented in apprenticeship
through AAI,27 investments to support
registered apprenticeship intermediaries
focused on specific industries or
equity,28 and provide funding on an
annual basis to support States’ efforts to
expand capacity, increase the number of
registered apprentices, and modernize
the National Apprenticeship System.29
Grant funding appropriated for States
between 2016 and 2023 was
$419,500,000. Over the years, the
further funding announced by the
Department included over $10 million
to support women’s participation in
registered apprenticeship programs
through the Women in Apprenticeship
and Nontraditional Occupations
(WANTO) grants since 2019,30 $20
million to support the execution of a
collaborative partnership with the
American Association of Community
Colleges to support the Expanding
Community College Apprenticeship
initiative in 2019, and $284 million to
support expansion of apprenticeships
into non-traditional industries in 2019–
2020.31 Competitive rounds of funding
have also been awarded to reach other
types of organizations. In 2020, the
Department announced $42.5 million
for Youth Apprenticeship Readiness
Grants. In 2022, the Department
announced more than $171 million for
the Apprenticeship Building America
27 See a list of past funding opportunities and
awardees at OA, ‘‘Past Grants and Contracts,’’
https://www.apprenticeship.gov/investments-taxcredits-and-tuition-support/past-grants-andcontracts (last visited July 20, 2023).
28 See OA, ‘‘National Industry and Equity
Apprenticeship Intermediaries: Advancing
Registered Apprenticeship for Businesses and
Workers in the U.S.,’’ Jan. 19, 2021, https://
www.apprenticeship.gov/sites/default/files/
Industry-and-Equity-IntermediaryAccomplishment-Fact-Sheet.pdf.
29 See OA, ‘‘State Apprenticeship Expansion,’’
https://www.apprenticeship.gov/investments-taxcredits-and-tuition-support/state-apprenticeshipexpansion#awardee_list (last visited July 20, 2023).
30 DOL, WANTO Grant Program, https://
www.dol.gov/agencies/wb/grants/wanto (last visited
Oct. 23, 2023).
31 See ‘‘H–1B Skills Training Grants,’’ https://
www.dol.gov/agencies/eta/skills-grants/h1-b-skillstraining (last visited July 20, 2023).
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grants.32 The reauthorization of WIOA
in 2014 and the reauthorization of
Perkins in 2018 (also known as Perkins
V) brought additional opportunities to
align Federal education and workforce
investments with registered
apprenticeship programs. Opportunities
include State and local workforce
development board membership, State
and local planning, funding for preapprenticeship programs, and funding
availability to support WIOA
participants’ placement in registered
apprenticeship programs.33 The
Department anticipates additional
investments that align with The Good
Jobs Principles, a shared vision of job
quality, equity, and worker
empowerment published in 2022 by the
Department and Department of
Commerce.34 Additionally, the
principles have been reflected or
referenced in funding opportunities
implementing infrastructure
investments through the Bipartisan
Infrastructure Law and the IRA.
These historic investments in the
National Apprenticeship System, along
with the new opportunities uncovered
by an evolving economy and national
workforce model, have introduced a
much broader range of registered
apprenticeship stakeholders (including
existing, newly established, and
potential stakeholders) since the
regulations were last updated in 2008.
Accordingly, the Department has
determined that the part 29 regulations
must be modified and modernized in
order to accommodate the growing set of
stakeholders, provide tools and
resources to ease their entry into the
system, and maximize the impact of the
aforementioned investments. In the
proposed regulation, the Department
introduces and defines the purpose of
new products to support the
development of new registered
apprenticeship programs. These
products—National Occupational
Standards for Apprenticeship, National
Guidelines for Apprenticeship
Standards, and National Program
Standards for Apprenticeship—would
feature ample opportunities for industry
to provide input and feedback. They
would also leverage the Department’s
32 ETA, ‘‘State Apprenticeship Expansion
Formula,’’ FOA–ETA–23–09, Mar. 17, 2023, https://
www.grants.gov/web/grants/viewopportunity.html?oppId=345785.
33 For information regarding how WIOA relates to
apprenticeship, see OA, ‘‘Workforce Innovation and
Opportunity Act,’’ https://www.apprenticeship.gov/
investments-tax-credits-and-tuition-support/
workforce-innovation-and-opportunity-act (last
visited July 20, 2023).
34 See DOL, ‘‘The Good Jobs Initiative,’’ https://
www.dol.gov/general/good-jobs/principles (last
visited July 20, 2023).
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existing and emerging relationships to
ensure efforts to expand registered
apprenticeship are responsive to the
evolving and distinct needs of all
industries, including those targeted for
expansion.35
The Department’s vision for a modern
system also includes an acceleration of
its ongoing efforts to leverage
advancements in technology to improve
its internal systems and data analysis
capabilities; modernize and strengthen
the reporting tools available to
registered apprenticeship program
sponsors, SAAs, and other stakeholders;
and move the system’s administrative
functions fully online. The Department
anticipates that such improvements
would complement the proposed
regulation’s introduction of industrydriven tools for onboarding new
programs. Keeping pace with evolving
industries, technological developments,
and emerging opportunities for
alignment among national workforce
system programs is essential for
achieving the Department’s goal of
expanding registered apprenticeship. It
would also help the Department
advance opportunities to access the
National Apprenticeship System,
provide oversight and assistance to new
and existing stakeholders, and
streamline administrative functions
throughout the system.
In line with the Department’s
prioritization of system modernization
in this proposed rule, the Department
views the enhanced capacity to collect
and analyze data as a key advantage of
keeping pace with technological
developments. As such, the Department
is prioritizing the ongoing development
of a modernized and enhanced data
collection and analysis framework.
Though much of this work occurs
outside of the regulatory space, the
Department has identified a need to
update regulatory requirements around
data collection to improve its ability to
make data-driven decisions about
apprenticeship policy, review and
assess registered apprenticeship
program performance, and communicate
the value of apprenticeship as a viable
workforce training model. The
Department believes this is an
opportunity to orient the National
Apprenticeship System around
35 In this proposal, the Department seeks to
further clarify the role of industry through the text,
including by defining the term ‘‘intermediary’’
(used commonly in practice by industries but not
defined in the current regulations at part 29) and
establishing clear roles for intermediaries in the
process to develop National Occupational
Standards for Apprenticeship, National Guidelines
for Apprenticeship Standards, and National
Program Standards for Apprenticeship.
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increased performance accountability,
transparency, and a focus on outcomes.
In the years since the registered
apprenticeship regulations were last
updated, the Department has invested
resources to improve its processes for
the collection of data pertaining to
apprenticeship and the secure storage of
such data. Such resources were also
distributed among States to improve
SAAs’ data collection and reporting
capabilities.36 The Department has also
collaborated with registered
apprenticeship programs, industry
intermediaries, other government
agencies, and other interested
stakeholders to better understand the
insights and performance benchmarks
that can be drawn and applied through
targeted analyses of registered
apprenticeship data. The lessons
learned from these ongoing,
collaborative engagements were echoed
by the members of the ACA, who
provided several recommendations
related to data for the Department’s
consideration. The ACA discussed the
value of developing a more national,
comprehensive set of data related to
registered apprenticeship. Currently,
data pertaining to registered
apprenticeship are collected in a
disparate manner: data collection
practices are distinct for SAA States and
OA States, and not all States provide
data to the Department’s primary data
repository, Registered Apprenticeship
Partners Information Data System
(RAPIDS).37 The ACA also
recommended that OA update its data
collection and analysis capabilities to
improve its ability to glean data-driven
insights and make informed policy or
oversight decisions based on such
insights.38 To do this, the Department
must take steps towards developing a
data collection framework that collects
uniform data elements on a nationwide
basis in order to disaggregate such data
36 ETA, ‘‘State Apprenticeship Expansion
Formula,’’ FOA–ETA–23–09, Mar. 17, 2023, https://
www.grants.gov/web/grants/viewopportunity.html?oppId=345785.
37 The ACA recommended that OA work with
States to encourage full participation in RAPIDS,
with the goal of developing a more national and
comprehensive data set: ‘‘Generally, encourage
those States that do not participate in the RAPIDS
system, or participate to a lesser degree than full
participant States, to participate in the collection
and sharing of apprenticeship data for the benefit
of the national dataset (RAPIDS).’’ ACA, ‘‘Interim
Report to the Secretary of Labor,’’ May 16, 2022, at
16, https://www.apprenticeship.gov/sites/default/
files/aca-interim-report-may-2022.pdf.
38 The ACA recommended that OA ‘‘measure and
track success through Equity Indices showing the
representation of new, active, and completing
apprentices from each underserved demographic
group in the context of local area, industry,
education/skills, and wages/promotions.’’ Id. at II–
10.
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in key ways (such as by race and
ethnicity, industry, occupation, from a
State or national perspective) and assess
information that accurately compares
program outcomes.39 The Department is
interested in improving its ability to
assess accurate, up-to-date registered
apprenticeship data related to equitable
participation and program outcomes for
apprentices, the prevalence and
usefulness of interim credentials or
other industry-recognized certifications
provided to apprentices, and wages
earned by apprentices who complete
registered apprenticeship programs,
among other measures that may offer
useful insights to registered
apprenticeship program success and
opportunities for targeted
improvements.
Accordingly, the Department’s
proposed rule would update
requirements regarding the collection
and maintenance of data for program
stakeholders. The proposed rule also
presents new data elements for
collection to better understand the
apprenticeship landscape and enhance
OA’s and SAAs’ ability to make datadriven decisions and improvements
throughout the National Apprenticeship
System. Such new data elements would
include requiring program sponsors to
provide data on the interim credentials
or other industry-recognized
certifications offered through their
programs and requiring that
applications for a determination on an
occupation’s suitability for registered
apprenticeship training include
information relating to the career wage
profile of the subject occupation.
Additionally, the Department would
collect information from sponsors on
pre-apprenticeship program engagement
and placement as part of this proposed
rule. Proposed reforms to the registered
apprenticeship regulations would also
prioritize collecting information on both
postsecondary academic credit and
industry-recognized credentials that
apprentices acquire as part of their
participation in registered
apprenticeship programs, in addition to
their acquisition of Certificates of
Completion of registered apprenticeship
programs. These reforms would allow
students, job seekers, and workers to
make better informed choices regarding
their career needs.
These data elements, along with
proposed updates to the part 29
regulations intended to encourage a
more uniform and consistent approach
39 The
ACA recommended that OA ‘‘make
apprentice demographic data, disaggregated by race,
ethnicity, and sex, and separately for each State and
for each standard occupation code, public on a
dashboard site.’’ Ibid.
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to data collection and analysis,40 would
greatly enhance the Department’s ability
to derive accurate, timely, and
consequential insights about registered
apprenticeship on a nationwide basis.
This would ultimately improve the
Department’s ability to provide
guidance and oversight to stakeholders
throughout the National Apprenticeship
System.
Accurately assessing the quality of
registered apprenticeship programs, and
actively pursuing opportunities to
improve such quality across all
registered apprenticeship programs,
remains one of the Department’s most
important responsibilities related to its
oversight of the National
Apprenticeship System. Establishing a
baseline for registered apprenticeship
program quality is one of the most
salient and practical functions of the
part 29 regulations. While the
Department believes that the current
regulations have successfully guided the
development and expansion of quality
registered apprenticeship programs
presently in existence, the Department
has identified potential improvements
to the program quality framework that it
is pursuing in this proposed rule. The
Department’s identification of these
quality improvements stems from its
ongoing collaborations with industry
partners and apprenticeship
stakeholders, analysis of the persistent
issues that arise as the Department
executes program reviews, and feedback
from apprentices, program sponsors,
and employers participating in
registered apprenticeship programs
(including both success stories and
efforts to review and address complaints
related to registered apprenticeship
programs).
First, the Department relies on the
part 29 regulation’s standards of
apprenticeship to apply quality
standards consistently across all
registered apprenticeship programs.
Any program seeking registration by the
Department for Federal purposes must
develop a set of program standards that
apply to the specific program and align
with the minimum quality standards
contained within the part 29 regulations
(currently at 29 CFR 29.5). Accordingly,
many of the program quality
enhancements the Department is
pursuing in this proposed regulation
would update the proposed section for
standards of apprenticeship (at
proposed 29 CFR 29.8). Engagement
40 For example, see the Department’s discussion
of its proposal to make SAA planning and data
reporting more consistent through the
implementation of State Apprenticeship Plans in
the section-by-section analysis of this NPRM for
proposed § 29.27.
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with stakeholders, including the ACA,
and review of the Administration’s
priorities for the Department (such as
the Good Jobs Initiative driven by the
Administration and led by the
Department 41), has helped the
Department identify several areas ripe
for improved quality standards for
registered apprenticeship. These
include ensuring that all registered
apprenticeship programs convey
competencies and lead to occupational
proficiency for apprentices who
complete programs (see the
Department’s proposed consolidation of
the apprenticeship training models at
proposed 29 CFR 29.8(a)(4)), assurances
that determinations on occupations’
suitability for registered apprenticeship
training consider the career wage profile
related to the subject occupation (see
the Department’s proposed inclusion of
wage considerations in occupational
suitability determinations at proposed
29 CFR 29.7(b)(2)), and enhanced
protections for apprentices against
unreasonable training costs and
restrictions on their labor market
mobility (at proposed 29 CFR 29.9).
Embedding Equity at the Center of
Registered Apprenticeship
Advancing equity in registered
apprenticeship programs—applicable to
program recruitment, participation,
treatment during the course of a
program, and program outcomes—
remains a critical priority for the
Department as a whole. The Nation’s
implementation of an industrial strategy
through historic investments in
infrastructure,42 technology,43 and clean
energy 44 together generate tremendous
opportunities for good jobs but also
challenges for recruiting skilled
workers. Engaging workers from
underserved communities can be a key
strategy for addressing these challenges.
In addition, advancing equity in
registered apprenticeship is central to
the Department’s proposed updates to
the quality baselines contained in the
part 29 regulations. In particular, the
Department has identified several
opportunities to align the part 29
regulations with the EEO in
Apprenticeship regulations at 29 CFR
part 30, which were finalized in 2016.
The Department seeks to align the
41 See information about the Good Jobs Initiative
and its impact at DOL, ‘‘The Good Jobs Initiative,’’
https://www.dol.gov/general/good-jobs (last visited
July 20, 2023).
42 Infrastructure Investment and Jobs Act, Public
Law 117–58, 135 Stat. 429 (2021).
43 Creating Helpful Incentives to Produce
Semiconductors Act of 2022 (CHIPS Act), div. A of
Public Law 117–167, 136 Stat. 1366 (2022).
44 IRA, Public Law 117–169, 136 Stat. 1818
(2022).
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proposed updates to 29 CFR part 29
with elements of the 2016 EEO final rule
to advance equity in registered
apprenticeship programs by requiring
sponsors to identify and reduce barriers
to enrollment in, and completion of,
such programs by individuals from all
underserved communities. In
furtherance of this effort, the proposed
regulation would require all sponsors
seeking registration of an apprenticeship
program to articulate an equitable,
intentional, and achievable strategy for
advancing the program’s recruitment,
hiring, and retention of individuals from
underserved communities, including
through documented partnerships with
pre-apprenticeship or registered CTE
apprenticeship programs. In addition,
the proposal would continue to require
registered apprenticeship programs to
adhere to all of the applicable nondiscrimination and EEO requirements
contained in 29 CFR part 30.
In general, the Department is pursuing
greater alignment between the
regulations at parts 29 and 30, which
were finalized 8 years apart and have
not been updated since the EEO
regulations were promulgated in 2016.
The Department notes that it is not
considering substantive changes to 29
CFR part 30 in this proposal, and the
proposed amendments to 29 CFR part
30 are limited to the sections and
changes necessary to align with the
proposed changes in 29 CFR part 29. As
a result, the Department is not accepting
comments on the substantive content of
the regulations at 29 CFR part 30
(beyond the proposal to incorporate the
part 30 definitions into part 29 and any
technical edits to part 30 necessary to
align with proposed changes to part 29).
However, the Department encourages
the public to submit comments on how
to best advance equity in registered
apprenticeship as proposed in this
NPRM.
The Department understands, based
on several decades of oversight of the
National Apprenticeship System, that
the quality standards and other
regulatory requirements are only as
strong as the accountability measures
that establish roles, responsibilities, and
expectations of key stakeholders in the
National Apprenticeship System. Where
such accountability is unclear or
undefined in the part 29 regulations,
individuals’ or entities’ responsibility
for preventing or addressing issues,
shortcomings, or problematic outcomes
related to registered apprenticeship
programs can be questioned, contested,
or avoided. This leaves apprentices with
an unclear path forward and, at times,
stuck with an unfavorable outcome. In
order to fulfill its statutory obligation to
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protect apprentices’ welfare and wellbeing, the Department has identified
several areas where accountability
within the system can be strengthened
or clarified. For example, this proposed
rule contains provisions intended to
ensure that both registered
apprenticeship program sponsors and,
critically, any employers that have
adopted the sponsor’s standards of
apprenticeship (referred to in the
proposed regulation as ‘‘participating
employers’’) are responsible for
adhering to the minimum labor
standards stipulated in 29 CFR part 29,
as well as the EEO requirements
contained in 29 CFR part 30. The
proposed rule would also require the
sponsors of group programs to both
screen and actively monitor
participating employers to ensure their
compliance with the foregoing
regulatory provisions. Such enhanced
accountability mechanisms are intended
to ensure that apprentices are afforded
all of the rights and protections required
under the Federal rules pertaining to
apprenticeship.
The Department expects that these
proposed updates to the part 29
regulation would advance quality,
equity, and accountability throughout
the National Apprenticeship System.
These proposed quality enhancements
would benefit both existing registered
apprenticeship programs and any new
programs entering the system in the
coming years. The Department
anticipates that apprentices entering the
system, along with their parents,
guardians, dependent family members,
and community members, would benefit
from increased confidence in the
consistency of quality throughout the
system. The Department invites
comments from the public on the best
ways to advance quality, equity, and
accountability throughout the National
Apprenticeship System, including
reactions to the proposed updates to the
part 29 regulations contained in this
proposal and any additional suggestions
or recommendations for the
Department’s consideration.
Building a More Consistent and
Innovative National Apprenticeship
System
In addition to the recommendations to
pursue systemwide modernization,
better leverage apprenticeship-related
data, and promote quality, equity, and
accountability in the National
Apprenticeship System, stakeholders
have consistently advised the
Department to consider additional
pathways to participating in a registered
apprenticeship program and pursuing
the apprenticeship model for career
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preparation and development,
particularly for younger students or job
seekers. The ACA advanced several
recommendations related to career
pathways for youth (including those
developed by the ACA’s dedicated
subcommittee for this issue, the
Pathways subcommittee). These
included recommendations to define
what is meant by a ‘‘preapprenticeship’’ program,45 invest and
encourage participation in workforce
readiness and pre-apprenticeship
programs,46 and pursue opportunities
for collaboration with other sectors
(such as education) to promote
awareness and uptake of preapprenticeships and registered
apprenticeships.47 The Department is
energized by these discussions of the
evolving strategies to achieve growth
throughout the National Apprenticeship
System by identifying and promoting
opportunities for younger students or
job seekers to prepare for, and
eventually enter into, a registered
apprenticeship program.
The proposed regulations, in addition
to the enhancements to the registered
apprenticeship model, would provide a
more robust framework for identifying
and promoting a system of
apprenticeship-related pathways that
can lead to sustainable careers. This
would include defining preapprenticeship models that the
Department believes could lead to
diverse pathways to registered
apprenticeship, with greater assurance
that registered apprenticeship would be
accessible, particularly for underserved
communities. The proposal would also
provide career seekers looking to get
into registered apprenticeship programs
entry points into programs, particularly
if they do not currently meet the entrylevel requirements for registered
45 See the ACA’s recommendations, arising from
multiple subcommittees, that the Department
‘‘Define ‘apprenticeship,’ ‘pre-apprenticeship,’ and
‘youth apprenticeship’’’ to ensure programs align
with quality metrics. ACA, ‘‘Interim Report to the
Secretary of Labor,’’ May 16, 2022, at 13 and 33,
https://www.apprenticeship.gov/sites/default/files/
aca-interim-report-may-2022.pdf.
46 See the ACA’s recommendations that ‘‘Federal
and State agencies should invest in quality
workforce readiness and pre-apprenticeship
programs’’ and that the Department encourage
employers and registered apprenticeship programs
to uplift pre-apprenticeship (e.g., provide
conditional offers of registered apprenticeship
employment or interviews upon completion of preapprenticeship). Id. at 36 and II–13.
47 See the ACA’s recommendation to include (1)
tools for school counselors and teachers to integrate
pre-apprenticeship into curricula and offer students
advice on career pathways; (2) resources to connect
employers, schools, students, and parents to
achieve greater buy-in; and (3) retooling of
Apprenticeship.gov to educate public and highlight
opportunities. Id. at 36.
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apprenticeship programs. Preapprenticeship programs are designed to
equip apprentices with the foundational
skills required by registered
apprenticeship programs, in order to
facilitate the placement of preapprenticeship program participants.
Therefore, instead of designing a model
of registering pre-apprenticeships, the
Department believes registered
apprenticeship program sponsors would
be best positioned to determine the
quality of pre-apprenticeship programs.
The proposed rule would provide more
clarity in the system about the meaning
of pre-apprenticeship programs, enable
data collection on these programs from
sponsors, and promote greater
alignment with other Federal workforce
investments that may support preapprenticeship models.
Additionally, a key proposed reform
in this rulemaking would be the
development of labor standards for a
new model of registered apprenticeship
focused on registered CTE
apprenticeships. This proposed new
model of registered apprenticeship
would be consistent with stakeholder
recommendations 48 and the
Department’s ongoing efforts to expand
employment and training opportunities
for youth. Registered CTE
apprenticeship programs would create
stronger and more seamless linkages
between educational institutions and
workforce development programs, and
they would expand the registered
apprenticeship model to support youth
and other individuals entering the
workforce through their enrollment in
State CTE programs funded by ED’s
Perkins program. Proposed subpart B is
designed to strengthen the ties between
individuals in State-approved CTE
programs and employment around a
quality framework of labor standards.
The Department, in coordination with
ED, has identified an opportunity to
increase job quality and training for
youth and other individuals enrolled in
State-approved CTE programs to benefit
from structured and common basic labor
standards. The registered CTE
apprenticeship model would build on
the key tenets of registered
apprenticeship but would have some
differences to account for the unique
needs of the population it is designed to
48 For example, see the ACA’s recommendation to
support promotion, awareness, and uptake of
apprenticeship programs among youth, including
through tools to integrate pre-apprenticeship
elements into educational curricula. ACA, ‘‘Interim
Report to the Secretary of Labor,’’ May 16, 2022, at
p. 36, https://www.apprenticeship.gov/sites/default/
files/aca-interim-report-may-2022.pdf.
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serve and individuals enrolled in Stateapproved CTE programs.
National Apprenticeship System
Governance and Planning
A key role in implementing the
promises of the proposed rule is to
ensure the development of a system of
governance for key partners and leaders
in the National Apprenticeship System,
particularly SAAs that have been
provided OA’s authority to serve as
Registration Agencies in their States. As
mentioned previously, OA is
responsible for establishing a system of
recognition and governance of SAAs,
which operate as key partners in the
National Apprenticeship System. To
that end, the Department is seeking to
build a more cohesive system and
structure that promotes greater
consistency and minimum standards for
the roles and responsibilities of SAAs
through a State planning approach, as
well as criteria around SAAs’ approval
of registered apprenticeship programs
for Federal purposes, while
simultaneously encouraging strategic
planning and innovation in registered
apprenticeship models in the States.
With more than 30 States currently
recognized or seeking recognition as an
SAA State, this proposed rulemaking
seeks to modernize and build a State
planning framework for the recognition
of SAAs that both satisfies the need for
procedural reform and encourages
innovative strategies and ideas for the
expansion and modernization of
registered apprenticeship. Accordingly,
the proposed rule includes provisions
that would carefully delineate the
respective roles and responsibilities of
OA, SAAs, and State Apprenticeship
Councils within the National
Apprenticeship System. The proposed
rule would also establish a planning
process for SAAs to ensure coordination
within the National Apprenticeship
System in pursuit of apprenticeship
expansion and quality, equity, and
consistency in experience for sponsors.
This State planning process would also
ensure that SAAs are maintaining
minimum standards of registered
apprenticeship that safeguard the safety
and welfare of apprentices. Submission
of State Apprenticeship Plans would
take place on a cyclical basis, thereby
allowing OA to ensure sufficient staffing
capacity to review plans and provide
technical assistance as needed.
The Department anticipates that the
National Apprenticeship System under
this proposed rule would provide both
workers and businesses with highquality, inclusive, and adaptable
training models to build a skilled
American workforce for the 21st century
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across numerous industries. This
proposed rule seeks to ensure the
expansion of apprenticeship models
with high-quality standards to address
the evolving needs of the labor market.
The Department is proposing §§ 29.1
through 29.6 as applicable to the entire
part, while also proposing three unique
subparts for this proposed rulemaking.
Subpart A would address standards for
registered apprenticeship programs,
which would update the current section
of 29 CFR part 29 regarding the approval
of occupations suitable for registered
apprenticeship, the registration
standards of apprenticeship,
apprenticeship agreements, and other
requirements related to the development
of quality labor standards. Subpart B
would address the proposed registered
CTE apprenticeship model, including
the requirements associated with
registering a program under that model.
Subpart C would address the
Administration and Coordination of the
National Apprenticeship System,
including the reporting requirements,
SAA recognition and planning
provisions, and a provision about
sharing information to support the
integration of registered apprenticeship
into other Federal and State laws. The
Department welcomes comments
throughout this proposed rule,
particularly those focused on ideas to
promote higher quality and to facilitate
expansion to new industries and
occupations.
IV. Section-by-Section Discussion of the
Proposed Changes
A. Introduction to the Regulations for
the National Apprenticeship System
Under the National Apprenticeship Act
of 1937
Section 29.1—Purpose and Scope
The ‘‘Purpose and scope’’ section in
the current regulation describes and
cites to the Secretary’s statutory
authority to formulate and promote
labor standards for registered
apprenticeship programs to safeguard
the welfare of apprentices participating
in such programs. The Department
proposes to remove existing § 29.1(a),
which describes and cites to the
Department’s authority under the NAA,
because it is unnecessary to repeat the
statutory language in the text of the
regulation. The Department has
determined that the ‘‘Purpose and
scope’’ section for 29 CFR part 29
should instead focus on the
Department’s intent and objectives for
the part 29 regulations and the sub-issue
areas that follow in the part 29
regulations, all of which would be
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Section 29.2—Definitions
In 2007, when the Department
proposed an update to the part 29
registered apprenticeship regulations in
an NPRM, the preamble noted that the
Department’s proposed updates to the
‘‘Definitions’’ section in 29 CFR 29.2
were intended to clarify and redesignate
existing definitions and establish new
definitions used in the registration of
registered apprenticeship programs and
in ‘‘ongoing operations of the National
Apprenticeship System.’’ 49 Since 2008,
there have been numerous changes that
have impacted the terminology related
to the registration of registered
apprenticeship programs and the
National Apprenticeship System’s
ongoing operations, including revisions
or changes to reflect new
understandings or uses of previously
defined terms, the introduction of new
terminology to reflect the expansion of
registered apprenticeship concepts,
stakeholders, and strategies, as well as
updates that have rendered existing
definitions inaccurate, irrelevant, or
obsolete.
One important development was the
revision to the regulations at 29 CFR
part 30, which introduced a set of key
defined terms that are relevant and
applicable to the regulations at 29 CFR
part 29. Having misaligned definitions,
as well as two sets of definitions
governing OA’s regulations, could cause
unnecessary confusion and burden for
the regulated community and other
stakeholders. Accordingly, the
Department proposes to set forth all
applicable definitions governing 29 CFR
parts 29 and 30 at 29 CFR 29.2. This
would centralize the definitions
governing all aspects of the National
Apprenticeship System, thereby better
aligning the operation of parts 29 and 30
and eliminating unnecessary
duplication and any inadvertent
inconsistency. To effectuate this change,
the Department proposes to revise 29
CFR 30.2 to state that part 30
incorporates the definitions found at 29
CFR 29.2. The Department invites
comment on this organizational change,
particularly on its efforts to ensure the
regulated community has one section
for all of the definitions pertaining to
the National Apprenticeship System.
The Department requests that any
comments on the substance of a
proposed definition reference 29 CFR
29.2 rather than 29 CFR 30.2.
Proposed modifications to any
definitions currently found at 29 CFR
30.2 as a result of this proposed
rulemaking are explained below. The
terms currently found at 29 CFR 30.2
that are not identified below as
undergoing modification would remain
unchanged and would simply be
recodified at 29 CFR 29.2. These terms
are ‘‘direct threat,’’ ‘‘disability,’’ ‘‘EEO,’’
‘‘ethnicity,’’ ‘‘genetic information,’’
‘‘major life activities,’’ ‘‘physical or
mental impairment,’’ ‘‘qualified
applicant or apprentice,’’ ‘‘race,’’
‘‘reasonable accommodation,’’
‘‘selection procedure,’’ and ‘‘undue
hardship.’’ The Department is proposing
that the definition of ‘‘qualified
applicant or apprentice’’ include the
clarifying clause ‘‘for purposes of part
30.’’ This change is proposed to clarify
that the definition of ‘‘qualified
apprentice’’ in this proposed rule would
apply only to the part 30 regulations
and would not conflict with the
definition of ‘‘qualified apprentice’’
under the IRA’s registered
apprenticeship requirements.50 The
term ‘‘qualified apprentice’’ would not
appear in the part 29 regulations other
than in the ‘‘Definitions’’ section of the
proposed rule and therefore this
clarifying clause would have no impact
on the requirements of part 29 or part
30. Moreover, the Department views this
clarifying clause as important to
avoiding potential confusion about the
definition of ‘‘qualified apprentice.’’
The remainder of this discussion of
proposed § 29.2 discusses, in
alphabetical order, new, revised, or
deleted definitions for part 29 and
definitions from part 30 that the
Department is proposing to change. In
addition to the definitions proposed for
49 72 FR 71019 (Dec. 13, 2007) (NPRM and
request for comments).
50 26 U.S.C. 45(b)(8)(E)(ii); see Public Law 117–
169 sec. 13101(f)(8)(E)(ii).
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consistent with the Department’s
statutory authority.
Proposed 29 CFR 29.1 would largely
retain the regulatory text from current
29 CFR 29.1(b), with a few additions to
reflect updates to the evolving system of
registered apprenticeship programs and
priorities to address the expanded role
education partners and intermediaries
bring in facilitating the connections
between employers and labor as
described in the NAA. Other proposed
additions would cover the Department’s
role in promoting the expansion of
quality registered apprenticeship
programs across a wide array of
industries, the critical role the
Department and Registration Agencies
have in ensuring equitable and inclusive
opportunities for all American workers,
the proposed new registered model for
CTE apprenticeship, the collection of
data, and the oversight of registered
apprenticeship programs.
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deletion and replacement by another
definition as described below, the
Department proposes deleting the
definitions of ‘‘registration of an
apprenticeship agreement,’’
‘‘registration of an apprenticeship
program,’’ and ‘‘State Office’’ from the
part 29 regulations. While these
definitions are proposed for deletion,
the concept for ‘‘registration of an
apprenticeship agreement’’ would be
addressed by the proposed
‘‘apprenticeship agreement’’ definition
and the apprenticeship agreement
section in proposed § 29.9. Similarly,
while the definition of ‘‘registration of
an apprenticeship program’’ is proposed
for deletion, the concept would be
addressed by the proposed ‘‘registered
apprenticeship program’’ definition and
the operative sections at proposed
§§ 29.8 and 29.10. Likewise, the
Department believes the definition of
‘‘State Apprenticeship Agency’’
includes the meaning that a State
government agency assumes the roles of
an SAA and, therefore, the Department
does not believe the term ‘‘State Office’’
would have utility under the proposed
rule. The Department believes these
concepts would be addressed in the
modified definitions but welcomes
comments as to whether there are
reasons to keep these definitions for the
regulated community.
Proposed § 29.2 would define terms
applicable to all sections of the NPRM
unless otherwise stated.
Proposed § 29.2 would retain the
existing definition of ‘‘Administrator’’
from the existing registered
apprenticeship regulations. This term
would still refer to the Administrator of
OA or any person specifically
designated by the Administrator of OA.
Proposed § 29.2 would add a new
definition of ‘‘annual completion rate,’’
which would be a new program quality
measure a Registration Agency would be
able to calculate to assist in assessing
program quality. This measure would be
calculated by identifying all the
apprentices who leave a program during
a fiscal year as the denominator and the
number of those who complete the
program as the numerator. This new
measure would assist Registration
Agencies in seeing if programs are
exiting significant numbers of
apprentices without graduating them
and enable them to use that information
as a basis for technical assistance. This
measure, unlike the proposed cohort
completion rate, would not exclude
exiters during the probationary period
of the program. This measure would
also align with the Department’s ETP
reporting under WIOA for program
completion rates. This measure would
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be calculated as part of the data
requirements of proposed § 29.25 and be
subject to program reviews under
proposed § 29.19. The Department
would consider this measure as being
useful for considering any impacts in
program design that lead to apprentices
not completing their programs once they
are apprentices. The Department is
interested in any comments on this
approach, whether probationary period
should be a consideration, as well as
any other measures proposed.
Proposed § 29.2 would modify the
definition of ‘‘apprentice.’’ The
proposed modification clarifies that an
apprentice, as the term is used in parts
29 and 30, is an individual participating
in a program subject to the requirements
of 29 CFR parts 29 and 30, rather than
an individual participating in any
apprenticeship program. The
Department would retain language that
an apprentice must be a worker at least
16 years of age, except where a higher
minimum age standard is otherwise
fixed by law, to align with the Fair
Labor Standards Act (29 U.S.C. 212) and
its implementing regulations (29 CFR
part 570), which generally permit bona
fide apprentices to perform otherwise
prohibited work in nonagricultural
employment once they reach the age of
16.
Proposed § 29.2 would modify the
definition of ‘‘apprenticeship
agreement.’’ The proposed modification
would stipulate that an apprenticeship
agreement must satisfy each of the
applicable regulatory requirements
contained in proposed § 29.9. The
proposed definition also stipulates that
such agreements must describe the
terms and conditions of the employment
and training of the apprentice, and it
further clarifies that an apprenticeship
agreement may also include the
execution of any subsequent contractual
provisions or agreements between the
apprentice and the program sponsor (or
a participating employer) during the
remainder of the apprenticeship term.
Proposed § 29.2 would retain the
definition for ‘‘apprenticeship
committee (committee)’’ from the
existing regulations.
Proposed § 29.2 would modify the
definition of ‘‘cancellation.’’ The
Department is proposing to modify this
definition to reflect that an
apprenticeship agreement may be
canceled by either the apprentice or the
sponsor as discussed in proposed § 29.9.
Additionally, the Department is
proposing to modify this definition to
remove the concept of cancellation of a
program because this concept is
synonymous with voluntary
deregistration of a program. The
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Department does not see a difference
between these two concepts, and so the
Department is proposing that
cancellation be a term that applies only
to apprenticeship agreements, and that
voluntary deregistration, as described in
proposed § 29.20, to be the appropriate
process for programs seeking to end
their registration status.
Proposed § 29.2 would add the
definition for ‘‘career and technical
education (CTE),’’ which would be
utilized primarily in subpart B, from the
existing definition in sec. 3(5) of
Perkins.51 The proposed registered CTE
apprenticeship model intends to
incorporate Perkins’ program elements.
To provide consistency and clarity for
the regulated community, the
Department is aligning the proposed
definition of CTE with the definition
used in Perkins.
Proposed § 29.2 would add the
existing definition of ‘‘career pathway’’
from WIOA.52 The purpose of adding
career pathway is to intentionally
connect the regulation to the concept of
a career pathway that is used in practice
across the broader workforce
development system and enable the use
of shared terminology for practitioners
developing opportunities for
participants in education and workforce
development programs.
Proposed § 29.2 would eliminate the
existing definition of ‘‘certification or
certificate’’ and establish definitions for
the different certificates described in
part 29. The purpose of establishing
standalone definitions for certificates is
to minimize confusion and provide
clarity for National Apprenticeship
System stakeholders on the functional
types of documentary evidence that may
be provided or used for the purposes of
proposed § 29.18, proposed § 29.30, or
any other applicable purpose.
Proposed § 29.2 would add a
definition for ‘‘Certificate of
Completion’’ and incorporate the
existing language at 29 CFR 29.2 that a
Certificate of Completion is a document
that establishes that a Registration
Agency has determined that an
individual has successfully completed a
registered apprenticeship program as set
forth at proposed § 29.16(d).
Proposed § 29.2 would add a
definition for the new term ‘‘certificate
of completion of registered CTE
apprenticeship.’’ A certificate of
completion of registered CTE
apprenticeship would be a document
that establishes that a Registration
51 Strengthening Career and Technical Education
for the 21st Century Act, Public Law 115–224, 132
Stat. 1563 (2018).
52 29 U.S.C. 3102(7); WIOA sec. 3(7).
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Agency has determined that an
individual has successfully completed a
registered CTE apprenticeship program
as documented under proposed
paragraph (f). The purpose of this new
term is to differentiate between the
certificate of completion for registered
apprenticeship under subpart A and a
certificate of completion of registered
CTE apprenticeship discussed for the
new proposed model of registered CTE
apprenticeship under subpart B.
Proposed § 29.2 would add a
definition for ‘‘Certificate of
Participation’’ and define it for the first
time as documentation that an
apprentice has participated or is
participating in a registered
apprenticeship program. Examples of a
Certificate of Participation could
include evidence necessary to document
a construction contractor’s compliance
with the Davis-Bacon and related Acts’
registered apprenticeship requirements
regarding the payment of prevailing
wages to apprentices at 29 CFR part 5
or a verification of an individual’s status
as an apprentice. Such a certificate
would be OA’s official method of
verifying an apprentice’s participation
in a registered apprenticeship program.
Proposed § 29.2 would add a
definition for ‘‘Certificate of
Recognition’’ to describe the document
provided to indicate that OA has
approved a sponsor’s National
Guidelines for Apprenticeship
Standards as described in proposed
§ 29.15.
Proposed § 29.2 would add a
definition for ‘‘Certificate of
Registration’’ to describe the document
provided to indicate that a Registration
Agency has registered an apprenticeship
program under proposed § 29.10(c).
Proposed § 29.2 would define ‘‘cohort
completion rate,’’ and this definition
would modify the language from the
current definition of ‘‘completion rate,’’
which covers the percentage of an
apprenticeship cohort that receives a
Certificate of Completion within 1 year
of the projected completion date. The
proposed definition of ‘‘cohort
completion rate’’ describes an
apprenticeship cohort as the group of
individual apprentices registered to a
specific program during a given fiscal
year, which is a change from the current
language in the current definition of
‘‘completion rate’’ that describes it as
the group of individual apprentices
registered to a specific program during
a 1-year timeframe. The term ‘‘cohort
completion rate’’ is designed to
distinguish this concept from the
proposed addition of ‘‘annual
completion rate.’’ This change would
provide clarity on the existing practice
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of calculating the cohort completion rate
on a fiscal year basis to enable more
consistent data reporting. This proposed
definition continues to explain, without
change, when an apprentice will not be
included in the calculation.
Proposed § 29.2 would add a
definition for ‘‘collective bargaining
agreement’’ and define it for the first
time in parts 29 or 30 as the written
agreement between an employer (or a
group of employers) and the bargaining
representative(s) of a labor union to
which employees of the employer(s)
belong that addresses such topics as
wages, hours, workplace health and
safety, employee benefits, and other
terms and conditions of employment.
When applicable, collective bargaining
agreements inform the development of
registered apprenticeship program
standards and, typically, govern an
employer’s participation in a group
program. This is a term used often in
this proposed rule and the 2008 final
rule. The Department believes that it is
important for the regulated community
to understand what the Department
means when it uses this term,
particularly for industries not familiar
with registered apprenticeship. This
proposed term was first used by OA in
Bulletin 2010–29.53 The Department
proposes to modify and elaborate upon
that definition to more closely align it
with the common understanding of
collective bargaining agreements. The
Department is seeking any comments or
proposed modifications to the proposed
definition to increase clarification on
this term.
Proposed § 29.2 would modify the
definition of ‘‘competency’’ to describe
the attainment of knowledge, skills, and
abilities specified in a work process
schedule. The Department is removing
the terms ‘‘manual, mechanical or
technical skills and knowledge’’ from
the technical definition to be in greater
alignment with the Department’s
understanding of what the attainment of
competency means based on
competency frameworks, such as the
Occupational Information Network
(O*NET) system, DOL competency
models,54 and competency-based
53 OA, Bulletin 2010–29, ‘‘Amendment to the
Revised National Guidelines for Apprenticeship
Standards Boilerplates—Individual Non-Joint (INJ),
Group Non-Joint (GNJ), Individual Joint (IJ), and
Group Joint (GJ) for Federal, State or Local
Government Agency Programs,’’ Sept. 30, 2010,
https://www.apprenticeship.gov/sites/default/files/
bulletins/Bulletin_2010-29a_Amendment_Revised_
Boilerplates-Federal_Programs.doc.
54 See Competency Model Clearinghouse,
‘‘Overview of the Competency Model
Clearinghouse,’’ https://www.careeronestop.org/
CompetencyModel/GetStarted/overview-ofcmc.aspx (last visited July 20, 2023).
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occupational frameworks,55 that are
used as industry-recognized reference
tools in the development of a work
process schedule, as specified in
proposed § 29.7(b). In addition to
knowledge, skills, and abilities, the
proposed definition includes the
measurable attainment of techniques as
a qualifier for the types of hands-on
practices, such as the physical use of
equipment and tools, associated with
on-the-job, industry-based proficiency.
Proposed § 29.2 would add a
definition for ‘‘corrective action plan’’ to
describe the product that must be
produced when a State Apprenticeship
Plan is not granted full approval by the
Department as described in proposed
§ 29.27 of this part. This plan is
designed to provide SAAs with clear
actions needing to be taken to be eligible
for full approval of the State
Apprenticeship Plan.
Proposed § 29.2 would add a
definition for ‘‘credential rate’’ to
explain how to calculate the percentage
of registered apprenticeship program
completers in a cohort that receive an
interim credential, as defined below.
This new program performance measure
is intended to incentivize the leveraging
of recognized postsecondary credentials,
including industry-recognized
credentials, into a registered
apprenticeship program’s design. While
the Certificate of Completion remains
the premier credential obtained for
participation in a registered
apprenticeship program, this measure
would not include Certificates of
Completion. This measure would
incentivize additional credentials to be
included and tracked and would drive
greater portability and national
recognition for programs and credentials
obtained in programs. Programs are not
required to offer interim credentials as
a requirement for registration; however,
the Department considers a measure
that tracks this attainment as a key
opportunity to enhance data collection
and understanding of programs for both
apprentices in programs and job seekers
considering registered apprenticeship
programs. The Department
acknowledges that not all industries or
sectors may issue interim credentials.
For that reason, the Department is not
intending this proposed measure to be
a sole indicator of program quality. The
metric would help OA to understand
which programs provide credentials
55 See Urban Institute, ‘‘Competency-Based
Occupational Frameworks for Registered
Apprenticeship,’’ https://www.urban.org/policycenters/center-labor-human-services-andpopulation/projects/competency-basedoccupational-frameworks-registeredapprenticeships (last visited July 20, 2023).
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while participating in a program,
ultimately leading to a Certificate of
Completion. Lastly, similar to the cohort
completion rate measure, the
Department is proposing to exclude
those apprentices whose participation
in the program ends during the
program’s probationary period because
apprentices may decide early in a
program that they do not wish to pursue
the chosen occupation, and OA does not
seek to disincentivize programs or add
barriers to programs seeking to recruit
and accept participants. Additionally,
for this measure an apprentice would be
unlikely to attain a credential during
that time. The Department is open to
comments on whether this measure
should include those apprentices who
leave during the probationary period.
Proposed § 29.2 would add the
definition for the new term of ‘‘CTE
apprentice.’’ CTE apprentices are
participants at least 16 years of age,
except where a higher minimum age
standard is otherwise fixed by law, in a
registered CTE apprenticeship program
covered by the requirements of subpart
B and part 30. The Department is
aligning the definition with the
definition of ‘‘apprentice’’ that is
utilized for the purpose of subpart A. As
described in the ‘‘apprentice’’ definition
discussion, the Department is retaining
language that an apprentice must be a
worker at least 16 years of age, to reflect
the general 16-year minimum age
requirement for employment under the
Fair Labor Standards Act. See 29 U.S.C.
203(l). However, the proposed
definition explicitly states that the
minimum age standard may be higher
than 16 years if required by Federal,
State, or local law. The Department is
generally seeking alignment as much as
possible between the terms ‘‘CTE
apprentice’’ and ‘‘apprentice.’’ The
primary purpose of this new term is to
differentiate the use of the term
‘‘apprentice,’’ which is used throughout
subpart A to refer to an individual
participating in a registered
apprenticeship program registered
under subpart A of this part. This would
help ensure clarity for the regulated
community as to which model
apprentices are participating in going
forward. The proposed definition also
provides that a CTE apprentice is not an
apprentice for purposes of 29 CFR
4.6(p), 5.2, 5.5(a)(4), and 570.50(b).
Proposed § 29.2 would add a
definition for the new term ‘‘CTE
apprenticeship agreement.’’ A CTE
apprenticeship agreement would be a
written agreement that complies with
the requirements in proposed § 29.24
and that contains the terms and
conditions for the employment and
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training of the CTE apprentice. The
purpose of this new term is to
differentiate between the apprenticeship
agreement for registered apprenticeship
under subpart A and a CTE
apprenticeship agreement discussed for
the new proposed model of registered
CTE apprenticeship under subpart B. As
discussed below in the section-bysection analysis for subpart B and the
CTE apprenticeship agreement at
proposed § 29.24(e), the proposed
requirements for the makeup of a CTE
apprenticeship agreement largely follow
the proposed requirements for
apprenticeship agreements for registered
apprenticeship at proposed § 29.9, with
a few minor differences reflecting the
differences between registered
apprenticeship and the newly proposed
registered CTE apprenticeship model
(e.g., a shorter maximum duration for
the length of a probationary period
under registered CTE apprenticeship).
Proposed § 29.2 would add a
definition for the new term ‘‘CTE
apprenticeship-related instruction.’’
CTE apprenticeship-related instruction
would be the organized and systematic
form of instruction that provides a CTE
apprentice with knowledge of the
theoretical and technical subjects
related to an approved industry skills
framework. CTE apprenticeship-related
instruction would be required to be
delivered through a State-approved CTE
program. A sponsor could prescribe
additional coursework, including
coursework outside of the program, as
part of the CTE apprenticeship-related
instruction. Instruction could be given
in a classroom, through electronic
media, or through other forms of study
approved by the State CTE Agency and
Registration Agency. The purpose of
this new term is to differentiate it from
the defined term ‘‘related instruction’’
used in subpart A, which does not
directly require a State-approved CTE
program.
Proposed § 29.2 would add a
definition for ‘‘day’’ to provide clarity to
the regulated community that the usage
of the word ‘‘day’’ throughout this
proposed rule and 29 CFR part 30
means calendar day, and not business
day or workday. The Department
considers this an important term to
include to remove ambiguity where this
term is used. When the word ‘‘day’’ is
used throughout this proposed rule this
meaning (i.e., calendar day) is meant.
Proposed § 29.2 would retain the
existing definition of ‘‘Department’’
from the existing registered
apprenticeship regulations. This term
would still refer to DOL and is used
accordingly throughout this NPRM.
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Proposed § 29.2 would add the
existing definition of ‘‘direct threat’’ in
29 CFR part 30.
Proposed § 29.2 would add the
existing definition of ‘‘disability’’ in 29
CFR part 30.
Proposed § 29.2 would add the
existing definition of ‘‘EEO’’ in 29 CFR
part 30.
Proposed § 29.2 would modify the
definition of ‘‘electronic media’’ to
remove the examples from the
regulatory text because any examples
too quickly become outdated due to the
rapid pace of technological
development. Updated and
contemporary examples of electronic
media as of the date of this proposal
include but are not limited to end-users
utilizing a computer or mobile device
to: access and interact with an
interactive map or database on an
accessible web-based platform;
download, edit, and transmit digital
files of PDFs, images, or projectmanagement tools; participate by using
a chat function or providing verbal or
non-verbal visual cues in a meeting
through a video conferencing platform;
and access digital written documents
through an enterprise-level documentsharing application.
Proposed § 29.2 would revise the
existing definition of ‘‘employer’’ to
specify that, in relation to apprentices,
the employer is the entity that employs
an apprentice during the on-the-job
training component of the
apprenticeship program and provides
the apprentice training under an
approved set of standards of
apprenticeship and apprenticeship
agreement. This proposed definition
also includes a clarification that it
applies to the employment of
apprentices for subparts A, B, and C of
this part. This is meant to address the
employment of apprentices for both
registered apprenticeship programs
under subpart A and the employment of
CTE apprentices under subpart B. For
the purposes of subpart C, it would
apply to the requirement of reporting
from sponsors on employers in the
system described in that subpart. The
Department uses the term ‘‘employer’’
as a general term in the proposed rule
as well as a term specific to the
employer of apprentices; therefore, the
Department proposes clarifying these
two uses of the word in the definition.
The Department has determined that the
existing definition of ‘‘employer,’’ when
used in reference to employers of
apprentices, does not sufficiently
describe the employer/apprentice
relationship with regard to the provision
of the on-the-job training component of
the registered apprenticeship program
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and is required to be in accordance with
the program’s standards. This proposed
definition is meant to ensure that all
entities employing an apprentice during
the apprentice’s time in the registered
apprenticeship program understand
their role as employers as articulated in
the standards of apprenticeship
governing the program. The Department
thinks that this revision would provide
clarity for the regulated community and
would assure apprentices that any
entities participating as employers in
their registered apprenticeship program
would understand their role in the
apprenticeship program and abide by
the on-the-job training requirements and
program standards set forth in their
apprenticeship agreement.
Proposed § 29.2 would add the
existing definition of ‘‘ethnicity’’ in 29
CFR part 30.
Proposed § 29.2 would add a
definition for ‘‘exit’’ for the purpose of
calculating certain performance
measures such as ‘‘annual completion
rate,’’ ‘‘cohort completion rate,’’ or
‘‘credential rate’’ described in proposed
§ 29.25. Under the proposed definition,
an exit is when an apprentice has ended
their participation in a registered
apprenticeship program. This would
include apprentices who have
completed a registered apprenticeship
program or who have canceled or been
canceled from a registered
apprenticeship program. The
Department proposes including these
groups together to ensure it can
accurately measure outcomes of all
apprentices in a program after their
probationary period.
Proposed § 29.2 would revise the
definition of ‘‘Federal purposes’’ by
adding ‘‘registered’’ before the term
‘‘apprenticeship’’ to align with the
changes throughout this proposed rule.
This proposed change would clarify that
the use of apprenticeship means
‘‘registered apprenticeship’’ unless
otherwise stated in the proposed rule.
The Department notes that the use of the
term ‘‘Federal purposes’’ throughout
this proposed rule is used to
characterize apprenticeship registration
in the National Apprenticeship System
as overseen by OA. Additionally,
registration for Federal purposes may
convey additional benefits or
obligations that arise under Federal laws
such as the Davis-Bacon and related
Acts, the IRA, and WIOA, among others.
This term is meant to capture the
authority the Department conveys when
registering apprenticeship programs or
recognizing SAAs to perform this
function.
Proposed § 29.2 would add a
definition for the term ‘‘fiscal year.’’
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Fiscal years are the accounting period of
the Federal Government, and while
these proposed regulations would not
directly impact financial reporting, the
Department is proposing the inclusion
of this term to be used and commonly
understood as a 1-year period covering
October 1 of a given calendar year
through September 30 of the following
calendar year. The corresponding name
of the fiscal year is always the calendar
year in which the covered period ends.
For example, the time period covering
October 1, 2022, to September 30, 2023,
is fiscal year 2023. The Department is
proposing the term be used to set
parameters around the ‘‘annual
completion rate’’ and ‘‘cohort
completion rate’’ measures defined in
this section.
Proposed § 29.2 would add the
existing definition of ‘‘genetic
information’’ in 29 CFR part 30.
Proposed § 29.2 would add a
definition for the term ‘‘group program.’’
This term, which has been widely used
on an informal basis over the years,
refers to a program that is sponsored
and registered by an organization that
develops a set of registered
apprenticeship program standards that
are adopted on a formal, contractual
basis by one or more participating
employers (typically pursuant to a
collective bargaining agreement or a
program standards adoption agreement)
in accordance with the program
standards developed by the sponsor of
the group program.
Proposed § 29.2 would add a
definition for the new term ‘‘industry
skills framework.’’ The purpose of this
new term is to establish the concept of
an industry skills framework for
utilization in the development of an onthe-job training outline, which would be
a distinct component of the standards of
a registered CTE apprenticeship
program under subpart B.
Proposed § 29.2 would add the
definition of ‘‘institution of higher
education’’ from an existing definition
in the Higher Education Act of 1965.56
Proposed § 29.24 in subpart B identifies
institutions of higher education as
eligible program sponsors of registered
CTE apprenticeships. To provide
consistency and clarity for the regulated
community, the Department is aligning
the definition of institution of higher
education with the definition used in
the Higher Education Act of 1965.
Proposed § 29.2 would modify the
definition of ‘‘interim credential’’ to
specify that an interim credential is a
recognized postsecondary credential
(see proposed definition in § 29.2) and
56 20
U.S.C. 1001 et seq.
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to acknowledge that it is documentation
of the significance of an apprentice
attaining competency milestones within
an occupation suitable for registered
apprenticeship training. An interim
credential is usually earned as a part of
a career pathway, sequence, or
progression towards the attainment of
more advanced competencies and
credentials in that occupation.
This proposed change would bring
the definition into alignment with
ETA’s definition of recognized
postsecondary credentials by aligning it
with acceptable documentation for
measuring credential attainment under
WIOA.57 While interim credentials may
be used as documented milestones in
the progress toward completion, interim
credentials under the proposed
definition would be standalone
recognized postsecondary credentials,
and much like the concept of nondegree credentials, could be bundled or
stacked and portable across industries
and occupations.58 Existing § 29.5(b)(16)
provides for interim credentials as
credentials issued by the Registration
Agency, upon request of the appropriate
sponsor, as certification of competency.
The Department is changing this
definition to align with WIOA and focus
on the importance of attaining industryrecognized credentials in a program,
which the Department considers to be
valuable. In this proposed rule, interim
credentials could be provided to
apprentices by a sponsor, in
coordination with a related instruction
provider, employer, or industry
intermediary, to recognize and
document completion of competency
attainment, or another form of
measurable skill gain, that would be
part of a work process schedule in an
approved occupation under proposed
§ 29.8(a)(8).
Proposed § 29.2 would add a new
proposed definition for ‘‘intermediary’’
to recognize these important
stakeholders within the National
Apprenticeship System and describe
their role within the system. Given
intermediaries’ current prevalence in
apprenticeship and role described in
these proposed regulations, the
Department wanted to codify the
definition to ensure a common
understanding of the term. The
Department proposes to define
‘‘intermediary’’ as an entity that assists
in the provision or coordination of a
registered apprenticeship program or
that otherwise provides support to a
registered apprenticeship program.
Consistent with current practice within
the National Apprenticeship System,
such support could include assistance
with the important industry-driven
aspects of a registered apprenticeship
program, including industry vetting of
training and related instruction
components necessary for proficiency in
an occupation; the establishment of
networks and partnerships to support
registered apprenticeship program
development and functionality; and
other types of support arising from the
intermediary’s familiarity with and
expertise within an industry. In adding
this proposed definition to the
registered apprenticeship regulations,
the Department also seeks to clarify that
intermediaries’ appropriate role within
the National Apprenticeship System
would not include any of the
responsibilities reserved for Registration
Agencies (i.e., SAAs and OA), such as
the responsibility for making final
determinations on an occupation’s
suitability for registered apprenticeship
training or final approval of a program’s
standards. The Department has invested
in industry intermediaries 59 to support
the expansion of registered
apprenticeship programs into highgrowth industries to date and to
improve equity in these programs, and
their role has shown promise in this
regard.60 Such entities to date have
included labor organizations, trade
organizations, industry experts, and
other organizations with experience in
registered apprenticeship. The
Department is committed to providing a
definition for these important
stakeholders in the National
Apprenticeship System and welcomes
comments on this definition to
accurately define their role in the
system.
Proposed § 29.2 would revise the
definition of ‘‘journeyworker’’ to
simplify the definition and clarify that
57 ETA, Training and Employment Guidance
Letter (TEGL) No. 13–16, ‘‘Guidance on Registered
Apprenticeship Provisions and Opportunities in the
Workforce Innovation and Opportunity Act
(WIOA),’’ Jan 12, 2017, https://dol.gov/agencies/
eta/advisories/training-and-employment-guidanceletter-no-13-16.
58 Rutgers Education and Employment Research
Center, ‘‘Non-Degree Credential Quality: A
Conceptual Framework to Guide Measurement,’’
July 2019, https://smlr.rutgers.edu/sites/default/
files/Documents/Centers/EERC/rutgerseerc_
ndcquality_framework_full_paper_final.pdf.
59 See OA, ‘‘Industry Intermediaries to Expand
Registered Apprenticeship Programs,’’ https://
www.apprenticeship.gov/investments-tax-creditsand-tuition-support/industry-intermediariesexpand-registered (last visited July 20, 2023).
60 See OA, ‘‘National Industry and Equity
Apprenticeship Intermediaries: Advancing
Registered Apprenticeship for Businesses and
Workers in the U.S.,’’ https://
www.apprenticeship.gov/sites/default/files/
Industry-and-Equity-IntermediaryAccomplishment-Fact-Sheet.pdf (last visited July
20, 2023).
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such workers should be experienced in
their industry or occupation and
proficient in the skills and
competencies necessary to be successful
in an industry or occupation.
Accordingly, the Department proposes
to add ‘‘experienced’’ before ‘‘worker’’
in the existing definition and proposes
to replace existing language stating that
journeyworkers must have ‘‘attained a
level of skill, abilities and competencies
recognized within an industry as having
mastered the skills and competencies
required for the occupation’’ with
language clarifying that journeyworkers
must be ‘‘proficient’’ in such skills and
competencies. The Department
recognizes that the level of experience
to gain proficiency would differ among
industries and occupations. The
Department has determined that the use
of the term ‘‘proficient’’ is appropriate
and uses it throughout the registered
apprenticeship regulations because it is
a clear and understandable term
capturing the extent of an individual’s
mastery or expertise with respect to
critical job skills and competencies
necessary for such individuals to
transfer their mastery and expertise to
apprentices training in a registered
apprenticeship program. The
Department also acknowledges this term
may be used interchangeably in
industries with the following terms:
mentor, experienced worker, technician,
specialist, supervisor, or skilled worker,
among other similar terms. The
Department is also proposing to add
language that a journeyworker may be
proficient in an industry or occupation.
The Department recognizes that
industry expertise may be sufficient to
obtain the proficiency necessary for
someone to properly oversee and train
an apprentice. However, the Department
is encouraging commenters to identify if
industry proficiency is sufficient for a
journeyworker or if occupational
proficiency for a journeyworker must be
present.
The concept of ‘‘proficiency,’’ as
defined in proposed at § 29.2, is central
to registered apprenticeship and
apprentices’ success in the careers they
are pursuing by enrolling in a registered
apprenticeship program. For a
journeyworker to effectively provide the
on-site instruction, the Department
considers it important that the
journeyworker has proficiency in the
industry or occupation to effectively
train the apprentice on-the-job. Consider
an electrician or other trades worker
who has been called to a residence to
complete a job. If the worker is
proficient in the job skills and
competencies required for their
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profession, they will be able to complete
the task to the satisfaction of the
customer and their employer and within
a period that allows their employer to
make a profit, or otherwise gain a
meaningful economic benefit, for the
services rendered. Often within the
trades, time to complete a task is set by
the market, and tradespeople must be
able to complete the task within that
period to remain competitive.
Employers may also need workers to
complete multiple tasks or orders
within a given timeframe, and workers’
proficiency in completing each task or
order directly correlates with the
employer’s bottom line in employing
the worker and advertising their
available services. Someone who does
not possess the level of proficiency to
accomplish these tasks safely and
efficiently is not someone whom the
Department thinks could or should be
training and supervising the work of an
apprentice. Accordingly, the
Department proposes to include the
term ‘‘proficiency’’ in the definition of
‘‘journeyworker.’’
Proposed § 29.2 would add the
definition of ‘‘local educational agency
(LEA)’’ from an existing definition in
the Elementary and Secondary
Education Act of 1965.61 Proposed
§ 29.24 in subpart B identifies LEAs as
eligible program sponsors of registered
CTE apprenticeships. To provide
consistency and clarity for the regulated
community, the Department is aligning
the definition of LEA with the definition
used in the Elementary and Secondary
Education Act of 1965.
Proposed § 29.2 would add the
definition of ‘‘local registration’’ and
define it for the first time. The purpose
of adding this definition is to formally
define a term and concept that is
currently used to describe the
registration of an apprenticeship
program for Federal purposes by a
Registration Agency within a particular
State. In accordance with proposed
§ 29.7(a), occupations determined
suitable for registered apprenticeship
would be eligible for local registration
for Federal purposes by a Registration
Agency, consistent with the approved
work process schedule and related
instruction outline. This is designed to
indicate the difference between
programs registered locally and
programs registered nationally. Both
methods of registration convey the
benefits of registered apprenticeship to
a program for Federal purposes;
however, national programs are defined
separately with separate criteria as
discussed in proposed § 29.14.
61 20
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Additionally, local registration pertains
to the registered apprenticeship program
registration process of a local affiliate
that belongs to a national organization
that has established templates and
program guidelines through National
Guidelines for Apprenticeship
Standards under proposed § 29.15(c).
Proposed § 29.2 would add the
existing definition of ‘‘major life
activities’’ in 29 CFR part 30.
Proposed § 29.2 would add a
definition of ‘‘National Apprenticeship
System’’ to describe the full scope of
stakeholders involved with maintaining
and supporting registered
apprenticeship in the United States. In
this proposed regulation, the
Department seeks to describe and
regulate a national, comprehensive
system to develop, oversee, and promote
registered apprenticeship across the
country. In addition to the relevant
Registration Agencies within the
system—the Department’s OA and
SAAs recognized by OA—employers,
labor unions, business organizations,
trade and industry groups, educational
institutions, intermediaries, and other
stakeholders play critical roles in the
country’s system of registered
apprenticeship by establishing robust
connections between job seekers,
workers, and employers, and equipping
the system with capable instructors,
trainers, and educators. Throughout this
proposal, including the NPRM’s
preamble and the proposed regulatory
text, the Department makes use of the
term ‘‘National Apprenticeship System’’
where appropriate to describe and refer
to the coordinated efforts of the
Department and stakeholders in the
system of registered apprenticeship. The
Department’s proposed definition of this
term is intended to provide clarity to the
regulated community as to which
entities are included as registered
apprenticeship stakeholders when the
Department makes reference to the
national system.
Proposed § 29.2 would add the
definition of ‘‘National Guidelines for
Apprenticeship Standards.’’ While
National Guidelines for Apprenticeship
Standards currently exist as an option,
commonly being used as a template of
registered apprenticeship program
standards, developed by a labor union,
trade or industry association, or other
organization with national scope, that is
recognized by OA and may be adapted
for local registration, proposed § 29.15 is
new and would establish criteria and a
process for the recognition of National
Guidelines for Apprenticeship
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Standards.62 The Department proposes
to add this definition here in
conjunction with the proposed addition
at § 29.15.
Proposed § 29.2 would add a new
definition for ‘‘National Occupational
Standards for Apprenticeship’’ as part of
the Department’s effort to define the
different products in the system it has
made available, or would make
available, to support the development of
registered apprenticeship programs both
in traditional industries and
occupations as well as new and
emerging industries and occupations
where registered apprenticeship is not
widespread. The Department’s
definition of this term would help
stakeholders understand the product
described at proposed § 29.13 of this
part. OA is committed to updating and
refining these tools, and the proposed
definition for ‘‘National Occupational
Standards for Apprenticeship’’ lays the
groundwork for OA’s future
development and refinement of this
important program onboarding resource.
The related National Guidelines for
Apprenticeship Standards and National
Program Standards for Apprenticeship
would also be nationally applicable but
represent different use profiles within
the system. The proposed definition for
National Guidelines for Apprenticeship
Standards describes these as a template
of registered apprenticeship program
standards that are developed by an
entity with national scope (such as a
labor union or trade association),
recognized by OA, and later adapted for
local registration of a registered
apprenticeship program. In contrast, the
proposed definition for National
Program Standards for Apprenticeship
states that these are developed by a
program sponsor for registration on a
nationwide, reciprocal basis by OA.
Eventually, the Department envisions
that any programs basing their standards
on National Guidelines for
Apprenticeship Standards or National
Program Standards for Apprenticeship
would adopt National Occupational
Standards for Apprenticeship that are
tailored to the specific occupation
covered by a registered apprenticeship
program. The Department recognizes
that the development of National
Occupational Standards for
Apprenticeship requires a robust
process to ensure that they are relevant
to industry stakeholders and would only
require program sponsors to adopt
62 ETA,
OA Circular No. 2022–02, ‘‘Guidance—
National Guidelines for Apprenticeship Standards,’’
Feb. 16, 2022, https://www.apprenticeship.gov/
sites/default/files/bulletins/Circular-2022-02.pdf.
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National Occupational Standards as
they become available.
Proposed § 29.2 would add the
definition of ‘‘National Program
Standards for Apprenticeship’’ and
define it for the first time. While
National Program Standards for
Apprenticeship have been in common
practice as a set of registered standards
of apprenticeship developed and
adopted by a program sponsor that are
registered on a nationwide, reciprocal
basis by OA,63 proposed § 29.14 is new
and would establish criteria and a
process for the registration of National
Program Standards for Apprenticeship.
The Department proposes to add this
definition here in conjunction with the
proposed addition at § 29.14.
Proposed § 29.2 would add the
definition of ‘‘non-compete clause,’’
which means a term in the
apprenticeship agreement or other
agreement between an employer or
sponsor and an apprentice that prohibits
the apprentice from seeking or accepting
employment with another employer
during the registered apprenticeship
program or registered CTE
apprenticeship program.
Proposed § 29.2 would largely retain
the existing definition of ‘‘Office of
Apprenticeship’’ from the registered
apprenticeship regulations but would
make minor changes to more accurately
reflect the designation of responsibility
for National Apprenticeship System
oversight within DOL. In the proposed
update to the definition of ‘‘Office of
Apprenticeship (OA),’’ the Department
proposes to add a reference to the
Secretary’s designation of National
Apprenticeship System oversight to
ETA and OA. The Department also
proposes to capitalize ‘‘Apprenticeship’’
in this updated definition to align with
OA’s official title.
Proposed § 29.2 would add the
definition of ‘‘on-the-job training’’ and
define the term for the first time. This
term is referred to as ‘‘on-the-job
learning’’ in the current rule. The
Department is both proposing a
definition for this concept in registered
apprenticeship and updating it to
‘‘training’’ to align with other workforce
development programs, such as those
authorized under WIOA. Registered
apprenticeship has two essential yet
distinct components: related instruction
and on-the-job training. While learning
is involved in all aspects of
apprenticeship, it is important to define
on-the-job training as distinct, to
63 ETA, OA Circular No. 2022–01, ‘‘Updated
Guidance—Minimum National Program Standards
for Registered Apprenticeship Programs,’’ Feb. 16,
2022, https://www.apprenticeship.gov/sites/default/
files/bulletins/Circular-2022-01.pdf.
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explain what programs are required to
provide and to mitigate compliance
issues about the component of an
apprenticeship that requires an
apprentice to be paid wages while they
are employed and learn an occupation
suitable for registered apprenticeship.
On-the-job training is an organized and
systematic form of training conducted at
a workplace or jobsite that is designed
to provide the apprentice with the
hands-on knowledge, skills, techniques,
and competencies that are necessary to
achieve proficiency in an occupation
determined suitable for registered
apprenticeship training. It is a
requirement for apprentices in on-thejob training to be paid a wage based on
the wage progression schedule in
approved program standards or a
collective bargaining agreement when
apprentices are on the worksite and
contributing to an employer’s
productivity. In contrast, related
instruction is an organized and
systematic form of instruction designed
to provide the apprentice with
knowledge of the theoretical and
technical subjects related to the
apprentice’s occupation. Such
instruction, unlike on-the-job training,
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 with a requirement
of no less than an average of 144 hours
per every 2,000 hours of on-the-job
training under proposed § 29.7(b)(4). In
contrast, the registered CTE
apprenticeship model proposed under
subpart B will require a minimum of
540 hours of CTE apprenticeship-related
instruction, which encompasses not less
than 12 postsecondary credit hours as
part of the program.
Proposed § 29.2 would add a
definition for the term ‘‘participating
employer.’’ A participating employer
would be an employer that does not
assume the role of a program sponsor
under the proposed rule, but that has
agreed—pursuant to either a collective
bargaining agreement establishing a
joint committee that sponsors a
registered apprenticeship program, or a
program standards adoption agreement
(defined below) with a sponsor that is
reached outside of a collective
bargaining process—to adopt the
sponsor’s standards of apprenticeship
and to serve as the employer of record
for the apprentices who are enrolled in
the sponsor’s program. Accordingly, a
participating employer would pay
wages and provide closely supervised,
on-the-job training to the apprentices.
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As discussed below, this arrangement is
designed to ensure that participating
employers would be held accountable
for meeting the requirements contained
in this part and in 29 CFR part 30.
Proposed § 29.2 would add the
existing definition of ‘‘physical or
mental impairment’’ from 29 CFR part
30.
Proposed § 29.2 would add a
definition of ‘‘pre-apprenticeship
program’’ to the text of 29 CFR part 29.
While the EEO in Apprenticeship
regulations at 29 CFR 30.2 currently
contains a definition of preapprenticeship, there is no
corresponding definition of that term in
the current version of the labor
standards of apprenticeship regulation
at 29 CFR 29.2. This proposed definition
would apply to the usages of the term
in both parts 29 and 30 to ensure
consistent use in the regulations
governing the National Apprenticeship
System. The proposed definition retains
many aspects of the 29 CFR part 30
definition regarding pre-apprenticeship,
but some changes are proposed to more
closely align to the definitions of the
same term that appear in the WIOA
regulations at 20 CFR 681.480 and in the
2023 Quality Apprenticeships
Recommendation (ILO
Recommendation No. 208).64 The
proposed definition includes elements
regarding access to educational and
career counseling, supportive services,
and opportunities to earn industryrecognized credentials as described in
the WIOA definition. The inclusion of
this definition in a revised 29 CFR part
29 is relevant because the proposed rule
(at 29 CFR 29.25) would authorize the
collection of information from registered
apprenticeship program sponsors about
pre-apprenticeship programs, and the
apprentices they recruit from these
programs, with which the sponsor has
established a written partnership. The
Department notes that an individual
participating in a pre-apprenticeship
program would not be considered an
‘‘apprentice’’ covered by these
regulations. However, the role the
Department has in promoting
opportunities for workers and in
promoting labor standards includes
these critical talent pipelines to
registered apprenticeship programs.
Therefore, the Department is defining
the proposed term here and in doing so
recommending criteria that may be
utilized by sponsors to accurately report
64 ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), Conclusion 1(c), June 16, 2023, https://
www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
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the efficacy of such activities under 29
CFR 29.25. Additionally, it is important
for registered apprenticeship programs
to partner and form agreements and
partnerships with pre-apprenticeship
programs to establish a reliable pipeline
of apprentices into the program and
ensure they are diversifying their
recruitment methods to meet EEO
requirements in 29 CFR part 30. Preapprenticeship models should have an
equitable, intentional, and achievable
strategy for advancing the program’s
recruitment, hiring, and retention of
individuals from underserved
communities, and use the nondiscrimination and EEO requirements
contained in 29 CFR part 30 as the basis
for identifying and eliminating barriers
to opportunity in the program. As the
Department has invested in preapprenticeship program models over the
years, it has identified the elements laid
out in this definition to be critical to
laying a foundation in the broader
workforce development community of
what elements must be in a preapprenticeship program. The
Department’s experience further
suggests that it is necessary to collect
more robust information on preapprenticeship programs’ effectiveness
in placing participants as apprentices,
as well as to better ascertain a registered
apprenticeship program’s efforts to meet
their outreach and recruitment goals
required in 29 CFR part 30. This
definition would be necessary for
stakeholders to understand how the
term is used throughout the proposed
regulation, and it also would better align
registered apprenticeship and WIOA,
with the Department’s long-term goal
being greater integration between preapprenticeship programs and registered
apprenticeship programs to benefit
career seekers, prospective apprentices,
and employers.
Finally, the Department views preapprenticeship, registered CTE
apprenticeship, and registered
apprenticeship collectively as a broader
apprenticeship pathways system with
additional entry points for career
seekers, particularly those from
underserved communities, leading to
registered apprenticeship. Preapprenticeship activities, including
other forms of work-based learning such
as job shadowing, project-based
learning, and internships, may be
utilized for CTE students, particularly
those younger than 16, to better prepare
them for success in registered CTE
apprenticeship. Ultimately, in certain
situations, an individual could progress
from pre-apprenticeship to registered
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CTE apprenticeship, and then to
registered apprenticeship.
Proposed § 29.2 would add the
definition of ‘‘proficiency’’ and define it
for the first time. Proficiency would
mean, for purposes of subpart A of this
part, the demonstrated, measurable
attainment by an apprentice of each of
the relevant job skills and competencies
that are necessary to perform
successfully at the journeyworker level
in a given occupation. The purpose for
adding the definition, among other
things, is to clarify that the attainment
of each of the various competencies
associated with an occupation
culminates in an apprentice’s
acquisition of overall occupational
proficiency in that field.
Proposed § 29.2 would add a new
definition for ‘‘program review’’ to
replace the definition of ‘‘quality
assurance assessment,’’ which the
Department proposes removing, and
bring the registered apprenticeship
regulations in line with current
administrative practices related to OA’s
oversight of the National
Apprenticeship System. OA conducts
program reviews to assess whether
programs are in full compliance with
the registered apprenticeship
regulations in parts 29 and 30. The
Department has determined that it
would benefit the regulated community
to include a definition for this important
administrative process in the proposed
update to the registered apprenticeship
regulations so that stakeholders, in
particular program sponsors, fully
understand what is meant by a program
review as that term is used below and
as used in any communications or
interactions with the Department or
SAA. As discussed below, a program
review could include technical
assistance, which could be provided to
a program sponsor as needed to assist
the program with achieving full
compliance with the regulations.
Proposed § 29.2 would add a
definition for the term ‘‘program
standards adoption agreement.’’ This
term would apply to written agreements
reached outside of a collective
bargaining process between a sponsor
that has developed a written set of
registered standards of apprenticeship
and work processes, and a Participating
Employer that has agreed to utilize and
adhere to the program sponsor’s
standards of apprenticeship and work
processes for the training of apprentices
in its employ.
Proposed § 29.2 would largely retain
the definition of ‘‘provisional
registration’’ from the existing registered
apprenticeship regulations with a few
minor proposed adjustments. The
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proposed definition for ‘‘provisional
registration’’ would replace ‘‘rescinded’’
with ‘‘deregistered’’ to align with
current administrative practices and the
proposed language and process for
program registration at proposed § 29.10
because, as discussed below, the
Department has determined that
‘‘deregistered’’ is a more suitable term to
describe the scenario wherein a program
that has been granted provisional
approval is determined to be out of
compliance with the registered
apprenticeship regulations following a
review by the Registration Agency. The
Department is proposing to remove the
term ‘‘1-year’’ to align with the
procedural changes described in
proposed § 29.10, which provides for a
provisional period covering the first full
training cycle of a registered
apprenticeship program. In addition to
the change described above, the
Department proposes to change the
cross-reference at the end of the existing
definition of ‘‘provisional registration’’
to refer to ‘‘this part’’ (i.e., the registered
apprenticeship regulations at 29 CFR
part 29). The Department has
determined that it would be beneficial
to clarify to the regulated community
that provisional registration involves
reviews for compliance with the entirety
of parts 29 and 30, and not just
compliance with the provisions cited in
the existing definition (existing 29 CFR
29.3(g) and (h)).
Proposed § 29.2 would add the
existing definition of ‘‘qualified
applicant or apprentice’’ in 29 CFR part
30.
Proposed § 29.2 would add the
existing definition of ‘‘race’’ in 29 CFR
part 30. This definition would have the
same meaning as under the Office of
Management and Budget’s (OMB)
Standards for the Classification of
Federal Data on Race and Ethnicity, or
any successor standards.
Proposed § 29.2 would add the
existing definition of ‘‘reasonable
accommodation’’ in 29 CFR part 30.
Proposed § 29.2 would add the
definition of ‘‘reciprocity of
registration’’ and define it for the first
time. While the concept of reciprocity is
referenced in existing regulation at
§ 29.13(b)(7) as a requirement imposed
on SAAs, the purpose of adding the
definition is to define the concept of
reciprocity more clearly as the provision
of local registration status by an SAA in
that State for a registered apprenticeship
program registered by another
Registration Agency.
Proposed § 29.2 would add the
definition of ‘‘recognized postsecondary
credential’’ and define it for the first
time. The purpose of adding the
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definition of a recognized postsecondary
credential is to clarify what this type of
credential is in the National
Apprenticeship System and to align
with WIOA’s definition of this term so
that there is a shared definition across
programs to assist program sponsors and
workforce professionals operating and
administering WIOA programs.
Recognized postsecondary credentials
awarded in a registered apprenticeship
program should confer recognition of an
apprentice’s attainment of measurable
technical or industry and occupational
skills necessary to advance within an
industry and occupation. These
technical or industry and occupational
skills generally are based on standards
developed or endorsed by employers or
industry associations. Apprentices may
attain more than one recognized
postsecondary credential during a
program or upon completion. Relatedly,
the Department has proposed modifying
its definition for interim credential,
discussed above, to be those recognized
postsecondary credentials obtained
during an apprentice’s participation in a
registered apprenticeship program. For
the purposes of registered
apprenticeship, the proposed definition
of a recognized postsecondary
credential includes: an industryrecognized certificate or certification, a
Certificate of Completion, which is a
requirement for all registered
apprenticeship program sponsors, in
coordination with a Registration
Agency, to administer and provide to an
apprentice upon completion of an
approved program; a Federal, State, or
local license in an occupation suitable
for registered apprenticeship where
such occupational licensure is required;
or an associate or baccalaureate degree.
Defining the term for Federal purposes
would bring it into better alignment
with usage and application as a
programmatic outcome under WIOA
and Perkins, and it could be used for
assessing apprentices’ rate of credential
attainment for program and system
reporting purposes under proposed
§ 29.25.65 The Department is
encouraging commenters to describe
any increased opportunities for
alignment with WIOA’s credential
measure, any comments where there
may be challenges to alignment with
this measure, and if the Department
should continue its role in providing
65 ETA, Training and Employment Notice (TEN)
No. 25–19, ‘‘Understanding Postsecondary
Credentials in the Public Workforce System,’’ June
8, 2020, https://www.dol.gov/agencies/eta/
advisories/training-and-employment-notice-no-2519.
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interim credentials strictly for
competency attainment.
Proposed § 29.2 would delete the
definition of ‘‘apprenticeship program’’
that appears in the current version of
the labor standards of apprenticeship
regulation at 29 CFR 29.2 and replace it
with a more comprehensive definition
of ‘‘registered apprenticeship program.’’
The new definition would stipulate that
such apprenticeship programs must be
of minimum duration and consist of
both a paid on-the-job training
component and a related instruction
component and be registered by a
Registration Agency.
Proposed § 29.2 would add a
definition for the new term ‘‘registered
CTE apprenticeship program.’’ A
registered CTE apprenticeship program
would be a program registered under
subpart B and refers to a model of
registered apprenticeship that is a
structured integrated education and
career training program embedded
within a CTE program and includes a
paid, on-the-job training component.
This program would be distinct from
registered apprenticeship programs in
subpart A. Such a program would admit
students, as CTE apprentices, who have
signed a CTE apprenticeship agreement
approved by a Registration Agency.
Registered CTE apprenticeship
programs would be designed to provide
curriculum and on-the-job training for
industrywide skills and competencies
that may be applicable for any number
of occupations. However, it should be
noted that registered apprenticeship
under subpart A would have a
requirement of no less than an average
of 144 hours per every 2,000 hours of
on-the-job training under proposed
§ 29.7(b)(4). In contrast, the registered
CTE apprenticeship model proposed
under subpart B would require a
minimum of 540 hours of CTE
apprenticeship-related instruction,
which encompasses not less than 12
postsecondary credit hours. Registered
CTE apprenticeship programs would not
be a substitute for registered
apprenticeship programs under subpart
A. Program sponsors of registered CTE
apprenticeship would be encouraged to
develop standards for use in a registered
apprenticeship program under subpart
A and meet the requirement of that part,
especially where there are programmatic
opportunities and a workforce need for
alignment.
Proposed § 29.2 would revise the
existing definition for ‘‘Registration
Agency’’ to align with proposed changes
to the part 29 regulations. The proposed
definition for ‘‘Registration Agency’’
largely retains the existing definition
but capitalizes ‘‘Agency’’ and adds
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language clarifying that a Registration
Agency must be a governmental entity
to clarify that these are official
government entities with a defined role
and mission. The proposed definition
also replaces the existing definition’s
references to ‘‘reviews for compliance’’
and ‘‘quality assurance assessments’’
with a general reference to ‘‘program
reviews’’ that encompass assessments
for compliance with both 29 CFR parts
29 and 30. In this proposed regulation,
the Department proposes to refer to such
compliance checks as ‘‘program
reviews,’’ includes a proposed new
definition for the term ‘‘program
review,’’ and proposes to include a new
section at § 29.19 that describes program
reviews (see proposed § 29.19).
Proposed § 29.2 would retain the
existing definition of ‘‘related
instruction.’’ As discussed above,
related instruction would be distinct
from ‘‘on-the-job training’’ in a
registered apprenticeship program.
Proposed § 29.2 would make minor
changes to the existing definition for
‘‘Secretary’’ intended to clarify DOL’s
key role in overseeing the National
Apprenticeship System. The proposed
definition for ‘‘Secretary’’ would clarify
that the referenced individual is the
U.S. Secretary of Labor and would
further clarify that ‘‘Secretary’’ may also
refer to any official of DOL designated
by the Secretary to clarify the scope
individuals to whom the Secretary’s
authority may be delegated.
Proposed § 29.2 would add the
existing definition for ‘‘selection
procedure’’ from 29 CFR part 30.
Proposed § 29.2 would modify the
definition of ‘‘sponsor’’ by expanding
the illustrative list of entities that could
be a sponsor to include intermediaries,
which aligns with current practice. The
proposed definition adds ‘‘employer’’ to
more accurately describe the parties that
can be a sponsor. In addition, the
proposed definition retains association,
committee, or organization that operates
a registered apprenticeship program in
whose name that program is registered.
The proposed definition specifies that,
in addition to operating a program, a
sponsor also administers a program. The
proposed definition also specifies that a
Registration Agency is the registration
and approval entity.
Proposed § 29.2 would add a new
definition for ‘‘Standards of
Apprenticeship’’ to the list of defined
terms in the part 29 regulations.
‘‘Standards of Apprenticeship’’ is an
important term of art in registered
apprenticeship that refers to the
organized, written plan containing the
terms and conditions of employment,
training, and supervision within a given
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registered apprenticeship program, the
requirements of which are discussed in
proposed § 29.8 below. The
Department’s proposed definition for
‘‘Standards of Apprenticeship’’ clarifies
that these apply to registered
apprenticeship programs.
Proposed § 29.2 would modify the
definition of ‘‘State’’ to align with
WIOA. The definition of ‘‘State’’ under
section (sec.) 3 of WIOA includes the
Commonwealth of Puerto Rico
explicitly. The Department’s proposed
definition also utilizes WIOA’s
definition of ‘‘outlying area’’ rather than
the existing term ‘‘Territory or
possession of the United States.’’
Outlying area under WIOA includes
American Samoa, Guam,
Commonwealth of the Northern Mariana
Islands, the Republic of Palau, and the
United States Virgin Islands. This
proposed alignment is another area
where the Department is attempting
further integration between
apprenticeship and the broader
workforce system by recognizing that
the outlying areas, which receive
funding under title I of WIOA, should
be able to make greater use of the
National Apprenticeship System to
develop a more comprehensive
workforce strategy.
Proposed § 29.2 would retain the
definition for ‘‘State Apprenticeship
Agency’’ from the existing regulations
with minor adjustments. The proposed
definition provides more clarity that
only a State government agency or
department may seek recognition as an
SAA.
Proposed § 29.2 would modify the
definition of ‘‘State Apprenticeship
Council.’’ The previous definition was
updated in the 2008 final rule and
limited an earlier definition that granted
authority to promulgate apprenticeship
laws in the event a State Apprenticeship
Council was established as a regulatory
body. The purpose of the proposed
changes to § 29.2 in this proposed rule
is to reflect the proposed changes in
§ 29.26, which would require that State
Apprenticeship Councils act solely in
an advisory capacity and prohibit an
SAA from delegating regulatory or
oversight functions to the State
Apprenticeship Council.
Proposed § 29.2 would add a
definition for ‘‘State Apprenticeship
Plan.’’ This definition is being added
due to its inclusion in proposed § 29.27
as a mandatory submission from a State
government agency seeking to obtain or
maintain recognition as an SAA.
Establishing a definition of ‘‘State
Apprenticeship Plan’’ is necessary to
provide clear differentiation from other
required plans in this part and 29 CFR
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part 30. This definition would also
clarify that a plan covers a State
government agency’s recognition for 4
years as an SAA.
Proposed § 29.2 would add a
definition for the term of ‘‘State CTE
Agency.’’ A State CTE Agency would be
a State board designated or created
consistent with State law as the sole
State government agency responsible for
the administration of CTE in the State
or for the supervision of the
administration of CTE in the State, or
another State government agency
delegated the authority by such State
board to administer Perkins. Under
subpart B, the State CTE Agency would
have the responsibility to coordinate
with a Registration Agency for the
coordination of registered CTE
apprenticeship programs if a State
chooses to register such programs.
Proposed § 29.2 would add the
definition of ‘‘supportive services’’ and
define it for the first time. The purpose
of adding the proposed definition is to
recognize the types of services provided
in current practice by National
Apprenticeship System stakeholders
and partners that are necessary to enable
an individual to participate and succeed
in registered apprenticeship programs,
as well as registered CTE apprenticeship
and pre-apprenticeship programs. The
proposed definition is aligned with the
existing definition found under sec. 3 of
WIOA. Under WIOA, the term
‘‘supportive services’’ means services
such as transportation, childcare,
dependent care, housing, and needsrelated payments that are necessary to
enable an individual to participate in
activities authorized under the Act. The
holistic provision of supportive services
through cross-system coordination has
been found to be beneficial as a
programmatic intervention that enables
program participants who may face
barriers, such as affordable childcare,
housing assistance, and reliable
transportation, to participate in and
complete a pre-apprenticeship or
registered apprenticeship program.
Supportive services may include, but
are not limited to: assistance with
transportation; assistance with childcare
and dependent care; linkages to
community services; assistance with
housing; assistance with educational
testing; referrals or coverage for physical
or mental health care services;
assistance with uniforms or other
appropriate work attire and workrelated tools, including such items as
eyeglasses and protective eye gear;
assistance with books, fees, school
supplies, and other necessary items for
students enrolled in college or career
readiness, secondary, and
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postsecondary education classes;
payments and fees for employment and
training-related applications, tests, and
certifications; needs-related payments;
and legal aid services.66 Several types of
National Apprenticeship System
stakeholders and partners, including
intermediaries and local workforce
boards, provide supportive services.
Local workforce areas may provide
supportive services, in coordination
with career or training services or both,
consistent with WIOA sec. 134(d)(2) and
State and local policies, to participants
in a registered apprenticeship
program.67
Proposed § 29.2 would largely retain
the existing definition for ‘‘technical
assistance,’’ with a minor change to the
final clause describing what technical
assistance is meant to accomplish. The
existing part 29 regulations define
‘‘technical assistance’’ as guidance or
assistance to further program
compliance with the part 29 regulations
or guidance provided to an SAA on how
to ‘‘remedy nonconformity’’ with the
regulations. The Department has
proposed to replace that language to
clarify that ‘‘technical assistance’’ refers
to any support provided to help an
entity—a program sponsor or an SAA—
satisfy the requirements of parts 29 and
30. Technical assistance does not only
arise out of a problem, or in response to
a finding of noncompliance with the
registered apprenticeship regulations.
Technical assistance is also a proactive
activity or resource that can help
stakeholders understand and comply
with requirements at the outset of
setting up a program, during the course
of a program when a question arises, or
in response to new developments that
affect a given program’s circumstances.
To assist the regulated community with
understanding and complying with this
proposed regulation, and in accordance
with the Department’s historical
practice, the Department plans to engage
in a proactive, comprehensive technical
assistance campaign that includes
written resources and guides and
increased avenues for the provision of
customer service, including additional
66 For more on the Department’s approach to
supportive services, see 20 CFR 680.900 (‘‘What are
supportive services for adults and dislocated
workers?’’) in the WIOA regulations and ETA, TEN
No. 12–21, ‘‘Practitioners Guide to Supportive
Services,’’ Oct. 15, 2021, https://www.dol.gov/
agencies/eta/advisories/training-and-employmentnotice-no-12-21.
67 ETA, TEGL No. 19–16, ‘‘Guidance on Services
provided through the Adult and Dislocated Worker
Programs under the Workforce Innovation and
Opportunity Act (WIOA) and the Wagner-Peyser
Act Employment Service (ES),’’ Mar. 1, 2017,
https://www.dol.gov/agencies/eta/advisories/
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staffing to address individual issues and
improved forums or portals for
requesting and receiving technical
assistance.
Proposed § 29.2 would retain the
definition for ‘‘transfer’’ from the
existing regulations.
Proposed § 29.2 would add a
definition of ‘‘underserved
communities.’’ One of the key goals of
this proposed rule is to enhance
opportunities to support greater equity
in the National Apprenticeship System.
The Department is adding this term, as
it is used throughout the proposed rule,
to ensure SAAs, program sponsors, and
other stakeholders have an intentional
strategy to recruit from and retain
individuals from these communities.
The Department’s proposed definition is
derived from several sources: the Good
Jobs Principles; the protected bases in
29 CFR part 30; and populations
described in WIOA as potentially
needing more services for full access to
training and employment. The
Department welcomes comments on this
proposed definition, as well as
recommendations for how to embed
strategies for recruiting and retaining
apprentices from these communities
into the National Apprenticeship
System. The Department welcomes
comments on this proposed definition,
as well as recommendations for how to
embed strategies for recruiting and
retaining apprentices from these
communities into the National
Apprenticeship System.
Proposed § 29.2 would add the
existing definition of ‘‘undue hardship’’
from 29 CFR part 30.
Proposed § 29.2 would add a
definition of ‘‘work process schedule.’’
The current version of 29 CFR 29.2 does
not include a definition of the term
‘‘work process schedule,’’ although this
term is referenced at current § 29.5(b)(3),
as well as in other provisions of the
current regulations. This omission
would be rectified in proposed § 29.2 of
the NPRM so that there is clear
understanding of what the regulations
mean when they use the term work
process schedule. The new definition of
the term would clarify that a work
process schedule is a training plan that
establishes a series of measurable
competency benchmarks whose
acquisition by the apprentice should
lead to occupational proficiency by the
conclusion of the apprenticeship term.
Section 29.3—Office of Apprenticeship
This proposed section ‘‘Office of
Apprenticeship’’ is included to describe
the roles and responsibilities of the
DOL’s OA, which have evolved over
time, and is intended to provide clarity
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to the regulated community on the
activities OA performs. OA is the office
established in ETA to be the
administrative and coordinating entity
of the National Apprenticeship System.
The Department is adding this section to
more accurately describe the role and
responsibilities of OA, particularly in
light of the changes that have occurred
in apprenticeship and in the broader
economy that occurred since the
publication of the current 29 CFR part
29 in 2008.
In a rapidly changing apprenticeship
environment, OA continues to have the
responsibility to implement and
administer the NAA, including by
safeguarding the welfare of apprentices
through approving registered
apprenticeship programs and standards
as a Registration Agency and
cooperating with State government
agencies by recognizing SAAs. The
proposed section also recognizes and
describes OA’s role and responsibility to
lead and coordinate the National
Apprenticeship System on national
policy efforts, manage any resources
provided to support apprenticeship,
convene industry to promote the
importance of apprenticeship including
the advantages of adopting standards of
apprenticeship, promote the value of
apprenticeship, advocate EEO for
apprentices and the benefits of
apprenticeship as a DEIA strategy for
sponsors, maintain National
Apprenticeship System data for OA and
SAAs, and provide technical assistance
to National Apprenticeship System
partners, including sponsors and SAAs.
Finally, OA has the role and
responsibility to engage with a variety of
entities and organizations to develop
and facilitate apprenticeship in the
United States and develop partnerships
with stakeholders throughout the
National Apprenticeship System
including sponsors, intermediaries, and
States.
Proposed § 29.3(a) through (d)
describe the administrative duties OA
fulfills to formulate and update
regulations, issue subregulatory
guidance, policies, and procedures in
connection with the implementation of
the NAA (29 U.S.C. 50), and to register
apprenticeship programs and standards
that satisfy the requirements of 29 CFR
parts 29 and 30. Proposed § 29.3(c) also
maintains OA’s existing role for granting
recognition to SAAs that are established
under State laws and regulations, and
that also satisfy the requirements that
are outlined in proposed § 29.26. These
proposed paragraphs also include OA’s
role in promoting the development of
industry-validated standards as part of
the suitability determination process
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described in proposed § 29.7, the
development of National Occupational
Standards for Apprenticeship described
in proposed § 29.10, and industry skills
frameworks described in subpart B of
this part.
Proposed § 29.3(e) would require OA
to maintain National Apprenticeship
System data pertaining to apprentices
and apprenticeship programs that are
registered by either OA or SAAs. The
purpose of this provision is to support
proposed §§ 29.25 and 29.8 as a
modernization effort to facilitate data
collection and reporting. OA’s operation
and management of this data system
would make the system more
transparent and accountable; promote
equitable program outcomes for
apprentices; and build capacity to
disaggregate demographic, geographic,
and industry data to evaluate and assess
program quality.
Proposed § 29.3(f) would establish the
administrative role of OA to promote
DEIA in apprenticeship, including for
those from underserved communities. In
addition, this provision would include
OA’s role in enforcing equal
opportunity for apprentices and
applicants for apprenticeship in
registered apprenticeship programs
consistent with part 30.
Proposed § 29.3(g) would establish the
coordinating role for OA to deliver
technical assistance to registered
apprenticeship program sponsors,
SAAs, companies, Federal agencies, and
other key stakeholders in the
development of apprenticeship program
standards and the operation of
apprenticeship programs. The
Department also anticipates that under
this proposed rule it would provide
significant technical assistance to SAAs
and sponsors on the data reporting
requirements in proposed §§ 29.25 and
29.28, including promoting and training
on the practices for the collection and
utilization of data. An example of how
this coordination role has been
operationalized is through the
Department’s investments in industry
intermediaries that work across both OA
and SAA States to deliver timely
technical assistance. Technical
assistance is a critical OA function that
provides assistance to employers,
education providers, and other
stakeholders in program design and in
compliance-related matters as well.
Proposed § 29.3(h) would also
establish a coordinating role for OA to
engage in discussions with relevant
stakeholders, including multilateral
institutions, businesses, and nongovernmental organizations in order to
facilitate the development and
expansion of apprenticeships in the
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United States. The purpose of this new
provision is to institutionalize
longstanding relationships the
Department has created with
apprenticeship stakeholders across the
globe through mechanisms such as the
development of memoranda of
understanding that promote the
exchange of ideas and best practices for
expanding registered apprenticeship
programs, bolster U.S. efforts to
establish new apprenticeship programs,
increase awareness of opportunities,
and create career pathways for
apprentices. This paragraph would also
establish a coordinating role for OA to
develop partnerships with
apprenticeship stakeholders that could
facilitate and accelerate the expansion
of quality registered apprenticeship
programs across the National
Apprenticeship System.
Proposed § 29.3(i) would provide OA
the flexibility to conduct other activities
that support the National
Apprenticeship System. This is to
account for the wide array of activities
that OA may conduct to further the
goals of the National Apprenticeship
System. Such activities have historically
included overseeing registered
apprenticeship-related appropriations
and investments, an annual National
Apprenticeship Week, recognition
programs such as Apprenticeship
Ambassadors, and many others.
Section 29.4—Relation to Other Laws
and Agreements
Proposed § 29.4 would describe how
the proposed regulation would relate to
other laws and agreements that could
apply to the entities covered by this
proposed rule. To align with a similar
existing provision in part 30, proposed
§ 29.4(a) makes clear that the provisions
set forth in the revised part 29 would
not invalidate or supersede any other
Federal, State, or local law establishing
more protective or stringent minimum
labor standards of apprenticeship than
those contained in part 29. Similarly,
proposed § 29.4(b) stipulates that part
29 would not invalidate any provision
in any collective bargaining agreements
applicable to a registered apprenticeship
program that establishes more protective
or stringent minimum labor standards of
apprenticeship. The provisions of part
29 establish the minimum requirements
or a floor for program standards, and not
a ceiling. The Department notes that
there are many successful programs that
exceed these minimum standards and
encourages all programs to do so in
support of developing high-quality
training programs for apprentices and
employers. Where such higher
standards are established, this provision
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would make it clear that they, rather
than the requirements of this part, are
controlling.
Section 29.5—Severability
The Department proposes to include a
severability provision as part of this
proposed rule. To the extent that any
provision, or any portion of any
provision, of 29 CFR part 29 that has
been proposed or modified in this
proposed rule is declared invalid by a
court of competent jurisdiction, the
Department intends for all other
provisions of this part that are capable
of operating in the absence of the
specific provision, or portion of such
provision, that has been invalidated to
remain in effect.
Section 29.6—Transition Provisions
The Department is proposing this
section to establish reasonable transition
periods to allow for the orderly
implementation of the amended
regulations. In developing these
proposed transition periods, the
Department has made a concerted effort
to account for the unique needs,
circumstances, and potential burdens
different stakeholders and regulated
entities may face in transitioning their
operations, policies, or administrative
procedures to come into compliance
with the updated regulation. These
proposed transition periods balance a
reasonable timeline to accommodate
current and potential system
stakeholders against the need to build a
stronger National Apprenticeship
System with core quality elements.
The essential quality elements that
the Department seeks to realize within
the National Apprenticeship System
relate to approving occupations with
respect to their suitability for registered
apprenticeship training, registering
apprenticeship programs, approving
work process schedules, enhancing
worker protections in apprenticeship
agreements, and enhancing data and
performance reporting and measuring.
The Department invites comments on
each transition provision, including
whether a transition period is necessary,
the length of time provided, and
whether additional transition provisions
should be included. In particular, the
Department is interested in comments
from the primary parties that would
have to come into compliance in the
time allotted by these proposed
provisions—namely, applicants for
suitability determinations, existing and
potential program sponsors, labor
organizations, Registration Agencies
(SAAs), and any other organizations or
stakeholder groups that would be
impacted (or whose constituencies
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would be impacted) by the proposed
transition timelines. The Department
seeks their input on the reasonableness
and feasibility of the proposed
transition provisions, their impact on
the National Apprenticeship System
and efforts to expand registered
apprenticeship, and any additional
considerations from their valuable
perspectives.
Proposed paragraph (a) addresses the
implementation of the proposed rule as
it pertains to proposed § 29.7 and the
updated process for making
determinations on occupations’
suitability for registered apprenticeship.
The provisions at proposed § 29.7
would ultimately pertain to occupations
not yet determined suitable prior to the
effective date of the proposed regulation
(potential occupations), occupations
previously recognized as suitable for
registered apprenticeship training
(formerly, ‘‘apprenticeable’’) by the
Administrator (OA) under the existing
regulatory framework at § 29.4 (existing
suitable occupations), and occupations
recognized as suitable for registered
apprenticeship training by an SAA prior
to the effective date of the proposed
regulation (SAA-approved occupations).
The Department has organized the
proposed transition provisions related
to proposed § 29.7 around these three
categories to promote clarity. In short, if
an occupation has not been previously
determined to be suitable for registered
apprenticeship training prior to the
effective date of this proposed
regulation, the provisions at proposed
3141
§ 29.7 would apply within 90 days of
the effective date of the final rule. If an
occupation has been previously
determined to be suitable for registered
apprenticeship training prior to the
effective date of the regulation, the
provisions at proposed § 29.7 would
apply 4 years following the effective
date of the final rule.
The following table summarizes the
proposed transition provisions relating
to proposed § 29.7, which would apply
to applicants for suitability
determinations as described above (as
well as sponsors of existing programs
utilizing occupations recognized as
suitable for registered apprenticeship
training prior to the final rule’s effective
date):
PROPOSED TRANSITION PROVISIONS FOR § 29.7
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[Occupations’ suitability for registered apprenticeship]
Scenarios
Proposed transition timeline
Potential occupations—occupations not determined suitable for registered apprenticeship training prior
to the effective date of the final rule.
Existing suitable occupations—occupations deemed suitable for registered apprenticeship training by
the Administrator prior to the effective date of the final rule.
SAA-approved occupations—occupations deemed suitable for registered apprenticeship training by an
SAA.
90 days following the effective date of
the final rule.
4 years following the effective date of
the final rule.
4 years following the effective date of
the final rule.
As described in the table above, the
Department believes these are the three
different scenarios relevant to the
proposed transition provisions for
proposed § 29.7. Proposed paragraph
(a)(1) is for occupations that have not
been determined suitable (formerly
‘‘apprenticeable’’) as of the effective
date of this proposed rule. The
Department is proposing that
applications for suitability
determinations for potential new
occupations must reflect the updated
requirements in proposed § 29.7
beginning 90 days after the effective
date of the final rule, and that during
this transition period, the requirements
of the existing rule’s § 29.4 would
remain in effect. The Department seeks
to implement the new proposed process
for making determinations on
occupations’ suitability for registered
apprenticeship training shortly after the
effective date of the final rule, but
recognizes that it could be necessary to
provide a transition period to
accommodate any applications that may
have been in process, update systems,
develop and issue technical assistance
documents, and otherwise leave time for
both the regulated community and the
Department to prepare for the changes
to the updated process.
Proposed paragraph (a)(2) would
implement the proposed requirement of
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§ 29.7(a) that occupations may only be
determined suitable by the
Administrator. Under this transition
provision, SAAs that make
apprenticeability determinations under
the current rule’s §§ 29.4 and 29.13
would not be able to make suitability
determinations under proposed § 29.7
for Federal purposes upon the effective
date of this proposed rule.
Proposed paragraph (a)(3) addresses
the transitioning of occupations
previously determined apprenticeable
under the current regulatory framework
at § 29.4. These occupations would be
considered suitable for registered
apprenticeship by the Administrator
until OA reviews the occupation for
continued suitability under proposed
§ 29.7(h), which provides for a 5-year
review process of suitable occupations,
work process schedules, and related
instruction outlines. The Department
recognizes the significant undertaking
required to review previously approved
occupations under current § 29.4 with
the criteria under proposed § 29.7, and
thus it proposes in § 29.7(h) an ongoing
5-year review process for suitable
occupations to maintain their suitability
status. The Department intends to avoid
and minimize any adverse impacts to
established programs associated with
the implementation of this proposed
rule, and the provisions of proposed
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§ 29.7(h) provide programs with
sufficient notice about the timing
regarding an update to existing
occupations. The Department also
intends to develop and disseminate
comprehensive technical assistance
resources around the updated suitability
process and continue to provide
responsive, effective customer service to
existing and potential stakeholders at
the regional, State, and local levels. The
Department has decided not to
permanently exempt existing
occupations beyond the provisions
described in proposed § 29.7(h) because
the Department wants to ensure a
process where all occupations remain
updated to the needs of industry to
ensure the training of apprentices
remains at the highest quality possible.
The Department is interested in
comments about the length of this
transition provision, impacts to current
sponsors, and alternatives such as
permanently exempting those
occupations versus the goal of building
a more cohesive National
Apprenticeship System with
occupations that are approved under a
consistent approach as envisioned in
this proposed regulation.
Proposed paragraphs (b) and (c)
address the implementation of proposed
§§ 29.8 through 29.23, which concern
proposed standards for registered
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apprenticeship programs and other
proposed regulatory requirements
pertaining to registered apprenticeship
programs. For these sections of the
proposed regulation, program sponsors
would ultimately be responsible for
their registered apprenticeship
program’s compliance with the updated
part 29 regulations, consistent with
these transition provisions. As with the
proposed transition provisions for
§ 29.7, the Department envisions three
different scenarios relevant to the
proposed transition provisions for the
remainder of proposed subpart A. First,
the Department proposes that any new
programs that were not registered by the
Administrator prior to the effective date
of the final rule (potential programs)
would need to comply with the updated
requirements in subpart A after the
effective date of this proposed rule. The
Department plans to make available to
sponsors an electronic submission
process for the submission of registered
apprenticeship applications, at which
time those sponsors would be expected
to comply with the updated submission
process. The Department anticipates
making this process available as close to
the effective date of the proposed rule
as possible and communicating the
electronic process through
subregulatory guidance. Second, the
Department proposes that programs
registered by the Administrator prior to
the effective date of the final rule
(existing registered apprenticeship
programs) would need to comply with
the updated requirements in subpart A
within 2 years of the effective date of
the final rule.
The following table summarizes the
proposed transition provisions relating
to the remainder of subpart A:
PROPOSED TRANSITION PROVISIONS FOR SUBPART A
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[§§ 29.8 Through 29.23]
Scenarios
Proposed transition timeline
Potential programs—new programs not previously registered by the
Administrator prior to the final rule’s effective date.
Existing registered apprenticeship programs—registered apprenticeship
programs previously registered by the Administrator prior to the effective date of the final rule.
SAA-approved registered apprenticeship programs—registered apprenticeship programs previously registered by an SAA prior to the effective date of the final rule.
Effective date of the final rule or when OA makes available an electronic submission process to potential sponsors.
2 years following the effective date of the final rule.
Proposed paragraph (b) provides an
immediate effective date for programs
not previously registered by the
effective date of the final rule for
registering programs under subpart A,
when an electronic submission process
would be available to sponsors. The
Department is proposing this to allow
OA to provide the necessary supports
and technical assistance to potential
sponsors relating to the requirements of
this proposed rule through an electronic
submission process. Such technical
assistance could include the
development of boilerplate standards of
apprenticeship for use by sponsors,
webinars on different aspects and
requirements of the proposed rule,
electronic tools to assist programs, and
any other requirements. The Department
is interested in any comments on the
sufficiency of this time period,
including whether this transition period
is necessary, whether it is sufficient to
allow for OA to develop the necessary
supports for potential sponsors while
also adhering to the goal of transitioning
this provision more quickly (which may
impact OA’s ability to provide sufficient
technical assistance to stakeholders).
Proposed paragraph (c) addresses the
transition timeline for programs
previously registered by OA to comply
with the requirements of this proposed
rule. The Department anticipates
significant changes would need to be
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2 years following the SAA coming into compliance with the final rule;
all programs approved by SAAs after the effective date of the final
rule must remain in provisional status until the SAA has determined
them in compliance with the requirements of their approved State
Apprenticeship Plan.
made to program standards,
apprenticeship agreements, and other
requirements proposed in subpart A.
The Department recognizes that
established programs could need a
longer transition period than new,
potential programs, and thus it proposes
a 2-year timeline for registered
apprenticeship programs in the system
prior to the effective date of the final
rule to comply with the updated
regulation. For example, an established
program could need time to complete
the training cycle for a cohort of
apprentices under its previous
standards before moving to update them
or could need time to develop questions
pertaining to their program in response
to subregulatory guidance issued by the
Department. The Department is
interested in any comments regarding
the appropriate length of time to
transition previously approved
programs to the enhanced quality
requirements of this proposed rule
taking into account the burden of
sponsors and the goals of ensuring the
enhancements made in this rulemaking
are implemented throughout the
National Apprenticeship System.
The Department recognizes that
occupations and registered
apprenticeship programs established
within the National Apprenticeship
System prior to the effective date of the
final rule would need to consider two
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different compliance timelines: a longer,
4-year timeline for ensuring their
occupation meets the updated
suitability requirements at proposed
§ 29.7, and a 2-year timeline for
ensuring their program standards and
other program elements align with
proposed subpart A. For example, an
existing registered apprenticeship
program would have to update its
program standards within 2 years of the
final rule’s effective date, and it could
also need to gather and report data to
the Administrator regarding the subject
occupation’s typical wage profile within
4 years of the final rule’s effective date.
The Department anticipates that
established programs could need
significant time, technical assistance, or
other support to align with either the
updated standards or suitability
requirements. In particular, a
competency-based program or a hybrid
program (under the existing training
model framework) could need
significant support in transforming their
program’s work process schedule to
meet the 2,000-hour on-the-job training
requirement. The Department plans to
extend opportunities to such programs
to submit requests for extensions of the
transition timeline for good cause,
which would also help the Department
identify types or trends of technical
assistance issues throughout the
implementation process. The
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Department invites comment,
particularly from stakeholders of
existing programs, as to the feasibility
and reasonableness of the proposed
transition timelines, opportunities for
requesting extensions for good cause, or
any other potential questions or issues
with respect to this proposed rule and
the proposed transition timelines in this
section.
Paragraph (d) proposes transition
provisions related to SAAs recognized
by the Administrator as of the effective
date of the proposed rule, the
occupations they have approved as
‘‘apprenticeable’’ under the current rule,
and the programs they have registered
for Federal purposes under the current
rule. Proposed paragraph (d) provides
that SAAs recognized under the current
rule would be recognized until
December 31, 2026. The Department
anticipates this would provide sufficient
time for a State to make the needed
changes to transition. State government
agencies seeking continued recognition
for Federal purposes would need to seek
recognition as described in proposed
§ 29.27 within that timeframe or they
would lose their status as recognized
SAAs. The Department is interested in
comments about the timing and other
relevant factors impacting previously
recognized SAAs as they work towards
complying with the requirements of the
proposed rule. The Department is aware
that States may need to change their
apprenticeship-related laws to address
the requirements in this proposed rule
and is interested in comments regarding
whether the proposed transition
timeline provides sufficient time for
those laws to be updated and for the
recognition requirements of proposed
§ 29.27 to be fulfilled. The Department
has an interest in building greater
alignment in the National
Apprenticeship System through these
proposed regulations but is interested in
comments that may address
implementation challenges and timing
for those States.
Proposed paragraph (d)(1) concerns
programs registered by SAAs prior to
the approval of a State’s State
Apprenticeship Plan (discussed in
detail in the section-by-section
discussion at proposed § 29.27 of this
NPRM). Under proposed paragraph
(d)(1), SAAs must ensure that such
programs’ registration is consistent with
the applicable elements of an approved
State Apprenticeship Plan within 2
years of the date the State
Apprenticeship Plan is approved. The
Department recognizes that this would
be a longer time period for compliance
in programs registered by SAAs,
because the Department acknowledges
that SAAs would need to make changes
to their laws to meet the requirements
of this proposed rule and because they
would be responsible for the registration
of programs it would not be fair to hold
programs accountable for registration in
the State prior to the State making the
needed updates to their State laws. The
2 years from approval of the State
Apprenticeship Plan would be in
alignment with the 2 years the
Department proposes providing for
programs registered by OA from the
approval of this proposed rule. While
the Department proposes providing this
longer period for programs in SAAs to
be compliant with these requirements,
proposed paragraph (d)(1) also provides
that any program registered after the
effective date of the final rule, but before
the State Apprenticeship Plan, would
remain in provisional status until the
program is determined by the SAA to be
in compliance with the requirements of
its State Apprenticeship Plan, which
includes compliant laws with the
requirements of proposed §§ 29.26 and
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29.27. Paragraph (d)(2) proposes a
transition period for occupations that
may have been determined
‘‘apprenticeable’’ by an SAA, but not by
the Administrator. As described below
in proposed § 29.7, this proposed rule
reserves the role of making
determinations regarding occupational
suitability for registered apprenticeship
training (previously called
‘‘apprenticeability’’) role exclusively for
the Administrator. The Department is
proposing a 4-year period by which
those occupations previously approved
by SAAs must be approved by the
Administrator under proposed § 29.7 in
order to continue to be registered for
Federal purposes. These timelines, and
the relevant members of the regulated
community for scenarios involving
occupations or registered
apprenticeship programs previously
deemed suitable, or registered, by SAAs,
are clarified in the tables above (see
rows for ‘‘SAA-approved occupations’’
and ‘‘SAA-approved registered
apprenticeship programs’’ in the tables
above). The Department is interested in
comments regarding this transition
period, particularly those that weigh the
benefits of a more aligned and
consistent system against the burden on
sponsors or SAAs to submit suitability
requests under proposed § 29.7 to
continue their registration.
Paragraph (e) proposes that for State
government agencies not previously
recognized as an SAA by the
Administrator, they must seek
recognition under proposed § 29.27
upon the effective date of the final rule.
The following table summarizes the
proposed transition periods related to
SAAs, the occupations they have
previously determined suitable for
registered apprenticeship training, and
the apprenticeship programs they have
previously registered.
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PROPOSED TRANSITION PROVISIONS FOR SAAS, SAA-APPROVED OCCUPATIONS, AND SAA-REGISTERED APPRENTICESHIP
PROGRAMS
Scenarios
Proposed transition timeline
Potential SAAs not previously recognized by the Administrator prior to
the effective date of the final rule.
The effective date of the final rule—new SAAs will need to comply with
the proposed requirements at § 29.27 to receive recognition as an
SAA from the Administrator.
Previously recognized SAAs must come into full compliance with the
updated regulations at proposed § 29.27 by December 31, 2026.
2 years following the SAA coming into compliance with the final rule (2
years following the approval of a State Apprenticeship Plan).
SAAs previously recognized by the Administrator prior to the effective
date of the final rule.
SAA-approved registered apprenticeship programs—registered apprenticeship programs previously registered by an SAA prior to the effective date of the final rule.
SAA-approved occupations—occupations deemed suitable for registered apprenticeship training by an SAA.
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B. Subpart A—Standards for Registered
Apprenticeship Programs
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Section 29.7—Occupations Suitable for
Registered Apprenticeship
The National Apprenticeship System
is built on registering apprenticeship
programs, and the first step to
registering any program is determining
whether it involves an occupation that
is suitable for registered apprenticeship
training. For this reason, determining
whether an occupation is suitable for
registered apprenticeship training—
what OA used to describe as an
‘‘apprenticeable occupation’’
determination—is a critical
responsibility within the National
Apprenticeship System. An
occupation’s suitability for registered
apprenticeship training is inextricably
linked with the requirements and
purpose of apprenticeship itself. The
primary purpose of a registered
apprenticeship program is to support
industry’s needs for hiring and training
a skilled and diverse workforce and
preparing apprentices for successful
careers by producing individuals who
are fully proficient in their chosen
occupation. The Department believes
the criteria established in this section
are critical for achieving these goals.
To have a successful career and
achieve full proficiency requires a
degree of rigor that distinguishes
apprenticeship from other forms of
training and work-based learning and
goes beyond the acquisition of shortterm credentials. These consistent
factors across a range of industries and
occupations also provides an indicator
of quality and results for all
stakeholders. This is important for
building a National Apprenticeship
System wherein apprentices receive
training and instruction to prepare them
for successful, sustainable careers
within a quality career path and skills
that are portable across an industry.
Determinations of an occupation’s
suitability for registered apprenticeship
training is also a central consideration
in the Department’s efforts to expand
registered apprenticeship to new
industries and sectors. The expansion of
registered apprenticeship is an ongoing,
driving focus for the Department.
However, expansion efforts must
balance flexibility and quality control to
ensure that any potential new programs
have room within the regulatory
framework to adapt the model to their
industry and occupation, while also
ensuring that potential apprentices
seeking to enter into a program can
expect to receive quality training that is
transferrable throughout an industry
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and applicable and beneficial
throughout their careers.
Under the current regulatory
framework, an occupation is considered
suitable for registered apprenticeship
training if it meets four distinct criteria
set forth at current 29 CFR 29.4.
Occupations suitable for registered
apprenticeship training
(‘‘apprenticeable’’ occupation) must: (1)
involve job skills customarily acquired
through on-the-job training; (2) be
‘‘clearly identifiable and recognizable’’
in an industry; (3) involve the
progressive acquisition of skills and
knowledge which would require at least
2,000 hours of on-the-job training; and
(4) require related instruction in
addition to the on-the-job training
component.
The Department has determined,
based on the successful functioning of
the National Apprenticeship System,
consideration of national and
international apprenticeship practices,68
and input from industries where
registered apprenticeship has
successfully led to the development of
a skilled workforce that meets
industries’ evolving needs, that a quality
registered apprenticeship program must
involve at least 1 year of full-time
training or its equivalent in the subject
occupation. Accordingly, in this
revision to the registered apprenticeship
regulations at proposed 29 CFR
29.7(b)(4), the Department proposes to
retain the existing requirement from 29
CFR 29.4(c) that states ‘‘apprenticeable’’
occupations must involve the
progressive attainment of skills and
knowledge over the course of ‘‘at least
2,000 hours’’ of on-the-job training. This
time period equates to approximately 1
year of full-time work,69 and the
Department has determined that in
order for an occupation to be suitable
for registered apprenticeship training
and eligible for registration within the
68 Apprenticeships in Canada ordinarily are
between 2 and 5 years in duration. See Government
of Canada, ‘‘How to become an apprentice,’’ https://
www.canada.ca/en/services/jobs/training/supportskilled-trades-apprentices/become-apprentice.html
(last updated Mar. 31, 2023). Apprenticeships in
Australia are ordinarily between 1 and 4 years in
duration. See Fair Work Ombudsman of the
Australian Government, ‘‘Guide to Starting an
Apprenticeship,’’ June 2023, at 2, https://
www.fairwork.gov.au/sites/default/files/migration/
712/guide-to-starting-an-apprenticeship.pdf.
Apprenticeships in England are ordinarily between
1 and 5 years in duration and cannot be less than
1 year in duration. See Andrew Powell,
‘‘Apprenticeships Policy in England,’’ House of
Commons Library, Jan. 20, 2023, at 10, https://
researchbriefings.files.parliament.uk/documents/
SN03052/SN03052.pdf, as well as the information
available at https://www.gov.uk/employing-anapprentice (last visited July 20, 2023).
69 Based on a 40-hour workweek and 50 weeks of
full-time work in a year.
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National Apprenticeship System, the
training regimen for that occupation
must meet this minimum duration
requirement. The Department views this
minimum duration requirement as an
important hallmark of a quality
registered apprenticeship program that
effectively imparts occupational
proficiency for apprentices.
As discussed throughout, the
Department recognizes the importance
of ensuring that apprentices who
complete a registered apprenticeship
program are proficient in the subject
occupation. The 2023 Quality
Apprenticeships Recommendation of
the ILO advises Member States to
consider the scope of competencies
required for an occupation, as well as
the duration of the apprenticeship term
that would be required to impart such
competencies, in making determinations
about an occupation’s suitability for
registered apprenticeship training.70
Based on its experience and in its work
with its international peers, the
Department views the 2,000-hour
minimum duration requirement as an
important minimum quality assurance
for employers that hire apprentices who
have completed registered
apprenticeship programs. The
Department intends for the National
Apprenticeship System to consistently
produce cohorts of workers employed in
skilled careers that employers are eager
to hire, that are competent in the
individual job tasks and skills that
constitute the full scope of work for an
occupation, and that are fully proficient
in the covered occupation. Before
assigning key aspects of their business
operations to new workers, employers
must have confidence that they can rely
on such workers to perform tasks safely,
accurately, efficiently, and in a timely
manner such that the work rendered
contributes to a profitable enterprise.
The Department has determined that the
2,000-hour minimum duration
requirement is critical for imparting the
necessary safety training, competency
development, and strategies for the
efficient completion of tasks to
apprentices. For example, programs
registered for the electrician occupation
typically have a time-based requirement
for an apprentice to achieve
occupational proficiency in no less than
8,000 hours, or approximately 4 years.
In order to become proficient in the
subject occupation, apprentices must
learn the appropriate safety techniques
70 ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), Conclusion 9(c), June 16, 2023, https://
www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
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and technical procedures associated
with an occupation and must
continuously apply such techniques and
procedures in order to strike the
appropriate balance between safety,
accuracy, and efficiency. This learning
and continuous application of safety
measures, skills, and techniques takes
time and resources, and such an
investment of time and resources is
critical to realizing the benefits of
quality apprenticeship training for both
employers and workers.
Further, the Department views the
2,000-hour minimum duration
requirement as an important protection
for apprentices, and in line with the
Department’s statutory obligation to
protect the welfare of apprentices. Such
a minimum duration requirement is
important for the protection of
apprentices’ welfare in three important
respects—acquiring occupational
proficiency on-the-job, ensuring the
delivery of adequate and proper safety
training to new and inexperienced
workers (particularly in higher hazard
occupations), and demonstrating
success in competency acquisition
through supervised on-the-job training.
Approximately 1 year of full-time
training is necessary to establish a track
record of occupational proficiency,
demonstrated understanding of safe
occupational and workplace practices
and techniques, and experience in
learning and achieving competencies
on-the-job under appropriate
supervision. With respect to
apprenticeships in hazardous
occupations, safety training does not
solely involve teaching apprentices the
appropriate techniques for the safe and
secure operation of a piece of machinery
or interaction with a known hazard. In
order for apprentices to operate in a safe
environment, they must also be trained
to recognize the signs of a potential
hazard, to be proactive in applying
safety measures and precautions, and to
be diligent and aware on the job.
Registered apprenticeship is
ultimately meant to transform
apprentices into full-time, proficient,
and highly effective employees. In a
registered apprenticeship program,
apprentices learn job skills and
techniques that are portable within an
occupation and across employers hiring
for that occupation. Completing a
quality registered apprenticeship
program should firmly place
apprentices on a pathway to a stable,
quality career. Conversely, if a training
program only prepares an apprentice to
enter into employment with a single
employer, with little opportunity for
vertical or horizontal career mobility,
the benefits of the training program are
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limited for both the trainee and any
prospective employer. As with safety
training, developing the full set of
occupational competencies necessary to
become proficient in the occupation
(i.e., to transform from an apprentice to
a fully proficient skilled worker in the
occupation) takes time, continuous
practice and application of learned
skills, and periodic assessments by
program operators to confirm that
apprentices are learning all the skills
necessary for immediate and future
career opportunities. The Department’s
proposal is ultimately based on its
experience operating the National
Apprenticeship System and
consideration of the minimum program
requirements for demonstrated
occupational proficiency in other
countries with highly sophisticated
apprenticeship systems, such as Canada,
Switzerland, Germany, the United
Kingdom, and Austria.
The Department is interested in any
public comments on a minimum
duration of the training period for
quality registered apprenticeship
programs, and whether the longstanding
quality hallmark of a 2,000-hour,
yearlong training program works well
for existing stakeholders, and whether
this period should be shorter or longer.
In particular, for comments on the
2,000-hour minimum duration
requirement, the Department is
interested in reviewing data, statistics,
and practical examples from existing
workforce training programs (including
existing registered apprenticeship
programs) that illustrate or inform the
merits of establishing a minimum
duration of training in terms of overall
training program quality.
Relatedly, apprentices in most
registered apprenticeship programs
currently operating within the National
Apprenticeship System receive at least
144 hours (on average per year, or per
2,000 hours, of on-the-job training) of
related instruction to complement the
on-the-job training elements of their
program. Such related instruction—also
referred to as ‘‘classroom’’ learning or by
other terms that reflects the academic
nature of related instruction in the
apprenticeship context—enables
apprentices to learn the theoretical
concepts that underpin the work
performed in the subject occupation and
supplements their understanding of the
job skills and competencies they acquire
through on-the-job training. The
Department views related instruction as
a critical element of quality registered
apprenticeship programs that is
essential for the ultimate success of the
apprentice in their transformation from
an apprentice into a fully proficient
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3145
worker in the occupation. While 144
hours of related instruction is only a
minimum recommendation under the
current regulatory framework at 29 CFR
29.5(b)(4), because of its importance to
the future success of an apprentice, at
proposed § 29.7(b)(4), the Department is
proposing to require that an
occupation’s proposed work process
schedule include at least 144 hours of
related instruction, on average, per
2,000 hours of on-the-job training, in
order for the Department to determine
that the occupation is suitable for
registered apprenticeship training. For
example, under this proposal a
submission of an occupation for 4,000
hours of on-the-job training would need
to provide a related instruction outline
that includes at least 288 hours of
related instruction to maintain the 144hour average requirement. Because this
applies at 2,000-hour on-the-job training
intervals, a 3,000-hour on-the-job
training program would only be
required to provide at least 144 related
instruction hours.
The Department believes that
proposing the establishment of a
uniform minimum requirement of 144
hours of organized, related instruction
in technical subjects related to the
covered occupation—rather than merely
referencing such a quantitative
instructional standard as a
recommendation, as the current
regulation at 29 CFR 29.5(b)(4) does—
accords with the usual instructional
standard of 144 hours of related
instruction for each year of on-the-job
training that is, with very few
exceptions, utilized by registered
apprenticeship programs across a wide
range of occupations in their standards
of apprenticeship. The 144-hour related
instruction standard posits a scenario
where an apprentice attends such
classroom instruction for 4 hours per
week over the course of a 36-week
period (4 x 36 = 144), a period that
coincides with the term of instruction in
a typical school year calendar. The
Department takes the view that it is
essential for apprentices to have a broad
educational and theoretical component
to their training as a foundation of
knowledge to help them adapt to
changes in the market and to maintain
currency with occupation competencies.
Hence, the Department believes that the
establishment of a uniform 144-hour
related instruction requirement would
help to ensure that apprentices receive
a sufficient number of hours of
classroom instruction to supplement
and reinforce the practical skills
obtained during the on-the-job training
component of the apprenticeship,
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thereby ensuring the attainment of the
requisite occupational competencies at
the conclusion of the apprenticeship.
In most instances, program sponsors
require that an apprentice fulfill the
related instruction component of the
apprenticeship during after-work hours.
This approach is both realistic and
sensible, given that the average age of
apprentices in the United States is
approximately 29 years old 71—a
considerably older age cohort than is
found in the national apprenticeship
systems of the European Union, where
an average age under the age of 20 is not
uncommon.72 As a practical matter, the
prevalence of an older apprenticeship
age cohort in the United States means
that many such apprentices may be
required to balance competing work-life
demands, such as holding down a
second job or providing parental care for
young children. Additionally, while
many apprenticeship sponsors pay for
or reimburse apprentices for the related
instruction component of an
apprenticeship, some sponsors may
require an apprentice to absorb the costs
of such classroom instruction. Because
of the widespread prevalence of such
outside obligations and economic
burdens among older apprentices, the
Department believes that the retention
of the usual 144-hour quantitative
standard for related instruction for each
2,000 hours of on-the-job-training in this
proposal would be sensible, and that
any significant increase in the duration
of such instruction could prove unduly
burdensome to those U.S. apprentices
who must navigate such challenges.
The Department is interested in
comments to this approach, including
any alternatives such as a minimum
ratio of 144 hours of related instruction
per 2,000 that would be applied to the
total hours. In the example of a 3,000hour on-the-job training program, the
ratio of 144 related instruction hours to
2,000 hours of on-the-job training would
equate to a floor of 216 hours of related
instruction. The existing requirement
for apprenticeability only requires that
there must be related instruction to
supplement the on-the-job training,
without setting a minimum number of
hours.
The Department seeks comments on
the inclusion of the related instruction
71 Taylor White, ‘‘Young Adults in Registered
Apprenticeship: What New Data Can and Cannot
Tell Us,’’ New America, Sept. 20, 2022, https://
www.newamerica.org/education-policy/edcentral/
young-adults-in-registered-apprenticeship-whatnew-data-can-and-cannot-tell-us/.
72 Briefing Note, ‘‘Apprenticeships for Adults,’’
European Centre for the Development of Vocational
Training, June 2020, https://
www.cedefop.europa.eu/files/9147_en.pdf.
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hours as part of the determination of
suitability, particularly those that may
recommend no criteria be used in the
occupational eligibility process and how
the Department could still ensure more
occupational consistency and integrity
in its training of apprentices. The
Department is also interested in
comments about a minimum average as
part of the suitability process,
particularly whether to apply it at the
2,000-hour level or if an alternative
method of scaling an increase in related
instruction consistent with an increase
in on-the-job training hours should be
considered. In line with the
Department’s guiding principle to
ensure registered apprenticeship
programs are responsive to employer
needs, the Department is proposing
these minimum standards for
consideration by the regulated
community in this NPRM and is
interested in feedback from all
apprenticeship stakeholders regarding
the proposed minimum standards for
occupational suitability in this proposal.
In addition to the minimum standards
proposed in this section, an applicant
submitting a suitability request could
submit an occupation, work process
schedule, and related instruction
outline that exceeds the minimum
standards for the purposes of setting an
industry standard for the suitable
occupation. For example, an electrician
apprenticeship program could submit
an occupational request for 8,000 onthe-job training hours as the industry
standard at proposed paragraph (c). At
proposed § 29.7(d), the Administrator
would solicit public comment to assist
in evaluating whether submissions meet
the requirements of proposed paragraph
(c). Additionally, the Administrator
could consider other information such
as industry or occupational data to
assist in making any determinations. An
example could include the utilization of
the O*NET system,73 which includes
national and localized data. Such
requests for comment and information
may include an opportunity for industry
leaders, programs, and other members of
the public to comment on the number
of hours proposed for the occupation’s
industry standard, including feedback
that it should be higher. Due to its
statutory obligation to protect the
welfare of apprentices, the Department’s
strong view is that programs training
apprentices to perform an occupation
must meet some minimum parameters
related to on-the-job training and related
instruction, which may also be higher
based on an industry standard for that
73 DOL, O*NET OnLine, https://
www.onetonline.org/ (last updated Oct. 3, 2023).
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occupation. Such consistency is
important for ensuring that all
apprentices attain proficiency in an
occupation through their participation
in a registered apprenticeship program,
an important goal and protection for
apprentices within the National
Apprenticeship System that ensures
they enjoy labor market mobility in their
careers (both with employers associated
with the program, and other employers
hiring workers in that occupation).
The Department recognizes that, in
the United States, many jobs do not
require a year of paid, full-time, workbased learning, nor a significant
investment of time spent providing
related instruction to workers.
Ultimately, registered apprenticeship
training is not suitable for all
occupations, including many
occupations that are essential for the
healthy functioning of the national
economy. Because the Department must
meet its statutory obligation to protect
apprentices’ welfare in overseeing the
National Apprenticeship System, it
must consider programs’ potential
effectiveness for preparing apprentices
to enter into stable, rewarding careers.
As such, determining an occupation’s
suitability for registered apprenticeship
training is central and definitional to the
registered apprenticeship model and
quality assurance throughout the
National Apprenticeship System. This
more uniform approach to suitability
minimizes the possibility that
individual programs provide vastly
different employment and training
experiences. As discussed above, these
minimum standards are designed to
ensure a minimum framework for
determining the suitability of
occupations for use in registered
apprenticeship programs, acquiring
skills and competencies acquired, and
the type and amount of related
instruction, as well as common
expectations on how much on-the-job
training is necessary for a typical
apprentice to achieve proficiency.
Accordingly, the Department proposes
to carry forward the existing 2,000-hour
minimum duration of on-the-job
training requirement criterion for an
occupation’s suitability for registered
apprenticeship training, and to require,
rather than recommend, that an
occupation provide at least 144 hours of
related instruction, on average, per
2,000 hours of on-the-job training.
The Department has further
determined that the existing regulatory
framework on ‘‘apprenticeability’’ needs
to be modernized and strengthened in
order to preserve and enhance quality,
maintain and build both registered
apprenticeship program and
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occupational consistency, and ensure
apprentice mobility throughout a
national system of quality
apprenticeships. Many employers with
multistate or nationwide operations
would benefit from a registered
apprenticeship program to train their
future workforce and address their
talent needs. Such employers and
apprentices would benefit from a clear,
national, uniform set of regulatory
parameters related to the identification
of occupations that are suitable for
registered apprenticeship training. For
an employer operating in multiple
States or on a nationwide basis, the
potential for an occupation to ultimately
be determined to be suitable for
registered apprenticeship training in
one State, but not in another, would
present challenges in planning and
operations for multistate employers and
would dilute the effectiveness of
registered apprenticeship in addressing
workforce needs. For example, the
current approach does not require any
showing that a particular occupation is
recognized throughout an industry as a
stand-alone occupation, nor does it
require a general understanding of the
skills and time necessary to obtain
proficiency. This proposed approach
would establish a more uniform process
and uniform results, reducing
uncertainty, preventing fragmentation of
workforce training operations, and
enhancing the attractiveness and
potential effectiveness of a registered
apprenticeship program for a
nationwide or multistate employer.
The ACA’s 2022 Interim Report
included recommendations related to
the ‘‘apprenticeability’’ framework to
complement efforts to expand registered
apprenticeship, including a
recommendation from the Industry
Engagement in New and Emerging
Sectors ACA subcommittee for the
Department to have sole responsibility
for designating occupations as suitable
for registered apprenticeship training.74
The ACA recommended that the criteria
for determining an occupation’s
suitability for registered apprenticeship
training should be universal for all
potential programs—that is, a potential
program sponsor seeking recognition for
an occupation in one State should not
face a different set of circumstances in
seeking to register a program in other
States or nationwide. The Department
concurs with these recommendations to
ensure a truly national system of
occupations eligible for registration for
74 ACA, ‘‘Interim Report to the Secretary of
Labor,’’ May 16, 2022, at 28, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
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Federal purposes based on established,
universal criteria, which the Department
views as key principles to advance the
goals of program transparency,
enhanced portability of programs and
credentials, equity among programs and
participating apprentices, and program
quality and integrity. Accordingly, the
Department proposes several changes to
the process for determining an
occupation’s suitability for registered
apprenticeship, as further discussed
below.
Another consideration to guide
expansion and quality oversight of the
National Apprenticeship System, arising
from the Department’s ongoing
consultations with registered
apprenticeship stakeholders, including
the ACA and representatives from
industries where registered
apprenticeship is both new and wellestablished, is striking the appropriate
balance between expansion of the
registered apprenticeship model and the
impact of any change on established
programs. The proposed regulation
would set the minimum occupational
standard by which an occupation may
be determined suitable for registered
apprenticeship and provide for the
input of industry to set higher minimum
standards for on-the-job training at
proposed § 29.7(d). The minimum
standard exists in the current regulation
at 29 CFR 29.4(c), which provides for
both the 2,000-hour minimum and that
it be in accordance with the ‘‘industry
standard for the occupation.’’ For
example, an established program may
have a set of standards of
apprenticeship that exceed the
minimum 2,000-hour on-the-job training
requirements in the existing regulation
based on the ‘‘industry standard for the
occupation.’’ This industry standard is
not imposed by OA, but rather is set
through the apprenticeship suitability
process. In this example, an industry
standard for an occupation may be the
equivalent of 3 full-time years of
training (e.g., 6,000 hours of on-the-job
training, well above the minimum
requirement of 2,000 hours for a timebased program under the existing
regulation). If a new program enters the
system in the same occupation and
submits standards of apprenticeship
that are significantly lower than those
associated with the established program,
such as only requiring the minimum
2,000 hours of on-the-job training, the
established program is not in alignment
with the industry standard for the
occupation. A departure this significant
likely indicates an entirely separate
occupation potentially only training in
a subset of the skills required or outside
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of an industry norm for an apprentice to
achieve the same degree of proficiency.
The Department would have concerns
that an existing program’s quality
standards would be undercut by the
introduction of a new, less rigorous
program in the same occupation. These
concepts about maintaining and
enhancing both a minimum floor for any
occupation to be eligible for a registered
apprenticeship program, and potentially
a higher floor based on industry
standards, help to ensure greater
consistency both in the skill acquisition
and occupational proficiency of
apprentices. The introduction of a new,
less rigorous program also would raise
concerns in the marketplace where
employers may be competing for
talented workers and would also be
eligible for potential Federal, State, and
local benefits associated with employing
apprentices in a registered
apprenticeship program. Maintaining
and building on both of these concepts
is critical to avoid a ‘‘race to the
bottom’’ and to avoid incentivizing less
skilled labor, less safe workplaces, and
potentially lower wages for workers in
any particular occupation. Ultimately,
OA seeks to preserve and enhance the
established level of quality for all
registered apprenticeship programs in
the occupations that have been
determined suitable for registered
apprenticeship training within the
National Apprenticeship System, and to
maintain that standard of quality going
forward. The ACA framed this potential
issue as ‘‘splintering’’ and discussed it
from two different perspectives—the
potential for recognition of an
occupation to detract from the
successful operation of established
programs for very similar occupations,
and the ‘‘excessive partitioning’’ of an
occupation into overly specific job skill
sets.
The ACA identified these potential
‘‘splintering’’ issues in its 2022 Interim
Report,75 and proposed addressing the
issues related to splintering, in part, by
leveraging labor data, such as industry
data from DOL’s O*NET and the DOL’s
Bureau of Labor Statistics (BLS), to
inform expansion efforts. The
Department agrees that the issues
identified by the ACA are worth
considering as it pursues efforts to
expand and strengthen the National
Apprenticeship System and has
determined that updates to strengthen
the regulatory framework for
determining an occupation’s suitability
75 ACA, ‘‘Interim Report to the Secretary of
Labor,’’ May 16, 2022, at 15, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
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for registered apprenticeship training
are necessary to facilitate expansion
efficiently and without adverse impacts
to the existing, successful National
Apprenticeship System. Accordingly,
the Department proposes to create an
updated and expanded provision in the
part 29 regulations, discussed in further
detail below.
Proposed § 29.7 would make several
significant changes to update key
terminology to more accurately describe
this important first step in creating a
registered apprenticeship program. The
proposal would replace the term
‘‘apprenticeability’’ with the term
‘‘suitability,’’ and describes the process
that OA would use to determine if an
occupation is suitable for registered
apprenticeship training. Proposed § 29.7
would also implement the ACA’s
recommendation to avoid
‘‘splintering’’ 76 within occupations. The
Department believes that the changes to
existing § 29.4 would ensure that
completing a registered apprenticeship
program places apprentices on a
pathway to sustainable careers with a
fair opportunity for career advancement
and economic mobility, discussed in
more detail below. The Department also
proposes that if no sponsor has
registered a program in a given
occupation for a number of years, OA
may, at its discretion, rescind an
existing apprenticeability or suitability
determination.
Proposed paragraph (a) explains that
an occupation determined to be suitable
for registered apprenticeship would be
eligible for local registration by any
Registration Agency. The reference to
local registration is intended to clarify
that while a positive suitability
determination would be the first step for
registration of National Program
Standards for Apprenticeship or
National Guidelines for Apprenticeship
Standards, such registration would
require sponsors to satisfy the
additional criteria in proposed §§ 29.14
and 29.15 in this part, respectively.
The 2008 final rule did not
definitively state whether SAAs have
the authority to approve occupations for
Federal purposes. This lack of clarity
has created several problems, including
ambiguity around whether occupations
approved by SAAs are eligible for
Federal purposes as defined in proposed
§ 29.2. Some States have delegated
apprenticeability (suitability)
determinations to non-governmental
advisory boards. In addition, there are
76 See the recommendation from the ACA’s
Modernization subcommittee. ACA, ‘‘Interim
Report to the Secretary of Labor,’’ May 16, 2022, at
14, https://www.apprenticeship.gov/sites/default/
files/aca-interim-report-may-2022.pdf.
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different applications of the regulatory
criteria in approving occupations that
create inconsistency in both the
identification of industry recognition of
an occupation and the minimum quality
standards associated with such
occupation. This has created planning
and operational challenges for national
employers seeking to establish
workforce training programs through
registered apprenticeship in multiple
States and complicates the Department’s
planning and execution of targeted
efforts to expand registered
apprenticeship’s footprint nationwide.
To address these issues and clarify who
is able to fulfill this key duty, proposed
paragraph (a) states that the
Administrator would have the sole
discretion to determine whether an
occupation is suitable for registered
apprenticeship. This would apply to
States where OA serves as the
Registration Agency, as well as States
where SAAs serve as Registration
Agencies.
In pursuing a national approach to
making determinations about an
occupation’s suitability for registered
apprenticeship training, the Department
seeks to maximize the impact of Federal
benefits (such as the disbursement of
investments, the availability of tax
credits available under the IRA,
prevailing wage considerations for
apprentices under the Davis-Bacon and
related Acts, resources providing
support to apprentices such as WIOA,
and uniformity in administrative and
oversight practices related to registered
apprenticeship) throughout the system.
The Department considers it critical that
suitability determinations be made by
OA to maintain consistency across the
National Apprenticeship System so that
different States do not make
substantially different suitability
determinations. In addition, centralized
suitability determinations would ensure
that they can be made with the benefit
of conferring with industry leaders
across the country, and, once
occupations are deemed suitable for
apprenticeship, they could be registered
across the country. Moreover, given the
role and increasing Federal benefits
associated with registration for Federal
purposes, OA seeks to avoid situations
in which the same occupation would be
ineligible for registration in some States
but eligible for registration and Federal
benefits in other States.
Under this proposed rule, SAAs
would be able to submit suitability
applications to the Department for
determination, including for those
occupations they have previously
approved but OA has not approved. The
Department acknowledges that its
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decisions could impact receipt of State
benefits conferred to employers,
organizations, or other apprenticeship
stakeholders.77 Under this proposed
rule, the Department would consider
any such implications when a State
submits suitability applications for
previously recognized occupations to
OA and would prioritize avoiding any
adverse impacts to established
programs.
The Department is interested in
comments about this approach, or any
alternatives, such as whether States
should formally have the authority to
approve occupations for Federal
purposes within their State, or an
additional option where an SAA could
apply to OA for approval of an
occupation for Federal purposes specific
to that State. The Department is
particularly interested in any comments
on how this approach may impact
reciprocity with other States or OA, the
transferability and portability of a
program that is approved for Federal
purposes exclusively in that State, and
what criteria the Department should
consider when approving and
implementing the determination that an
occupation is suitable for ‘‘Federal
purposes’’ (as described in § 29.2 of this
proposed rule) specific to a State. The
Department considered another
alternative approach to revising the
regulations for making suitability
determinations wherein occupations
could be approved for Federal purposes
as ‘‘regional’’ occupations where
appropriate (for example, an occupation
that is prevalent in a State or region of
States, but that otherwise does not have
a nationwide footprint), and invites
comments on this and all other
regulatory alternatives, including
transferability, criteria, implementation,
or any other alternative approaches to
the suitability process.
Proposed paragraph (b) would
establish the minimum criteria that
must be met for an occupation to be
determined to be suitable for registered
apprenticeship.
Proposed § 29.7(b)(1) would replace
existing § 29.4(b) with the additional
clarification that to be suitable for
registered apprenticeship, the
occupation must be clearly identified
and commonly recognized as a standalone and distinct occupation. The
added terms are intended to be
77 For example, many States offer tax credits for
businesses that hire apprentices from approved
registered apprenticeship programs. For a list of
such programs by State, see OA, ‘‘State Tax Credits
and Tuition Support,’’ https://
www.apprenticeship.gov/investments-tax-creditsand-tuition-support/state-tax-credits-and-tuitionsupport (last visited July 20, 2023).
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responsive to the ACA’s Interim
Recommendation to avoid
‘‘splintering,’’ which the ACA described
as occurring when an occupation is too
specific or specialized within an
occupational subset. This proposal is
intended to prevent a favorable
suitability determination where an
occupation may be clearly identified
and commonly recognized yet be so
similar to all or parts of an existing
occupation that recognizing both
occupations could undermine the labor
mobility, transferability, and career
prospects of apprentices. For example, if
a sponsor were to submit a suitability
determination request for an occupation
that replicates many, but not all, of the
work processes in an occupation
previously determined to be suitable for
registered apprenticeship, the
Administrator could determine that the
occupation in question is not standalone and distinct and thus not suitable
for registered apprenticeship. The
Department has determined that
avoiding the ‘‘splintering’’ of
occupations into occupational subsets is
critical for ensuring that completing
apprentices possess portable credentials
that are widely recognized by employers
in the apprentice’s industry. If the
occupation were determined to be
suitable, then the lesser standard it
represents would lead to a less skilled
apprentice who would be less able to
find and retain the type of work the
registered apprenticeship program is
designed to provide to apprentices. The
Department remains committed to
working with industry to inform
suitability determinations and invites
public comments on the Department’s
proposed approach to avoid splintering
occupations, potential examples of
overly specific occupational subsets, or
any other elements of the proposed
process for making determinations
about occupations’ suitability for
registered apprenticeship training. If OA
concludes that a new occupation cannot
be recognized as suitable for
apprenticeship because of proposed
§ 29.7(b)(1), OA would inform the
applicant of already suitable
occupations to facilitate the registration
of a program using an already suitable
occupation.
Proposed § 29.7(b)(2) is new and
would require applicants for a
suitability determination to demonstrate
that the occupation under consideration
leads to a sustainable career. A
sustainable career is one that places
apprentices who complete their program
on a trajectory to a sustainable career,
one that provides a fair opportunity for
career advancement and economic
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mobility. This proposed requirement is
responsive to the ACA’s interim
recommendation that wages be taken
into consideration in the process of
determining which occupations may be
suitable for registered apprenticeship.
The proposed requirement is not
intended to limit the number of
programs or apprentices in occupations
that have slower-than-average projected
growth rates or estimated future job
openings. The applicant may also
provide supplemental information
demonstrating that the occupation is
associated with a career ladder or a
‘‘stackable’’ set of occupational
credentials in that occupation to
demonstrate the occupation’s
opportunity for career advancement and
economic mobility.
The Department provides the
following scenarios to illustrate the
options available to applicants
proposing a new occupation for a
suitability determination. An applicant
could propose a new occupation, such
as Technologist I (term of 1 year), that
upon completion has a compensation
profile for a journeywork of $25,000 per
year. An applicant could also propose a
new occupation, such as Technologist II
(term of 2 years), that has a
compensation profile for a
journeyworker of $70,000 per year.
Finally, an applicant could propose a
‘‘stackable’’ apprenticeship model for
Technologist II (term of 2 years) but
include an interim credential at Year 1
to convey competency at the
Technologist I level.
The Department is interested in
hearing views on this approach,
including perspectives on whether
applying a more specific wage standard
as part of the suitability determination
process is appropriate, or if alternative
standards or approaches should be
considered, balanced against the goal of
expanding apprenticeships models into
new industries and building career
ladders to higher quality jobs. In
addition, the Department invites
comments on what criteria should be
taken into account to determine whether
an occupation leads to sustainable
careers.
Proposed § 29.7(b)(3) and (4) would
replace existing § 29.4(a) and (c) and
would require that a structured
registered apprenticeship program
provide the skills, techniques, and
competencies required to attain
proficiency in the occupation. However,
proposed § 29.7(b)(3) would remove the
qualifier of skills being ‘‘manual,
mechanical or technical’’ as those terms
are linked specifically to skilled trades
and are not as broadly applicable to
other industries expanding into
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developing registered apprenticeship
models. The requirement that skills
attainment be progressive would also be
deleted in favor of the requirement of
skill acquisition leading to proficiency
in the occupation, as would be required
by proposed § 29.7(b)(3). Proposed
§ 29.7(b)(4) would retain the
requirement that at least 2,000 hours of
on-the-job training be necessary to
achieve proficiency in the occupation.
As explained above, this 2,000-hour
requirement is intended to capture
roughly 1 year of full-time on-the-job
training. The requirement is intended to
distinguish between other forms of
work-based learning, such as programs
that only support on-the-job training,
incumbent worker training, and other
shorter certificate programs on the one
hand, and proficiency in an occupation
that would afford apprentices a lifelong
career, on the other. Notably, the 2,000hour requirement would apply
specifically to on-the-job training—work
process schedules that would last a
calendar year or more but that would
not require 2,000 hours of on-the-job
training would not satisfy this
requirement. The fact that an individual
applicant for a suitability determination
would require 2,000 hours of on-the-job
training would not be dispositive in
OA’s analysis because OA would look to
the number of on-the-job training hours
typically required to achieve proficiency
in the occupation. In addition, proposed
§ 29.7(b)(4) would require an industry
standard of not less than a minimum
average of 144 hours of off-the-job,
related instruction for every 2,000 hours
of on-the-job training in order to obtain
proficiency in the occupation.
Proposed § 29.7(c) is new and
explains the information that would be
submitted electronically to the
Administrator in support of a suitability
determination request. The Department
believes that specifying the
documentation and explanation
necessary for the Administrator to reach
a new suitability determination would
assist applicants who may be unfamiliar
with this process.
Proposed § 29.7(c)(1) explains that an
applicant for a suitability determination
would need to submit sufficient
documentation to demonstrate that the
elements in proposed § 29.7(b)(1)
through (4) are satisfied.
Proposed § 29.7(c)(2) would require
that the applicant provide a work
process schedule as well as an
explanation of how the components of
the work process schedule are
appropriately structured such that
completing apprentices will have
achieved proficiency in the occupation.
As part of the suitability determination,
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the work process schedule associated
with the occupation submitted in this
section would be the work process
schedule in which sponsors must
substantially align their standards of
apprenticeship under proposed § 29.8.
Proposed § 29.7(c)(3) would require
an applicant for a suitability
determination to document the number
of hours required to achieve proficiency
in an occupation. Although the
minimum number of hours would
always be 2,000 as established by
proposed § 29.7(b)(4) above, some
occupations could require more than
2,000 hours of on-the-job training to
achieve proficiency. For example, an
industry standard term might be set at
8,000 hours for certain occupations. If
an 8,000-hour term were to be set for an
occupation through this process, future
sponsors’ work process schedules and
related instruction outlines would need
to substantially align with the work
process schedule and related instruction
outline approved under proposed § 29.7.
If a work process schedule and related
instruction outline submitted for
registration under proposed § 29.10 do
not substantially align, for example
because the required hours of on-the-job
training are substantially fewer, then a
new suitability determination would be
required as provided for in proposed
§ 29.10(b)(1). The Department
acknowledges that an industry standard
may change over time given changes in
technology or other factors, which is
addressed through proposed paragraph
(h) of this section.
Proposed § 29.7(c)(4) is new and
would require a related instruction
outline that describes the proposed
curriculum. The number of hours of
related instruction would need to be at
least an average of 144 hours for every
2,000 hours of on-the-job training. The
number of related instruction hours
would not need to be evenly distributed
during the term of the apprenticeship as
long as this average were achieved.
Proposed § 29.7(c)(5) is new and
would require an applicant for a
suitability determination to disclose if
there are any interim credentials,
recognized postsecondary credentials,
or license requirements for an
apprentice to obtain during their
registered apprenticeship program to
work in that occupation. This is
important to ensure OA can validate
those submissions through a process to
ensure programs registered in an
approved occupation provide the
industry-validated credentials required
for the occupation. The Department
notes that programs may provide
interim credentials to apprentices,
which can signify the attainment of
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industry-recognized competencies;
however, under this provision
applicants would need to disclose
required credentials needed to practice
an occupation in a given State. For
instance, some occupations, such as a
teacher, nurse, or electrician, require a
license in every State. This criterion
would help provide more clarity to
sponsors seeking to register programs
regarding what credentials they must
offer in a program, as well as what
credentials a program may offer to
apprentices.
As described earlier, proposed
§ 29.7(d) explains that the Administrator
would solicit public comment for at
least 30 days on all occupational
suitability determinations. This addition
would also ensure feedback from
industry leaders is considered, while
also allowing for additional registered
apprenticeship and industry experts to
provide input into the occupational and
work process schedule design. The
Administrator would render a
determination within 90 calendar days
from receiving a completed application,
though this time period could be
extended by notifying the applicant that
more time is needed to reach a
determination. Proposed § 29.7(d)
would also require the Administrator to
maintain an up-to-date publicly
available list of all occupational
determinations related to suitability for
registered apprenticeship.
Generally, as a first step in evaluating
an application, the Administrator would
utilize a standardized process to
identify a proposed occupation and
determine whether it is already
recognized as part of an existing suitable
occupation. In practice, the
Administrator currently utilizes
industry-validated resources to assist in
this determination such as the O*NET
Program. The O*NET program assists
the Administrator in identifying
standardized and occupation-specific
descriptors, such as core Tasks, and
important knowledge, skill, and ability
areas, for almost 1,000 occupations
covering the entire U.S. economy. As an
example of what might occur under this
proposed provision, the Administrator
could identify an O*NET code for each
submission. Next, the Administrator
would share the application with
industry leaders and solicit feedback.
Soliciting feedback from such
stakeholders regarding whether an
application for a suitability
determination satisfies the requirements
in proposed § 29.7(b) would assist the
Administrator to adjudicate applications
and to ensure that the work process
schedule and related instruction outline
are in accord with industry standards.
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Although the Department feels that a
process of soliciting feedback from
industry leaders has worked well to
date, the Department requests comments
regarding how it may seek input from a
wider distribution of industry leaders,
the public, and other stakeholders, or
utilize alternative or innovative
methods such as analyzing data to assist
the Administrator in making suitability
determinations. In addition, the
Department is interested in comments
regarding when it may be appropriate to
vary the process (i.e., when it may be
most appropriate to consult with the
public versus employing data analysis).
In particular, the Department wants to
ensure that a process of soliciting
feedback from industry leaders does not
limit the expansion of apprenticeship
into new industries where fewer
industry leaders familiar with
apprenticeship may exist.
Proposed § 29.7(e)(1) through (4)
explain the basis by which the
Administrator could reach an
unfavorable suitability determination.
Proposed § 29.7(e)(1) explains that an
application for a suitability
determination could be rejected if the
application were incomplete, meaning
that it did not include or address all of
the elements in proposed § 29.7(b) or
include all of the information required
in proposed § 29.7(c).
Proposed § 29.7(e)(2) explains that to
be suitable for registered
apprenticeship, all of the criteria in
proposed § 29.7(b) would need to be
satisfied. Ultimately, the discretion as to
whether these criteria are satisfied
would rest solely with the
Administrator for the reasons discussed
above.
Proposed § 29.7(e)(3) and (4) are
intended to prevent the ‘‘splintering’’ of
occupations as described above.
Proposed § 29.7(e)(3) would prevent the
Administrator from recognizing as
suitable for registered apprenticeship an
occupation if the scope of the
apprenticeship training is confined to a
narrowly specialized subset of skills and
competencies within an established
occupation that are not readily
transferable between employers in the
sector.
Proposed § 29.7(e)(4) would prohibit
the Administrator from making a
favorable suitability determination
where the occupation under
adjudication replicates a significant
portion of the work processes from
another occupation that OA previously
approved as suitable for registered
apprenticeship training without leading
to a more advanced occupation. Thus,
for example, if an occupation already
considered suitable trains apprentices in
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48 competencies and would result in a
professional certification, but the
Administrator were to receive a
suitability determination request for a
new occupation that replicates some,
but not all, of the 48 competencies and
would not result in a professional
certification, the Administrator could
decline to find the new occupation
suitable for registered apprenticeship.
The Administrator would consult with
industry leaders and stakeholders to
inform the determination as to whether
an occupation is not suitable for
registered apprenticeship due to
splintering concerns. The standard
supplied in proposed § 29.7(e)(4) is not
intended to present an opportunity for
a single industry leader or stakeholder
to ‘‘veto’’ a new occupation, and the
Administrator would analyze all
feedback received in reaching a
determination. If an occupation under
consideration replicates a significant
portion of the work processes of more
than one occupation previously
determined to be suitable for registered
apprenticeship, the Administrator
would analyze the multiple occupations
for potential splintering according to the
standard in § 29.7(e)(4). The qualifier
that a new occupation may replicate a
significant number of work processes
but lead to a more advanced occupation
is intended to facilitate the development
of occupations with multiple levels (i.e.,
Boilermaker I versus Boilermaker II) and
stackable credentials.
Proposed § 29.7(f) explains that in the
event the Administrator determines that
an occupation is not suitable for
registered apprenticeship, the
Administrator would notify the
applicant and provide the
Administrator’s reasoning. In such cases
of a final agency determination, the
Administrator would need to publish
the final agency determination on an
OA public-facing website in compliance
with proactive disclosure requirements
under the Freedom of Information Act
(5 U.S.C. 552 (a)(2)). An applicant could
reapply by addressing the issues raised
by the Administrator, and the
Administrator could, in their discretion,
reevaluate such an application and
approve the application provided that it
meets the criteria for approval.
Proposed § 29.7(g) provides that
adjustments to existing suitable
occupations, work processes, duration,
or other significant adjustments in scope
would need to be submitted to and
approved by the Administration to
remain valid. The Department
anticipates that over time occupations
could significantly adjust in scope or
duration based on the needs of industry,
advancements in technology, or other
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changes. Requiring adjustments to be
submitted to the Administrator would
help ensure that suitable occupations
and work process schedules remain
relevant for industry and provide the
required training for an occupation.
Proposed § 29.7(h) is new and
explains that the Administrator would
review existing occupations determined
to be suitable for registered
apprenticeship on a 5-year cycle. In
addition to determining whether the
occupation is still suitable for registered
apprenticeship, the Administrator
would review to ensure that the work
process schedule(s) and related
instruction outline(s) approved with the
prior suitability determination remain
consistent with industry standards. In
conducting this review, the
Administrator would use the process
described in § 29.7(d), meaning that the
Administrator would seek public
comment, input from industry leaders
or other stakeholders, and make use of
other relevant information to assist with
reaching a suitability determination and
updating the work processes schedule
and related instruction outline. The
substantive criteria for determining
continued suitability on a 5-year cycle
would be the same as outlined in
§ 29.7(b). If the Administrator
determines that previously approved
work processes schedules and related
instruction outlines require revisions,
the Administrator would notify in
writing existing programs in the
occupation of the need for updates.
Existing programs would need to submit
updated standards to their Registration
Agency that reflect updates before the
start of the next training cycle. If an
occupation is determined to no longer
be suitable for registered
apprenticeship, the Administrator
would notify any existing programs in
writing and the programs would no
longer be permitted to register
apprentices in the occupation after the
conclusion of their current training
cycle.
Section 29.8—Standards of
Apprenticeship
Proposed § 29.8 describes the
minimum standards of apprenticeship
that would apply for all apprenticeship
programs that are registered by a
Registration Agency. The establishment
and implementation of robust standards
of apprenticeship is essential to
ensuring that registered apprenticeship
programs deliver consistently highquality training to apprentices, while
also ensuring that apprentices are
trained in a safe and accessible
workplace environment where they are
protected from exploitation and abuse.
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3151
While the current version of the labor
standards of apprenticeship regulation
at 29 CFR 29.5 does establish minimum
standards of apprenticeship for the
conduct of registered programs that
address key program components (such
as progressively increasing wages,
apprentice-to-journeyworker ratios,
work process schedules, safety
requirements, probationary periods, and
advanced standing and credit), the
revised regulation would further
elaborate and strengthen those
minimum standards. As discussed in
detail below, the proposed rule would
extend the application of such
minimum standards of apprenticeship
to important topics that are not
addressed in the current regulation,
such as establishing a cost transparency
and reasonableness requirement for
registered apprenticeship programs, as
well as stipulating that such programs
undertake effective measures to ensure
that apprentices are free from violence,
intimidation, and retaliation in the
workplace. Proposed § 29.8 would
change the order in which the standards
of apprenticeship are listed to assist
program sponsors, participating
employers, apprentices, and other
interested parties in understanding the
minimum standards of apprenticeship.
Finally, proposed § 29.8 would include
additional requirements as a result of
statutory changes enacted by Congress.
Taken together, the updated standards
provisions contained in proposed 29
CFR 29.8 are intended to enhance
registered apprenticeship program
quality and to safeguard the welfare of
apprentices.
Proposed paragraph (a) is based on an
existing provision that sets forth that a
registered apprenticeship program must
have a written set of standards of
apprenticeship and outlines what
provisions must be included in those
standards.
Proposed § 29.8(a)(1), which is based
on an existing provision, would require
that the standards of apprenticeship
contain a provision that establishes the
minimum eligibility requirements for
entry into the registered apprenticeship
program. Proposed § 29.8(a)(1), as with
the existing provision, sets forth the
minimum starting age for an apprentice
of not less than 16 years to reflect the
general 16-year minimum age
requirement for apprentices to be
employed in otherwise prohibited
occupations in nonagricultural
employment under the Fair Labor
Standards Act. See 29 U.S.C. 203(l).
However, proposed § 29.8(a)(1) would
update the provision by explicitly
stating that the minimum starting age
could be higher than 16 years if required
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by Federal, State, or local law. Certain
occupations suitable for registered
apprenticeship could be subject to
Federal or State laws that require a
minimum starting age that is higher
than 16 years; for example, an
electrician’s occupation would require
individuals to be at least 18 years of age
in many circumstances.78
Proposed 29 CFR 29.8(a)(2) is not a
new requirement for program sponsors.
Under the current regulations at 29 CFR
29.5(b)(21), the Department requires
program sponsors to include a provision
in their program standards that
describes the program’s method for the
selection of apprentices. The current
regulations specify that program
standards for all registered
apprenticeship programs must fully
comply with the EEO in Apprenticeship
regulations at 29 CFR part 30, and
current 29 CFR 29.5(b)(21)—which
forms the basis for the language
proposed at § 29.8(a)(2) in this NPRM—
specifies that selection procedures must
conform to the regulations governing the
selection of apprentices at current 29
CFR 30.10. The current regulatory text
covers selection procedures within a
provision that includes other
requirements for program sponsors that
have EEO elements and corresponding
part 30 requirements. The Department
has determined that the regulatory
community would benefit from the
clarity that would arise from separating
these elements out into distinct
provisions. Accordingly, the
Department proposes to relocate a
distinct provision covering selection
procedures to proposed 29 CFR
29.8(a)(2) and clarifies in this proposed
provision that selection procedures
must conform to the corresponding
requirements at 29 CFR 30.10.
The EEO in Apprenticeship
regulations at 29 CFR 30.10 reiterate the
part 29 requirement that sponsors must
submit selection procedures in the
written plan for their program
standards, which are submitted to and
approved by the Registration Agency.
The regulations at 29 CFR 30.10
stipulate that sponsors may use any
method or combination of methods for
the selection of apprentices, as long as
the selection method(s) comply with the
Uniform Guidelines on Employee
Selection Procedures found at 41 CFR
part 60–3, which require an evaluation
of the selection procedures’ impact on
78 See ETA, TEN No. 31–16, ‘‘Framework on
Registered Apprenticeship for HS Students,’’
including Attachment 1, ‘‘Guide on Child Labor
Laws and Workers’ Compensation for Apprentice
Minors,’’ Jan. 17, 2017, https://www.dol.gov/
agencies/eta/advisories/training-and-employmentnotice-no-31-16.
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race, sex, and ethnic groups, as well as
a demonstration of the business
necessity for procedures that result in
an adverse impact across any of these
demographic groups. The regulations at
29 CFR 30.10 also stipulate that
selection procedures be applied
uniformly and consistently across all
applicants and apprentices, and that the
selection procedures must comply with
title I of the Americans with Disabilities
Act (ADA) and the implementing
regulations at 29 CFR part 1630. Finally,
the regulations at 29 CFR 30.10 clarify
that selection procedures must be
facially neutral with respect to race,
color, religion, national origin, sex,
sexual orientation, age (40 or older),
genetic information, and disability. Per
the ruling from Washington v. Davis,
426 U.S. 229 (1976),79 a decision (or
selection procedures, in the case of the
apprenticeship regulations at parts 29
and 30) appears facially neutral if it
neither creates a ‘‘suspect classification’’
nor infringes on a ‘‘fundamental right.’’
These regulatory requirements are
unchanged by this NPRM, and existing
program sponsors in compliance with
the existing regulations would not need
to make any changes to their current
practices with respect to selection
procedures and the submission of
information about selection procedures
to the Registration Agency. Any
potential new programs seeking to enter
the National Apprenticeship System
must comply with the selection
procedures regulations at parts 29 and
30, and the Department stands ready to
provide subregulatory guidance on these
requirements or any other requirements
related to the development, submission,
and approval of program standards.
Proposed 29 CFR 29.8(a)(3) is a new
proposed provision in the program
standards section of the part 29
registered apprenticeship regulations,
but it corresponds to existing
requirements in the part 30 EEO
regulations regarding the registered
apprenticeship program sponsor’s
obligation to take affirmative steps to
provide EEO in apprenticeship.
Proposed paragraph (a)(3) would require
program sponsors to include a
description of their recruitment area for
new apprentices in their program in the
written program standards they submit
to the Registration Agency. The
Department has determined that the
benefits of requiring a written statement
on recruitment area in the program
79 Thomas B. Henson, ‘‘Proving Discriminatory
Intent From a Facially Neutral Decision With A
Disproportionate Impact,’’ 36 Wash. & Lee L. Rev.
109 (1979), https://scholarlycommons.law.wlu.edu/
wlulr/vol36/iss1/5.
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standards are two-fold: first, as a matter
of transparency and access, receiving
this information from sponsors would
enable OA, SAAs, and other
stakeholders to collaborate with
program sponsors in outreach and
awareness efforts to attract new
apprentices to a program.
Understanding whether a program is
recruiting new participants online, in a
given geographic area, or some
combination thereof, for example, is
useful information for OA, SAAs, and
other stakeholders to include in
publicizing registered apprenticeship
program availability and options for
potential apprentices, such as through
the Apprenticeship Finder portal on
Apprenticeship.gov.
In addition to the benefits related to
access and transparency for this
proposed addition, the Department has
determined that requiring sponsors to
report their recruitment area in their
program standards would ultimately
benefit sponsors in meeting their EEO
obligation to engage in universal
outreach and recruitment, as required
by the existing regulations at 29 CFR
30.3(b). Identifying the recruitment area
is a key piece of a program’s outreach
because the EEO regulations require that
sponsors implement measures to ensure
outreach and recruitment efforts extend
to all people available to potentially
participate in a registered
apprenticeship program without
excluding any person based on race,
sex, ethnicity, or disability.
Understanding a program’s recruitment
area is also important for identifying
potential partnerships in a given area—
these may be local government-funded
resources, like one-stop centers or local
workforce development boards, privatesector partners looking to support
workforce development and locate
potential talent for businesses, or
community-based organizations or other
community non-profit entities that are
engaged and active with the local
community and its resident. Ultimately,
proposed paragraph (a)(3) is not a new
requirement for program sponsors,
which must identify their recruitment
area as part of compliance with the part
30 EEO regulations. The Department has
determined that requiring that program
sponsors include information about
their recruitment area in their program
standards would provide transparency
on programs’ recruitment processes,
would improve access to programs for
interested apprentices, and would assist
programs in meeting their EEO
requirements. Examples of the
recruitment area could include a range
of miles from the location of the sponsor
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(e.g., within 100 miles of a city) or a
political jurisdiction (e.g., residents of a
State or counties). Identifying the
program’s recruitment area would also
help the program identify resources to
assist with outreach to a diverse set of
prospective apprentices in a given area.
OA’s Universal Outreach Tool includes
contact information for non-profit, State,
local, and community organizations,
and other resources to assist with
targeted outreach.80 Ultimately, the
requirement for programs to divulge
their recruitment area is meant to assist
programs with recruitment. Programs
benefit from diversity within apprentice
cohorts due to the variety of experiences
and perspectives that diverse
communities bring to the table, and the
corresponding EEO requirements are
intended to assist programs with
recruiting valuable candidates and to
help connect prospective apprentices
with opportunities they might not be
aware of but for such active recruitment
efforts.
Under the current labor standards of
apprenticeship regulation at § 29.5(b)(2),
a registered apprenticeship program
may adopt one of three alternative
approaches to providing apprenticeship
training: (1) a ‘‘time-based’’ approach,
which imputes an apprentice’s
acquisition of relevant occupational
skills through their completion of at
least 2,000 hours of on-the-job
apprenticeship training; (2) a
‘‘competency-based’’ approach, under
which a sponsor determines the
apprentice’s acquisition of relevant
occupational skills during the
apprenticeship, without specifying the
minimum duration of such training; or
(3) a ‘‘hybrid’’ approach, under which
an apprentice acquires skills through a
combination of a minimum number of
on-the-job training hours and the
successful demonstration of
occupational competency. In addition,
§ 29.5(b)(4) of the current regulation
stipulates that a program’s standards of
apprenticeship provide for organized,
related instruction in technical subjects
related to the occupation, and further
states that a minimum of 144 hours of
such instruction is recommended for
each year of apprenticeship training.
In this proposed rule at § 29.8(a)(4)(i),
the Department proposes to eliminate
the tripartite on-the-job training
approaches established in the current
regulation and substitute a streamlined,
unitary training approach for use by all
registered apprenticeship programs that
would combine key features of the
80 OA, ‘‘Outreach Tool,’’ https://www.dol.gov/
agencies/eta/apprenticeship/eeo/recruitment/
outreach-tool (last visited July 20, 2023).
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current time-based and competencybased approaches to on-the-job training
approaches. Proposed § 29.8(a)(4)(i)
would establish a uniform minimum
term of on-the-job apprenticeship
training of not fewer than 2,000 hours
in duration to ensure an apprentice’s
acquisition of proficiency in all of the
skills and competencies relevant to an
occupation during that apprenticeship
term; 81 it would combine this minimum
on-the-job durational component with a
requirement that the apprenticeship
program provide an apprentice with all
of the skills and competencies necessary
to become proficient in the covered
occupation. In effect, the proposed
unitary approach to on-the-job training
for all apprenticeship programs would
resemble the ‘‘hybrid’’ approach to
apprenticeship training found at 29 CFR
29.5(b)(2)(iii) of the current regulation,
one that that measures skill acquisition
through a combination of a specified
number of hours of on-the-job training
and a demonstration of relevant
occupational competencies.
The Department recognizes that the
minimum apprenticeship term for a
particular occupation may be greater
than the 2,000-hour threshold in those
instances where a longer term of
apprenticeship training is the customary
industry standard for acquiring
technical proficiency within that
occupation. Conversely, the Department
notes that the proposed minimum
2,000-hour requirement for program
duration could be reduced on a case-bycase basis for individual apprentices in
instances where an apprentice is
granted advanced standing or credit by
the program for prior learning or
previously acquired skills and
experience,82 or in instances where an
apprentice makes accelerated progress
in the acquisition of occupational
competencies during the course of their
apprenticeship (see proposed
§ 29.8(a)(20)).
81 As a matter of current administrative practice,
OA has ordinarily not registered a set of standards
of apprenticeship that have included fewer than
2,000 hours of on-the-job training for apprentices,
as the current regulations (at 29 CFR 29.4) do not
regard an occupation that requires fewer than 2,000
hours as one that is suitable for apprenticeship
training.
82 The Department notes that the proposed
minimum 2,000-hour requirement for program
duration could be reduced on a case-by-case basis
for individual apprentices in instances where an
apprentice is granted advanced standing, receives
credit by the program for prior learning or
previously acquired skills and experience, or
completes a registered CTE apprenticeship or preapprenticeship program, or in instances where an
apprentice makes accelerated progress in the
acquisition of occupational competencies during
the course of their apprenticeship (see proposed
§ 29.8(a)(20)).
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The adoption of a unitary on-the-job
training approach in the standards of
apprenticeship would serve to clearly
differentiate registered apprenticeship
programs from shorter-term, less
intensive workforce training approaches
(i.e., training programs of less than a
year of full-time work in duration),
while also expressly linking this
minimum durational requirement to a
fundamental premise: that all registered
apprenticeship programs must impart
occupational skills and competencies to
the apprentices whom they train, and
that apprentices reach proficiency in the
occupation when they complete the
apprenticeship (this idea was discussed
at length in the preamble to proposed
§ 29.7 above). Combining occupational
competency and proficiency outcomes
with a uniform minimum durational
requirement would address a criticism
that the current ‘‘time-based’’ approach
to apprenticeship training permitted
under the current regulation only
obligates apprentices to complete a
designated quantity of on-the-job ‘‘seat
time’’ in that program to obtain a
Certificate of Completion. Moreover,
this proposed reform would prevent
sponsors from providing considerably
less than 2,000 hours of on-the-job
training by utilizing the ‘‘competencybased’’ approach. Such a lower
durational threshold for competencybased training would be conspicuously
at odds with the current 2,000-hour
minimum standard required for an
occupation to be considered suitable for
registered apprenticeship training under
the current regulation at 29 CFR 29.4
and in proposed § 29.7. That approach,
if used by a program to seek program
registration for the Federal benefits
associated with such registration but
without providing an opportunity for
the apprentice to reach proficiency in an
occupation through dedicated
employment in on-the-job training,
would harm the apprentice’s ability to
learn and benefit from registered
apprenticeship.
The notion of linking the minimum
duration of an apprenticeship term to
the acquisition of key occupational
competencies by apprentices received a
clear endorsement in the ACA’s 2022
Interim Report, which recommended
updating the current regulatory
framework ‘‘to ensure competency
attainment is achieved through all
[training] models, while providing
certain protections into standards with
regard to time in [on-the-job training] to
ensure proficiency is obtained,
potentially expanding the hybrid model
as a long-term goal for quality
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standards.’’ 83 The proposed unitary
training approach also would align with
the 2023 Quality Apprenticeships
Recommendation of the ILO, which
advises Member States to establish
standards for quality apprenticeships
that address, among other things, ‘‘the
expected minimum and maximum
duration of [an] apprenticeship’’,84 and
it also would be fully consistent with
another provision of the same ILO
recommendation, which advises
Member States to take into account ‘‘the
duration of the apprenticeship required
to acquire [occupational]
competencies.’’ 85
The proposed establishment of a
2,000-hour (or 1 year of full-time work
equivalent) minimum standard for onthe-job-training would also be
consistent with the notion of a
minimum duration of on-the-job
training for apprenticeship programs
that are regulated in G20 nations and
other peer countries,86 including
Canada,87 Australia,88 the United
Kingdom (i.e., England),89
83 ACA, ‘‘Interim Report to the Secretary of
Labor,’’ May 16, 2022, at 14, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
84 ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), Conclusion 10(g), June 16, 2023, https://
www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
85 ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), Conclusion 9(c), June 16, 2023, https://
www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
86 ILO, ‘‘Overview of Apprenticeship Systems and
Issues: ILO Contribution to the G20 Task Force on
Employment,’’ Nov. 2012, at 5 (see Table 2,
‘‘Regulated apprenticeship and youth
unemployment in selected G20 countries’’).
87 Apprenticeships in Canada ordinarily are
between 2 and 5 years on duration. See Government
of Canada, ‘‘How to become an apprentice,’’ https://
www.canada.ca/en/services/jobs/training/supportskilled-trades-apprentices/become-apprentice.html
(last updated Mar. 31, 2023).
88 Apprenticeships in Australia are ordinarily
between 1 and 4 years in duration. See Fair Work
Ombudsman of the Australian Government, ‘‘Guide
to Starting an Apprenticeship,’’ June 2023, at 2,
https://www.fairwork.gov.au/sites/default/files/
migration/712/guide-to-starting-anapprenticeship.pdf.
89 Apprenticeships in England are ordinarily
between 1 and 5 years in duration and cannot be
less than 1 year in duration. See Andrew Powell,
‘‘Apprenticeships Policy in England,’’ House of
Commons Library, Jan. 20, 2023, at 10, https://
researchbriefings.files.parliament.uk/documents/
SN03052/SN03052.pdf, as well the information on
the following website: https://www.gov.uk/
employing-an-apprentice.
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Switzerland,90 and Germany.91
Accordingly, if workers in the United
States who complete a registered
apprenticeship program are to remain
competitive with their counterparts
from these other nations, it is imperative
that American apprentices receive the
same quality and quantity of substantial,
sustained, on-the-job apprenticeship
training that is offered to similarly
situated workers elsewhere.
The advantage of linking a minimum
term of on-the-job apprenticeship
training to the acquisition of an
apprentice’s acquisition of occupational
proficiency was articulated in a 2012
landmark report prepared for the
Government of the United Kingdom (the
Richard Review of Apprenticeships) 92
that spurred the enactment of major
apprenticeship reforms by the United
Kingdom parliament. The review’s
author, Doug Richard, made the
following observations, which the
Department believes are both relevant
and applicable to registered
apprenticeship in the United States:
[A]pprenticeships must endure. There is
real value in an apprenticeship lasting for a
year or more. Apprenticeships measured in
weeks or months, even if it is enough time
to teach the required material and gain the
requisite experience, can still fall short. It is
as though the apprenticeship experience
itself requires time to bed in and for the
individual to transform from an apprentice to
a skilled worker.93 . . . [A] minimum
duration [of apprenticeship training] should
be made mandatory . . . [and] may help
guard against instances of poor employer
practice and protect the interests of the
learner.94
The Department expects that ensuring
that the on-the-job-training component
of a registered apprenticeship program
has a sustained duration of at least 2,000
hours would benefit program sponsors,
employers, and the economy at large
because workers completing such
programs would be well-grounded and
proficient in the skills and
90 Apprenticeships in Switzerland are ordinarily
between 1 and 2 years in duration. See SwissInfo,
‘‘Apprenticeships and high school,’’ https://
www.swissinfo.ch/eng/politics/apprenticeshipsystem/43796482 (last visited July 20, 2023).
91 Apprenticeships in Germany are ordinarily
between 2 and 3.5 years in duration. See Fazit
Communication GmbH, ‘‘Dual vocational training,’’
https://www.tatsachen-ueber-deutschland.de/en/
working-germany/dual-vocational-training (last
visited July 20, 2023).
92 Doug Richard, ‘‘The Richard Review of
Apprenticeships: Main Report,’’ Nov. 2012, https://
www.gov.uk/government/publications/the-richardreview-of-apprenticeships.
93 Doug Richard, ‘‘The Richard Review of
Apprenticeships: Call For Evidence,’’ June 2012, at
10, https://assets.publishing.service.gov.uk/
government/uploads/system/uploads/attachment_
data/file/34708/richard-review-full.pdf.
94 Id. at 90.
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competencies associated with the
occupation for which they have
received training, thereby enhancing
their overall productivity and labor
market mobility.95 96 To ensure that such
a minimum durational requirement
could be sustained by apprentices who
face structural barriers to registered
apprenticeship programs, the proposed
regulation contains a provision (at
§ 29.10(a)(4)) that would require
sponsors, as a condition for program
registration, to submit a written plan for
the equitable recruitment and retention
of apprentices. The plan could describe
any partnerships that the apprenticeship
program will establish with external
entities to provide for the delivery of
supportive services to apprentices who
face such impediments.97 The
Department also believes that the
adoption of this proposed unitary
approach to apprenticeship training
would provide all apprentices,
including those from underserved
communities, with a more sustained
and comprehensive training regimen for
acquiring the skills required to attain
proficiency in an occupation than the
shorter-term ‘‘competency-based’’
alternatives that have been proposed by
some applicants.
It is also important to note that the
longstanding 2,000-hour minimum
durational standard in the United States
for the on-the-job training component of
an apprenticeship that is expressed in
the current regulation actually predates
the enactment of the NAA. The standard
was established, pursuant to the labor
standards-setting authority contained in
the National Industrial Recovery Act of
1933, under President Franklin D.
Roosevelt’s Executive Order (E.O.)
6750–C (June 27, 1934); the same
presidential directive also established
the Federal Committee on
Apprenticeship Training (the forerunner
of today’s ACA) to advise the Secretary
on apprenticeship-related matters.
Pursuant to that executive order, the
Secretary issued ‘‘General Regulation
No. 1’’ on August 14, 1934, which
95 See Beth Stackpole, ‘‘Practical Ways to Tackle
Manufacturing’s Labor Crunch,’’ Massachusetts
Institute of Technology Sloan School of
Management, May 16, 2022, https://
mitsloan.mit.edu/ideas-made-to-matter/practicalways-to-tackle-manufacturings-labor-crunch.
96 See Beth Stackpole, ‘‘How to Make ‘Work of the
Future’ Work for Everyone,’’ Massachusetts
Institute of Technology Sloan School of
Management, Apr. 26, 2022, https://
mitsloan.mit.edu/ideas-made-to-matter/how-tomake-work-future-work-everyone.
97 See Gregory Ferenstein, ‘‘Job Training Programs
Are Rarely Flexible Enough to Succeed,’’ Brookings
Institution, Sept. 16, 2019, https://
www.brookings.edu/blog/techtank/2019/09/16/jobstraining-programs-are-rarely-flexible-enough-tosucceed.
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directed the Federal Committee on
Apprenticeship Training to promulgate
standards of apprenticeship consisting
of not fewer than 2,000 hours of on-thejob training and not fewer than 144
hours of ‘‘group instructions in general
and technical subjects.’’ 98 There has
been almost 90 years of successful
implementation of this 2,000 hour
minimum on-the-job training durational
standard at the Federal level, and this
standard has been accepted over the
years and across all industries as a key
attribute of a high-quality
apprenticeship program.
The proposed rule at § 29.8(a)(4)(ii)
also would modify the current
regulatory provision that appears at 29
CFR 29.5(b)(4) by expressly requiring,
rather than recommending, that
registered apprenticeship programs
provide to apprentices a minimum
average of 144 hours of related
instruction in technical subjects
relevant to the occupation for every
2,000 hours of on-the-job training
provided by the program. As discussed
above, the related instruction portion of
the program is necessary to complement
the on-the-job training by providing an
apprentice with a sufficient amount of
classroom learning that conveys key
foundational and theoretical concepts
that an apprentice needs to acquire in
order to obtain full proficiency in the
occupation covered by the program. In
this connection, the Department invites
comment from the public on whether
the proposed 144-hour minimum
durational requirement for related
instruction is sufficient, or whether it
should be raised to a higher amount,
given that several Western nations (such
as Canada,99 Austria,100 and England 101
(in the case of English apprentices who
work more than 30 hours a week))
stipulate that at least 20 percent of the
apprentice’s paid hours, over the usual
minimum duration of a 1-year
apprenticeship, have to be spent on off98 Lucius Q.C. Lamar, ‘‘History of General
Exemptions,’’ National Recovery Administration,
Division of Review, Mar. 1936, at 36–37, https://
www.govinfo.gov/content/pkg/GOVPUB-Y3_N21_807cbfa706293e70fe6faff2cd615eb3d/pdf/GOVPUBY3_N21_8-07cbfa706293e70fe6faff2cd615eb3d.pdf.
99 See Government of Canada, ‘‘How to become
an apprentice,’’ https://www.canada.ca/en/services/
jobs/training/support-skilled-trades-apprentices/
become-apprentice.html (last updated Mar. 31,
2023).
100 See Federal Ministry of Labour and Economy,
‘‘Apprenticeship training procedure (vocational
training, apprenticeship diploma),’’ Feb. 24, 2023,
https://www.oesterreich.gv.at/en/themen/bildung_
und_neue_medien/lehre/Seite.333400.html.
101 See Andrew Powell, ‘‘Apprenticeships Policy
in England,’’ House of Commons Library, Jan. 20,
2023, at 10, https://
researchbriefings.files.parliament.uk/documents/
SN03052/SN03052.pdf.
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the-job training (which would
correspond to a 400-hour minimum
durational requirement for related
instruction for U.S. apprenticeships of
2,000 hours in duration). Commenters
who advocate a higher minimum
threshold for related instruction than
the one set forth in this proposal should
also provide their opinion regarding
whether such a revised requirement
should be phased in over time.
The Department is also interested in
any alternative suggestions from
commenters, particularly as the
Department is looking to align
education systems more closely with
registered apprenticeship, on whether a
topic such as semester or trimester
hours should be considered. Based on
analysis by ED, 30 in-class or ‘‘clock’’
hours equates to 1 semester hour of
academic credit.102 The 144-hour
standard would approximately equate to
4 semester or trimester hours, plus an
additional 24 clock hours.
The Department is proposing
flexibility for program sponsors in how
they would count the number of hours
related to this requirement. Sponsors
may utilize contact hours, credit hours,
a conversion of credit to clock hours, or
any combination. The Department is
interested in any comments related to
ensuring and calculating the total
number of hours of related instruction
for programs. The Department considers
this to be an appropriate minimum
amount because additional related
instruction such as safety training, EEO
training, anti-harassment training, and
other sponsor or employer specific
related instruction is likely necessary to
successfully supplement the on-the-job
training portion of the registered
apprenticeship program. The
Department believes that a minimum
number of hours should be required but
is open to comments on these
alternative amounts or on whether a
minimum amount should be established
by occupation, and if so, how such
occupation specific standards should be
established.
Proposed § 29.8(a)(5) would require
that the program’s occupation(s), work
process schedules, and related
instruction outline(s) be included in the
standards of apprenticeship. The
submission by a registered
apprenticeship program of the
occupation and work process schedule
is currently required under the existing
102 See Federal Student Aid, ‘‘Implementation of
updated clock-to-credit conversion regulations,’’
May 25, 2021, https://fsapartners.ed.gov/
knowledge-center/library/electronicannouncements/2021-05-25/implementationupdated-clock-credit-conversion-regulations-ea-idgeneral-21-34.
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regulation at 29 CFR 29.5(a)(3).
However, the proposed revised
standards of apprenticeship would also
expressly require the submission of a
related instruction outline so that a
Registration Agency would have a clear
understanding of the breadth and
quality of such an off-the-job
curriculum, and its relevance to
providing an apprentice with the
theoretical knowledge needed to attain
full proficiency in an occupation. The
Department notes that a sponsor could
submit standards for multiple
occupations as part of their submission,
and if so, would need to submit work
process schedules and related
instruction outlines for every
occupation for which it is seeking
program registration.
Proposed § 29.8(a)(6) would add a
new requirement that the standards of
apprenticeship must include the related
instruction provider and the
instructional methods used to deliver
related instruction. Currently, there is
not a provision for including the related
instruction provider or the instructional
methods used to deliver related
instruction in the development and
subsequent approval of standards of
apprenticeship. However, information
about the related instruction provider
and types of methods to deliver
instruction is collected during program
registration through Section I of the ETA
671 Form. Currently § 29.5(b)(4)
requires standards of apprenticeship to
include a ‘‘[p]rovision for organized,
related instruction in technical subjects
related to the occupation’’ and provides
examples of how the instruction in
technical subjects may be delivered.
Permissible instructional methods
include in-person classroom instruction;
occupational or industry courses;
electronic media, such as delivery via
web-based instructional platforms; or
other appropriate instructional methods
that are approved by the Registration
Agency. The proposed requirement for
including this new information in
standards of apprenticeship would
create a record of the instructional
methods utilized by the program to
deliver related instruction to
apprentices, thus providing the
Department with a better picture of the
types and prevalence of the different
instructional modes and methods used
by programs generally.
Proposed § 29.8(a)(7) is new and
would create a requirement that the
standards of apprenticeship include an
attestation to document in writing that
the qualifications and experience of the
trainers and instructors providing the
on-the-job training and related
instruction to apprentices satisfy the
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requirements in proposed § 29.12. The
proposed requirement in this section
would be an acknowledgment in the
standards that the requirements of
proposed § 29.12 are being met. The
Department believes it is important that
the standards of apprenticeship include
this requirement so that programs can
ensure they meet these requirements
and submit it as part of their application
in the standards in proposed § 29.10.
Proposed § 29.8(a)(8) is new and
would create a requirement that the
standards of apprenticeship include a
description of interim credentials
(including recognized postsecondary
credentials), qualification, or credit
received by an apprentice during the
term or upon the completion of the
registered apprenticeship program. The
Department proposes this new
requirement to provide increased
transparency to the apprentice who,
with this description, would be better
able to understand the credentials and
credit that they would receive because
of participating in the apprenticeship
program. Proposed § 29.8(a)(8)(i), which
is based on an existing requirement,
would require that the description
include any interim credentials issued
to an apprentice during the term of the
registered apprenticeship program.
Proposed § 29.8(a)(8)(ii) would require
that the description include any
industry-portable occupational
qualification, license, credential, or
certification that the apprentice
receives, or may be eligible to receive,
upon completion of the registered
apprenticeship program. The
Department is interested in collecting
this information because it is aware that
some programs do provide this
information, and the potential benefits
to apprentices as result of the
attainment of these credentials means
that the Department should begin
collecting more information from
program sponsors on this development.
The Department is interested in any
comments on this new requirement to
collect more information about
credentials and other measures as part
of the registration process.
Proposed § 29.8(a)(8)(iii) would
recognize that some registered
apprenticeship programs may be
operated by, or in partnership with,
educational institutions that provide
postsecondary credit.103 Accordingly,
this provision would require that the
description include any postsecondary
103 ED, Office of Career, Technical, and Adult
Education, ‘‘Opportunities for Connecting
Secondary Career and Technical Education (CTE)
Students and Apprenticeship Programs,’’ June 2017,
https://careertech.org/resource/connectingsecondary-cte-and-apprenticeships.
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credit that an apprentice receives, or
may be eligible to receive, upon
completion of the related instruction or
on-the-job training components of the
registered apprenticeship program. The
Department notes that there would not
be a requirement to provide additional
credentials or postsecondary credit in a
registered apprenticeship program;
however, it acknowledges that many
programs do provide this already, and is
requiring this to be included in the
standards to support the welfare of
apprentices by providing them key
information about the credentials and
credit they would obtain as part of their
participation in a registered
apprenticeship program.
Proposed § 29.8(a)(9) would create a
new, separate provision that would
require a statement in the standards of
apprenticeship of whether time the
apprentice spends in the related
instruction component of the
apprenticeship training would be
counted as hours worked, and if so,
what the wage rate and any fringe
benefits would be for those hours. This
requirement would serve as a safeguard
to ensure that sponsors consider the
payment of wages for related instruction
and to provide notice to the apprentices
of whether paid related instruction is a
part of the registered apprenticeship
program’s standards. In considering
whether related instruction would be
paid, sponsors must comply with any
Federal, State, or local legal
requirements regarding the payment of
wages for training time, including, but
not limited to, the Fair Labor Standards
Act and its implementing regulations. In
addition, regardless of any legal
obligations to pay for related instruction
time, sponsors may choose to do so for
the benefit of the apprentices.
Proposed § 29.8(a)(10) would be a
new requirement for sponsors to set
forth a process for regularly assessing
and providing feedback to the
apprentice regarding the apprentice’s
acquisition of job-related knowledge,
skills, and competencies during the onthe-job training component of the
apprenticeship. It would expand upon
the requirement in existing § 29.5(b)(6)
of periodic review and evaluation of the
apprentice’s performance on the job by
requiring that a process for regular
assessment of knowledge, skills, and
competencies be set forth in the
standards and that such feedback be
shared with the apprentice. The
Department notes the importance that
feedback provided would be inclusive
and structured in a way that would be
accessible to all apprentices, including
those with disabilities. This provision is
intended to complement proposed
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§ 29.8(a)(4), which would set forth the
minimum term for the registered
apprenticeship program sufficient for an
apprentice to attain proficiency in the
occupation, and proposed § 29.10(a)(1),
which would require a sponsor to
include in the submission for program
registration the work process schedule
and related instruction outline, by
coupling the time requirements of the
overall apprenticeship term, and work
process schedule within such
apprenticeship term, with a process for
regular assessments. A clear process for
regular assessment throughout the term
of the apprenticeship, using the work
process schedule and the term of the
apprenticeship to measure progress,
would ensure that the apprentice is
achieving competencies and advancing
throughout the registered
apprenticeship program in accordance
with the program standards.
Additionally, a process for regular
feedback would ensure ongoing
dialogue regarding the performance of
the apprentice and their progress
through the program, as measured
against the work process schedule and
the term of the apprenticeship as set
forth in the performance standards.
Finally, to the extent that the
progressive wage is measured by certain
competencies achieved (rather than a set
schedule per the terms of a collective
bargaining agreement, for example), a
process for regular assessment and
feedback would ensure that the
apprentice is on track for the wage
progression set forth in the program
standards and the apprenticeship
agreement.
This proposed paragraph also
provides that in instances in which an
apprentice attains such occupational
skills and competencies at an
accelerated pace, the program may grant
advanced standing to such an
individual pursuant to proposed
§ 29.8(a)(20). This would allow
flexibility for high performing
apprentices who progress through their
apprenticeship at an accelerated rate to
gain advanced standing or credit and an
increased wage commensurate with
such progression. In this way, there
would be flexibility for the sponsor to
adapt to the progress of apprentices
throughout the registered
apprenticeship program and allow for
acceleration where appropriate. The
Department anticipates that such
individual apprentices, may be able to
complete their apprenticeship terms
with fewer hours of on-the-job training
or related instruction than the minimum
standard established under the
proposed rule at § 29.8(a)(4). Because of
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the requirement around the attainment
of competencies that lead to
occupational proficiency, and the
requirement that apprentices be
continuously assessed on their progress,
it is critical that programs establish clear
methods to assess the progress of all
apprentices and to accurately identify
and credit those apprentices who are
progressing at an accelerated pace.
Proposed § 29.8(a)(11) would address
the utilization of end-point assessments
the program uses to determine if an
apprentice is fully proficient in the
occupation and eligible to complete
their registered apprenticeship program.
Proposed § 29.16 would require
stipulating the administration of an endpoint assessment to apprentices at the
conclusion of their apprenticeship term
and proposed § 29.18 would require the
maintenance of appropriate apprentice
progress records by the sponsor or
participating employer. As explained
more fully at proposed § 29.16, an endpoint assessment would serve to
validate that the apprentice was
successful in acquiring the skills and
competencies necessary for proficiency
in the covered occupation. The
Department notes the importance of
structuring end-point assessments in a
manner that is inclusive to all
apprentices, including those with
disabilities. The requirement in this
section would be an acknowledgment in
the standards that the requirements of
§ 29.16 are being met. The Department
believes it is important that the
standards of apprenticeship include this
requirement so that the process is clear
to anyone reviewing the program
standards.
Proposed § 29.8(a)(12) would retain
language from the 2008 final rule at
§ 29.5(b)(8), which stipulates the
provision of a probationary period that
is ‘‘reasonable’’ and does not exceed 25
percent of the length of the program, or
1 year, whichever is shorter.
Proposed § 29.8(a)(13) is new and
would require that the standards of
apprenticeship include a statement that
the registered apprenticeship program
will be conducted in accordance with
all applicable Federal, State, or local
laws. The Department proposes to add
this requirement to emphasize that the
apprenticeship programs registered
under this part must ensure apprentice
safety and welfare. Program sponsors
are responsible for ensuring their
programs meet the requirements for
apprentices to legally work in the
occupation in which they are doing onthe-job training, such as if there are
State licenses required to perform the
work. In instances where the sponsor is
not operating in accordance with all
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applicable law, they could be subject to
deregistration proceedings for
noncompliance with their program
standards.
Proposed § 29.8(a)(14) is new and
would require that the standards of
apprenticeship include a statement that
apprentices participating in an
apprenticeship program registered
under this part are entitled to the same
worker allowances, rights, and
protections, afforded by applicable
Federal, State, or local laws, to which
similarly situated, non-apprentice
employees would be entitled. Such
worker allowances, rights, and
protections could include, but would
not be limited to, family and medical
leave; workers’ compensation; and
health and retirement plan benefits. The
Department proposes to add this
requirement in furtherance of its goal to
ensure that these minimum standards of
apprenticeship protect apprentice safety
and welfare, while noting that it would
not require that apprentices receive
allowances, rights, and protections that
similarly situated non-apprentices
would not also be entitled to receive.
The Department anticipates that adding
this requirement would also provide
apprentices with information about the
allowances, rights, and protections to
which they may be entitled, increasing
transparency, and allowing potential
apprentices to make an informed choice
regarding a specific program.
Proposed § 29.8(a)(15) would expand
upon an existing requirement and make
changes to further emphasize the
Department’s commitment to ensuring
apprentice safety and welfare.
Specifically, proposed § 29.8(a)(15)
would require that the standards of
apprenticeship include an attestation
that the program sponsor will provide
adequate, safe, and accessible facilities
for the training and supervision of
apprentices. Additionally, sponsors
should provide any documentation,
where available, to support their
attestation, such as any OSHA or other
relevant certifications. The Department
acknowledges that not all sponsors may
have such certifications at the time of
program registration, or they may not be
relevant to all sponsors. However, this
information could assist the Department
in ascertaining a program’s ability to
meet this requirement. The Department
proposes to change the existing
requirement by requiring that the
attestation include that the program
sponsor will provide accessible facilities
(including for individuals with
disabilities), aligning with the
Department’s broader goal that
apprenticeship programs registered
under this part are career pathways
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available to everyone. For example, to
ensure facilities are accessible, programs
should ensure bathrooms and changing
facilities, including for provision of
lactation, should be close to sites where
work and training is taking place.
Additionally, such attestations and
documentation for safety would need to
ensure that personal protective
equipment is available to apprentices
and fits appropriately according to each
apprentice’s size and body type. The
Department adds that the attestation
also would require that the facilities be
compliant with all applicable Federal,
State, and local laws, including, but not
limited to, disability, occupational
safety, and occupational health laws.
Proposed § 29.8(a)(16) would create a
new requirement that the standards of
apprenticeship include an attestation
that the program sponsor will provide
adequate, industry-recognized safety
training for apprentices in both the onthe-job training and related instruction
components of the registered
apprenticeship program. This proposed
change would expand upon the existing
requirement at 29 CFR 29.5(b)(9) that
addresses safety training in the
standards of apprenticeship. This
expanded requirement would further
the goal of ensuring apprentice safety
and welfare. Proposed § 29.8(a)(16)
would require that safety training
provided to apprentices be tailored to
mitigate the potential workplace
hazards that may be encountered in the
covered occupation. For example, the
standards of apprenticeship for
registered apprenticeship programs in
the electrician occupation would need
to include an attestation that the
program sponsor will provide adequate,
industry-recognized safety training that
addresses potential workplace hazards
encountered specifically by electricians.
Proposed § 29.8(a)(17) would require
the written standards to include wages
and fringe benefits that the apprentice
will receive during the registered
apprenticeship program. The current
regulation at 29 CFR 29.5(b)(5)
stipulates the payment of a
progressively increasing schedule of
wages to be paid to the apprentice with
the skill required, and the entry wage
may not be less than the Fair Labor
Standards Act minimum wage, where
applicable, unless a higher wage is
required by other applicable Federal law
(such as the Davis-Bacon and related
Acts), State law, respective regulations,
or by collective bargaining agreement.
In the proposed rule at § 29.8(a)(17),
the Department proposes to add the
requirement that fringe benefits
provided to the apprentice also be
articulated in the program standards.
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The phrase ‘‘fringe benefits’’ is intended
to convey the generally understood
meaning of providing benefits as a part
of overall compensation, such as health
insurance and contributions to
retirement plans. For registered
apprenticeship programs subject to the
Davis-Bacon and related Acts and the
McNamara-O’Hara Service Contract Act,
the more specific requirements of the
Acts, including those relating to fringe
benefits, apply in addition to the
proposed requirements of this section.
The Department views the proposed
addition of ‘‘fringe benefits’’ as
strengthening the standards by
providing clarity and transparency
around the fringe benefits provided to
apprentices.
The Department also proposes to
retain the requirement of a minimum
wage floor at the outset of the
apprenticeship and a graduated
schedule of progressively increasing
wages for apprentices during the
remainder of the apprenticeship term.
However, the proposed § 29.8(a)(17)
would stipulate that the graduated
schedule of wages paid to an apprentice
would increase over the balance of the
apprenticeship term to reflect the
apprentice’s progressive acquisition of
occupational skills and
competencies.104
BASIC REQUIREMENTS FOR THE PROPOSED WAGE STANDARD IN REGISTERED APPRENTICESHIP
[Sample program with the minimum required 2,000-hour duration, and with a journeyworker wage of $20.00/hour]
Initial Apprentice Wage
Entry–3 months
Intermediate Step 1
3 months–6 months
Intermediate Step 2
6 months–9 months
Final Apprentice Wage
9 months–completion (1 year)
$7.25
$10.00
$12.50
$15.00
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This table reflects the basic requirements of the proposed wage standard for registered apprenticeship. Under the proposed wage standard,
wages for apprentices would need to (1) be at least at or above the Federal, State, or local minimum wage (in this example, the initial wage is
the Federal minimum wage of $7.25); (2) include at least one wage progression (in this example, there are intermediate steps reflecting wage increase after 3 and 6 months); and (3) be at least 75% of the typical journeyworker wage after the final wage progression (in this example, the
apprentice’s final wage, paid through months 9 through 12 of the program, is $15.00/hour, 75% of the journeyworker wage of $20.00/hour).
The Department also proposes that
the graduated schedule of increasing
apprentice wages paid by an employer
include at least one incremental wage
step increase between the entry wage
and the final wage step during the first
2,000 hours of the apprenticeship term,
with additional wage step increments
scheduled at reasonable intervals for
program terms of longer duration
designed to support apprentices’
progression and success throughout
their apprenticeship. This proposed
language is intended to require a
thoughtful approach to wage
progression in instances in which there
is no governing collective bargaining
agreement, such that adequate
consideration is given to recognizing
and compensating an apprentice’s
progress through the program. In
addition, the Department proposes that
the wages provision stipulate that the
apprentice’s final wage step in the
program must be not less than 75
percent of the usual journeyworker
wage paid by the employer for that
occupation, except in instances where
the scheduled progression of apprentice
wages is stipulated by other applicable
Federal, State, or local laws, such as
those governing the payment of
prevailing wages, or by the terms of an
applicable collective bargaining
agreement. This final requirement
would be especially relevant for
programs of longer duration where the
apprentice may have spent several years
with the employer and where it is more
likely that the apprentice would be
doing similarly skilled work as
journeyworkers and should therefore be
paid commensurate with that
experience. The Department notes that
Florida and Delaware have established
similar standards for the final wage step
paid to an apprentice for registered
apprenticeship programs operating in
those States, pegging that terminal wage
to a percentage of the established wage
paid to journeyworkers by an
employer.105
This revised wage provision is
intended to protect apprentices from
receiving low and relatively flat wages
over the course of the apprenticeship
term. Taken together, the enhanced
wage provisions contained at proposed
§ 29.8(a)(17) are intended to place
apprentices on a more secure career
pathway, to enable apprentices to
support themselves during an
apprenticeship, and to provide skilled
and productive apprentices with a
positive incentive for completing the
training program. The Department
invites comments on these provisions to
bolster the registered apprenticeship
progressive wage requirements and is
interested in the feasibility of this
approach across industries. The
Department believes that most programs
already provide progressive wages
consistent with these requirements but
invites comments on a way to ensure
continuous progressive wages with
competency attainment against the
needs for flexibility for industry
regarding wage increases.
In addition to these proposed wage
progression revisions, the Department
reminds sponsors that, consistent with
the requirements of 29 CFR part 30, the
wages paid by a sponsor or a
participating employer to an apprentice
must not discriminate against such
persons on the basis of race, color,
religion, national origin, sex, sexual
orientation, gender identity, age (40 or
older), genetic information, or disability.
In addition, the Department reminds
both registered apprenticeship program
sponsors and participating employers
that apprentices who meet the
definition of an employee under either
the Internal Revenue Code or the Fair
Labor Standards Act—which they will
in virtually every instance—must not be
misclassified by such sponsors or
employers as independent contractors.
Proposed § 29.8(a)(18) would address
program costs and expenses incurred by
apprentices. The current regulations do
not address or place any limitations
upon the costs, fees, or expenses that an
apprentice may be obligated to assume
104 This proposal is aligned with Conclusion 16(a)
of the 2023 Quality Apprenticeships
Recommendation of the ILO, which recommends
that apprentices ‘‘receive adequate remuneration
. . . which may be increased at different stages of
the apprenticeship to reflect the progressive
acquisition of occupational competencies.’’ ILO,
‘‘Quality Apprenticeships Recommendation, 2023’’
(ILO Recommendation No. 208), Conclusion 16(a),
June 16, 2023, https://www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
105 See Florida Administrative Code, Chapter 6A–
23.004(2)(e)(5), which utilizes the minimum
standard of 75 percent of the established
journeyworker wage for the final wage step of the
apprenticeship term, and Delaware Administrative
Code, title 19, chapter 1101, sec. 6.2.7.3, which
utilizes the minimum standards of 85 percent of the
established journeyworker wage for the final wage
step of the apprenticeship term.
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in connection with their on-the-job
training or related instruction. As some
individual apprentices lack economic
bargaining power relative to their
potential sponsors and employers, the
absence of regulatory language
governing program costs in the existing
rule has the potential to undermine the
welfare of apprentices by exposing such
persons to a heightened risk of financial
exploitation. For instance, there is
currently no obligation placed upon
sponsors or employers in the current
regulation to disclose to potential
apprentices, in advance of their
enrollment, the nature and amount of
any costs, fees, or expenses that those
individuals may incur in connection
with their participation in the program.
Moreover, there is no requirement in the
current rule stipulating that only
program costs that are both necessary
and reasonable may be charged to a
participating apprentice. The
Department is aware of circumstances
where apprentices in certain programs
have been confronted with exorbitant
costs for training, related instruction,
and other fees that have subjected them
to financial hardship and personal
indebtedness. Such costs have
sometimes also prevented apprentices
from either completing their
apprenticeship training, or from
enrolling in the apprenticeship program
in the first place.
To address these concerns, the
proposed § 29.8(a)(18) would establish
cost transparency and reasonableness
provisions as part of a program’s
standards of apprenticeship, requiring a
sponsor or a participating employer to
include in the program standards the
nature and amount of any unreimbursed
costs, expenses, or fees that the
apprentice may incur for participating
in the program (such as for equipment,
supplies, on-the-job training, related
instruction, books, tuition, or
assessment fees). This provision would
further stipulate that such unreimbursed
costs, expenses, or fees could be
assessed by a sponsor or participating
employer only if they are necessary and
reasonable, do not impose substantial or
inequitable barriers to program
enrollment or completion by an
apprentice, and are compliant with all
applicable Federal, State, and local
wage laws and regulations, including
but not limited to the Fair Labor
Standards Act, the Davis-Bacon and
related Acts, the McNamara-O’Hara
Service Contract Act, and their
implementing regulations. In instances
where a program sponsor or a
participating employer engages an
outside party or educational institution
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(such as a community college) to
provide related instruction to
apprentices enrolled in the program,
such sponsor or employer should ensure
that the terms as articulated in the
standards are complied with and that
the costs of such instruction do not
impose financial burdens of a
magnitude that could jeopardize such a
person’s ability to participate in or
complete the registered apprenticeship
program.
This new regulatory provision would
empower potential apprentices by
providing them with the fundamental
consumer protection of having complete
program cost information disclosed to
them prior to their participation in the
program. In addition, this provision
would serve to protect enrolled
apprentices from possible financial
exploitation or abuse by prohibiting the
imposition of unnecessary or
unreasonable costs by program sponsors
or participating employers during the
course of the apprenticeship term. The
Department thinks that the inclusion of
a cost transparency and reasonableness
provision in the standards of
apprenticeship would help to advance
DEIA in registered apprenticeship
programs by reducing or eliminating
barriers to program access and
completion by individuals from
underserved communities and
populations. The Department believes
mitigation and removal of such financial
barriers is essential if registered
apprenticeship is to fulfill its potential
as an effective vehicle for enabling
persons from underserved communities
and population to achieve economic
mobility.
The Department is cognizant of the
fact that, despite its proven capacity to
provide a skilled and talented
workforce, a registered apprenticeship
program nevertheless requires a
significant investment of time and funds
by a sponsor or an employer to achieve
its desired outcomes. To mitigate such
training costs, many sponsors and
employers have formed effective
partnerships with labor unions,
intermediaries, educational institutions,
trade and industry associations, and
other organizations to create efficiencies
of scale that can reduce the costs of
delivering on-the-job training and
related instruction to apprentices. In
addition, sponsors and employers may
qualify to receive Federal or State
apprenticeship grants, tax credits, or
other resources that may help to offset
such training costs. The utilization of
such partnerships and grant
opportunities by sponsors and
employers to defray training costs can
also serve to minimize the imposition of
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such costs upon apprentices, many of
whom may not be able to sustain such
a financial burden. The Department
encourages sponsors to partner with
organizations that can provide resources
in their communities to mitigate any
costs passed on to apprentices, which
may include tuition, supportive
services, or other assistance.
The Department is also interested in
receiving comments on the impact of
costs borne by apprentices that relate to
the up-front purchase of equipment and
supplies essential to their work or
required by the sponsors or
participating employers, but that have
not been not paid for by such sponsors
or participating employers; in addition,
the Department is interested in
receiving comments on the impact of
any deferred payments required of
apprentices that relate to the costs of
maintaining such essential equipment
and supplies. In addition, the
Department is interested in receiving
comments as to whether the ‘‘necessary
and reasonable’’ standard for evaluating
unreimbursed costs in this provision
should be modified to establish a more
precise, mathematical formula for
ascertaining cost reasonableness (such
as a threshold value as a percentage
share of wages), or whether the more
flexible standard proposed in this
provision is more appropriate and
administratively feasible.
Proposed § 29.8(a)(19) would update
and reformat an existing requirement
that is addressed in § 29.5(b)(7),
regarding the ratio of apprentices to
journeyworkers. The intended purpose
of this ratio requirement is to further the
Department’s goal of ensuring the safety
and welfare of apprentices, while on the
job, via an established ratio of
apprentices to journeyworkers.
Proposed § 29.8(a)(19)(i) would specify
that the sponsor’s ratio must be
approved by a Registration Agency,
consistent with the proper safety,
health, supervision, and training of the
apprentice. This requirement would
center apprentice safety and welfare as
the main considerations in the
establishment of the specific numeric
ratio for a registered apprenticeship
program. To ensure that the ratio is
consistent with the proper safety,
health, supervision, and training of the
apprentice, program sponsors and the
reviewing Registration Agency should
consider factors that could endanger the
welfare of an apprentice who is
participating in the program, such as
risk of exposure to hazardous working
conditions and risk of serious bodily
injury or death while on the job.
One such consideration to help
protect the safety and welfare of
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apprentices is ensuring a proper
apprentice-to-journeyworker ratio in
industry sectors with a high rate of fatal
work-related injuries. High-hazard
industries, empirically defined with
data compiled by BLS, may be subject
to a heightened level of scrutiny with
respect to their utilization beyond an
apprentice-to-journeyworker ratio of
one-to-one (1:1).106 Industries that have
been identified as high-hazard
industries have an average fatal work
injury rate exceeding 5 deaths per
100,000 full-time equivalent workers
over the 3 most recent calendar years for
which such statistics are available and
include such industry sectors as:
construction; transportation and
warehousing; mining, quarrying, and oil
and gas extraction; and agriculture,
forestry, fishing, and hunting. Less
hazardous industries or occupations in
other (non-high-hazard) industries may
not require as much scrutiny and may
be able to use expanded ratios, but each
ratio would be reviewed and considered
on a case-by-case basis.
The Department is adding ‘‘health’’ to
the list of factors for establishing a
numeric ratio. Health and safety go
hand in hand, and the Department
thinks that apprentices should have
proper supervision and training when
they participate in on-the-job training at
worksites that may expose them to toxic
materials or harmful physical agents.
This change would ensure that program
sponsors, employers, and Registration
Agencies are aware of and consider
potential health risks for apprentices at
worksites, and that an appropriate
numeric ratio of apprentice-tojourneyworkers is used to allow for the
necessary training and supervision to
mitigate potential material impairment
of health or functional capacity of an
apprentice who may be exposed to toxic
materials or harmful substances while
on the job.
The Department notes that it has not
included ‘‘continuity of employment’’
in the factors. ‘‘Continuity of
employment’’ was previously listed
with additional factors, such as ‘‘proper
supervision, training, and safety,’’ in
establishing a numeric ratio of
apprentices-to-journeyworkers under 29
CFR 29.5(b)(7). The Department
understands that the term has been
carried forward from previous
rulemaking and may have numerous
operational meanings as a term of use;
however, the Department no longer
106 ETA, OA Circular No. 2021–02, ‘‘Guidelines
for Reviewing Apprentice to Journeyworker Ratio
Requests,’’ Jan. 12, 2021, https://
www.apprenticeship.gov/sites/default/files/
bulletins/Circular%25202021-02%
2520FINAL%25201.12.21.doc.
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thinks that it is relevant to an
assessment of whether a particular ratio
is appropriate—that is, whether a
particular ratio will further the safety of
the apprentice. Accordingly, the
Department is proposing to remove it as
a factor. However, the Department is
interested in comments as to what and
how ‘‘continuity of employment’’ could
or should mean in the context of ratios
and providing a safe workplace and any
rationales for continuing to have that
language or alternative language to
address the proper ratio factors.
In practice, a ratio of one apprentice
to one journeyworker has been the norm
for programs; however, as registered
apprenticeship has expanded into new
industries the Department has
considered expanded ratios particularly
in industries where there is a reduced
safety risk (for example, a job primarily
in an office setting).
While apprentice safety is the focus of
the proposed requirement, there would
also be flexibility provided to sponsors
in setting the specific numeric ratio.
Proposed § 29.8(a)(19)(ii) would specify
that sponsors must use a ratio that is
consistent with the provisions of any
applicable collective bargaining
agreements, as well as any applicable
Federal and State laws governing ratios
of apprentices to journeyworkers, and
specific and clearly described as to its
application to a particular workforce,
workplace, job site, department, or
plant. The Department recognizes that a
one-size-fits-all approach would not be
feasible with respect to ratios and that
ratios could differ depending upon the
specific industry or occupation in
which the registered apprenticeship
program is taking place. The
Department also recognizes that a
specific numeric ratio of a registered
apprenticeship program could be set in
an applicable collective bargaining
agreement or by applicable Federal and
State laws. Ultimately, each program
must have a ratio specific to that
program that is designed to protect the
safety of its apprentices consistent with
the considerations described and
discussed above. The Department is
seeking comments on these
longstanding criteria, particularly to
ensure how the ratios are applied in
both emerging and traditional
industries.
Proposed § 29.8(a)(20) would change
an existing requirement concerning the
granting of advanced standing, credit,
and an increased wage to an apprentice.
The proposed provision would require
that the standards of apprenticeship
grant advanced standing, credit, and an
increased wage to an apprentice when
appropriate, and in such circumstances
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would instruct sponsors to include a
process by which they would reduce the
usual term of on-the-job training or
related instruction. This change would
recognize that the reduction of the usual
term of on-the-job training or related
instruction could be appropriate in two
scenarios: (1) where an apprentice
comes to a program with prior
qualifications that warrant the reduction
of the usual term of on-the-job training
or related instruction; and (2) where an
apprentice demonstrates expedited
progress while in a registered
apprenticeship program that warrants
the reduction of the usual term of onthe-job training or related instruction.
Proposed § 29.8(a)(20)(i) would require
that the established process be fair,
transparent, and objective in
identifying, assessing, and documenting
an apprentice’s prior learning or
experience as well as any accelerated
progress made by an apprentice.107
Proposed § 29.8(a)(20)(ii) would require
that the process must result in advanced
standing, credit, and an increased wage
that is commensurate with any
progression granted because of the
apprentice’s prior qualifications or
accelerated progress. The Department
encourages the use and development of
appropriate methods of applying
advanced standing. Examples of
advanced standing because of an
apprentice’s prior qualifications could
include prior experience and training
related to military service for veterans
joining a registered apprenticeship
program, an apprentice’s completion of
a pre-apprenticeship program which has
a documented partnership with the
registered apprenticeship sponsor, as
well as an individual’s completion of a
registered CTE apprenticeship program
under subpart B. In addition to
advanced standing for prior experience,
the Department notes that the feature of
accelerating apprentices for their
achievements during a program was a
feature of the competency-based model
of registered apprenticeship under the
current rule, which the Department is
proposing to remove as a separate
model. The Department’s proposal seeks
to combine the benefits of competency
attainment from the competency-based
107 Proposed § 29.8(a)(20) aligns with the 2023
Quality Apprenticeships Recommendation of the
ILO at Conclusion 10(h), which advises Member
States to establish apprenticeship standards that
describe ‘‘the extent to which the expected duration
of the apprenticeship may be reduced on the basis
of prior learning or progress made during the
apprenticeship.’’ ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), Conclusion 10(h), June 16, 2023, https://
www.ilo.org/dyn/normlex/en/
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model with minimum employment
duration requirements for on-the-job
training. This proposal would allow
sponsors the flexibility to advance
apprentices, and for apprentices to
receive commensurate advancement in
wages, based on their prior experience.
This proposal would help to ensure
sponsors continue to have some of the
main flexibility components of the
competency-based approach, with key
quality enhancements where the
Registration Agency could review to
ensure apprentices are progressed fairly
and such processes are equitable and
objective.
The Department’s proposed method of
requiring a minimum amount of on-thejob training hours while allowing
advanced standing based on existing
competency would be similar to the
current ‘‘hybrid’’ model and provide the
right balance of training participants to
an industry standard and duration,
while recognizing the unique skill and
competency progressions of apprentices.
This provision would also ensure that
an apprentice does not have an
abbreviated on-the-job training
experience in the program if
circumstances do not warrant it, so that
a program is not graduating apprentices
from their program before they have
completed their training and
demonstrate the requisite proficiency.
Proposed § 29.8(a)(21) would update
an existing requirement concerning the
transfer of apprentices. The changes
made by proposed § 29.8(a)(21) would
be non-substantive and seek to increase
clarity by explicitly stating that the
standards of apprenticeship must
include a provision addressing the
transfer of apprentices. The substantive
elements of existing § 29.5(b)(13)(i)
through (iii), which require that a
transferring apprentice be provided a
transcript of related instruction and onthe-job learning, transfer to the same
occupation, and sign a new
apprenticeship agreement when the
transfer occurs, would remain
unchanged in proposed § 29.8(a)(21).
Proposed 29 CFR 29.8(a)(22) would
build upon the existing regulations at 29
CFR 29.5(b)(23) and add a reference to
participating employers. The
Department has determined that the
maintenance of apprenticeship records
by all parties involved with operating or
participating in a registered
apprenticeship program is critical to
achieving the Department’s goal of
collecting and analyzing high-quality
data to enhance its ability to oversee,
analyze, and improve registered
apprenticeship and the National
Apprenticeship System. Information
about an apprentice’s interactions with
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an employer participating in their
registered apprenticeship program, such
as whether the apprentice was
ultimately hired, any interim credentials
earned by the apprentice that would
certify them to complete job tasks for an
employer, the apprentice’s wage upon
hire, and other important data, is vital
for achieving the Department’s data and
information goals. Adding participating
employers here would allow the
Department to collect more important
data on the utilization of registered
apprenticeship programs by employers.
In addition to adding participating
employers to the maintenance of records
requirement, the Department proposes
to replace the existing language of 29
CFR 29.5(b)(23) covering recordkeeping
requirements that ‘‘may be required by
the Office of Apprenticeship or
recognized State Apprenticeship
Agency and other applicable law’’ with
a cross-reference to the proposed
recordkeeping provisions set forth in
this NPRM at proposed § 29.18. As
described below, the Department has
determined that enhancements to the
recordkeeping requirements for
registered apprenticeship are essential
for the development of a
comprehensive, national dataset on
apprenticeship, for garnering datadriven insights about the National
Apprenticeship System, and for making
data-driven decisions to improve the
National Apprenticeship System. The
change made here would clarify that
program sponsors and participating
employers must maintain the records
specified in proposed § 29.18 for five
years.
Proposed § 29.8(a)(23) would address
a program’s adherence to EEO
Requirements. The proposed
§ 29.8(a)(23) would replicate the
requirement currently at § 29.5(b)(21),
which stipulates that the standards of
apprenticeship must include a
statement that the program must be
conducted, operated, and administered
in conformity with 29 CFR part 30, as
amended, or, if applicable, an approved
State EEO plan.
Proposed § 29.8(a)(24) would address
maintaining a safe and inclusive
workplace. The proposed § 29.8(a)(24)
would obligate program sponsors and
participating employers to promote and
maintain a safe and inclusive workplace
environment that is free from violence,
harassment, intimidation, and
retaliation against apprentices. The
requirement to maintain such a
workplace environment would include
an obligation to develop and implement
procedures to ensure that its apprentices
are not harassed and the program is free
from intimidation and retaliation. The
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inclusion of this provision in the
standards of apprenticeship would serve
to supplement and reinforce the
retained non-discrimination and EEO
requirement at proposed § 29.8(a)(23)
and is intended to make it clear that any
such conduct or actions directed against
apprentices is completely
unacceptable.108 As with other
instances of noncompliance with the
standards of apprenticeship, any failure
to abide by this requirement could be
grounds for a Registration Agency to
impose sanctions against any program
sponsor or participating employer that
fails to take immediate and effective
action to remedy the situation. Such
sanctions could include the initiation of
deregistration proceedings and referral
to law enforcement agencies, as
appropriate. The inclusion of a
prohibition on intimidation and
retaliation against apprentices in this
provision of the standards of
apprenticeship is intended to deter
sponsors and participating employers
from enabling or tolerating a climate of
fear in the workplace that might deter
apprentices from reporting instances of
misconduct by supervisors,
journeyworkers, or colleagues
(including instances of sexual assault),
or alternatively, from joining a labor
union or engaging in organizing
activities.
Proposed § 29.8(a)(25) is new and is
being added to ensure compliance with
a related Federal law. Proposed
§ 29.8(a)(25) would require, for those
apprenticeship programs registered on
or after September 22, 2020, that the
standards of apprenticeship include an
attestation that the program sponsor will
provide each of the written assurances
as required under sec. 2(b)(1) of the
Support for Veterans in Effective
Apprenticeships Act of 2019 (Pub. L.
116–134, 134 Stat. 277, 29 U.S.C. 50c).
The Department has previously
implemented these provisions through
its information collection requests
(ICRs) under OMB Control Number
1205–0223; however, as this is a
statutory requirement the Department
considers it important to include in the
operative regulatory text.
Proposed § 29.8(a)(26) would carry
forward an existing requirement that the
108 Proposed § 29.8(a)(23) and (24) are consistent
with the content of Conclusion 22 of the ILO’s 2023
Quality Apprenticeships Recommendation, which
advises that Member States ‘‘should take effective
measures to prevent and eliminate any
discrimination, violence and harassment and
exploitation against apprentices.’’ ILO, ‘‘Quality
Apprenticeships Recommendation, 2023’’ (ILO
Recommendation No. 208), Conclusion 22, June 16,
2023, https://www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
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standards of apprenticeship identify the
contact information of the individual
with authority in the program to receive,
process, and make disposition of
complaints. The Department is
proposing to make an email address a
requirement, whereas the current rule
only says, ‘‘if appropriate.’’
Proposed § 29.8(b) would address a
gap in the existing minimum standards
of apprenticeship by creating a new
requirement with respect to group
programs and participating employers.
Currently, employers can participate in
a group program, and these employers
often sign an agreement (commonly
referred to as an employer acceptance
agreement), or participate via a
collective bargaining agreement, with a
joint labor-management group program
sponsor. This agreement seeks to ensure
that the participating employer will
abide by the minimum standards of
apprenticeship, but the existence of
such an agreement is not currently
required. This lack of requirement
means that the sponsor is not formally
required to ensure that the employer is
abiding by the terms of the standards of
apprenticeship and apprenticeship
agreement, and therefore limits the
Registration Agency’s ability to hold the
sponsor responsible. The lack of
accountability may allow harm caused
to apprentices to go unaddressed, or at
least make it harder to address and
remedy.
This rulemaking proposes a new
§ 29.11, Program Standards Adoption
Agreement, which would outline the
requirements of such agreements signed
by participating employers. Proposed
§ 29.8(b) would synchronize the
minimum standards of apprenticeship
with proposed § 29.11, creating a
corresponding requirement on group
program sponsors to ensure that the
minimum standards of apprenticeship
include an attestation from each
participating employer, which is
required prior to the employer being
admitted to the program. Proposed
§ 29.8(b)(1) would require the attestation
include that a participating employer
will abide by the requirements in parts
29 and 30.
Proposed § 29.8(b)(1) would require
group program sponsors to ascertain, via
the attestation, whether a participating
employer has violated any applicable
laws governing workplace practices or
conduct, and actions taken to remedy
any violation. This disclosure would not
prevent a program from being registered
or from allowing the sponsor to enter
into an agreement with the participating
employer; however, the Department, in
safeguarding the welfare of apprentices,
considers it important that a
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Registration Agency know of these
instances as part of its program
oversight role. If an entity fails to
disclose such violations, then, as with
any materially false, fictitious, or
fraudulent statement or representation
knowingly and willfully to the Federal
Government, a referral to the
Department of Justice for a potential
violation of 18 U.S.C. § 1001 would be
necessary.
Proposed § 29.8(b)(3) would require
group program sponsors to monitor
participating employers for their
compliance with the minimum
standards of apprenticeship and other
requirements contained in parts 29 and
30. The Department has determined that
creating this requirement would help
address a gap in existing requirements
with respect to group programs and
participating employers. Through this
requirement, the Department anticipates
furthering apprentice safety and welfare
by adding a check on the actions of the
participating employer and providing a
mechanism for the Registration Agency
to hold the sponsor accountable. These
safeguards would promote compliance
with the terms of the standards of
apprenticeship and apprenticeship
agreement. While not an explicit
requirement, group program sponsors
may need to dedicate staff as
coordinators to ensure all the program
partners and employers are coordinated
and connected in the delivery of the
registered apprenticeship program.
Section 29.9—Apprenticeship
Agreements
As discussed above, one of the
principles informing the development of
this proposed regulation is the desire to
increase transparency and
accountability throughout the National
Apprenticeship System. The
apprenticeship agreement between
registered apprenticeship program
sponsors and apprentices joining their
programs is critical to allowing the
apprentice to understand their rights
and obligations. The apprenticeship
agreement is the agreement that governs
the relationship between the apprentice
and the sponsor (and employers, where
applicable) regarding the terms and
conditions of the registered
apprenticeship program. A potential
apprentice seeking to join a program
should have access to as much
information as possible to help them
make such an important career decision,
including any costs associated with
participating in or completing the
program, the types of training and
instruction they can expect to receive,
what will be expected of them in order
to complete the program, and what
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completion of the program will mean for
their near- and longer-term career
development.
The agreement also serves as an
assurance to the potential apprentice, as
well as the Department and any other
entities with a role in overseeing a
program, that the program sponsor will
abide by the terms and conditions of the
registered apprenticeship program as
laid out in the agreement. As an
important tool for achieving optimal
transparency and accountability within
the National Apprenticeship System,
the apprenticeship agreement is central
to registered apprenticeship and thus
represents an important piece of the
Department’s focus in proposing
strengthened transparency,
accountability, and worker protections
in the part 29 regulations.
The current regulatory provisions
governing the apprenticeship agreement
are at 29 CFR 29.7. The Department
proposes to move that provision to
§ 29.9, retaining and reorganizing many
of the existing provisions and adding
further measures to strengthen
transparency, accountability, and
worker protections within the National
Apprenticeship System.
The apprenticeship agreement is
intended to clearly encompass all
fundamental aspects of the terms and
conditions of the registered
apprenticeship program, as described in
the requirements below, and cannot be
modified or altered by a subsequent
agreement that contravenes the
requirements of this part.
Proposed § 29.9(a) would require that
all apprenticeship programs registered
by a Registration Agency develop and
establish a written apprenticeship
agreement that contains the terms and
conditions of the employment and
training of the apprentice, and that such
agreement must be signed by the parties
prior to the start of the apprenticeship
term. Proposed § 29.9(a) incorporates
existing text currently at § 29.7 that
establishes the requirement for an
apprenticeship agreement setting forth
the terms and conditions of the
employment and training of the
apprentice and existing text at § 29.7(a)
requiring the signatures of the relevant
parties. It would further require the
signature of a participating employer in
a group program that has adopted the
sponsor’s standards of apprenticeship
through a program standards adoption
agreement. This is to ensure that the
participating employer understands the
terms and conditions of the apprentice’s
employment and training and can be
held accountable by the apprentice or a
Registration Agency for any violations
of the terms and conditions of the
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agreement. This requirement would be
specific to participating employers in
group programs with a standards
adoption agreement. Further, this
paragraph would clarify that the
agreement must be signed prior to the
start of the apprenticeship term. This
clarification would add a temporal
requirement to the apprenticeship
agreement in that it must be agreed to
by the parties prior to the start of the
apprenticeship. This would be
consistent with the intent of the
apprenticeship agreement to set forth
the terms of the apprentice’s training
and employment, would ensure that
there is a valid operative agreement
governing the relationship of the parties
at the start of the program, and would
allow the apprentice to review and
understand the terms of the program
before joining the program.
Proposed section 29.9(b) contains a
new requirement that, prior to signing
the apprenticeship agreement, an
apprentice who has been admitted to
the apprenticeship program must be
furnished by the program sponsor with
a copy of both the proposed
apprenticeship agreement and the
program’s standards of apprenticeship,
and must also be provided with a
reasonable opportunity to inspect and
review the content of those documents.
Proposed section 29.9(b) also stipulates
that, after the apprenticeship agreement
has been signed by the apprentice, the
sponsor, and any other relevant parties,
the sponsor must transmit or deliver to
the apprentice a copy of the executed
apprenticeship agreement and the
program’s standards of apprenticeship
not later than the starting date of the
apprenticeship. The Department takes
the view that this disclosure provision
is necessary to ensure that apprentices
are made fully aware of the terms and
conditions of their employment before
entering into an apprenticeship
agreement with the sponsor or
participating employer and beginning
their work as an apprentice. The
inclusion of this disclosure requirement
is also a recognition that apprenticeship
agreements entered into between
apprentices and sponsors or
participating employers often involve a
significant imbalance of bargaining
power between the contracting parties,
and that apprentices are thus more
susceptible to entering into an
apprenticeship agreement without an
understanding of the terms of the
contract or, in some circumstances, as a
result of coercion, deception, and other
forms of procedural unconscionability.
The Department further believes that
adherence to this disclosure
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requirement should help to ensure that
the apprenticeship agreement is
procedurally lawful, and that the
apprentice has entered into the
agreement freely, voluntarily, and with
a reasonable opportunity to review its
terms and understand its meaning. The
Department has refrained from
establishing in proposed § 29.9(b) a
uniform, minimum duration of time that
would constitute ‘‘a reasonable
opportunity to inspect and review the
content’’ of the apprenticeship
agreement and the program’s standards
of apprenticeship; in this connection,
the Department has abstained from
specifying such a quantitative
requirement in order to provide program
sponsors with some measure of
flexibility in determining what would
constitute an appropriate period of time
for an apprentice to review the
documents, based upon a given set of
facts and circumstances. However, the
Department invites comments on
whether the establishment of a specified
minimum duration of time for an
apprentice to review these documents
would be appropriate in this
rulemaking, and, if so, what that
duration of time should be.
The Department understands that the
proposed requirement to include the
standards of apprenticeship in the
apprenticeship agreement may appear to
be duplicative, as such standards
include similar provisions such as the
progressive wage schedule and
associated program costs. However, it is
important to include the standards in
the agreement to make compliance with
the standards part of the contract
between the apprentice, program
sponsor, and participating employer.
Moreover, because the standards could
be incorporated by reference, the
apprenticeship agreement would not
need to repeat verbatim the content of
the standards, but rather would only
need to provide the information
described in paragraphs (c)(1) through
(3). The proposed requirement to give
the apprentice both the signed
apprenticeship agreement and the
program standards accompanies the
requirement in proposed § 29.9(c)(4) to
incorporate the program standards into
the apprenticeship agreement either
directly or by reference and would
expand upon the current apprenticeship
agreement requirement to incorporate
by reference the standards of
apprenticeship.
Proposed § 29.9(c) would contain the
minimum requirements of the
apprenticeship agreement. It would
incorporate many of the current
requirements in § 29.7. As discussed
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above, existing § 29.7(a) would now be
a part of proposed § 29.9(a).
Proposed § 29.9(c)(1) would require
apprentice contact information and
identifying information for the
apprentice, including the apprentice’s
date of birth and, on a voluntary basis,
their Social Security number. Both the
date of birth and the voluntary
provision of the apprentice’s Social
Security number are in the current
requirement at § 29.27(b). Proposed
§ 29.9(c)(1) would also require that the
apprentice’s contact information be
provided. This would be consistent with
current practice and necessary for the
administration of the apprenticeship
program and registration of the
agreement. Apprentices may not be
denied program entry or subjected to
any adverse action taken by a program
sponsor if an apprentice refuses to
disclose their Social Security number.
Proposed § 29.9(c)(2) would require
that the apprenticeship agreement
contain the contact information for the
Registration Agency, the program
sponsor, and the participating
employer(s). This requirement would be
similar to the existing requirement in
§ 29.7(c), with the addition of the
contact information for any
participating employers that are
signatories to the agreement at the time
the apprenticeship agreement is signed.
However, the apprenticeship agreement
would not need to be modified or resigned if any participating employers
join the registered apprenticeship
program after the apprenticeship
agreement is signed because those
participating employers agree to comply
with the existing program standards and
are bound by the program adoption
agreement to employ apprentices based
on the terms of the apprenticeship
agreement. The Department is proposing
this while mindful of the potential
burden of re-signing apprenticeship
agreements for each program standards
adoption agreement that an apprentice
may be employed by. The Department is
interested in any comments on this
proposed flexibility, or any comments
recommending a requirement that the
agreements be re-signed as a
transparency feature for an apprentice.
Proposed § 29.9(c)(3) would
incorporate the existing requirements in
§ 29.7 to include the occupation in
which the apprentice is to be trained as
well as the associated work process
schedule and related instruction
outline.
Proposed § 29.9(c)(4) would require
that the program’s standards of
apprenticeship be incorporated into the
apprenticeship agreement either directly
or by reference. This requirement is in
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current §§ 29.5(b)(11) and 29.7(i) and
would be carried forward in this
proposal.
Proposed § 29.9(c)(5) is new and
would require that the apprenticeship
agreement contain a description of the
respective roles, duties, and
responsibilities of the parties to the
apprenticeship agreement. This
description would need to include the
responsibility of sponsors and any
participating employers to provide
information to apprentices about their
rights and protections under Federal,
State, and local laws, including their
right to file complaints with the
applicable Registration Agency. This
proposed provision would capture an
important element of the apprenticeship
agreement—that the parties have clearly
defined roles and responsibilities—and
would emphasize that a particularly
important responsibility of the sponsors
and employers is to ensure that
apprentices are aware of their rights
under the apprenticeship agreement and
applicable laws. This proposed
provision would also align with the
2023 Quality Apprenticeships
Recommendation of the ILO,
specifically Conclusion 18(a), which
advises that Member States should
ensure that an apprenticeship agreement
‘‘clearly defines the parties’ respective
roles, rights and obligations.’’ 109
Explicitly requiring that the agreement
include information about their rights
and the complaint filing process would
better protect the apprentice by easily
allowing them to exercise their rights if
necessary. In light of the Department’s
mandate to protect the welfare of
apprentices, the Department thinks this
is an important safeguard.
Proposed § 29.9(c)(6) would require
that the agreement contain the dates of
the registered apprenticeship program,
including the beginning date and
expected duration of the apprenticeship
program, the beginning date of the onthe-job training, and the duration of any
probationary period of the
apprenticeship program. This would
incorporate requirements in existing
§ 29.7(d) and (h) regarding dates,
expected duration of the apprenticeship,
and the length of the probationary
period. By requiring disclosure of the
start date of the program and start date
of the on-the-job training portion of the
program apprentices would have more
complete information and expectations
of when they will begin the paid on-the109 ILO, ‘‘Quality Apprenticeships
Recommendation, 2023’’ (ILO Recommendation No.
208), Conclusion 18(a), June 16, 2023, https://
www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
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job training portion of the program. In
addition to these key dates, the
apprenticeship agreement would also
inform the apprentice of the expected
duration of the registered
apprenticeship program in addition to
the duration of any probationary period.
Proposed § 29.9(c)(7) would require a
detailed statement of the entry wage,
subsequent graduated scale of
increasing wages to be paid to the
apprentice over the term of the
apprenticeship, the journeyworker
wage, and any fringe benefits. This
requirement would incorporate the
existing requirement in § 29.7(g) but
would add the requirement that the
wages correspond to specific periods of
time: an entry wage, a graduated scale
of wages that correspond to the
apprentice’s attainment of occupational
skills and competencies throughout the
registered apprenticeship program, and
the journeyworker wage that the
apprentice can expect to receive upon
their successful completion of the
apprenticeship. This added requirement
in the apprenticeship agreement would
align with the program standards
requirements for a graduated schedule
of increasing wages, from entry wage to
journeyworker wage, in proposed
§ 29.8(a)(17)(B) and is intended to
provide explicit notice to the apprentice
of the expected cadence of wage
increases that corresponds to the
acquisition of specific occupational
skills and competencies. It would also
give notice to the apprentice of fringe
benefits provided as a part of the
registered apprenticeship program.
Proposed § 29.9(c)(8) would require
that the apprenticeship agreement
disclose the expected minimum number
of hours that are allocated by the
program to the on-the-job training
component and the related instruction
component during the apprenticeship
term. In practice, because progress in
the program is measured through both
time in on-the-job training and
competency attainment, this may
include an approximate range of hours
from the minimum to a maximum
number of on-the-job training hours to
obtain proficiency in the occupation.
This proposed provision would replace
existing § 29.7(e) and align with the
program standards requirement in
proposed § 29.8(a)(4) regarding the
minimum duration of the on-the-job
training and related instruction
components of the registered
apprenticeship program.
Proposed § 29.9(c)(9) would be a new
requirement for the apprenticeship
agreement to include a description of
the methods used during the course of
the apprenticeship to measure progress
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on competency attainment and the
program’s end-point assessment. The
Department emphasizes here that the
methods should be inclusive and
accessible to all apprentices, including
those with disabilities and others from
underserved communities. This
proposed requirement would add
transparency to the apprenticeship
agreement regarding the assessment and
evaluation of apprentices, both on a
continuous basis throughout the
apprenticeship and at the end of the
registered apprenticeship program. It
corresponds to the new requirements at
proposed § 29.8(a)(10) and (11)
regarding regular and end-point
assessments in the program standards of
apprenticeship. As with many other
requirements, the Department thinks
that adding this information into the
apprenticeship agreement would ensure
transparency to the apprentice, who
would have a better understanding of
the program they are joining, what will
be expected of them, and, in this case,
how they will be assessed.
Proposed § 29.9(c)(10) would be a
new requirement that the
apprenticeship agreement include a
description of any supportive services
that may be available to the apprentice
including childcare, transportation,
equipment, tools, or any other
supportive service provided by the
sponsor or a partnering organization.
This proposal would provide
transparency to the apprentice of any
supports they may receive during their
participation in the program. Such
supports may be arranged through
partner organizations or in coordination
with the workforce development
system.
Proposed § 29.9(c)(11) would be a
new requirement that the
apprenticeship agreement disclose the
nature and amount of any unreimbursed
costs, expenses, or fees that the
apprentice may incur during their
participation in the registered
apprenticeship program. This
corresponds with the proposed
§ 29.8(a)(18) requirements in the
standards of apprenticeship regarding
disclosure and conditions of any
unreimbursed costs, expenses, or fees
incurred by the apprentice during the
registered apprenticeship program. The
Department discussed above its reasons
for requiring this information in the
program standards. This proposed
addition here would give the apprentice
explicit notice of such costs, expenses,
or fees so that they have necessary and
relevant information regarding their
wages and costs during the registered
apprenticeship program and can plan
accordingly. It would also ensure
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transparency to assist in protecting the
apprentice from hidden or arbitrary
costs, fees, or expenses.
Proposed § 29.9(c)(12) would be a
new requirement that the
apprenticeship agreement must describe
any recognized postsecondary credits,
credentials, and occupational
qualifications that the apprentice will
receive or be eligible to receive upon
successful program completion, as well
as a description of any additional
conditions or requirements that the
apprentice must fulfill to satisfy any
applicable Federal, State, or local
qualification and licensure requirements
to engage in the occupation. This
proposed inclusion in the
apprenticeship agreement corresponds
with the proposed standard at
§ 29.8(a)(8) to include a description of
any interim credentials, occupational
qualifications, licenses, credentials, or
certification, or postsecondary credit
that an apprentice may receive or be
eligible to receive upon successful
completion of the registered
apprenticeship program. This provision
would provide notice to the apprentice
of expected outcomes throughout and at
the conclusion of the registered
apprenticeship program and would
allow the apprentice to understand the
full benefits of the apprenticeship
program.
Proposed § 29.9(c)(13) would require
a statement in the agreement that the
parties will adhere to the applicable
requirements of 29 CFR part 30 as
amended and, where applicable, an
approved State EEO plan. This would
replace the requirement in § 29.7(j) to
include an equal opportunity statement
with a statement instead regarding
adherence to part 30 and any applicable
State EEO plan. This proposed change is
meant to explicitly reference the
requirements in part 30 in their entirety
to not only avoid duplication but also
clarify that the expectation is for
sponsors and employers to adhere to all
applicable requirements.
Proposed § 29.9(c)(14) would require
a statement addressing whether the
apprentice is paid wages and any fringe
benefits during the related instruction
component of the program and, if so,
what the wage rate and fringe benefits
are, and whether the related instruction
is provided during work hours. This
requirement would be similar to the
existing requirement in § 29.7(g) that the
apprenticeship agreement specify
whether related instruction is
compensated; however, it would more
precisely require that the apprenticeship
agreement address both any wages (i.e.,
not some other form of compensation)
and fringe benefits and whether related
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instruction occurs during work hours.
This would provide notice to the
apprentice of whether to expect related
instruction to occur on their own time
and, regardless of when related
instruction takes place, whether it is
paid and at what rate. As discussed in
proposed § 29.8(a)(9), sponsors must
consider, as a part of their programs’
standards of apprenticeship, whether to
pay wages for related instruction. Since
registered apprenticeship is an ‘‘earnand-learn’’ model, this provision would
provide transparency to the apprentice
about when wages will be received,
what wages will be received, and during
what component(s) of the program. This
provision would also make transparent
a schedule of paid and unpaid time an
apprentice is expected to be present to
fulfill learning and worksite
productivity objectives when attending
related instruction and on-the-job
training. Making this information
available to apprentices for transparency
purposes would provide apprentices
with the necessary information to make
financial decisions, seek out resources
or supportive services through a
program sponsor to attend related
instruction or compensate costs
incurred, and manage time to
accommodate responsibilities, such as
providing care to family members.
Proposed § 29.9(c)(15) would be the
existing requirement in § 29.7 that the
apprenticeship agreement include the
contact information of the appropriate
party to address complaints within the
program. As discussed below, in
addition to filing complaints with the
program, apprentices may make
complaints to a Registration Agency
consistent with proposed § 29.17, and
information on how to do so would
need to be included in the apprentice
agreement as required by proposed
§ 29.9(c)(5).
Proposed § 29.9(c)(16) is new and
would require the apprenticeship
agreement to contain a description of
the processes and procedures that the
sponsor will utilize to grant advanced
standing or credit to apprentices. The
processes and procedures in the
apprenticeship agreement would need
to be the same as in the sponsor’s
approved standards. This proposed
provision would ensure that apprentices
are aware of the processes and
procedures in place for receiving
advanced standing before the apprentice
signs the apprenticeship agreement.
Proposed § 29.9(d) is new and would
prevent sponsors and participating
employers from including in the
apprenticeship agreement or otherwise
imposing on apprentices a non-compete
provision or similar provision that
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would restrict an apprentice’s labor
market mobility and limit competition
among employers. Proposed § 29.9(d)
would include a prohibition on any
provisions restricting the apprentice’s
ability to seek or accept employment
with another employer prior to the
completion of the registered
apprenticeship program. The substance
of a non-compete provision may vary
between employers and jurisdictions,
but the general purpose of a noncompete provision is to restrict the
ability of a worker to compete with their
current employer for some specified
period of time, often in a specified
geographic area.110 111 Non-compete
provisions undermine workers’ mobility
and rights, and the proposal to restrict
them is meant to further protect the
safety and welfare of apprentices and to
promote competition for labor services.
The Department has tentatively
determined that where a non-compete
provision seeks to restrict the
apprentice’s labor market mobility,
including prior to the completion of the
registered apprenticeship program, the
inclusion of a non-compete provision is
impermissible because it harms the
apprentice by preventing them from
finding or accepting employment.
Moreover, the use of non-compete
provisions by program sponsors or
participating employers in the sponsor’s
program can substantially undermine a
key purpose of registered
apprenticeships, which is to provide a
worker with marketable and portable
occupational skills when the
apprenticeship has concluded.
At the turn of this century, the use of
non-compete provisions in employment
contracts was typically concentrated
within higher paying occupations
requiring advanced levels of education;
today, however, such restrictive
employment covenants have
increasingly been utilized by employers
for workers entering jobs in occupations
that pay considerably less.112 Moreover,
110 U.S. Department of the Treasury, Office of
Economic Policy, ‘‘Non-compete Contracts:
Economic Effects and Policy Implications,’’ Mar.
2016, https://home.treasury.gov/system/files/226/
Non_Compete_Contracts_Econimic_Effects_and_
Policy_Implications_MAR2016.pdf.
111 U.S. Department of the Treasury, ‘‘The State
of Labor Market Competition,’’ Mar. 7, 2022,
https://home.treasury.gov/system/files/136/State-ofLabor-Market-Competition-2022.pdf.
112 See ibid. Note: Non-compete provisions are
common among workers who report lower rates of
trade secret possession: 15 percent of workers
without a 4-year college degree are subject to noncompete provisions, and 14 percent of workers
earning less than $40,000 are subject to noncompete provisions. This is true even though
workers without 4-year degrees are half as likely to
possess trade secrets as those with 4-year degrees,
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when such contractual provisions are
enforced, they have been shown to harm
lower income workers in particular by
undermining employment opportunities
that can provide greater economic
stability and mobility.113 A number of
States have prohibitions on noncompete provisions that
disproportionately impact workers who
are paid an hourly wage,114 make equal
or less than an hourly wage of $15
($31,200 annually),115 or work for
technology businesses.116 Safeguarding
the ability for an apprentice to traverse
the labor market with employable skills
and competencies attained while in a
registered apprenticeship program has
several benefits that accrue to
apprentices and the communities where
they live and work. Prohibiting such
restrictions on apprentices’ labor market
mobility enables them to pursue the
broadest possible scope of employment
opportunities, and also benefits the
communities where apprentices live
and work.
Prohibiting the inclusion of a noncompete provision in the apprenticeship
agreement would align with the
Department’s broader goal of ensuring
good jobs, increased earnings for
workers, and competition among
employers. A Federal Trade
Commission (FTC) proposal that would
ban non-compete provisions more
broadly in the American economy
estimated a potential increase in
workers’ earnings by nearly $300 billion
per year.117 Though the Department’s
proposal has a more limited reach than
the FTC’s proposal, a review of that
agency’s estimates suggests that
restricting non-compete provisions in
and workers earning less than $40,000 possess trade
secrets at less than half the rate of their higher
earning counterparts.
113 Ayesha Bell Hardaway, ‘‘The Paradox of the
Right to Contract: Noncompete Agreements as
Thirteenth Amendment Violations,’’ 39 Seattle U. L.
Rev. (2016), 957, 959, https://
digitalcommons.law.seattleu.edu/cgi/
viewcontent.cgi?article=2334&context=sulr.
114 Nevada AB276 (2017) prohibits a non-compete
provision from applying to an employee who is
paid solely on an hourly wage basis, exclusive of
any tips or gratuities.
115 Maryland SB 328 (2019) makes null and void
any non-compete or conflict of interest provision in
an employment contract that restricts the ability of
an employee who earns equal to or less than $15
per hour or $31,200 annually to enter into
employment with a new employer or to become
self-employed in the same or similar business.
116 Hawaii HB 1090 (2015) prohibits non-compete
provisions among employees of technology
businesses.
117 Federal Trade Commission, ‘‘FTC Proposes
Rule to Ban Noncompete Clauses, Which Hurt
Workers and Harm Competition,’’ Jan. 5, 2023,
https://www.ftc.gov/news-events/news/pressreleases/2023/01/ftc-proposes-rule-bannoncompete-clauses-which-hurt-workers-harmcompetition.
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the Department’s proposal would lead
to an increase in apprentice earnings.
While the Department’s proposal
fundamentally is designed to help
workers ensure their labor is mobile, the
Department believes such a ban on noncompete provisions could ultimately
benefit sponsors and employers as well
since they would have access to a
greater pool of qualified workers. The
Department is also interested in
comments on how the proposal to
restrict non-compete provisions would
impact employers in the National
Apprenticeship System.
Proposed § 29.9(e) would prevent
including in the apprenticeship
agreement or otherwise imposing on
apprentices a non-disclosure provision
that would have the effect of preventing
the worker from working in the same
field after the conclusion of the worker’s
employment with the employer, or that
would restrict an apprentice’s ability to
file a complaint with a Registration
Agency or other governmental body
concerning possible violations of this
part or of 29 CFR part 30. Nondisclosure provisions, more acutely, can
have the effect of silencing workers if
and when they experience harassment,
discrimination, or violations of worker
rights.118 This provision would serve to
promote accountability by ensuring that
all apprentices can file complaints
concerning harassment and
discrimination in the workplace.
Non-disclosure provisions, like noncompete provisions, vary in substance,
but they share a common purpose in
seeking to prevent disclosure of
information designated as confidential
by the agreement.119 The Department
notes that this proposed prohibition on
non-disclosure provisions would apply
to all circumstances in which a nondisclosure provision would effectively
prevent the worker from working in the
same field or effectively restrict the
worker from filing a complaint alleging
118 One in three women has faced sexual
harassment in the workplace during her career, and
an estimated 87 to 94 percent of those who
experience sexual harassment never file a formal
complaint; additionally, sexual harassment in the
workplace forces many women to leave their
occupation or industry or pass up opportunities for
advancement. See Select Task Force on the Study
of Harassment in the Workplace, ‘‘Report of CoChairs Chai R. Feldblum & Victoria A. Lipnic,’’ June
2016, https://www.eeoc.gov/select-task-force-studyharassment-workplace.
119 Rachel Arnow-Richman, Gretchen Carlson,
Orly Lobel, Julie Roginsky, Jodi Short, and Evan
Starr, ‘‘Supporting Market Accountability,
Workplace Equity, and Fair Competition by Reining
in Non-Disclosure Agreements,’’ Federal of
American Scientists, Jan. 31, 2022, https://
www.dayoneproject.org/ideas/supporting-marketaccountability-workplace-equity-and-faircompetition-by-reining-in-non-disclosureagreements.
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a violation of the workers’ rights.
Regardless of the intent of the nondisclosure provision, if it would have
such an effect, then it would be
prohibited. Notwithstanding these
restrictions, however, a sponsor or
participating employer may include a
non-disclosure provision that relates to
the protection of the sponsor’s or
participating employer’s confidential
business information or trade secrets,
such as in the IT industry where an
employee could otherwise disclose their
programming source codes. This
provision intends to protect an
apprentice’s future job prospects while
also recognizing the need of businesses
to safeguard confidential business
information.
Proposed § 29.9(f) would require the
program sponsor to submit a copy of the
executed apprenticeship agreement for
each apprentice registered to the
program’s Registration Agency within
30 days of execution. This change,
which would be a reduction in time
from the 45 days currently required, is
being proposed as part of a broader
change to require more expedited
reporting to OA from 45 days to 30 days,
which the Department thinks is
reasonable given the advancements in
technology available to sponsors and the
ability to use RAPIDS, which provides
for these submissions electronically. In
proposing this change, the Department
expects sponsors to take active steps to
provide all appropriate information
required in the agreement. Agreements
submitted with incomplete or
inaccurate information would not be
deemed to have met this requirement.
Further, in situations in which a
sponsor submits an apprenticeship
agreement that covers multiple
apprentices and contains a list of
signatories, the sponsor would need to
provide the updated list of signatories to
the apprenticeship agreement within 30
days.
Proposed § 29.9(g) is based on an
existing requirement that the
apprenticeship agreement may be
cancelled during the probationary
period specified in the agreement by
either party without cause and would
modify the current provision relating to
this topic found in the existing
regulation at § 29.7(h)(1). As discussed
below, the current language in
§ 29.7(h)(1) regarding written notice to
the Registration Agency would be
relocated to proposed § 29.25(a)(2).
Proposed § 29.9(h) states that after the
probationary period of the
apprenticeship concludes, the
apprenticeship agreement: (1) may be
cancelled at the request of the
apprentice at any time; or (2) may be
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suspended or cancelled by the program
sponsor only for good cause, and after
reasonable opportunity for corrective
action. When terminating an agreement,
the sponsor would need to provide
written notice to the apprentice
explaining the cause for the termination
and provide written notice to the
Registration Agency of the termination.
These requirements would incorporate
the existing requirements in § 29.7(h)(2)
with minor rewording that would not
change the substance of the
requirement. Examples of good cause
could include misconduct, a violation of
a sponsor’s policies, or continuous and
documented poor performance. The
Department is interested in comments
that can provide clarity for the
Department and regulated community
on what a ‘‘good cause’’ cancellation by
the sponsor should entail. These
requirements would incorporate the
existing requirements in § 29.8(a)(12)
with minor rewording that would not
change the substance of the
requirement. This provision would
ensure that the apprentice is aware of
their right to cancel the apprenticeship
agreement at any time and that the
apprentice is notified of and given a
chance to address any concerns or
issues raised by the sponsor about the
apprentice’s performance or conduct. It
would also require that sponsors
provide written notice explaining the
decision to cancel the apprenticeship
agreement, which would mean the
termination of the apprentice’s
participation in the registered
apprenticeship program. As is currently
required, the sponsor would also need
to provide written notice to the
Registration Agency of the cancellation
of the apprenticeship agreement and
termination of the apprentice from the
registered apprenticeship program so
that they are aware of the matter and
can take any action they think may be
appropriate.
Section 29.10—Program Registration
The ‘‘Program registration’’ section
would incorporate requirements from
existing §§ 29.3 and 29.6 for program
registration and the provisional
registration of new programs while
adding further provisions containing the
requirements for a prospective program
sponsor’s application for apprenticeship
program registration and the process for
determination, provisional and
permanent registration, and ongoing
program compliance. Provisions in this
section would describe the required
contents of the application, such as the
inclusion of a work process schedule
that has been developed for an
occupation suitable for registered
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apprenticeship as determined by the
Administrator. This section would
describe new requirements that a
prospective program sponsor must
include in their application, such as a
written plan of recruitment sources,
information on a potential program’s
financial capacity for program
sustainability, and disclosure of
violations and actions taken to correct
violations. Requirements for
applications described in this section
would also include a written
acknowledgement of whether or not the
program would participate in
partnership through such mechanisms
as a collective bargaining agreement and
how the program sponsor intends to
align with 29 CFR part 30 requirements.
A Registration Agency’s determination
process and subsequent issuance of a
Certificate of Registration for
provisional approval if requirements are
met would be described in this section.
This section would also include the
requirements for permanent approval
along with the necessary compliance
measures for programs to meet 29 CFR
parts 29 and 30 requirements and
maintain at least one apprentice with a
given timeframe.
Proposed § 29.10(a) would contain the
requirements for submitting an
application for registration of a new
apprenticeship program. The
Department anticipates electronic
submission of applications, which
would lead to a more efficient process,
increased timeliness of reviews, and
improved technical assistance. The
Department has successfully launched a
web-based platform called Standards
Builder,120 which has also been
leveraged by SAAs. Current regulations
do not require that standards be
submitted electronically and this
proposed rule would change that by
mandating electronic submission. The
Department anticipates that requiring
submissions electronically would result
in better customer service, enable
technical assistance to be provided
electronically and instantly, and could
yield more responsive approvals of
programs that meet the requirements of
this part and part 30. The Department
anticipates continuing to expand and
refine its development of web-based
tools to assist in the registration process,
and requiring electronic submissions
would allow OA to focus its efforts more
on providing sponsors technical
assistance than on reviewing and
providing feedback through
nonelectronic means.
Proposed § 29.10(a)(1) through (3)
would require a prospective program
sponsor to submit: (1) the work process
schedule and related instruction outline
that is consistent with an occupation
deemed suitable for registered
apprenticeship by the Administrator, set
forth in proposed § 29.7; (2) the
standards of apprenticeship for the
proposed program, set forth in proposed
§ 29.8; and (3) the apprenticeship
agreement for the registered
apprenticeship program, set forth in
proposed § 29.9.
Proposed § 29.10(a)(1) would
explicitly require that the occupation
has been determined suitable for
registered apprenticeship. OA maintains
a list and sample work process
schedules of occupations suitable for
registered apprenticeship, which is
available at OA’s Occupation Finder
Tool.121 If the sponsor is submitting a
program that is in an occupation that
has not been deemed suitable for
registered apprenticeship, the sponsor
would need to request a suitability
determination in accordance with the
process in proposed § 29.7. This is a
fundamental first step for any program
registration: if the occupation has not
been deemed suitable for registered
apprenticeship, then the prospective
program is not eligible for registration.
The proposal would also require the
submission of a work process schedule
and related instruction outline that is
consistent with an occupation deemed
suitable for registered apprenticeship by
the Administrator so that a Registration
Agency can assess the alignment of the
work process schedule and related
instruction with the occupation in
which the apprentice is training, per
proposed § 29.10(b)(1) described below.
The Department notes that a sponsor
may submit standards for multiple
occupations as part of their submission,
and if so, would need to submit work
process schedules and related
instruction outlines for every
occupation for which it is seeking
program registration. There would be no
prohibition on a sponsor submitting an
application for registration under this
section along with a request for a
suitability determination under 29 CFR
29.7. However, because suitability is a
threshold requirement for approval of
the standards, OA would not review the
proposed standards until the suitability
determination has been approved. The
120 OA, ‘‘Standards Builder,’’ https://
www.apprenticeship.gov/employers/registeredapprenticeship-program/register/standards-builder
(last visited July 20, 2023).
121 OA, ‘‘Explore Approved Occupations for
Registered Apprenticeship,’’ https://
www.apprenticeship.gov/apprenticeshipoccupations (last visited July 20, 2023).
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Department notes that often during a
suitability process, changes may be
required to ensure the occupation meets
the requirements of industry described
in proposed § 29.7, which would in turn
require changes to the application.
Submitting the suitability request for
review before the standards would be
the more efficient approach.
Proposed § 29.10(a)(4) is a new
provision that would require a
prospective program sponsor to submit
a written plan for the equitable
recruitment and retention of
apprentices, including those from
underserved communities. This
provision is intended to ensure that all
registered apprenticeship programs,
including those that are not subject to
the affirmative action requirements of
29 CFR part 30, develop and implement
intentional and achievable strategies for
optimizing apprenticeship program
participation by individuals who face
persistent structural or environmental
barriers to program entry or retention,
such as persons from underserved
communities. For example, a sponsor’s
plan could detail how it intends to
leverage local partnerships with thirdparty entities such as intermediaries,
State or local workforce development
boards, one-stop centers, preapprenticeship programs, educational
institutions, labor unions, communitybased organizations, or regional
economic development bodies to
facilitate access to a suite of supportive
services for its apprentices, such as the
provision of childcare services, and
transportation. The provision of
supportive services to individuals from
underserved communities often plays a
critical role in enabling such persons to
enroll in, and complete, a registered
apprenticeship program, thereby
optimizing the recruitment and
retention of a talented and motivated
cadre of apprentices who reflect the
demographic composition of the
community in which the sponsor
operates.
Potential program sponsors may
utilize technical assistance from
Registration Agency field
representatives in helping to identify
potential community or intermediary
partnerships. Potential program
sponsors are strongly encouraged to
develop effective partnerships with
educational and workforce intermediary
organizations to form the foundation of
a coherent strategy for the equitable
recruitment and retention of
apprentices. In particular, the formation
of close partnerships between registered
apprenticeship programs and local preapprenticeship programs can be an
effective vehicle for optimizing sponsor
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access to untapped pools of talent, as
many of the participants in preapprenticeship programs are drawn
from underserved communities.
Partnerships with one-stop centers,
workforce boards, and community
organizations can also be particularly
advantageous for those program
sponsors with limited financial
resources, as such networks can provide
sponsors with a cost-effective strategy
for gaining access to supportive services
provided by such third parties. Local
partnerships with intermediary
organizations can also assist sponsors in
advancing equity goals by providing
access to funding sources that can
alleviate the cost burdens typically
associated with the operation of a
registered apprenticeship program (such
as for tuition, books, supplies, and
equipment); these costs often pose
barriers to program entry and retention
for individuals, particularly those from
underserved communities, when they
are passed along to such persons by
apprenticeship programs with limited
resources.
Proposed § 29.10(a)(5) is a new
provision that would require that a
prospective program sponsor submit
information showing that it possesses
and can maintain the financial capacity
and other resources necessary to operate
the proposed program on a sustained
basis. For example, the prospective
program sponsor may submit a narrative
explaining its financial capacity to
operate a program, in particular its
ability to ensure pay to apprentices over
a sustained period. In instances where
employers are sponsors, they could
demonstrate this by identifying their
intent to hire and train apprentices in
the program, and through the wages
they pay apprentices. Additionally, this
provision would be particularly useful
for programs where the employers are
not the sponsors of programs, and the
payment to apprentices would be made
through a group program with
participating employers. Among other
considerations, this provision is
intended to protect against the
proliferation of registered
apprenticeship programs that are
initially set up and financed through a
grant program but lack the financial
resources, consistent funding streams,
or both that would be necessary to
maintain a registered apprenticeship
program over an extended period
beyond the life cycle of a grant.
The Department anticipates that the
submission of a forward-looking
narrative around the sponsor or sponsor
organization’s financial planning,
funding streams, and overall financial
solvency would satisfy the financial
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integrity provision at proposed
§ 29.10(a)(5). The Department primarily
wants to see some discussion in the
application about how the sponsor or
sponsor’s organization intends to
operate and sustain itself, whether it is
an employer sponsor that is ensuring it
has the necessary in-house
infrastructure or partnerships, a
community college sponsor ensuring it
has the sufficient commitment of
employers and resources to provide
related instruction, or other entities
such as intermediary sponsors
indicating they have the necessary
programmatic infrastructure and
resources to maintain the programmatic
requirements. Given its role in
protecting the safety and welfare of
apprentices, the Department envisions
this requirement to ensure the sponsor
is intentional in its commitment and
securing of resources for the
employment and training of apprentices
in a registered apprenticeship program.
The Department is interested in public
comments on the value and feasibility of
this proposed financial integrity
provision, as well as additional
examples or suggestions regarding the
information sponsors may submit to
demonstrate financial solvency.
The purpose of this provision is to
ensure that prospective program
sponsors are financially solvent and can
maintain financial integrity,
transparency, and accountability to
sustain program operations. In
particular, if the program anticipates
relying on grants or other resources,
such as WIOA, to fund some of the
program operations, it would be
expected to disclose this information.
Workforce investments, such as
investments in industry intermediaries,
have shown promise in expanding
registered apprenticeship models to new
industries; however, many of these
investments are designed to assist in
starting a program. Over the long term,
programs should not need to rely on
grant funds for their day-to-day
operations.
Proposed § 29.10(a)(6) is a new
provision that would require a
prospective program sponsor to submit
with their application a disclosure in
writing of all instances where a Federal,
State, or local government agency has
issued a final agency determination that
the prospective sponsor (or any of its
officers or employees) has violated any
applicable laws pertaining to
occupational safety and health, fair
labor standards (including wage and
hour requirements), financial
mismanagement or abuse, EEO,
protections for employees against
harassment or assault, or other
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applicable laws governing workplace
practices or conduct; such disclosure
would need to include a description of
the violation(s), as well as the actions
taken by the prospective sponsor to
remedy the violation(s). This
requirement would further the
Department’s mission in safeguarding
the welfare of apprentices because a
prospective sponsor’s violations of laws
governing workplace practices or
conduct is relevant to a determination
that the prospective sponsor is able to
provide a safe training environment for
apprentices and to a determination that
the prospective sponsor will abide by
the terms of the program standards and
apprenticeship agreement, including
payment of the required wages and
benefits. The Department notes that any
information submitted by a prospective
sponsor in response to this requirement
would be considered in the
Administrator’s review of an application
and could provide sufficient grounds for
denial of registration by the Department.
The Department would use this
information as part of its evaluation in
determining whether a prospective
program sponsor meets the standards for
program registration.
Proposed § 29.10(a)(7) would
incorporate an existing requirement at
§ 29.3(j) about union participation. It
would divide the requirement at
§ 29.3(j) into two parts and make nonsubstantive edits to the first part. The
proposed provision would require the
sponsor to include union participation
provisions in the application where the
apprentice(s) in the program would be
a part of a collective bargaining unit and
would incorporate existing language at
current § 29.3(j) regarding collective
bargaining agreements. It would be
divided into two parts: one relating to
programs in which the union
participates in the operation of the
registered apprenticeship program and
one relating to programs in which there
is no union participation in the
operation of the apprenticeship
program. Section 29.10(a)(7)(i) would
provide that in instances where a
registered apprenticeship program is
proposed for registration by a sponsor,
employer, or employers’ association and
the standards of apprenticeship,
collective bargaining agreement, or
other instrument provides for
participation by a labor union in any
manner in the operation of the
substantive matters of the
apprenticeship program (and where
such participation is exercised), written
acknowledgement of union agreement
or lack of objection to the registration is
required. Section 29.10(a)(7)(ii) would
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provide that where no such
participation is evidenced and
practiced, the sponsor, employer, or
employers’ association must
simultaneously furnish to an existing
union, which is the collective
bargaining agent of the employees to be
trained, a copy of its application for
registration and of the apprenticeship
program. The Registration Agency
would need to provide for receipt of
union comments, if any, within 45 days
before final action on the application for
registration or approval. Both proposed
§ 29.10(a)(7)(i) and (ii) are existing
requirements in § 29.3(j) and function to
provide appropriate participation of the
union that represents the prospective
apprentices’ collective bargaining unit.
Proposed § 29.10(a)(8) would require
sponsors to submit to the Registration
Agency a description of the immediate
steps it will undertake to implement the
requirements of 29 CFR 30.3(b). This
description would need to, at a
minimum: identify the individual(s)
responsible for overseeing the sponsor’s
EEO obligations; identify how the EEO
pledge will be published, publicized,
and available to apprentices; describe
the planned schedule for EEO related
orientation and information sessions;
provide the list and contact information
of current recruitment resources that
will generate referrals and describe
procedures to address anti-harassment
training and procedures for handling
complaints about harassment and
intimidation. These part 30 elements
would be required in the application
because they must be implemented at
the time of program registration, and
Registration Agencies are expected to
evaluate applications to determine
whether they include sufficient
information that these elements will be
met at the time of registration.
Proposed § 29.10(b) states that a
complete electronic application for
registration of an apprenticeship
program that includes all of the
requirements of proposed § 29.10(a)
would be reviewed within 90 calendar
days by the Registration Agency. An
application would need to be complete
in order to start the 90-day review
period for a decision on the application.
Paragraphs (b)(1) through (8) would
describe how the application will be
reviewed and what determinations the
Registration Agency must make in
reviewing the application. These
determinations would correspond to the
materials submitted by the sponsor in
support of their application for program
registration. All eight requirements
would need to be met to receive
approval for program registration. The
Department has made notable strides to
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3169
provide sponsors with the opportunity
to access the registration process
electronically both through the
provision and release of boilerplate
standards of apprenticeship, which have
eased the process of assembling
compliant standards, as well as the
launch of OA’s Standards Builder tool,
which allows potential sponsors to
begin the registration process online.122
The Department will continue
enhancing these resources to ensure
sponsors have a clear and navigable
process to registering their programs
with OA.
Proposed § 29.10(b)(1) would require
a determination from the Administrator
that the occupation covered by the
proposed program is suitable for
registered apprenticeship training
pursuant to proposed 29 CFR 29.7. This
would be a step taken by the
Registration Agency to verify that the
occupation of the proposed program is
suitable for registered apprenticeship. If
the occupation has not been determined
to be suitable for registered
apprenticeship, then the Registration
Agency may not approve the
application. As discussed in proposed
§ 29.10(a)(1), the sponsor should verify
that the occupation has been deemed
suitable for registered apprenticeship or
should obtain such a determination
prior to or at the time of applying for
program registration under this part.
Proposed § 29.10(b)(1) would further
clarify that the Administrator may in
their sole discretion determine whether
the work process schedule submitted for
registration under proposed § 29.10(a)
substantially aligns with those
previously approved work process
schedules such that the occupation in
question needs to be determined to be
suitable under proposed § 29.7. A
suitability determination under
proposed § 29.7(a) would always be
made consistent with the work process
schedule and related instruction outline
submitted in support of the suitability
determination request. Even if an
application for registration is submitted
for an occupation previously
determined to be suitable for registered
apprenticeship, the Administrator could
need to make a new suitability
determination if the work process
schedule and related instruction outline
submitted for registration differ
significantly from the work process
schedule and related instruction outline
previously approved under § 29.7. In
other words, the Administrator would
122 OA, ‘‘Standards Builder,’’ https://
www.apprenticeship.gov/employers/registeredapprenticeship-program/register/standards-builder
(last visited July 20, 2023).
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never be constrained by a sponsor’s
representation as to what occupation a
work process schedule represents. If the
Administrator determines that a
suitability determination is necessary,
the 90-day period for OA to review an
application would not start until the
suitability determination is complete.
The Department is interested in any
comments regarding the appropriate
amount of discretion SAAs that serve as
the Registration Agency for Federal
purposes should have to ensure a
submission substantially aligns with an
approved occupation.
Proposed § 29.10(b)(2) would require
a determination that the work process
schedule proposed for that occupation
provides training in the specific skills
and competencies associated with the
approved occupation as required by
proposed § 29.7.
Proposed § 29.10(b)(3) would require
a determination that the applicant’s
work process schedule and related
instruction outline would provide an
apprentice with a portable set of
occupational skills and competencies
that are readily transferable between
employers within the same industry or
sector as required by proposed § 29.7.
Proposed § 29.10(b)(4) would require
a determination that the standards of
apprenticeship submitted are consistent
with the requirements of proposed
§ 29.8.
Proposed § 29.10(b)(5) would require
a determination that the apprenticeship
agreement adheres to the requirements
of proposed § 29.9.
Proposed § 29.10(b)(6) would require
a determination that the sponsor
possesses the financial capacity and
other resources necessary to operate the
proposed program.
Proposed § 29.10(b)(7) would require
a determination that the types of
misconduct or violations of law
acknowledged by the applicant
pursuant to proposed § 29.10(a)(6) have
been satisfactorily addressed and cured
by the applicant, and therefore would
not pose a significant ongoing risk to the
welfare of apprentices who elect to
enroll in the program.
Proposed § 29.10(b)(8) would require
a determination that the union
participation requirements of paragraph
(a)(7) are satisfied, if applicable. The
Registration Agency would review the
documents submitted verifying the
required union engagement as outlined
in proposed § 29.10(a)(7) and determine
whether the requirements have been
met.
Proposed § 29.10(b)(9) would require
a determination that the sponsor’s
submission of their written plan for the
equitable recruitment and retention of
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apprentices is satisfactory and that they
have included a satisfactory description
of how they will implement, upon
registration, each of the EEO
requirements in proposed § 29.10(a)(8).
Proposed § 29.10(c) describes the
potential outcomes of the Registration
Agency’s review of the apprenticeship
program application. It states that
applications for new programs that the
Registration Agency determines meet
the required standards for program
registration would be given a Certificate
of Registration and provided provisional
registration. It further provides that in
instances where a Registration Agency
declines to register a program, the
Registration Agency would provide a
written explanation of the reasons why
it determined the application does not
meet the requirements of this subpart,
and how any deficiencies could be
cured, to the applicant. Finally, it
provides that applicants denied
approval could resubmit consistent with
the requirements of this subpart. The
written notice of denial by the
Registration Agency should contain
adequate explanation for the sponsor to
understand why the application was
denied and any specific instructions for
resubmitting an application with new or
supplemental information.
Proposed § 29.10(d) provides
additional explanation of provisional
registration and review of provisionally
registered programs for permanent
registration. The purpose of the
provisional status for new programs is
to establish the relationship between the
program sponsor and Registration
Agency and ensure that new program
sponsors fully understand and are
willing to take action on requirements
for compliance, that program sponsors
can request and access technical
assistance from a Registration Agency,
and that program sponsors make
necessary changes to their program
during the expected timeframe to build
and sustain an effective and successful
program that is compliant. This
provisional status would also serve to
protect apprentices in newer programs
until they have established that they are
operating in accordance with
Registration Agency approval and to
ensure that any necessary corrections
are made at an early stage by programs.
It would require the Registration Agency
to review all provisionally registered
programs for compliance with the
requirements of this part and of 29 CFR
part 30 within 2 years of the program’s
registration date or at the end of the first
training cycle, whichever is sooner. This
means that provisionally registered
programs with a duration of less than 2
years would be reviewed at the end of
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their training cycle, rather than at the 2year mark. The proposed change from a
review after the first year, as currently
provided in § 29.3(h), to a review at
either the end of the full training cycle
or the 2-year mark, whichever is sooner,
would allow sufficient time for
programs of longer durations to progress
through their programs prior to being
subject to an initial review and also
would eliminate a need for two-part
review for programs with full training
cycles that are longer than 1 year but
shorter (or equal to) 2 years. This would
allow for programmatic efficiencies both
for the Registration Agency and the
registered apprenticeship program
sponsor. It would also coincide with the
requirement in 29 CFR 30.4(e) to have
an initial written affirmative action plan
completed within 2 years of program
registration.
Proposed § 29.10(d)(1) describes the
two possible scenarios after a
Registration Agency approves an
application. If the provisionally
registered program has completed its
first full training cycle, then it would be
granted permanent registration. If the
provisionally registered program has not
completed its first training cycle, then it
would continue to be provisionally
approved until it receives its subsequent
program review at the end of the first
full training cycle. Proposed
§ 29.10(d)(2) provides that if a program
is not found to be operating in
compliance with the requirements of
this part and part 30, it would be subject
to the deregistration procedures at
proposed § 29.20. It is important to note
here that proposed § 29.20(a) would
allow a Registration Agency to provide
technical assistance to a program such
that it can continue to operate subject to
additional oversight, so a provisionally
registered program that is found to be
noncompliant may receive technical
assistance and enhanced oversight prior
to formal deregistration actions being
taken. Finally, proposed § 29.10(d)(3)
provides that programs that receive
permanent registration would be subject
to subsequent program reviews by
Registration Agencies as provided in
proposed § 29.19.
Proposed § 29.10(e) is a new provision
that would incorporate the requirement
in existing § 29.6(a) that every registered
apprenticeship program must have at
least one apprentice and would add to
this requirement by providing that the
failure to comply could result in
deregistration proceedings. Specifically,
proposed § 29.19(e) states that if a
registered apprenticeship program does
not have at least one apprentice enrolled
and participating in the apprenticeship
program and registered with the
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Registration Agency, the Registration
Agency could initiate deregistration
proceedings as described in proposed
§ 29.20. Proposed § 29.10(e) would
incorporate the language in § 29.6(a)(1)
and (2) that the requirement to have at
least one apprentice does not apply
during the following periods of time,
which may not exceed 1 year: (1)
between the date when a program is
registered and the date of registration for
its first apprentice(s); or (2) between the
date that a program graduates an
apprentice and the date of registration
for the next apprentice(s) in the
program.
This proposed requirement is
primarily administrative in nature and
is intended to underscore that registered
apprenticeship programs must have
apprentices participating in their
programs in order to remain registered
or else risk deregistration. Such a
requirement is also administratively
appropriate to address those limited
instances where a newly registered
apprenticeship program uses that
registration to qualify for the
Department’s Eligible Training Provider
List and receive Federal WIOA funds
but fails to actually enroll any
apprentices. This proposed requirement,
however, is not intended to create
undue burdens for new programs that
are just beginning to register apprentices
or smaller programs that may have gaps
between the graduation of one
apprentice and the start date of another,
and it would allow for a 1-year grace
period under these circumstances. The
Department also notes that programs
deregistered for having zero apprentices
could reregister with a Registration
Agency when they anticipate utilizing
their program again, if it meets the
requirements of this part and part 30.
The Department is interested in
comments as to whether a ‘‘latency’’
period of more than 1 year of no
apprentice enrollment by a program
would be a more appropriate grace
period, such as in instances where an
economic downturn may impact
apprenticeship hiring. The Department
is also interested in any comments that
can address scenarios where programs
have apprentices but do not successfully
graduate or convert them. While the
Department is proposing two different
completion rate metrics (annual and
cohort), it is interested in any comments
that may address this scenario to ensure
programs are seeking to graduate
apprentices and not just to access
benefits available for Federal purposes
such as those available under 29 CFR
part 5.
Proposed § 29.10(f) would update an
existing requirement in § 29.5(b)(18)
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concerning modifications to standards
of apprenticeship. It would provide that
any sponsor proposals for
modification(s) or change(s) to
standards of apprenticeship or certified
National Guidelines for Apprenticeship
Standards for a registered program must
be submitted to the Registration Agency.
It would also provide that the
Registration Agency must make a
determination on whether such
submissions are consistent with the
requirements of this part and 29 CFR
part 30, and if so, will approve such
submissions within 90 calendar days
from the date of receipt of a complete
submission. Finally, it would provide
that, if approved, the modification(s) or
change(s) will be recorded and
acknowledged within 90 calendar days
of approval as an amendment to such
program, and if not approved, the
sponsor must be notified of the
disapproval and the reasons therefore
and provided the appropriate technical
assistance. This language would clarify
the process for reviewing and approving
or denying modifications or changes to
approved standards.
Section 29.11—Program Standards
Adoption Agreement
Proposed § 29.11 would prescribe the
content and operational requirements
for a written program standards
adoption agreement, as defined in
proposed § 29.2, between a sponsor and
a participating employer that is reached
outside of a collective bargaining
process. Agreements between the nonunion sponsors of a registered
apprenticeship program and an
individual employer that elects to
participate in that sponsor’s program are
not uncommon, but there is currently no
mechanism in place to ensure
participating employers’ accountability
for compliance with the program’s
standards and apprenticeship agreement
and no mechanism to hold sponsors
accountable for the actions of the
entities with whom they partner. The
Department believes that the inclusion
of a regulatory provision expressly
obligating participating employers to
comply with the sponsor’s standards of
apprenticeship and to adhere to the
requirements contained in 29 CFR parts
29 and 30 would serve to bolster
registered apprenticeship program
accountability and integrity and protect
the safety and welfare of apprentices.
Because a participating employer in a
sponsor’s group program is typically the
entity that employs and pays wages to
the apprentices enrolled in that
program, and that also typically
provides close on-the-job direct
supervision and training to such
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individuals, it follows that such
employers should be contractually
obligated to adhere to the same
standards of apprenticeship and
regulatory obligations as the sponsor of
the program. This would ensure that
apprentices are protected and receive
the full benefit of the program.
Specifically, proposed § 29.11(a)
would require that the terms and
conditions of a program standards
adoption agreement include the
requirements that a participating
employer will: (1) adopt and comply
with the sponsor’s registered standards
of apprenticeship; (2) comply with all
other applicable requirements in this
part; and (3) cooperate with, and
provide assistance to, the program
sponsor to meet the program sponsor’s
obligations under this part and 29 CFR
part 30, including by providing any
apprenticeship-related data and records
necessary to assess compliance with
these regulatory provisions. These
requirements would operate in tandem
to ensure that the employers of
apprentices clearly understand their
obligations to comply with the sponsor’s
registered standards of apprenticeship,
comply with the applicable
requirements in 29 CFR parts 29 and 30,
and assist in any review or compliance
efforts concerning such compliance,
including providing any information
necessary to assess compliance. Program
sponsors would need to ensure that
these requirements are clearly
articulated in every program standards
adoption agreement and that
participating employers understand
their obligations under these
requirements. This requirement is
modeled after the existing practice of an
‘‘Employer Acceptance Agreement,’’ for
which a template exists currently in
Appendix D of OA’s boilerplate
standards of apprenticeship in Bulletin
2022–17.123
Proposed § 29.11(b) would require
transmission of the program standards
adoption agreement to the Registration
Agency within 30 days of the execution
of the agreement. This would be
necessary for the Registration Agency to
verify compliance with this subpart as
well as provide assurance that
employers understand their obligations
and responsibilities as employers of
apprentices in registered apprenticeship
programs and to allow the Registration
Agency to engage in more
comprehensive oversight of the
program.
123 OA, Bulletin 2022–17, ‘‘Modifications to the
Boilerplate Standards of Apprenticeship,’’ Nov. 19,
2021, https://www.apprenticeship.gov/sites/default/
files/bulletins/Bulletin-2022-17_0.docx.
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Proposed § 29.11(c) would provide
the process for the suspension or
cancellation of a program standards
adoption agreement. As described
below, a participating employer could
cancel the agreement by providing 30day written notice to the sponsor, and
a sponsor could cancel or suspend the
agreement if the participating employer
violates the terms of the program
standards adoption agreement relating
to proposed § 29.11(a)(1) through (3).
Proposed § 29.11(1) provides that the
agreement could be cancelled by the
participating employer upon providing
30 days written notice to the sponsor.
The Department anticipates that a
participating employer that decides to
cancel the agreement would not have
apprentices in their employment at the
time of the cancellation, meaning that
prior to cancellation, the employer’s
apprentices were converted into regular
employees, ended their on-the-job
training with the employer, or were
otherwise placed by the sponsor with a
different participating employer.
Proposed § 29.11(c)(2) provides that
the agreement would be suspended or
cancelled by the program sponsor if the
program sponsor determines that the
participating employer failed to satisfy
the requirements of the program
standards adoption agreement’s
mandatory provisions described in
proposed § 29.11(a). The sponsor would
be responsible for determining
compliance with the program standards
adoption agreement and cancellation or
suspension of such agreement if there
were noncompliance by the
participating employer.
Proposed § 29.11(c)(2)(i) through (iii)
discuss the process that sponsors would
follow to suspend or cancel the program
standards adoption agreement.
Proposed § 29.11(c)(2)(i) would
require the program sponsor to provide
written notice of any suspension or
cancellation to the participating
employer, all apprentices affected by the
suspension or cancellation, and to the
applicable Registration Agency. It
would also specify that the notice must
explain the reason for the suspension or
cancellation. The purpose of this
proposed provision is to ensure that
adequate written notice is provided to
everyone affected by a cancellation or
suspension of a program standards
adoption agreement and the reason for
the suspension or cancellation.
Proposed § 29.11(c)(2)(ii) provides
that if the suspension or cancellation
results in an interruption or cessation of
training for apprentices, the program
sponsor would need to make a
reasonable effort to place such
individuals with another of the
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sponsor’s participating employers or a
different registered apprenticeship
program in the same occupation. The
purpose of this proposed provision is to
ensure that any apprentices whose
programs are affected by such
cancellation or suspension are placed
with either another employer or another
registered apprenticeship program, to
the extent possible. Registration
Agencies could provide technical
assistance upon request if the sponsor
encounters challenges to placing
apprentices with other employers or
programs.
Proposed § 29.11(c)(2)(iii) provides
that in instances where a program
sponsor fails to suspend or cancel a
program standards adoption agreement
as required by this paragraph, the
Registration Agency could initiate
deregistration proceedings against the
sponsor pursuant to proposed § 29.20.
This proposed provision is intended to
both signal to the sponsor the
importance of monitoring compliance
with program standards adoption
agreements and to emphasize that
neglecting to do so risks deregistration
per the procedures in proposed § 29.20.
Section 29.12—Qualifications of
Apprentice Trainers and Providers of
Related Instruction
In registered apprenticeship, trainers
and instructors play a pivotal role in the
realization of the benefits of the
system’s earn-and-learn framework. The
quality of the source material and
resources underpinning training and
instruction in registered apprenticeship
programs is vital, but in order for such
material to take hold among apprentices
learning about an occupation, the
individuals providing training and
instruction must be knowledgeable
experts in their field, must be skilled in
instructional competencies, and must be
willing and able to take a lead role in
establishing a safe and welcoming
environment conducive to learning for
apprentices of all backgrounds.
The current regulatory framework for
registered apprenticeship does not
establish any baseline qualifications for
apprentice trainers. The Department has
determined that establishing such a
baseline in regulation would benefit all
existing and potential registered
apprenticeship programs and
apprentices by promoting quality and
transparency within the National
Apprenticeship System. Potential
program sponsors of new registered
apprenticeship programs would benefit
from regulatory provisions that clarify
the baseline elements of quality trainers
and instructors in apprenticeship.
Ultimately, the Department proposes to
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include a provision on trainer and
instructor quality to ensure that all
programs recognize the importance of
trainer and instructor quality, to
encourage programs to take steps to
keep trainers and instructors up-to-date
on emerging techniques and
technologies, and to promote
transparency for potential apprentices,
who would understand the
qualifications of those they are receiving
training from and that any trainers and
instructors in any registered
apprenticeship program will meet
baseline quality standards.
Proposed § 29.12 is a new provision
stipulating proposed requirements for
the qualifications of individuals
designated to provide training and
related instruction to apprentices. For
apprentices, training and learning while
on the job is a core, definitional element
of registered apprenticeship. Trainers
and instructors (traditionally referred to
as ‘‘journeyworkers’’ in the
apprenticeship context, and used here
in the proposed regulatory text to align
with the journeyworker-to-apprentice
ratio requirements discussed above in
this NPRM) hold the key to the benefits
of apprenticeship for all stakeholders:
apprentices benefit from such training
and learning by developing in-demand
skills and becoming proficient in job
tasks that are central to the careers they
are pursuing, and employers benefit
from a capable workforce that can
deliver a quality work product. As such,
the Department has determined that
trainer and instructor (journeyworker)
quality is central to the success of
registered apprenticeship and proposes
to include a new section in the
registered apprenticeship regulations at
29 CFR 29.12 to outline the attributes,
qualifications, and experiential
requirements necessary to ensure all
training and learning in registered
apprenticeship is high in quality.
Proposed § 29.12(a) would require
that all sponsors and participating
employers in the National
Apprenticeship System must ensure
that journeyworkers providing on-thejob training meet the quality
requirements that follow in paragraphs
(a)(1) through (6). The proposed
regulatory text would clarify that the
proposed quality requirements at
paragraphs (a)(1) through (6) are
minimum requirements, and the
Department expects that most registered
apprenticeship programs or their
participating employers already employ
journeyworkers whose qualifications
meet and exceed these proposed
minimum requirements.
The first proposed minimum
requirement at proposed 29 CFR
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29.12(a)(1) states that apprentice
trainers or providers of related
instruction would need to possess a
mastery of the relevant job skills,
techniques, and relevant competencies
of the occupation. Apprentices
participating in a quality registered
apprenticeship program are on a
pathway to become proficient in all the
relevant job skills, techniques, and
competencies in the occupation for
which they are training, and the quality
of the training they receive during their
program is the single most critical
success factor for achieving such
proficiency. Employers need workers
who can perform critical job tasks
competently and proficiently, especially
in trades or occupations where time to
complete a job task is critical to the
employee and employer’s bottom line
(such as an electrician who must be able
to complete complex job tasks
accurately and efficiently within a
certain timeframe). In order for
apprentices to become proficient in the
critical job tasks for an occupation, the
training and instruction they receive
during their registered apprenticeship
program must be provided by trainers
and instructors who are not only
proficient in the tasks themselves, but
who possess a mastery of these skills,
techniques, and competencies such that
they can impart their mastery on to the
apprentices training in their registered
apprenticeship program.
Proposed § 29.12(a)(2) would further
require that journeyworkers stay up to
date on the latest advances in
technology, technical knowledge, new
and emerging techniques, and evolving
job skills necessary to maintain their
proficiency and mastery in an
occupation. Emerging technologies,
technical and mechanical refinements to
machinery and equipment, the
proliferation of digital and online tools,
platforms, and capabilities, and
developments in the modern workspace
and the emergence of remote work 124
all carry meaningful implications for
workforce training and development.
The Department has determined that
introducing regulatory requirements for
journeyworkers providing training to
maintain their proficiency is essential
for ensuring that such developments are
reflected throughout the National
Apprenticeship System. Continuous
124 For example, the COVID–19 pandemic has
resulted in a major shift towards remote work
throughout the United States workforce. See Kim
Parker, Juliana Menasce Horowitz, and Rachel
Minkin, ‘‘COVID–19 Pandemic Continues to
Reshape Work in America,’’ Pew Research Center,
Feb. 16, 2022, https://www.pewresearch.org/socialtrends/2022/02/16/covid-19-pandemic-continuesto-reshape-work-in-america.
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learning and upskilling for
journeyworkers providing training and
instruction in registered apprenticeship
programs would be critical for ensuring
the journeyworker retains a mastery as
required by proposed paragraph (a)(1)
and for ensuring the skills and
techniques apprentices are learning
throughout their program are relevant
and up to date.
Proposed § 29.12(a)(3) through (5)
discuss the proposed requirements for
journeyworkers’ capabilities as
instructors, communicators, and
evaluators. In addition to possessing a
mastery of the relevant job skills and
techniques for their occupation and
keeping up to date on their mastery and
proficiency, journeyworkers would need
to be effective communicators to ensure
their mastery is passed on to the
apprentices training in their programs.
Proposed paragraph (a)(3) would require
that journeyworkers be effective
communicators capable of transmitting
and demonstrating any specialized
knowledge, job skills, techniques, or
processes necessary for achieving
proficiency in an occupation.
Paragraph (a)(4) would cover another
critical aspect of instruction and
training: journeyworkers’ ability to
evaluate apprentices’ progress and
performance fairly and objectively
throughout the term of a registered
apprenticeship program, including the
ability to evaluate apprentices’ progress
in attaining competencies during onthe-job training. The Department views
the fair and transparent evaluation of
apprentices throughout a program as a
critical element for registered
apprenticeship program success,
because such evaluation is essential for
understanding if apprentices have
learned all they need to during their
program and are assured that they are
emerging from the programs with a
valuable set of transferrable skills for
their careers. Fair, transparent, and
effective evaluation is also an important
equity consideration, and in line with
its goal of advancing equity in the
National Apprenticeship System with
this proposed regulation, the
Department seeks to embed such
qualities in the evaluations provided by
apprentice trainers through the
proposed minimum trainer qualification
requirement at proposed paragraph
(a)(4). This proposed minimum trainer
qualification requirement is intended to
protect apprentices from diverse
backgrounds against unequal treatment
in evaluation, to establish a baseline of
equitable and objective evaluation for
all apprentices in a program, and to
ensure that apprentices from diverse
backgrounds receive training from, and
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are evaluated by, qualified and
experienced trainers.125 It would also
require that a trainer is able to assess the
attainment of competencies acquired by
apprentices during their on-the-job
training. This would include the ability
to assess whether apprentices are
meeting the appropriate targets at each
stage of the program. Under the
Department’s proposed approach, all
apprentices would be advanced through
programs by their successful attainment
of competencies acquired over a
minimum duration of time on-the-job. A
trainer’s ability to assess and recognize
when an apprentice has reached a level
of competency so as to be proficient in
it is vital to the operation of a registered
apprenticeship program. This ability to
assess competency attainment is also
vital in programs that accelerate an
apprentice’s time in the program based
on the rapid attainment of proficiency
in competencies, because acceleration
should only take place when an
apprentice is proficient and not just to
move quickly through a program. A core
tenet of registered apprenticeship is
journeyworkers’ mastery of the job skills
within their occupation, and
journeyworkers are therefore in the best
position to evaluate whether an
apprentice has achieved the
occupational proficiency that all
registered apprenticeship programs
should confer upon participating
apprentices.
Proposed § 29.12(a)(5) would concern
apprentice trainers’ role in establishing
practical connections between the
conceptual and theoretical knowledge
apprentices attain through related
instruction and their implications and
applications for the covered occupation.
Such connections may clarify how to
perform a job-related task successfully,
explain a task or sub-task’s importance
to successful, safe, and efficient
performance within the occupation, or
otherwise provide apprentices with
theoretical context and broader
understanding of the tasks they must
perform in the occupation. The
Department has determined that
apprentices benefit from developing a
clear understanding of why they are
required to participate in the related
125 Proposed paragraph (a)(4) aligns with other
Federal government agencies’ efforts to establish
equitable access to qualified and skilled educators
and instructors. For example, in 2014, ED launched
the ‘‘Excellent Educators for All Initiative’’
requiring States to submit plans to ensure ‘‘poor
and minority children are not taught at higher rates
than other children by inexperienced, unqualified,
or out-of-field teachers.’’ Westat, ‘‘Equitable Access
to Excellent Educators: An Analysis of States’
Educator Equity Plans,’’ 2016, https://www2.ed.gov/
programs/titleiparta/equitable/
titleiiequityanalysis1031.pdf.
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instruction element of registered
apprenticeship, and that apprentices’
primary trainers—journeyworkers—
must play an essential role in
developing such understanding among
the apprentices they train.
Finally, proposed § 29.12(b) would
require that journeyworkers fulfill their
important role in ensuring apprentices
are receiving training in a safe and
inclusive work environment that
supports the effective development of
apprentices from all backgrounds.
Studies, research, and evaluations
applying the DEIA lens to analyzing the
roles of trainers, instructors, mentors,
and others in positions of authority
indicate that such individuals are in a
unique position to shape the learning
and professional environments in which
they are operating, including the
creation of an inclusive environment
where everyone feels represented,
supported, empowered to speak up, and
protected from harassment,
intimidation, or retaliation. OA’s fact
sheet on advancing DEIA in registered
apprenticeship, designed to inform
registered apprenticeship stakeholders
on the key elements and benefits of
robust DEIA protocols in registered
apprenticeship programs, discusses the
importance of inclusive leaders in
establishing workplace culture and the
role of mentors in building networks to
help apprentices from diverse
backgrounds develop positive
connections with their place of work.126
OA has also established partnerships
with advocacy organizations to harness
the expertise of stakeholders in
workforce development to develop and
produce guidance on promising
practices for inclusive workplaces.
Research, guidance, and frameworks
developed by these organizations also
point to the importance and benefits of
advancing DEIA in registered
apprenticeship, including through the
incorporation of authentic program
participant voices, training and
instruction that is accessible and
representative of diverse participants in
a program, and quality mentorship.127
Quality mentorship is particularly
important for youth in educational and
training environments, further
supporting the Department’s proposal to
126 OA, ‘‘Scaling Diversity, Equity, Inclusion and
Accessibility (DEIA) in Registered Apprenticeship,’’
https://www.apprenticeship.gov/sites/default/files/
DOL_DEIAFactsheet_v2.pdf (last visited July 20,
2023).
127 Vanessa Bennett, Maria Cabiya, Myriam
Sullivan, and Deborah Kobes, ‘‘JFF’s Program
Design Framework for Diversity, Equity, Inclusion,
and Accessibility in Registered Apprenticeship,’’
Center for Apprenticeship & Work-Based Learning,
https://info.jff.org/apprenticeshipdeia-framework
(last visited July 20, 2023).
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include minimum requirements for the
journeyworker role in establishing
inclusive workplace environments as
the Department seeks to advance
opportunities for increased youth
participation in quality registered
apprenticeship programs.128
Proposed paragraph (b) would also
reiterate that trainers in registered
apprenticeship programs must also have
completed all anti-harassment trainings
required in the part 30 regulations,
which is not a new requirement for
program sponsors. Additionally, the
Department is proposing that the trainer
should not have a record of
substantiated noncompliance with the
EEO requirements to ensure that trainers
are fully inclusive of the EEO in
apprenticeship requirements and that
apprentices are protected from trainers
unwilling to incorporate these
requirements. The Department has
determined that including the
maintenance of a safe and inclusive
working and learning environment is
equally important as the antiharassment training requirements for
ensuring apprentices are supported and
protected by the trainers guiding their
professional development during their
apprenticeship.129 Such an environment
is important for the quality of the
experience of apprentices in the
program, which in turn impacts
programs’ ability to retain apprentices,
and positive feedback and messaging
about the quality, safety, and
inclusiveness of a work environment
may also have positive impacts on
registered apprenticeship programs’
ability to attract new apprentices.
Though not a requirement, the
Department does encourage the
adoption of DEIA training for trainers as
a best practice and encourages
comments on the advantages of
embedding DEIA training into registered
apprenticeship programs.
Proposed § 29.12(c)(1) and (2) would
concern providers of related instruction
and the minimum requirements such
individuals must possess in the
registered apprenticeship context. These
proposed paragraphs would relocate
much of the existing regulatory text in
the Standards of Apprenticeship section
of the regulation at 29 CFR 29.5(b)(4)(i)
and (ii) with minor adjustments and are
128 Urban Institute, ‘‘Mentoring Matters: The Role
of Mentoring in Registered Apprenticeship
Programs for Youth,’’ Nov. 8, 2021, https://
www.urban.org/events/mentoring-matters-rolementoring-registered-apprenticeship-programsyouth.
129 See, e.g., Alexia Fernandez Campbell and
Claire Molloy, ‘‘Attacked Behind the Wheel,’’ The
Center for Public Integrity, Dec. 11. 2022, https://
publicintegrity.org/labor/female-drivers-attackedbehind-the-wheel/.
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not new requirements for registered
apprenticeship programs. Proposed
paragraph (c)(1) would require that
providers of related instruction must
either be faculty members or instructors
at an accredited postsecondary
institution or meet the State’s
certification requirements for CTE
instructors in the State where the
apprenticeship program is registered.
The Department proposes to add to the
existing regulatory text on this topic,
found in the existing regulation at 29
CFR 29.5(b)(4)(i), by clarifying that
providers of related instruction who
serve as a faculty member or instructor
at an accredited postsecondary
institution would meet the proposed
requirement at § 29.12(c)(1). The
Department also proposes to retain the
language from the existing regulation at
§ 29.5(b)(4)(i) stating that a subjectmatter expert, such as a journeyworker,
may also provide related instruction to
apprentices. Many registered
apprenticeship programs rely on their
journeyworker assets to provide such
instruction because such individuals
possess a mastery of the occupation that
enables them to select the related
instruction curricula most appropriate
for a worker’s success in the occupation.
The Department has determined it is
important to maintain this flexibility in
the proposed rule and is including that
language in proposed § 29.12(c)(1).
The Department has determined that
it is prudent to maintain these
requirements because the quality of the
related instruction components of
registered apprenticeship programs
depends on the qualities and
capabilities of the instructor, including
their capabilities as an educator and
their ability to communicate complex
subject matter. The certification
requirements at proposed paragraph
(c)(1) are intended to ensure that
instructors are capable and effective
teachers, which the Department views
as a unique skill that transcends the
occupation-specific aspects for any
registered apprenticeship program.
Proposed paragraph (c)(2) is not a new
requirement and leverages the existing
regulatory language at 29 CFR
29.5(b)(4)(ii). The Department proposes
to maintain the existing requirement
that instructors possess skills in
teaching techniques for different
audiences, including adult learning
styles. Apprentices in a given registered
apprenticeship program may come from
a variety of backgrounds, and many are
adult workers seeking to retrain or
upskill in a different career or
occupational sector. As with
journeyworkers providing on-the-job
training, providers of related instruction
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must understand the unique
characteristics and needs of adult
learners and must be able to apply
appropriate instructional techniques to
ensure apprentices of all backgrounds—
including adult learners—receive and
understand the instructional
components within their registered
apprenticeship program.
While the Department expects that
training and related instruction
providers in most registered
apprenticeship programs either will
already meet these proposed minimum
qualification requirements or will have
clear options available to ensure they
meet these proposed requirements
(through existing partnerships, industry
certification programs, learning
certification programs, or others), the
Department is committed to providing
technical assistance to programs to
streamline registered apprenticeship
programs’ compliance with this
proposed section. In addition, the
Department will commit to promoting
the development of mentorships,
templates for trainer and instructor
assessment, and a system-wide network
of stakeholders (currently contemplated
as an ‘‘Registered Apprenticeship
Academy’’) to facilitate mentoring and
trainer development, create a critical
feedback loop, and otherwise provide
support for programs and the trainers
and instructors who are so critical to the
registered apprenticeship program and
apprentices success profile.130
Section 29.13—Development of
National Occupational Standards for
Apprenticeship
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Proposed 29 CFR 29.13 is a new
proposed section of the part 29
regulations that would describe the
development and intended use of
National Occupational Standards for
Apprenticeship. Accelerated expansion
of the National Apprenticeship System
is one of the Department’s primary goals
in the development of this proposal, and
OA views the continued development of
National Occupational Standards for
Apprenticeship as an important tool for
achieving that goal. National
Occupational Standards for
Apprenticeship are industry-validated
standards that are national in scope and
can be used to accelerate the
development of a registered
130 Encouraging the inclusion of mentorships in
registered apprenticeship programs aligns with the
2023 Quality Apprenticeships Recommendation of
the ILO at Conclusion 25(o). ILO, ‘‘Quality
Apprenticeships Recommendation, 2023’’ (ILO
Recommendation No. 208), Conclusion 25(o), June
16, 2023, https://www.ilo.org/dyn/normlex/en/
f?p=NORMLEXPUB:12100:0::NO::P12100_
INSTRUMENT_ID:4347381.
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apprenticeship program. National
Occupational Standards for
Apprenticeship are intended to be an
off-the-shelf resource for potential
programs seeking to establish a
registered apprenticeship program in an
occupation that is national in scope and
suitable for registered apprenticeship,
and they would enable potential
sponsors to quickly develop a set of
standards of apprenticeship particular
to their proposed program that aligns
with the apprenticeship training
standards for the occupation as
advanced by stakeholders and experts in
their industry.
The Department has received
feedback from stakeholders, including
the members of the 2021–2023 term of
the ACA, that potential registered
apprenticeship program sponsors need
robust tools, templates, and other
resources to assist sponsors in meeting
the required steps for setting up a new
registered apprenticeship program. The
Department agrees with this feedback,
captured in several recommendations
from the ACA’s 2022 Interim Report,
and will continue to work with industry
stakeholders to develop such tools.131
For National Occupational Standards for
Apprenticeship, OA will work with
industry stakeholders to identify the
training needs of particular occupations,
ensure national applicability of those
training needs, and develop products
(such as sample work process
schedules) based on those needs
consistent with the occupational
suitability provisions of 29 CFR 29.7.
Sponsors utilizing National
Occupational Standards for
Apprenticeship would be able to
accelerate the development of their
programs based on their utilization of
131 ACA recommendations on this topic from its
2022 Interim Report include:
• Identify opportunities for more standardization
across the registered apprenticeship system while
preserving necessary flexibilities to ensure the
registered apprenticeship model is adaptable to
different industry and regional needs.
• Provide detailed guidance so that State-level or
employer/sponsor-level stakeholders know exactly
where they need to go and what they need to do
to register a program, obtain answers to questions,
pursue funding opportunities, and whether there
are templates or other guidance to get them started.
• Create a toolkit/resource to communicate this
information and refine apprenticeship referral
processes, support provided to apprentices, etc.
• Leverage existing tools for onboarding, such as
the Standards Builder (https://
www.apprenticeship.gov/employers/registeredapprenticeship-program/register/standards-builder)
and the Apprenticeship Playbook (https://
www.apprenticeship.gov/sites/default/files/
playbook.pdf), and develop additional requirements
guides as needed.
ACA, ‘‘Interim Report to the Secretary of Labor,’’
May 16, 2022, https://www.apprenticeship.gov/
sites/default/files/aca-interim-report-may-2022.pdf.
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these comprehensive standards, which
could accelerate the review of their
registration on a national basis either as
National Program Standards for
Apprenticeship or as National
Guidelines for Apprenticeship
Standards, consistent with proposed
§§ 29.14 and 29.15 of this part.
With regard to these standards, the
Department envisions its role as being a
convener of national stakeholders that
would take the initiative in the
development of such occupational
standards across a given industry. OA’s
vision for National Occupational
Standards for Apprenticeship is to
convene industry leaders for their
expertise and input on the development
of such standards. Engagement with
industry leaders will ensure that
occupational competencies needed for
apprentices to be fully proficient in an
occupation are industry-recognized. In
addition, OA will seek public comment
on the National Occupational Standards
for Apprenticeship in the
Administrator’s determination process.
OA anticipates that industry leaders and
other stakeholders will have ample
opportunity to provide comprehensive
input to inform these new products.
The purpose of National Occupational
Standards for Apprenticeship is to
ensure that registered apprenticeship
programs continually adapt to meet
quality training needs of industry, and
that programs that leverage these
standards can ensure that they are
training apprentices utilizing a
nationally recognized approach. As
occupations, technology, and the overall
economy evolve, National Occupational
Standards for Apprenticeship may need
to be updated or revised, underscoring
the importance of OA’s continuous
engagement with industry stakeholders
and leaders. The Department recognizes
that such industry stakeholders will be
the first to know about changes to
technology or business needs that
would necessitate an update to the
training standards for an occupation and
intends to rely on those stakeholders to
bring forth suggested changes to
established National Occupational
Standards for Apprenticeship for
registered apprenticeship programs
within their industry. The Department
will be responsive to such industry
suggestions and will work with
stakeholders to update, vet, and reestablish National Occupational
Standards for Apprenticeship as
needed. The Department further invites
comments on the most effective ways to
keep pace with evolving industry needs
and their implications for established
templates for National Occupational
Standards for Apprenticeship.
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While the procedure for receiving
approval for an occupation in proposed
§ 29.7 does have a process for industry
vetting, that process would be more
reactive to the first entity that proposes
a work process schedule for an
occupation. The process for the
development of National Occupational
Standards for Apprenticeship would not
be designed as a first-come, first-served
approach to registered apprenticeship
training. Instead, it would be based on
intentional, proactive, nationwide, and
industry-validated curriculum for onthe-job training and related instruction,
including relevant interim credentials
and industry-validated end-point
assessments that can be responsive to
emerging labor force needs. The section
would provide the criteria that the
Administrator will use in reviewing
National Occupational Standards for
Apprenticeship for approval. The
criteria listed in the section would
include the suitability of an occupation
for registered apprenticeship under
proposed § 29.7 and an industryvalidated work process schedule.
Additional criteria described in this
section would include proposed
standards that have a nationally
applicable, industry-validated
curriculum framework for the provision
of related instruction and the methods
for conducting ongoing evaluations of
apprentices successfully attaining the
skills and competencies under such
frameworks. As such, proposed § 29.13
is new and sets forth a discretionary
process by which the Administrator
would develop and approve National
Occupational Standards for
Apprenticeship. The Department
proposes the development of National
Occupational Standards for
Apprenticeship as a driver of system
quality and a resource for easing a
sponsor’s access to the National
Apprenticeship System by making these
standards publicly available to be
utilized by sponsors and employers.
These would be required as they are
developed to ensure greater quality and
industry support for programs with a
national scope as described in proposed
§§ 29.14 and 29.15 to a common set of
high-quality standards.
Proposed paragraph (a) describes the
purpose of the proposed National
Occupational Standards for
Apprenticeship. The Department, in
developing National Occupational
Standards for Apprenticeship, intends
to drive the growth of high-quality
registered apprenticeship programs
across a wide range of sectors and
occupations deemed suitable for
registered apprenticeship training under
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proposed § 29.7. The Department,
aligning with broader administration
goals, has specific interest in using
National Occupational Standards for
Apprenticeship to increase registered
apprenticeship programs in emerging
and high-growth occupations; in
occupations and sectors where
apprenticeship programs are not
currently widespread; and in
occupations and sectors that the
Administration has deemed critical to
maintaining or enhancing the
manufacturing capacity, critical
infrastructure, public health and safety,
supply chain resilience, environmental
protection, renewable energy resources,
educational and cultural advancement,
or economic and national security of the
United States. Expansion of the
registered apprenticeship model into
new and emerging industries would also
align with recommendations and
guidance provided by national
apprenticeship stakeholders. For
example, multiple subcommittees of the
ACA, including a subcommittee entirely
devoted to this area (the Industry
Engagement in New and Emerging
Sectors subcommittee), recommended
that OA target new and emerging sectors
for registered apprenticeship
expansion.132
Proposed paragraph (b) describes the
criteria by which the Administrator
would review and approve proposed
National Occupational Standards for
Apprenticeship. As noted previously,
the Administrator and OA continually
engage with industry representatives,
labor unions, workforce development
experts, and other relevant stakeholders
to keep abreast of evolving industry
needs and priorities and updates or
changes to work processes and job skills
necessary for successful job
performance in an occupation or
industry. Such ongoing engagement
ensures that National Occupational
Standards for Apprenticeship remain
current and are also supported and
relevant for industry, that any registered
apprenticeship programs informed by
such National Occupational Standards
for Apprenticeship are responsive to
and in alignment with industry needs
and priorities, and that the workers
132 ACA recommendations on this topic from its
2022 Interim Report include:
• Accelerate registered apprenticeship
deployment in growing industries and sectors,
while ensuring curricula are responsive to industry
needs, and templates and requirements are
compatible with and flexible for different kinds of
jobs and industries.
• Continue expansion of industry intermediary
contracts targeting new and emerging sectors,
which have been effective engines to target
incentives.
Ibid.
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entering into such industries are
prepared for success based on the
factors and standards applicable to a
particular industry. Apprenticeship
stakeholders in the ACA have identified
the need to develop, maintain, and
update template occupational standards
in service of multiple goals, including
system alignment and easing the
onboarding of new programs, and OA
intends to implement such a process for
the development of National
Occupational Standards for
Apprenticeship to achieve these goals
based on the criteria in (b)(1) through
(4).133
Proposed § 29.13(b)(1) would require
that the National Occupational
Standards for Apprenticeship must be
for an occupation that has been
determined suitable for registered
apprenticeship training by the
Administrator, pursuant to proposed
§ 29.7. National Occupational Standards
for Apprenticeship are ultimately
intended as a resource to help set up
new registered apprenticeship programs
in their associated occupations, and to
help registered apprenticeship programs
providing apprenticeship training for an
occupation stay up to date on the
evolving needs of industry. In order for
National Occupational Standards for
Apprenticeship to be useful and
relevant within the National
Apprenticeship System, they must be
tied to an occupation that has been
deemed suitable for registered
apprenticeship training. These products
would inform the development of
National Guidelines for Apprenticeship
Standards and National Program
Standards for Apprenticeship, all of
which would be tools for onboarding
new registered apprenticeship
programs. As such, the national
standards frameworks discussed in this
proposal would all relate to an
occupation deemed suitable for
registered apprenticeship training.
Proposed § 29.13(b)(2) would require
that the work process schedule
framework associated with the
occupation be documented as nationally
applicable. In order to make National
Occupational Standards for
Apprenticeship a useful resource for
setting up programs covering an
occupation that is national in scope, OA
would work with industry and other
relevant stakeholders to determine if the
occupation’s proposed work process
schedule is workable and applicable
133 For example, the ACA recommended that DOL
‘‘should develop a plan and the necessary
infrastructure to move toward a system for
developing, classifying, and updating occupational
training standards in [registered apprenticeship].’’
Ibid.
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nationwide (and not just in regional or
local settings). The proposed
requirement seeks to ensure that the
National Occupational Standards for
Apprenticeship, as confirmed by the
associated industry in which the
standards are being developed, further
the growth and establishment of
registered apprenticeship programs that
can meet the training needs of an
occupation on a national level.
Proposed § 29.13(b)(3) would require
that the National Occupational
Standards for Apprenticeship include a
curriculum framework for related
instruction. As with proposed
§ 29.13(b)(2), this proposed requirement
seeks to ensure that the National
Occupational Standards for
Apprenticeship are documented or
endorsed by relevant stakeholders for
the occupation for which the standards
are being developed. This approach to
curriculum development would further
the growth and establishment of
registered apprenticeship programs, on
a national scope, that provide
apprentices with the necessary related
instruction for the subject occupation.
OA also intends for curricula in
National Occupational Standards for
Apprenticeship to remain up to date, in
line with the ACA’s recommendation to
update standards to reflect emerging
technologies, work processes, or
economic trends affecting an
occupation.134
Proposed § 29.13(b)(4) would require
the inclusion of methods to evaluate
apprentice progress throughout the
registered apprenticeship program,
including the development of an
appropriate end-point assessment. This
proposed requirement seeks to ensure
that the National Occupational
Standards for Apprenticeship are
documented as relevant for the
occupation and provide a framework for
the methods to assess the attainment of
the skills and competencies required
under the work process schedule
framework. As with the other
requirements in this proposed
provision, these methods would need to
be nationally applicable and validated
by industry. This provision would build
on the Department’s goals to elevate
registered apprenticeship program
quality and establish greater
accountability measures in the National
Apprenticeship System’s governing
regulations by requiring that programs
develop transparent, accountable
assessments to evaluate apprentices’
134 ‘‘Update and enhance standards and guidance
to reflect new and emerging technologies (including
any updates to existing or emerging Standards
Builder boilerplates/templates).’’ Ibid.
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attainment of proficiency in an
occupation. In the Department’s view,
this proposed new requirement for
registered apprenticeship programs also
represents an opportunity to further
engage with industry to refine registered
apprenticeship programs’
responsiveness to industry needs. The
Department expects that industry
stakeholders and leaders will be
instrumental in the development and
refinement of rigorous, nationally
applicable methods for assessing
apprentices’ attainment of proficiency
in occupations. In addition to the
assurances that the successful
completion of an end-point assessment
would provide for employers hiring
apprentices, this new requirement could
also be leveraged by program sponsors
to analyze their program’s overall
effectiveness and implement continuous
improvements in program design.
Proposed § 29.13(c) explains the
proposed process for approving
National Occupational Standards for
Apprenticeship. Once the Administrator
has developed National Occupational
Standards for Apprenticeship for an
occupation, OA would seek public
comment on the standards to include a
nationally applicable end-point
assessment. This process of seeking
public comment is intended to ensure
that the finalized National Occupational
Standards for Apprenticeship are
industry-vetted and will lead to
occupational proficiency anywhere in
the country. To ensure that OA receives
sufficient feedback from industry
leaders, OA may specifically invite
industry leaders to submit public
comments. Public comments would be
accepted for at least 30 calendar days,
and the National Occupational
Standards for Apprenticeship in
question would be finalized within 90
calendar days from the opening of the
public comment period, though this
time period may be extended at the
discretion of the Administrator. The
Administrator may also consider data
and other relevant information to assist
in evaluating whether the requirements
in proposed § 29.13(b) are satisfied,
such as O*NET data. Finally, proposed
§ 29.13(c) provides that the
Administrator will maintain an up-todate list of all National Occupational
Standards for Apprenticeship.
The Department is interested in any
comments about the proposed
development of National Occupational
Standards for Apprenticeship and their
potential benefit to potential sponsors or
current sponsors in providing support
on some of the upfront challenges with
starting a registered apprenticeship
program for an occupation, identifying
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high-quality apprenticeship curriculum,
development of end-point assessments,
and in turn implementing it at a
program level. The Department is also
interested in any comments about the
proposed criteria by which it would
evaluate proposed National
Occupational Standards for
Apprenticeship, including comments
regarding any additional or different
criteria that would assist in meeting the
needs of employers or in successfully
training apprentices.
Section 29.14—National Program
Standards for Apprenticeship
The ‘‘National Program Standards for
Apprenticeship’’ section describes the
criteria for establishing National
Program Standards for Apprenticeship,
the scope and reciprocity of registration,
and alignment with the National
Occupational Standards for
Apprenticeship. The concept of
National Program Standards for
Apprenticeship has been developed by
OA through subregulatory guidance.135
Recent Federal legislation in the
Veterans Apprenticeship and Labor
Opportunity Reform (VALOR) Act has
leveraged its use to expedite the
approval of programs for the
Department of Veterans Affairs
Education Benefits, such as the GI Bill.
National Program Standards for
Apprenticeship are an administrative
procedure; the Administrator has to
register a program nationally if the
program operates on a national basis,
allowing the program to operate in every
State without seeking further
registration from OA or an SAA.136 In
creating National Program Standards for
Apprenticeship, the Department seeks
to drive system alignment and
apprenticeship expansion on a national
scale. The Department anticipates that
this process will ensure that registered
apprenticeship programs established on
a national scale will adhere to a
common set of industry-validated
standards and enable apprentices who
participate in these programs to receive
a uniform training experience regardless
of where it takes place. Proposed § 29.14
sets forth the process by which sponsors
could establish registered
apprenticeship programs on a national
basis. The criteria for National Program
Standards for Apprenticeship that
would be established in this section
135 ETA, OA Circular No. 2022–01, ‘‘Updated
Guidance—Minimum National Program Standards
for Registered Apprenticeship Programs,’’ Feb. 16,
2022, https://www.apprenticeship.gov/sites/default/
files/bulletins/Circular-2022-01.pdf.
136 OA, ‘‘Hire Veterans,’’ https://
www.apprenticeship.gov/employers/hire-veterans
(last visited July 20, 2023).
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would require that prospective sponsors
seeking approval must provide
apprenticeship training for occupations
that are not ordinarily subject to
licensing requirements; be national or
multistate in design, suitability, and
scope; and satisfy the applicable
requirements of this part and 29 CFR
part 30. This section would establish the
Administrator as the approving entity as
well as the reciprocity of registration for
SAAs to provide reciprocal registration
for approved programs. This section
also describes the proposed requirement
for National Program Standards for
Apprenticeship to align with National
Occupational Standards for
Apprenticeship under proposed § 29.13.
Proposed paragraph (a) would
establish the criteria that National
Program Standards for Apprenticeship
must meet to be registered by the
Administrator.
Proposed § 29.14(a)(1) would explain
that National Program Standards for
Apprenticeship must be for training in
an occupation not ordinarily subject to
Federal, State, or local licensing
requirements. The Department
recognizes that the existence of Federal,
State, or local licensing requirements
impedes the ability of a registered
apprenticeship program to operate with
a uniform set of standards nationally.
For an occupation with licensing
requirements that differ across
jurisdictions, the training and related
instruction necessary to prepare an
apprentice for that occupation would
not be adequately addressed by National
Program Standards for Apprenticeship
that aim to provide a uniform standards
and training experience regardless of
where the program is taking place.
Accordingly, the Department has
determined that National Program
Standards for Apprenticeship would be
appropriate for occupations not subject
to differing licensing requirements.
Proposed § 29.14(a)(2), in alignment
with the Department’s broader goal of
driving system alignment and
apprenticeship expansion on a national
scale, would require that National
Program Standards for Apprenticeship
must be national or multistate in their
design, suitability, and scope. The
Department recognizes that there are
multiple ways in which a program may
be national or multistate in design,
suitability, and scope. For instance, a
program sponsor may be a national or
multistate employer with business
operations in multiple States. In
addition, a program sponsor may be an
international or transnational company
with business operations in multiple
States as well as in different countries.
Also, a sponsor may be a national
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organization that has only one physical
location in a single State but is affiliated
with multiple employers that operate in
multiple States.
Proposed § 29.14(a)(3) explains that
any National Program Standards for
Apprenticeship would need to meet the
requirements in proposed parts 29 and
30.
Proposed paragraph (b) explains that
upon demonstration that the National
Program Standards for Apprenticeship
meet the established criteria set forth in
proposed paragraph (a), the
Administrator would register the
standards on a nationwide basis for
Federal purposes. The Administrator
would endeavor to render a
determination on whether to approve
and register a set of National Program
Standards for Apprenticeship within 90
days of their receipt from an applicant,
consistent with proposed § 29.8. If the
Administrator were to decline to register
the standards, the Administrator would
provide a written explanation
explaining the decision.
Proposed paragraph (c) explains how
National Program Standards for
Apprenticeship would be treated by
SAAs. In furtherance of the goal of
driving system alignment and
apprenticeship expansion on a national
scale, SAAs would be required to
reciprocally approve and register
programs registered via National
Program Standards for Apprenticeship.
Proposed paragraph (d) would explain
that National Program Standards for
Apprenticeship must use any existing
National Occupational Standards for
Apprenticeship that have been
approved under proposed § 29.13. This
requirement would only apply if a
sponsor is seeking registration of
National Program Standards for
Apprenticeship in an occupation for
which the Administrator has already
approved National Occupational
Standards for Apprenticeship. For those
occupations where National
Occupational Standards for
Apprenticeship currently exist, a
program sponsor seeking registration of
its National Program Standards for
Apprenticeship would need to use such
National Occupational Standards. The
Department further clarifies that a
program could pursue registration using
National Program Standards for
Apprenticeship if there is no established
set of National Occupational Standards
for Apprenticeship for the subject
occupation. The existing National
Program Standards for Apprenticeship
are already in use within the National
Apprenticeship System and were last
updated and outlined in the
Department’s OA Circular No. 2022–
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01.137 National Program Standards for
Apprenticeship are meant to assist a
national organization or employer set up
a high-quality apprenticeship training
program with a nationally applicable set
of standards. Under the existing system,
programs that use the existing National
Program Standards for Apprenticeship
and operate a program on a multistate
or nationwide basis do not need to
register their apprenticeship program in
each of the States in which it operates.
Proposed paragraph (d) would provide
that when a set of National
Occupational Standards for
Apprenticeship has been vetted by
industry and approved by the
Administrator for an occupation,
National Program Standards for
Apprenticeship for a registered
apprenticeship program in the
occupation must align with the
established National Occupational
Standards. This requirement to utilize
approved National Occupational
Standards for Apprenticeship, where
they exist, would be included to make
sure that National Program Standards
for Apprenticeship align with approved
National Occupational Standards for
Apprenticeship, which the Department
thinks will further its goal of driving
system alignment by ensuring that all
National Program Standards for
Apprenticeship, in a given occupation,
adhere to a common set of industryvalidated standards. In addition, greater
utilization would support the National
Apprenticeship System modernization
efforts to enhance the quality of
programs and create greater efficiency in
the development and registration of
programs.
Programs registered with National
Program Standards for Apprenticeship
may receive certain benefits, such as
reduced reporting requirements to
Registration Agencies, VALOR Act
eligibility, and registration status for
Federal purposes, so the need to ensure
high-quality programs is vital. The
Department is interested in any
comments on this approach given the
increased Federal benefits associated
with this model, the quality
expectations of a program operating
with this designation, and any potential
burdens with following a National
Occupational Standard approach. The
137 ETA, OA Circular No. 2022–01, ‘‘Updated
Guidance—Minimum National Program Standards
for Registered Apprenticeship Programs,’’ Feb. 16,
2022, https://www.apprenticeship.gov/sites/default/
files/bulletins/Circular-2022-01.pdf. Note this
circular’s statement that it ‘‘supersedes and replaces
OA Circular 2018–01,’’ reflecting that OA has been
developing and refining tools for national
organizations, employers, or both to set up and
operate quality apprenticeship training programs on
a nationwide basis for several years.
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Department notes that while National
Occupational Standards for
Apprenticeship are approved as the
industry consensus apprenticeshiprelated training curriculum for an
occupation, an entity seeking approval
of National Program Standards for
Apprenticeship may make minor
modifications to the National
Occupational Standards based on the
needs of the sponsor provided that the
submitted National Program Standards
substantially align with the National
Occupational Standards. Examples of
modifications that would be acceptable
include any additions of sponsor or
employer-specific training in addition to
what is in the approved framework, the
addition of competencies or on-the-job
training hours to achieve those
competencies or both, and the addition
of any additional or academic-creditbearing related instruction. The
Department is interested in any
comments as to what the Department
should identify as acceptable deviations
that substantially align without
undermining the occupation or quality
of the standards.
Section 29.15—National Guidelines for
Apprenticeship Standards
Proposed § 29.15, the ‘‘National
Guidelines for Apprenticeship
Standards’’ section is new and describes
the proposed criteria for approval of
National Guidelines for Apprenticeship
Standards, the Certificate of
Recognition, local registration
requirement, the criteria for
resubmission, and required alignment
with the National Occupational
Standards for Apprenticeship. National
Guidelines for Apprenticeship
Standards are a template of standards of
apprenticeship that are registered
nationally and adopted locally. They
would allow local affiliates of national
organizations or an employer with
locations in multiple States to
efficiently adapt recognized guidelines
for local registration of program
standards. Since National Guidelines for
Apprenticeship Standards are intended
to be adapted for local registration by
local affiliates of national organizations
or an employer with a national presence
with locations in multiple States, the
establishment of a uniform process to
recognize such standards would drive
system alignment by ensuring locally
registered programs adhere to a common
set of industry-validated standards.
Unlike National Program Standards
for Apprenticeship, which can be
registered once nationwide, National
Guidelines for Apprenticeship
Standards are a customizable template
for registered apprenticeship program
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standards. They would provide a
nationally certified—but locally
registered—framework for occupational
standards, while also preserving
programmatic flexibility to account for
local needs and requirements. For
example, potential program sponsors
with nationally designed apprenticeship
program standards that cover certain
occupations that are subject to extensive
State licensing requirements may be
more appropriately served by obtaining
National Guidelines for Apprenticeship
Standards certification for their program
and then registering each program
utilizing such standards on a State-byState basis; this is because the National
Guidelines for Apprenticeship
Standards model would allow the
template standards developed by the
sponsor to be modified to account for
these additional State law requirements
and then registered in those States. In
addition, the National Guidelines for
Apprenticeship Standards approach
may be more suitable for organizations
with national scope, including labor
organizations as well as trade and
industry associations, that wish to
provide State or local affiliates of their
organizations with the option to adapt a
set of nationally designed
apprenticeship program standards to
meet local conditions and register such
programs on a State-by-State basis.
Similarly, the National Guidelines for
Apprenticeship Standards, with its
ability to adapt to local labor market
needs, may be more suitable for
workforce intermediary program
sponsors that only intend to provide
related instruction in connection with a
registered apprenticeship program.
Adoption of National Guidelines for
Apprenticeship Standards often
provides an expedited pathway for a
local affiliate to register an
apprenticeship program and provides
program flexibility to accommodate
local industry and regional economy
needs. Proposed § 29.15(c) provides for
State or local affiliates of a national
organization to use the proposed
National Guidelines for Apprenticeship
Standards as a template for their
specific standards of apprenticeship that
are submitted to the applicable
Registration Agency, including SAAs,
for registration of individual programs.
By using a template that has already
been registered, the sponsor would be
able to more easily meet the
requirements for registration locally. For
those occupations where National
Occupational Standards for
Apprenticeship currently exist, a
program sponsor seeking certification of
its National Guidelines for
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Apprenticeship Standards would need
to use such National Occupational
Standards. If a sponsor is seeking
certification of National Guidelines for
Apprenticeship Standards in an
occupation for which the Administrator
has already approved National
Occupational Standards for
Apprenticeship pursuant to proposed
§ 29.13, the sponsor would need to use
those approved National Occupational
Standards.138
The criteria for National Guidelines
for Apprenticeship Standards
established in this section would
require that guidelines submitted by
organizations must be national in their
applicability and scope with respect to
the covered occupation; be suitable for
either adoption or adaptation by State or
local affiliates of the program sponsor;
and satisfy the applicable requirements
of this part and 29 CFR part 30. This
section would grant the Administrator
sole approval authority. This section
would also describe the requirement for
State and local affiliates to register a
program in accordance with proposed
§ 29.10 and the requirement for National
Guidelines for Apprenticeship
Standards to align with National
Occupational Standards for
Apprenticeship under proposed § 29.13.
National Guidelines for
Apprenticeship Standards are a concept
that exists in the National
Apprenticeship System pursuant to the
current § 29.3(h)(1), and they have been
further recognized in previously issued
subregulatory guidance.139 The
Department has seen significant success
in their use, particularly in certain
occupations and industries such as
construction where there are national
and local organizations affiliated with
each other; the national organization is
responsible for maintaining the core
criteria and elements of the templates;
and the local affiliates of the national
organization locally register with a
Registration Agency. Their use, and the
elevation of them as a tool in this
proposed regulation, would ensure this
vital concept can drive apprenticeship
expansion.
Proposed paragraph (a) would
establish the criteria that National
Guidelines for Apprenticeship
Standards must meet to be recognized
by the Administrator.
138 The Department clarifies that programs can
still use National Guidelines for Apprenticeship
Standards if there is not an established set of
National Occupational Standards for
Apprenticeship for the subject occupation (see
below).
139 ETA, OA Circular No. 2022–02, ‘‘Guidance—
National Guidelines for Apprenticeship Standards,’’
Feb. 16, 2022, https://www.apprenticeship.gov/
sites/default/files/bulletins/Circular-2022-02.pdf.
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Proposed § 29.15(a)(1) would explain
that National Guidelines for
Apprenticeship Standards must be
national in their applicability and with
respect to the covered occupation. The
Department recognizes that there are
multiple ways in which an organization
may demonstrate that their standards
are national in applicability and scope.
For example, an organization seeking
recognition of National Guidelines for
Apprenticeship Standards may
demonstrate that they have a national
presence with local affiliates in different
States, or by demonstrating that they
have a presence in multiple States, even
if the organization is concentrated
regionally. The Department has
proposed this criterion because the
intent of National Guidelines for
Apprenticeship Standards is to create an
adaptable template of standards that can
be tailored to meet regional labor market
requirements. For example, an
occupation suitable for registered
apprenticeship may need to be adjusted
to align with local conditions or
requirements such as the terms of a
collective bargaining agreement, or
applicable State and local laws and
regulations such as occupational
licensing or ratio requirements.
Proposed § 29.15(a)(2) would explain
that National Guidelines for
Apprenticeship Standards must be
suitable for use by State or local
affiliates of the program sponsor.
National Guidelines for Apprenticeship
Standards are a template intended for
adaptation, customization, and
ultimately, registration at the local level.
Accordingly, the Department proposes
this requirement to ensure that National
Guidelines for Apprenticeship
Standards would be designed for this
intended purpose.
Proposed § 29.15(a)(3) would explain
that, as with any program standards,
National Program Standards for
Apprenticeship must meet the
requirements in proposed parts 29 and
30.
Proposed paragraph (b) would explain
that upon demonstration that the
National Guidelines for Apprenticeship
Standards meet the established criteria
set forth in proposed paragraph (a), the
Administrator will recognize the
standards. If the Administrator declines
to recognize the standards, the
Administrator would provide a written
explanation explaining the decision.
The Administrator would be solely
responsible for the recognition of
National Guidelines for Apprenticeship
Standards and would seek to review
these submissions within 90 days of
receipt, consistent with the
Administrator’s goal to review National
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Program Standards for Apprenticeship
submissions within 90 days of receipt.
Proposed paragraph (c) would explain
the process by which State or local
affiliates of the organization receiving
recognition of National Guidelines for
Apprenticeship Standards may seek
registration of an individual program.
National Guidelines for Apprenticeship
Standards are a template intended to be
adapted or adopted for local
registration. Accordingly, the
Department provides in proposed
paragraph (c) that State or local affiliates
of a national organization may use the
National Guidelines for Apprenticeship
Standards as a template for their
specific standards of apprenticeship that
are submitted to the applicable
Registration Agency, including SAAs,
for registration of individual programs.
National Guidelines for Apprenticeship
Standards may be adjusted for the
purposes of local registration to meet
State or local requirements such as
ratios, safety, occupational licensing
requirements, different wage scales, and
contact information. The Department is
interested in any comments about other
acceptable adjustments between the
certified National Guidelines for
Apprenticeship Standards and the
locally registered standards.
Proposed paragraph (d) would explain
when National Guidelines for
Apprenticeship Standards must be
resubmitted for approval by the
Administrator. The Department
recognizes that organizations may
amend the content of National
Guidelines for Apprenticeship
Standards based on changes to an
occupation’s training needs, the needs
of its State and local affiliates, or other
reasons. The Department also recognizes
that a periodic review can help ensure
that National Guidelines for
Apprenticeship Standards continue to
meet the training needs of apprentices
and to meet the industry-validated
standards for a specific occupation.
Accordingly, proposed paragraph (d)
would require that National Guidelines
for Apprenticeship Standards must be
resubmitted for approval upon
amendment to the standards or at least
every 5 years, from the date that the
standards are originally approved. The
Department is proposing 5 years to align
with the general requirement that
program reviews occur every 5 years.
Generally, the program review period
has been an opportunity for programs to
update their standards to ensure they
continue to meet the requirements of 29
CFR parts 29 and 30, and are current
with any changes to approved
occupations, new laws, regulations, or
subregulatory guidance. There is no
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similar requirement currently for
sponsors of National Guidelines for
Apprenticeship Standards to update
their standards, which leads to
inconsistencies between the local
registrations and National Guidelines
for Apprenticeship Standards. This
proposal would require a certification
timetable. The Department is interested
in any comments about this concept or
any different timeframes it should
consider.
Proposed paragraph (e) would explain
that National Guidelines for
Apprenticeship Standards must use any
existing National Occupational
Standards for Apprenticeship that have
been approved under proposed § 29.13.
This requirement would only apply if a
sponsor is seeking registration of
National Guidelines for Apprenticeship
Standards in an occupation for which
the Administrator has already approved
National Occupational Standards for
Apprenticeship. To define and
communicate the purpose and intended
use of National Occupational Standards
for Apprenticeship, National Program
Standards for Apprenticeship, and
National Guidelines for Apprenticeship
Standards, the Department clarifies that
programs can pursue registration using
National Guidelines for Apprenticeship
Standards in scenarios where National
Occupational Standards have not been
developed. National Guidelines for
Apprenticeship Standards are an
existing tool for potential registered
apprenticeship stakeholders to utilize,
and their use and parameters were
outlined in the Department’s OA
Circular No. 2022–02.140 National
Guidelines for Apprenticeship
Standards have been used by national
organizations seeking to establish
registered apprenticeship programs
amongst their local affiliates and can be
adjusted based on local workforce needs
or conditions. The Department expects
that the proposed National Guidelines
for Apprenticeship Standards would
continue to be used for this purpose,
including when there is no established
set of National Occupational Standards
for Apprenticeship. However, when
National Occupational Standards for
Apprenticeship have been developed
and approved for an occupation (with
substantial industry vetting and review
and approval by the Administrator), the
Department seeks to align any National
Guidelines for Apprenticeship
Standards within that occupation with
the established National Occupational
Standards.
The Department anticipates that
aligning National Guidelines for
140 Ibid.
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Apprenticeship Standards with
approved National Occupational
Standards for Apprenticeship would
further its goal of driving system
alignment by ensuring that all National
Guidelines for Apprenticeship
Standards, in a given occupation,
adhere to a common set of industryvalidated standards. The Department
notes that while National Occupational
Standards for Apprenticeship are
approved as the industry consensus
apprenticeship-related training
curriculum for an occupation, there may
be some minor modifications to the
National Occupational Standards based
on the needs of the sponsor. Deviations
from the National Occupational
Standards for Apprenticeship would be
allowed, but the Administrator would
ensure that submissions of National
Guidelines for Apprenticeship
Standards substantially align with the
National Occupational Standards. In
addition to the examples mentioned in
paragraph (c) above, additional
examples of modifications that would
be acceptable include any additions of
sponsor or employer-specific training in
addition to what is in the approved
framework, the addition of
competencies or on-the-job training
hours to achieve those competencies or
both, and the addition of any additional
or academic-credit-bearing related
instruction. The Department is
interested in any comments as to what
they recommend are acceptable
deviations that still substantially align
with National Occupational Standards
for Apprenticeship for that occupation
without undermining the occupation or
quality of the standards.
Section 29.16—End-Point Assessment
and Certificate of Program Completion
Proposed § 29.16 would require
registered apprenticeship programs to
administer an end-point assessment at
the conclusion of the apprenticeship
term to establish the apprentice’s
successful attainment of all of the
knowledge, skills, and competencies
associated with the occupation. The
purpose of this new requirement is to
provide objective confirmation that the
apprentice has acquired all of the skills
and competencies required to be
proficient in the occupation covered by
the program. A rigorous end-point
assessment at the conclusion of the
apprenticeship is essential to give
employers in an industry or sector
confidence that the worker can perform
successfully in the occupation in which
they have been trained, and possess a
set of relevant skills that are
transferrable within that industry. The
absence of an end-point assessment
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requirement in the current
apprenticeship regulation means that
individual apprenticeship program
sponsors can adopt widely differing
methods of assessing apprentice
performance, which means that other
employers within an industry or sector
cannot be sure whether a graduating
apprentice has really ‘‘made the grade’’
for proficiency in the occupation. The
end-point assessment should be the
culminating activity of the
apprenticeship, and an apprentice
should only be awarded a Certificate of
Completion upon successful completion
of the assessment. The Department takes
the view that any additional burdens
that this new requirement may impose
on program sponsors would be
outweighed by the significant practical
benefits that would accrue to both
employers and apprentices on account
of a more uniform and rigorous standard
for assessing and confirming the
competencies acquired by apprentices.
The proposed introduction of an endpoint assessment requirement for
apprenticeship programs is also
consistent with the Department’s goal of
developing a highly skilled American
workforce that is capable, agile, and
competitive at both the domestic and
international level.
Throughout the course of a registered
apprenticeship program, apprentices
will learn how to perform critical job
tasks, understand and apply theoretical
concepts, and continuously develop a
set of core competencies for the
occupation for which they are receiving
apprenticeship training. Developing
occupational competencies is important
for apprentices’ ability to adequately
complete the discrete set of tasks
necessary to accomplish a job task they
would be assigned in the occupation
after their apprenticeship training. In
order to fully realize the benefits of the
high-quality training and instruction of
a registered apprenticeship program for
both apprentices and their employers,
apprenticeship programs should
implement effective training protocols
and accurate assessments to ensure
apprentices are not only competent in
the discrete job tasks for an occupation,
but also proficient in the occupation
overall. This includes assessing the
apprentice’s ability to perform the
task(s) safely and accurately
(competently), as well as timely and
efficiently. Businesses often need their
workforce to complete work to the
satisfaction of their customers within a
timeframe that makes it worthwhile
(i.e., profitable) for the business to
assign tasks to their workers. For
example, an electrician may need to
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3181
complete work within a set timeframe to
ensure that the hourly charge to the
customer, the hourly wages paid to the
electrician, and the other costs of
completing the work (e.g., equipment
maintenance, travel costs), all add up to
a profitable endeavor. Or a business may
depend on fitting as many customer
orders as possible into a certain
timeframe (e.g., a day, a week) to offset
costs and turn a profit. The Department
proposes to add end-point assessments
to the registered apprenticeship model
to encourage programs to consider this
important apprenticeship outcome—the
proficiency of the workforce in an
occupation—and develop a program
that results in a highly trained,
proficient workforce. The Department
expects that end-point assessments will
ultimately benefit individual employers
or sponsors as well as the quality, skill,
and readiness of the occupational
workforce throughout a given sector.
Apprentices who successfully
complete the assessment would be able
to demonstrate to employers throughout
an industry or sector that they are
proficient in their occupation, and that
their skills are transferrable between
employers in the relevant sector. The
successful completion of an end-point
assessment would benefit apprentices
by improving their employability and
labor mobility and would add value to
the Certificate of Completion earned by
the apprentice. The assessment, which
the sponsor develops according to the
parameters of their program, could
involve a practical, hands-on
application of the apprentice’s acquired
skills to the completion of a project or
the solution of a problem; alternatively,
it may involve both a practical
component and a written component
that assesses the acquisition of
occupation-relevant theoretical
knowledge by the apprentice. Other
methods would be allowed under this
approach and may simply take the form
of an individual meeting, such as a
performance review, to assess and
provide feedback on the apprentice’s
proficiency.
Several nations with well-regarded
apprenticeship systems require an
apprentice to complete an end-point
assessment at the conclusion of their
apprenticeship training; among these
nations are Canada, England, Germany,
Switzerland, and Austria. These
assessments utilize nationally
applicable standards in evaluating the
apprentice’s proficiency in an
occupation. The Department expects
that the end-point assessment
requirement would lend greater
credibility and value to the
apprenticeship credential, and potential
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employers might have greater
confidence in the capabilities of
apprentices who have passed such an
examination at the conclusion of their
training. In Canada, for example, the
Red Seal Program has established such
final assessments in dozens of skilled
trades, and the passage of a Red Seal
examination provides employers with
an assurance that the passing apprentice
is proficient in an occupation. In
addition, apprenticeship stakeholders in
the United States, such as the ACA,
have discussed the importance of
conferring proficiency in apprenticeship
training.141 The ACA’s 2022 Interim
Report also contained a
recommendation to review international
workforce training and apprenticeship
models to understand best practices and
identify potential enhancements to the
U.S. system. The Department thinks that
an end-point assessment is a way for an
apprentice to demonstrate proficiency
(as suggested by the ACA), and to do so
in a manner that has worked in other
countries.
Proposed § 29.16(a) would establish
the requirement of an end-point
assessment requirement for all programs
to ensure that they measure an
apprentice’s attainment of occupational
skills, knowledge, and competencies
necessary to determine proficiency in an
occupation. The Department recognizes
that end-point assessments developed
and administered by a given program’s
operators may result in an assessment
that is more relevant to the training and
instruction provided through the
program. However, the Department also
recognizes the value of assessments
performed by independent
organizations or third parties to reduce
any undue bias and incorporate ideas
from outside partners. The Department
invites public comment about the value
and feasibility of end-point assessments
generally, as well as whether such
assessments should be performed by
independent or third parties or by those
operating a program and delivering onthe-job training or related instruction.
Proposed § 29.16(b) would provide
that an apprentice must be entitled to at
least one additional opportunity to
complete an end-point assessment if
they do not pass on the first attempt.
This is intended to ensure apprentices
are entitled to a fair opportunity to pass
the assessment if their first attempt to
do so is not successful, and that the end141 Recommended principle: Competency must be
obtained under any of these three models; include
standards around time in on-the-job training to
ensure proficiency. ACA, ‘‘Interim Report to the
Secretary of Labor,’’ May 16, 2022, at 14, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
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point assessment does not operate as an
inequitable significant barrier to
program completion and journeyworker
entry, such as for apprentices with
disabilities. The Department is
interested in any comments on if there
should be a limit to the number of
opportunities an apprentice may have to
complete the assessment, balancing the
burden of performing multiple
assessments against the importance of
providing opportunities for apprentices
to demonstrate proficiency.
Proposed § 29.16(c) would include a
provision that ensures an apprentice’s
end-point assessment includes an
appropriate reasonable accommodation,
if requested prior to the administration
of the assessment. This proposed
provision is intended to ensure that
registered apprenticeship programs are
fully accessible to job seekers, including
those with disabilities that may require
reasonable accommodations. The ACA’s
DEIA subcommittee recommended OA
take steps to identify and assess any
barriers to accessing or completing a
registered apprenticeship program, and
the Department agrees that programs
should make reasonable
accommodations when appropriate.142
Proposed § 29.16(d) would provide
that individuals who successfully
complete the on-the-job training and
related instruction requirements of a
program and pass an end-point
assessment are eligible for a Certificate
of Completion from the appropriate
Registration Agency.
As proposed, this section would not
require that sponsors use a specific type
of assessment, given the unique needs of
different industries and occupations.
However, the Department sees an
opportunity for greater standardization
of tools, such as an end-point
assessment, by engaging industry and
sponsors alike through the development
and subsequent approval process of
National Occupational Standards for
Apprenticeship. The Department invites
comments on whether the final rule
should expressly require that all endpoint assessments administered by
sponsors should objectively measure the
apprentice’s acquisition of the relevant
knowledge, skills, and competencies
necessary to demonstrate proficiency in
the occupation covered by the program,
or if the proposed rule should remain
142 Specifically, the ACA recommended that DOL
should gather new data on registered
apprenticeship programs’ and apprentices’ needs
through formal, representative surveys, including
understanding barriers to completion and long-term
career pathways. CA, ‘‘Interim Report to the
Secretary of Labor,’’ May 16, 2022, at 9, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
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silent and leave it to sponsors to
establish what they think is an
appropriate assessment. The
Department is particularly interested in
comments around any burdens or
challenges with this approach, the
extent to which programs have already
adopted an end-point assessment as a
means for measuring attainment, and
the value of strengthening those
requirements.
In addition, the Department invites
commenters to discuss whether the final
rule should expressly require that endpoint assessments should only be
administered by qualified and objective
examiners who have not previously
provided either on-the-job training or
related instruction to the apprentice
during the apprenticeship term. Finally,
the Department invites commenters to
opine on whether the final rule should
permit sponsors to utilize third-party
examinations as the program’s endpoint assessment in instances where: (1)
an independent certification body
within a particular industry or sector
offers a nationally recognized
examination that incorporates uniform,
industry-recognized quality standards to
objectively measure and validate the
attainment of the relevant knowledge,
skills, and competencies for the
occupation(s) covered by the registered
apprenticeship program; or (2) the
occupation covered by the
apprenticeship program is one that
requires the passing of a State-mandated
and administered examination to
receive a license or certificate enabling
qualified individuals to perform work in
that occupation within a particular
jurisdiction.
Section 29.17—Complaints
Complaints or expressions of concern
about a program are critical for
transparency into the daily operation of
a registered apprenticeship program, an
apprenticeship program’s adherence to
the labor and quality standards
throughout the parts 29 and 30
regulations, and ultimately, the
protection of apprentices’ welfare and
well-being. Apprentices are vulnerable
to retaliation or other negative outcomes
if their ability to speak up confidentially
and securely is curtailed or
compromised. Apprentices must be
afforded opportunities to file complaints
if they are subjected to unsafe or unfair
conditions. The Department believes
that the existing complaints process in
part 29 should be retained and proposes
enhancements to the complaints policy
and additional procedures to investigate
complaints, protect complainants, and
improve transparency and
accountability throughout the National
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Apprenticeship System. Proposed
§ 29.17 would also allow for nonapprentices to file complaints so long as
the complaint arises under a registered
apprenticeship agreement or alleges a
violation of this part.
Proposed § 29.17 would carry forward
much of existing § 29.12 with a few
notable changes. Proposed § 29.17(e)
would establish more robust and
detailed procedures for investigating
complaints and would afford anonymity
to complainants, to the extent
practicable, as explained below.
Proposed § 29.17(a) would carry
forward existing § 29.12(a) verbatim.
Proposed § 29.17(b) would carry
forward much of existing § 29.12(b),
which allows apprentices not covered
by a collective bargaining agreement to
submit a complaint to the Registration
Agency when a controversy or
difference arises under an
apprenticeship agreement. Two changes
in proposed § 29.17(b) would permit but
not require that disputes be resolved
locally before a complaint is submitted
to the Registration Agency. OA
anticipates that most complaints will be
resolved most efficiently and effectively
by the program sponsor. However, the
proposed change to § 29.17(b)
recognizes that there should be an
avenue for complaints to be filed
directly with the Registration Agency,
such as if the matter complained of is
particularly egregious or if the
complainant wishes to remain
anonymous. Complainants who wish to
remain anonymous would need to file
their complaints directly with the
Registration Agency. Under proposed
§ 29.17(b), a Registration Agency would
still be prohibited from resolving a
complaint covered by a collective
bargaining agreement. Upon receiving a
complaint relating to a union program,
OA would be able to ask the sponsor,
participating employer, complainant, or
union representatives whether the
complaint is covered by a collective
bargaining agreement. OA would also be
able to request a copy of the collective
bargaining agreement. Proposed
§ 29.17(b) would also clarify that a
complaint must either arise under an
apprenticeship agreement or allege a
violation of this part. Minor stylistic
changes were also incorporated into
proposed § 29.17(b) for clarity.
Proposed § 29.17(c) would revise the
content of the first sentence of existing
29 CFR 29.12(c) and would establish a
deadline to file a complaint within 300
calendar days after the conclusion of the
events that gave rise to the dispute or
the alleged violation of this part. In the
case of an alleged continuing violation
of this part, the 300-day period would
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begin on the day when the violation
ceases. However, to accommodate
extenuating circumstances that an
apprentice might face, the Registration
Agency would be able to extend the
filing time upon a showing of good
cause. For example, the granting of an
extension for good cause could arise
where the complainant only became
aware of the alleged violation at a point
in time more than 300 days after the
alleged occurrence of the alleged event,
or such an extension might be granted
in instances where an apprentice missed
the 300-calendar-day deadline because
of an illness or an injury that prevented
them from filing a timely complaint.
This proposed time period aligns with
the complaint timeline under 29 CFR
part 30 and is designed to allow
apprentices sufficient time to file a
complaint with the Registration Agency.
The Department is also proposing a
period of 300 days to file a complaint
in recognition of the important quality
control function that complaints and
complaint investigations serve.
Proposed § 29.17(d)(1) is new and
would require that the complaint
include a means of contacting the
complainant or the authorized
representative. Requiring the complaint
to contain a means for contacting the
complainant or authorized
representative, but not identifying
information such as a name or physical
address, is intended to facilitate the
submission of anonymous complaints
while also allowing the Registration
Agency to contact the complainant or
representative as part of their review of
the complaint. The requirement in
existing § 29.12(c) that complaints be
signed would not be carried forward in
this proposed rule to facilitate the
submission of anonymous complaints.
Proposed § 29.17(d)(2) is new and
would require that the complaint
include the identity of the individual or
entity that is alleged to be responsible
for the conduct giving rise to the
complaint to facilitate the Registration
Agency’s investigation of any
complaint.
Proposed § 29.17(d)(3) incorporates
language in existing § 29.12(c) with
minor clarifying changes. As proposed,
it would require a short description of
the events, facts, or circumstances
giving rise to the complaint, including
a discussion of when the events giving
rise to the complaint took place.
Proposed § 29.17(e) is new and would
explain the process by which the
Registration Agency will investigate a
complaint. It would require that the
Registration Agency proceed
expeditiously to investigate complaints.
The proposed requirement that
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investigation of complaints be
conducted expeditiously is intended to
require Registration Agencies to resolve
complaints, whenever possible, before
impacted apprentices complete the
program so that the apprentice can
benefit from any action necessary to
address the matter. However, the
Department invites comments as to
whether it is either feasible or
appropriate to establish a uniform
ceiling in this proposed rulemaking on
the number of days allotted to a
Registration Agency to complete the
investigation of a complaint.
Proposed § 29.17(e)(1)(i) would
require the Registration Agency to
provide written notice that the
complaint was received. Initially, only
the complainant and the authorized
representative, if any, would receive
notice of the complaint.
Proposed § 29.17(e)(1)(ii) would
require the Registration Agency to
investigate complete complaints.
Proposed § 29.17(e)(1)(iii) would
require the Registration Agency to
complete a thorough investigation of the
complaint. Documentation in the
complaint file should include the
complaint itself, a rebuttal statement
from the respondent (if provided),
interview statements, copies of
pertinent documents as appropriate, and
a narrative report of findings. Proposed
§ 29.17(e)(1)(iii) is intended to require
Registration Agencies to compile a
robust complaint investigation file,
especially where the complaint was
filed with the Registration Agency in the
first instance. A robust file is needed to
ensure that an adequate investigation
was completed, to facilitate further
review, and to facilitate referral to other
government agencies or the initiation of
a program review, if warranted.
Although Registration Agencies would
collect names and contact information
of witnesses, Registration Agencies
should protect such identifying
information consistent with privacy
laws, including the Freedom of
Information Act, including withholding
information where appropriate.
Proposed § 29.17(e)(1)(iv) would
require the Registration Agency to
provide a written notification of its
findings to the complainant and
respondent at the conclusion of the
investigation.
Proposed § 29.17(e)(2) is new and
would require the Registration Agency
to protect the identity of the
complainant to the extent practicable. If
a complainant expresses a desire to
remain anonymous, the complaint
would need to be filed with the
Registration Agency in the first instance,
and the Registration Agency would need
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to take reasonable steps to protect the
identity of the complainant, such as not
naming the complainant in interviews
or in response to inquiries from the
sponsor or respondent. Nevertheless,
many complaint identities may be
deduced by the respondent, sponsor, or
employer because the complaint relates
to a workplace-specific dispute or
because of the relatively small number
of apprentices in the program. Where
complaints are filed anonymously, the
Department anticipates that the assigned
investigator and the complainant will
confer early in the complaint
investigation process and as needed
thereafter to discuss what steps may be
taken to investigate the complaint
without compromising the anonymity of
the complainant. As discussed below,
proposed § 29.17(i) would incorporate
an anti-retaliation provision designed to
protect complainants from adverse
actions for filing a complaint, which is
meant to mitigate a complainant’s
concern and foster the filing of
complaints and the complainant’s
cooperation.
Proposed § 29.17(e)(3) explains that if
at the conclusion of a complaint
investigation, the Registration Agency
determines that a violation of part 29 or
the apprenticeship agreement occurred,
the Registration Agency would attempt
to resolve the violation as quickly as
possible, generally through technical
assistance, initiating a program review,
or the initiation of deregistration
proceedings.
Proposed § 29.17(f) would carry
forward existing § 29.12(e), which states
that no part of existing § 29.12 precludes
apprentices from pursuing alternative
avenues of relief authorized under
Federal, State, or local law.
Proposed § 29.17(g) would carry
forward existing § 29.12(f) but clarify
that, for an SAA to utilize a complaint
review procedure that differs from the
one provided here, the complaint
review procedure would need to first be
approved by the Administrator as part
of the process described in proposed
§ 29.27.
Proposed § 29.17(h) is new and would
establish anti-retaliation protections
under part 29 by adapting language from
part 30. This provision would prohibit
a broad range of adverse actions,
including intimidation, threats,
coercion, retaliation, and
discrimination. The provision would
protect a broad range of protected
activities, including filing a complaint,
opposing a practice prohibited by this
part or an apprenticeship agreement,
furnishing information, or exercising
any rights or privileges afforded under
this part or an apprenticeship
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agreement. Notably, anti-retaliation
complaints cannot be filed
anonymously because Registration
Agencies must always reveal the
identity of the complainant to seek a
remedy.
Proposed § 29.17(i) would speak to
consequences for sponsors that fail to
prevent or remedy retaliation as defined
in paragraph (h), including retaliation
by a participating employer in the
sponsor’s program. The presumptive
remedy for sponsors found to have
retaliated in violation of § 29.17(h)
would be to make the apprentice whole.
If, for example, an apprentice is
terminated from a program for filing a
complaint, the presumptive remedy
would be for the apprentice to be
reinstated to the same step in the
registered apprenticeship program with
back pay plus interest. OA also may
pursue a remedy for violations of
§ 29.17(h) by limiting the
responsibilities of the individual
responsible for misconduct such as
removing the individual from
interactions with the complainant, to
the extent practicable. Regardless of
what the appropriate remedy would be,
sponsors that fail to remedy retaliation
may be subject to deregistration under
§ 29.20(a).
Section 29.18—Recordkeeping by
Registered Programs
Recordkeeping is an essential and
fundamental requirement in
documenting compliance with the
requirements of this rulemaking. Under
this proposed rule, programs would
need to maintain records for the
purposes of demonstrating compliance
to a Registration Agency as part of a
program review and assisting a
Registration Agency in conducting a
complaint investigation. Programs
would also need to maintain sources of
data or information used to report to the
Registration Agency. The Department
thinks that these proposed requirements
balance the needs of sponsors,
employers, and Registration Agencies to
conduct effective monitoring and
oversight of program compliance with
the burden of maintaining the required
records. The Department is interested in
any comments on whether the
Department should add or subtract
records from this proposed section.
Proposed § 29.18 is a new section that
would expand upon the recordkeeping
requirement that is in current
§ 29.5(b)(23) and detail the categories of
records that sponsors and any
participating employers are expected to
maintain. Proposed § 29.18 would
describe the general recordkeeping
requirement with respect to specific
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records, the requirement to maintain
records for a specific period of time, the
requirement to allow the Registration
Agency access to the records, and the
format of such records. The section
would mirror some of the recordkeeping
requirements of 29 CFR 30.12 in order
to create uniform requirements for
recordkeeping for registered
apprenticeship programs.
Proposed § 29.18(a) would state the
general obligation of the program
sponsor, and any participating
employer, to maintain any records that
the Registration Agency considers
necessary to determine whether the
sponsor has complied or is complying
with the requirements of this part and
any applicable Federal or State laws. It
would further list in paragraphs (a)(1)
and (2) the specific categories of
documents that are required to be
maintained.
Proposed § 29.18(a)(1) would require
that records be maintained concerning
employment decisions, such as the
hiring or placement, promotion,
demotion, transfer, layoff, termination,
right of return from layoff, and rehiring
of apprentices. These are typically
employment records maintained in the
ordinary course of business. The
Department considers these records
paramount for a sponsor to maintain
since they relate to a foundational
requirement of registered
apprenticeship programs, the
employment of apprentices. Effective
oversight of the program would not be
possible without such records.
Proposed § 29.18(a)(2) would require
that records be maintained related to the
operation of the registered
apprenticeship program, including but
not limited to the specific requirements
in paragraphs (a)(1)(i) through (x).
Proposed § 29.18(a)(2)(i) would
require the maintenance of records
containing information related to the
qualification, recruitment, employment,
and training of apprentices, such as the
apprenticeship program standards,
apprenticeship agreements, completion
records, cancellation and suspension
records, and program review files. This
provision would complement proposed
§ 29.18(a)(1) in that it would require
maintaining records specific to the
operation of the apprenticeship training
program in addition to the requirements
of proposed § 29.19(a)(1) regarding the
individual employment decisions
concerning each apprentice. These
records are necessary to ensure the
program is operating in compliance
with proposed §§ 29.8 through 29.10.
Proposed § 29.18(a)(2)(ii) would
require maintaining records pertaining
to each apprentice’s performance and
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progress in both the on-the-job training
and related instruction components of
the registered apprenticeship program,
as well as records related to the
apprentice end-point assessments.
These recordkeeping requirements
would also be referenced in the
proposed program standards at
§ 29.8(a)(10) and (11). The records are
important to demonstrate the
apprentice’s progress during the
apprenticeship and at the end-point
assessment. They are related to other
important aspects of the apprenticeship,
such as work process schedules and
wage progression, and help document
the key quality criteria in this proposed
rule regarding regular assessments of
competency. Because competency
attainment enables apprentices to
progress through an apprenticeship,
records as to how competency
attainment is measured are critical for a
sponsor to retain and have available.
Proposed § 29.18(a)(2)(iii) would
require maintaining records pertaining
to an apprentice’s attainment of an
interim credential as part of the
program, postsecondary academic
credit, or other interim milestones
attained during the course of an
apprentice’s participation in the
program, if available. The Department
acknowledges that not all programs may
provide interim credentials or
postsecondary academic credit;
however, those that do would need to
maintain records of their provision to
apprentices. One quality metric
proposed in this NPRM relates to
credential attainment, and maintaining
records associated with those
credentials would be required. The
Department has proposed a requirement
in this proposed rule to have sponsors
disclose any interim credentials an
apprentice receives in the program.
Credentials are both a key source for
documenting apprentice progression
and success in a program and represent
an additional, tangible benefit for
apprentices in the program. This
proposed rule does not propose interim
credentials or academic credit be
provided, but because it would ask that
they be disclosed, it is vital that the
Department can validate this
information from the sponsor’s records
if needed.
Proposed § 29.18(a)(2)(iv) would
require maintaining records for each
apprentice regarding the number of
hours of on-the-job training, the number
of hours of related instruction, the total
number of hours worked, and the wages
and fringe benefits paid for all hours.
This is an integral part of the standards
of apprenticeship and apprenticeship
agreement, and these records are
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necessary to demonstrate compliance
with both.
Proposed § 29.18(a)(2)(v) would
require that records be maintained,
including personnel records, applicable
to any non-EEO complaints filed with
the Registration Agency pursuant to
proposed § 29.17.
Proposed § 29.18(a)(2)(vi) would
require that all records be maintained
related to the safety record of the
sponsor and all participating employers
in the sponsor’s program, where
applicable, including records relating to
any safety and health training provided
to apprentices, incident logs required to
be maintained under applicable Federal
or State occupational safety and health
laws, and current worker’s
compensation documentation.
Proposed § 29.18(a)(2)(vii) would
require maintaining any records
required to be maintained by a program
sponsor under 29 CFR part 30.
Proposed § 29.18(a)(2)(viii) would
require maintaining any records
required to be maintained under title 38,
United States Code, in order for veterans
and other individuals eligible for
educational assistance under such title
to use such assistance for enrollment in
registered apprenticeship programs.
Proposed § 29.18(a)(2)(ix) would
require maintaining records
demonstrating program compliance
with registered apprenticeship
requirements to meet Federal purposes
as defined in this part. This could
include documents maintained for
purposes of compliance with registered
apprenticeship requirements in Federal
grants such as WIOA, the IRA, the
Davis-Bacon and related Acts, and any
Federal purposes.
Proposed § 29.18(b) is a new
requirement in part 29 but would use
the language in part 30 at § 30.12(d)
regarding maintenance of records to
provide some uniformity to the
recordkeeping requirements across both
sections. Proposed § 29.18(b) would
provide that the records required by this
part and any other information relevant
to compliance with these regulations
must be maintained by a program
sponsor (or any participating employer,
if applicable) for 5 years from the date
of the making of the record or the
personnel action involved, whichever
occurs later. The 5-year timeframe
would be consistent with the
recordkeeping requirement in 29 CFR
30.12 and align with the 5-year program
review requirement in proposed § 29.19.
This provision would also provide that
failure to preserve complete and
accurate records (as would be required
by paragraph (a) of this section)
constitutes noncompliance with this
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part that could lead to OA initiating
deregistration proceedings. This
language would be similar to the
language in § 30.12(d).
Proposed § 29.18(c) would provide
that the program sponsor (and any
participating employer) must allow the
Registration Agency access to the
records described in paragraph (a) of
this section upon request for the
purpose of conducting program reviews
and investigating complaints arising
under part 29; such program reviews
and investigations may involve the
inspecting and copying of books,
accounts, records (including electronic
records), and any other material the
Registration Agency deems relevant to
the review or investigation and
pertinent to compliance with this part.
It would also provide that, upon
request, the program sponsor (and any
participating employer) must provide
the Registration Agency information
about all format(s), including specific
electronic formats, in which its records
and other information are available.
Finally, it would clarify that
information obtained in this manner
will be used only in connection with the
administration of this part or other
applicable laws. Proposed § 29.18(c)
would adopt language similar to the part
30 recordkeeping requirements at
§ 30.12(f) but specific to records related
to program reviews and investigations
under part 29. This access provision is
important for the Registration Agency to
conduct program reviews and
investigate complaints arising under
part 29.
Proposed § 29.18(d) is a new
requirement. It would acknowledge that
forms, records, and any other
documents used and maintained by the
program sponsor (and any participating
employer) in the administration of this
part may exist in paper or electronic
form or a combination thereof. It would
also specify that, regardless of the
medium, these records must be
available and accessible as required
under paragraph (c) of this section for
oversight and compliance purposes.
Section 29.19—Program Reviews
The Department’s ability to conduct
comprehensive reviews of the
apprenticeship programs it registers and
oversees is the linchpin for the quality
standards, worker protections, and
transparency and accountability
measures discussed throughout this
NPRM’s preamble and envisioned in the
Department’s proposed update to the
part 29 regulations. Establishing a clear,
transparent, and fair process for such
reviews in the part 29 regulations is
critical for all stakeholders within the
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system, including the governmental
entities overseeing programs, the
designers and operators of registered
apprenticeship programs, and the
apprentices who participate in
apprenticeship programs. While
program reviews are essential for giving
the Department the tools necessary to
enforce the part 29 regulations and
fulfill its statutory mandate to protect
the welfare and well-being of
apprentices, these reviews are also
opportunities for programs to identify
and address issues or discrepancies in
service of program improvement. The
proposed process for program reviews
aligns with the Department’s current
practice of allowing programs time to
address issues internally and request
guidance and assistance from the
Department or other stakeholders.
Programs should view program reviews
as a useful opportunity for program
assessment and the identification of
near- and long-term steps towards
improvements in program quality.
To provide clarity for the regulated
community, the Department has
decided to propose a new section of the
part 29 regulations to encapsulate all
elements of the program review process,
which is referenced in several places
throughout the existing parts 29 and 30
regulations. For example, 29 CFR
29.5(b)(21), in the existing regulation’s
section on program standards, states
that programs must affirm compliance
with the part 30 EEO regulations, and
§ 29.6(b)(1)(ii) refers to EEO compliance
reviews as a responsibility of
Registration Agencies. Under the
Department’s proposed regulation, EEO
compliance reviews, quality assurance
assessments, and other oversight
activities would be covered by this new
section, now collectively referred to as
‘‘program reviews,’’ which would clarify
the scope of Registration Agency review
of programs’ compliance with the
entirety of the regulations at parts 29
and 30. In addition to this
reorganization and consolidation of the
program review provisions in the
existing regulation, the Department is
proposing various enhancements to the
program review process to increase
transparency and accountability in the
system in service of maintaining and
improving program quality throughout
the system.
Proposed § 29.19(a) would explain
that once a program’s registration is
made permanent, the applicable
Registration Agency must conduct a
program review at least every 5 years,
though more frequent reviews are
permitted based on capacity. This
timeframe aligns with the current rule,
wherein new registered apprenticeship
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programs enter into an initial,
‘‘provisional’’ status upon registration,
and are reviewed approximately 1 year
after the registration date. Provided that
the program is operating in accordance
with the standards approved by the
Registration Agency, the program then
moves out of ‘‘provisional’’ status and
continues operating as a registered
apprenticeship program. Such programs
are then reviewed once every 5 years,
with more frequent reviews occurring
depending on specific circumstances.143
This timeframe further aligns with other
timelines in the existing regulations
governing registered apprenticeship,
such as the requirement that programs
undergo a compliance review ‘‘no less
frequently than every 5 years’’ at 29 CFR
29.3(h) and the 5-year recordkeeping
requirement in the EEO regulations at
29 CFR 30.18(b).
Proposed paragraph (a) would further
clarify that the Registration Agency will
include a review of any participating
employers in a sponsor’s program
during such program reviews, in line
with the proposal’s overall goal of
establishing and maintaining
accountability throughout the National
Apprenticeship System. Throughout the
proposal, the Department seeks to
establish accountability measures to
monitor, assess, and address
participating employers’ compliance
with the proposed registered
apprenticeship regulations, and has
proposed changes to the existing
registered apprenticeship regulations to
require participating employers’
compliance where appropriate.
Proposed § 29.19(a) would establish the
necessary connection between
participating employers and the
Registration Agency’s primary oversight
mechanism—program reviews—to
establish such accountability.
Proposed § 29.19(b) would require the
Registration Agency to conduct a review
of a program if it receives credible
information that a program,
participating employer, or other
registered apprenticeship stakeholder is
not operating in compliance with the
program’s accepted program standards
or any other requirements set forth in
this part or 29 CFR part 30. Such
credible information or allegations
could be received through any means
including, but not limited to,
complaints, referrals, or news stories.
Proposed § 29.19(b) would also require
143 Circumstances that may trigger more frequent
reviews include, for example, a program’s reported
outcomes are consistently falling short of
expectations or requirements, and whether serious,
unaddressed complaints related to the program,
recognized as legitimate by reviewers, consistently
arise.
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a Registration Agency to conduct
program reviews at the request of the
Administrator. The Administrator may
request that a Registration Agency
conduct program reviews because the
Administrator has received credible
information that a program is not
operating in conformance with its
registered standards, part 29 or part 30,
because the Administrator disagrees
with a Registration Agency as to
whether credible information of
potential noncompliance exists, or for
any other reason the Administrator
determines a review is warranted.
Proposed § 29.19(c) would clarify that
Registration Agencies may consider all
information and data that are pertinent
to the purpose of the review in reaching
a determination at the conclusion of the
review. Registration Agencies would
need to consider the program’s
performance under § 29.25(b). This
provision would ensure that program
performance is included as part of a
program review and can ensure that
technical assistance related to program
performance is provided to sponsors.
Proposed § 29.19(d) would require
sponsors and participating employers to
cooperate with requests for interviews
and documentation from the
Registration Agency. This proposed
paragraph would further clarify that
sponsors and participating employers
may never impede the Registration
Agency’s ability to interview
prospective, current, or former
apprentices because such interviews are
essential to conducting a program
review. Registration Agencies would be
entitled to draw adverse inferences in
the event that a sponsor or participating
employer declines to answer questions,
gives evasive answers, or fails to
produce records that the sponsor or
participating employer is required to
maintain pursuant to proposed § 29.18.
This section is intended to make
program reviews by Registration
Agencies as efficient and effective as
possible.
Proposed § 29.19(e) explains what
would happen at the conclusion of a
program review. At the conclusion of a
program review, the Registration
Agency would need to provide its
Notice of Program Review Findings to
the sponsor using the contact
information listed in the registered
standards. The Department is proposing
to notify the sponsor using the most
recent contact information provided in
the standards because it assumes that
the sponsor has provided the most upto-date, accurate contact information
with its standards, because the
Department should be able to rely on
the sponsor’s representation that it can
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effectively receive communication via
that contact information, and because
the registered standards require a
sponsor to designate a point of contact
to receive complaints.
Paragraphs (e)(1) though (4) would
detail what must be contained in a
Notice of Program Review Findings,
including a summary of any
noncompliance identified, a concise
explanation as to how the
noncompliance may be cured, an
explanation that the sponsor has to
develop a compliance action plan as
described in paragraph (f), and a
statement that an enforcement action
may be taken if compliance is not
achieved within an established
timeframe. The Department thinks that
the information required here is
sufficient to make the sponsor aware of
the Registration Agency’s concerns and
steps needed to address areas of
noncompliance.
Proposed § 29.19(f) would describe
the steps that the sponsor must take
when it receives a notice pursuant to
paragraph (e) as well as the further
actions that the Registration Agency
may take in response.
Proposed § 29.19(f)(1) would explain
that where a Notice of Program Review
Findings details one or more areas of
noncompliance, the sponsor is afforded
45 calendar days from the date of
notification to either rebut the findings
or submit a compliance action plan. The
Department notes that 29 CFR 30.15
affords sponsors 30 days to implement
a compliance action plan. In proposed
§ 29.19(f)(1), the time period would be
extended from 30 to 45 days to ensure
that the time period is not shorter than
that referenced in § 30.15. The 45calendar-day period may be extended
once by the Registration Agency for up
to 45 additional days for good cause.
Good cause to extend the period may be
present if, for example, the sponsor
recently implemented staffing changes
that would alter the personnel
responsible for rebutting the findings or
developing a compliance action plan.
The determination as to whether the
findings are appropriately rebutted
would be entirely within the discretion
of the Registration Agency.
Proposed § 29.19(f)(2) would detail
the minimum requirements that must be
included in a compliance action plan. A
compliance action plan would need to
make a specific commitment in writing
to correct or remediate identified
deficiency(ies) and area(s) of
noncompliance, specify actions that will
be taken to remedy each deficiency,
specify a timeline, and provide the
name of the individual responsible for
correcting each deficiency. Proposed
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§ 29.19(f)(2) would also explain that if a
sponsor submits a rebuttal to the Notice
of Program Review Findings that in the
discretion of the Registration Agency
does not rebut the Findings, the sponsor
is afforded 45 calendar days from
receipt of the final notice to submit a
compliance action plan for approval.
The compliance action plan should
include: (1) a written commitment to
correct or remediate any deficiencies
and areas of noncompliance that have
been identified by a Registration
Agency; (2) the precise actions a
program sponsor will take for each
deficiency identified; (3) the time period
within which a program sponsor will
remedy each deficiency that has been
cited and any corresponding program
changes implemented to correct each
cited deficiency; and (4) the name of the
individual or individuals responsible
for correcting each deficiency.
Proposed § 29.19(g) explains the
menu of options that would be available
to Registration Agencies upon receiving
and reviewing a compliance action plan.
Proposed paragraph (g)(1) states that a
Registration Agency could approve the
compliance action plan, determine that
the sponsor is in compliance, and
terminate the program review process.
This first option is more likely to be
selected upon receipt of a particularly
robust compliance action plan. A
program sponsor charged with
developing a compliance action plan
would need to take steps to implement
that plan in accordance with the
requirements of the regulation, even in
instances where the formal program
process has been completed.
Proposed paragraph (g)(2) states that a
Registration Agency could approve the
compliance action plan but continue the
program review process until the
compliance action plan is appropriately
implemented. This second option may
be more appropriate where the
Registration Agency determines that
continued monitoring may be necessary
to ensure appropriate implementation of
the compliance action plan. For
example, a sponsor could submit, and
the Registration Agency could approve,
a compliance action plan that details the
sponsor’s plan to register its first
apprentice. However, the Registration
Agency may elect to wait until the
sponsor in fact registers its first
apprentice before making the
determination that the compliance
action plan is appropriately
implemented and the sponsor is in
compliance.
Proposed paragraph (g)(3) states that a
Registration Agency could reject the
compliance action plan and proceed
with deregistration according to
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proposed § 29.20. A Registration Agency
may elect to work with the sponsor to
revise a compliance action plan that had
been rejected instead of proceeding with
deregistration.
Section 29.20—Deregistration of a
Registered Program
Proposed § 29.20 would substantially
revise the existing provisions regarding
deregistration of a registered
apprenticeship program found at 29
CFR 29.8 of the current regulation.
Under the current 29 CFR 29.8, the
Department is afforded no
administrative tools, sanctions, or
alternatives short of initiating formal
deregistration proceedings in instances
where a program is not being
conducted, operated, or administered in
accordance with the program’s
registered provisions or the
requirements of 29 CFR part 29. This
administrative inflexibility stands in
sharp contrast to the more graduated
EEO in apprenticeship enforcement
provisions found at 29 CFR 30.15,
which permit the Department to work
with a program sponsor to rectify areas
of noncompliance with the EEO
regulatory requirements of 29 CFR part
30 through the pursuit of an
intermediate administrative step: the
development of a limited-time
compliance action plan that identifies
and rectifies a program’s operational
deficiencies. Accordingly, to better align
and harmonize the enforcement
structures in 29 CFR parts 29 and 30,
the Department has proposed
substantially replicating the compliance
action plan procedural mechanism
currently found at 29 CFR 30.15 and
incorporating it into the proposed
program review process outlined at
§ 29.19(f) and (g) of this proposed
regulation (see above). Should a sponsor
fail to develop a compliance action plan
that satisfies the Department’s
requirements, however, formal
deregistration proceedings may then be
initiated by the Department as a last
resort under this proposed § 29.20,
which the Department has proposed be
significantly updated to improve
procedural clarity and efficiency.
Proposed § 29.20(a) would replace the
undesignated introductory paragraph in
existing § 29.8 and eliminate ambiguous
references to ‘‘deregistration
proceedings’’ in favor of outlining the
process step by step. The first step
would be to notify a sponsor or a
participating employer of the specific
violations of parts 29 or 30 that were
identified as a result of a program
review, complaint investigation, or ‘‘any
other basis.’’ The reference to ‘‘any other
basis’’ is intended to capture the
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multitude of less common methods by
which a Registration Agency could learn
of a violation of parts 29 or 30, such as
through the news or by referral from
another government agency. However,
where a news story or referral from
another government agency may benefit
from additional investigation, the
Registration Agency may elect to initiate
a program review to gather additional
facts. Proposed § 29.20(a) proposes a
new reference to ‘‘participating
employer’’ to clarify that a participating
employer can be offered technical
assistance by a Registration Agency if
suspected not to be operating in
accordance with parts 29 or 30.
Ultimately, however, because a
participating employer is not a sponsor,
it would be up to the sponsor to
suspend the participating employer
from the program. The addition of a
reference to ‘‘participating employer’’ is
further intended to clarify that a sponsor
may ultimately be deregistered when a
participating employer that has adopted
the sponsor’s standards is not operating
in accordance with those standards or
parts 29 or 30. The notice provided
under proposed § 29.20(a) would in
practice be very similar to the Notice of
Program Review Findings under
proposed § 29.19(f)(1) in that both
notices would identify an area of
noncompliance on the part of the
sponsor and the remedial action that
would be taken by the Registration
Agency as a result. However, a Notice of
Program Review Findings would always
afford a sponsor the opportunity to
submit a compliance action plan
whereas a notice under proposed
§ 29.20(a) may reference a wider array of
options, including notifying the sponsor
that the program is deregistered.
Proposed § 29.20(a)(1) through (4) are
new and detail a proposed menu of
options available to a Registration
Agency upon making a determination
that a violation of this part occurred. A
Registration Agency could proceed with
any single option or multiple options
concurrently if the Registration Agency
thinks such action is necessary to
address the noncompliance, these
include
(1) offering the sponsor or
participating employer technical
assistance to promote compliance;
(2) requiring the sponsor to submit a
compliance action plan pursuant to
§ 29.19(f);
(3) suspending the sponsor’s right to
register new apprentices for a specified
time period; or
(4) deregistering the program pursuant
to paragraph § 29.20(b) of this section.
Proposed § 29.20(a)(1) would be an
option to provide technical assistance to
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the sponsor. This option may be
selected where there is a clear
misunderstanding of the regulatory
requirements on the part of the sponsor
and technical assistance may support a
timely remedy to the violation.
Proposed § 29.20(a)(2) would be an
option to require that the sponsor
submit a compliance action plan that
meets the requirements of proposed
§ 29.19(f)(2). This option may be
selected where the noncompliance was
discovered outside of the program
review process.
Proposed § 29.20(a)(3) would be an
option to suspend the sponsor’s right to
register apprentices for a set period of
time. This option may be appropriate
where there is a concern about the
safety of apprentices in the program.
Finally, proposed § 29.20(a)(4) would
be an option to deregister the program
for cause pursuant to proposed
§ 29.20(b). Proceeding to deregistration
may be appropriate if the sponsor was
already afforded an opportunity to
submit a compliance action plan and
the plan was rejected, in the case of
particularly egregious violations, or
where the program has failed to respond
to the Registration Agency.
Proposed § 29.20(b) would
substantially streamline existing
§ 29.8(b). It would remove references to
persistent and significant failure to
perform successfully and other
enumerated bases for deregistration and
would instead implement a standard for
deregistration by which any program
not operated in accordance with parts
29 or 30 could be deregistered if the
sponsor fails to correct the violations or
fails to receive approval of a compliance
action plan and implement that
compliance action plan within the
required timeframes. The determination
as to whether a compliance action plan
is approvable and whether an approved
compliance action plan is being
appropriately implemented would be at
the sole discretion of the Registration
Agency. Proposed § 29.20(b) would
eliminate references to ‘‘reasonable
cause to deregister,’’ which in existing
§ 29.8(b)(5) serves as the point at which
an appeal of the Registration Agency’s
decision must be taken. By requiring a
sponsor to appeal deregistration before
a final agency determination as to
deregistration has issued, current § 29.8
requires appeals to be taken before they
are ripe. Proposed § 29.20(b) would
correct this problem by making a Notice
of Deregistration the point after which a
sponsor may either request a review by
the Administrator or, in certain cases,
request a hearing before the Office of
Administrative Law Judges (OALJ).
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Proposed § 29.20(c) would carry
forward much of existing § 29.8(a).
References to cancellation are proposed
to be struck to avoid confusion with the
cancellation of apprenticeship
agreements. The proposed paragraph
would clarify that the Registration
Agency will deregister a program upon
receipt of a written request, in contrast
with the existing text that says a
Registration Agency may do so. This
change would reflect the reality that OA
will always deregister a program upon
the request of the sponsor.
Proposed § 29.20(d) is new and would
establish the process by which the
Administrator will review the
Registration Agency’s Notice of
Deregistration. In summary, this
provision would establish a three-step
process of review when a Notice of
Deregistration is issued by an SAA: (1)
Informal Resolution (by the
Administrator); (2) Appeal (to OALJ);
and Appeal (to ARB). The Department is
proposing the addition of this review
process for two reasons. First, the
Department believes that where the
deregistration decision was made by an
SAA, the Administrator should review
the SAA’s deregistration decision so
that any novel issues relating to this
part, part 30, or the National
Apprenticeship System are resolved by
the Administrator in the first instance,
as opposed to the OALJ. Accordingly,
where the Notice of Deregistration was
issued by an SAA, this review process
would be a required step before
requesting a hearing before the OALJ.
Where the Notice of Deregistration was
issued by the Administrator, this review
process would not be necessary before
a request for a hearing is requested.
Second, the Department is proposing
the process in § 29.20(d) to minimize
the Departmental resources that must be
used to deregister programs that become
unresponsive, even after multiple
attempts by the Registration Agency to
contact the sponsor, or where the
sponsor fails to register at least one
apprentice. Accordingly, where the
Notice of Deregistration states the basis
for deregistration as a failure to respond
to multiple attempts from the
Registration Agency to contact the
sponsor or a failure to register at least
one apprentice, or both, the outcome of
this review process would serve as the
final agency determination of the
Department regarding deregistration.
The Administrator shall publish a
notice of final agency determination on
an OA public-facing website in
compliance with proactive disclosure
requirements under the FOIA (5 U.S.C.
552 (a)(2)).
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Paragraph (d)(1) would explain how a
former sponsor may request review from
the Administrator. Requests would need
to be submitted electronically and in
writing within 30 calendar days from
the date of the Notice of Deregistration.
The request would not need to be made
in any particular format, but the request
itself would need to provide any and all
relevant facts or documentation that
exist as of the time of the request. It
would be entirely the obligation of the
former sponsor to provide any
arguments, facts, and documents in an
understandable manner as part of the
request for review. The Administrator
would take into consideration the
totality of the request and supporting
documentation presented and render
the Administrator’s final decision.
Paragraph (d)(2) would address
deregistrations where an SAA is the
Registration Agency. In these situations,
the request for review would need to be
sent to the Registration Agency and the
Administrator simultaneously such that
the Administrator and the SAA are
provided with identical copies of the
request and all supporting
documentation. The SAA would then
have 15 calendar days to provide the
Administrator with a record containing
the pertinent facts underlying the SAA’s
deregistration determination. The
Administrator could request additional
information from the sponsor, the
Registration Agency, or both, though the
Administrator would not be required to
do so.
Paragraph (d)(3) would explain that if
OA is the Registration Agency, OA will
compile for the Administrator’s review
all relevant information already in OA’s
possession or already submitted by the
former sponsor, and may request
additional information from the former
sponsor, though OA is not obligated to
do so.
Paragraph (d)(4) would explain that
the Administrator will issue a final
decision that explains the basis for the
decision as quickly as practicable after
receiving all information necessary for
the Administrator to make a decision.
While the Administrator would work as
quickly as possible, the Department has
not included a required timeframe
because the facts and issues in specific
cases may require more or less time to
make a decision and, therefore, a
uniform timeframe may inadvertently
require the Administrator take less time
than necessary to fully consider a
request for reconsideration.
Paragraphs (d)(5) and (6) would
explain that except where the basis for
deregistration is a failure to respond to
multiple attempts from the Registration
Agency to contact the sponsor or a
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failure to register at least one
apprentice, or both, the former sponsor
may still request a hearing before the
OALJ within 15 calendar days of receipt
of the Administrator’s final decision.
Where the former sponsor does not
request a hearing within 15 calendar
days, or where the basis for
deregistration is a failure to respond or
a failure to register at least one
apprentice, the Administrator’s final
decision would be the Department’s
final agency action and the OALJ would
not have jurisdiction to consider an
appeal. The Department’s intent in
proposing to preclude the OALJ from
hearing appeals based on a failure to
respond or a failure to register at least
one apprentice is to limit the
expenditure of Departmental resources
on disputes that are typically very
straightforward and easily resolved by
engagement with the Registration
Agency. The Department’s intent is to
encourage sponsors of such programs to
work with the Registration Agency
before deregistration to address the lack
of responsiveness or failure to register
an apprentice through the provision of
technical assistance or an action plan. If
the cause of the deregistration stems
from the program’s lack of commitment
to operating an apprenticeship training
program, the Department thinks that it
is better for the broader apprenticeship
system to deregister such programs
expeditiously. In addition, because
these problems are readily resolved,
sponsors may always seek reinstatement
of their program under proposed § 29.22
once the issue that gave rise to the
failure to respond or failure to register
an apprentice is resolved.
Proposed § 29.20(e) would address the
process for requesting a hearing before
the OALJ and would streamline existing
§ 29.8(b)(6) through (8). Proposed
paragraph (e)(1) would explain that all
requests for hearings must be sent to the
OALJ. It would further note that where
an SAA is the Registration Agency, the
former sponsor has 15 calendar days
from the date of the Administrator’s
final decision to request a hearing.
Where an SAA deregistered the
program, the Department is proposing to
require the former sponsor to request
review by the Administrator first to
ensure that any novel or incorrect
interpretations of parts 29 or 30 are not
decided in the first instance by the
OALJ. As OA is the Department’s
subject-matter expert on apprenticeship,
the Department thinks it most
appropriate that OA should always be
afforded the opportunity to review a
deregistration decision by an SAA
before the OALJ or the Administrative
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3189
Review Board (ARB) render the final
agency decision for the Department. As
noted above, this would allow OA to
provide input on any novel issues
relating to this part, part 30, or the
National Apprenticeship System that
are present in the matter.
Proposed paragraph (e)(2) would
explain that a request for a hearing must
simultaneously be furnished to the
Administrator (see https://www.dol.gov/
agencies/eta/apprenticeship for contact
information), and the Associate Solicitor
for Employment and Training Legal
Services (see https://www.dol.gov/
agencies/sol/divisions/employmenttraining-legal-services for contact
information). The paragraph would
further explain that the Administrator
will promptly compile and submit to
the OALJ the administrative file
containing the documentation relied on
by the Administrator in reaching the
Administrator’s final decision or the
Notice of Deregistration, as applicable.
Proposed paragraph (e)(3) would
explain that hearings would be
conducted per proposed § 29.21.
Section 29.21—Hearings on
Deregistration
Proposed § 29.21 would carry forward
much of current § 29.10. However,
existing § 29.10(a), which currently
requires the Administrator to request a
hearing from the OALJ, would be
deleted entirely and replaced with the
process described above. The
Department determined that the current
process outlined in § 29.10(a) is
inefficient and that the appealing party’s
notice is sufficient.
Proposed § 29.21(a)(1) and (2) would
carry forward existing § 29.10(b)(1) and
(2) verbatim. In addition, the proposed
rule would add paragraphs (a)(3), to
clarify that the request for a hearing is
not a complaint to which an answer is
required, and (a)(4), to clarify that
limited pre-hearing motions and
discovery may be permitted at the
discretion of the assigned
Administrative Law Judge. The
clarification in paragraph (a)(3) that no
answer to a request for hearing would be
required is intended to supplement the
OALJ regulations at 29 CFR part 18 and
capture the reality that an
Administrative Law Judge assigned to a
deregistration hearing will receive a
comprehensive administrative file from
the Administrator, which should render
a separate answer unnecessary. The
clarification in paragraph (a)(4) is
intended to allow for limited discovery,
though the Department anticipates that
in most instances the case will be able
to be decided on the record without
further discovery.
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Section 29.22—Reinstatement of
Program Registration
Proposed § 29.22 is new and would
explain that an apprenticeship program
that is deregistered may have its
registration reinstated if the prospective
sponsor submits adequate evidence that
the program is operating in compliance
with parts 29 and 30. Although a former
sponsor would normally be able to
reapply for registration, this section
would establish a parallel process by
which a former sponsor with an active
but unregistered program could submit
evidence in support of having its
registration reinstated. The Department
envisions that this process would
address situations where a former
sponsor’s deregistered standards are in
conformance with parts 29 and 30 but
where the former sponsor was
deregistered for not operating its
program in conformance with the
standards, with part 29, or with part 30.
For example, a sponsor could be
deregistered for failure to register a
single apprentice, but postderegistration provide the Registration
Agency with evidence of registering at
least one apprentice as well as an
adequate explanation for not doing so
previously; the determination as to what
constitutes adequate evidence lies
exclusively with the Registration
Agency.
where the sponsor demonstrates to the
Administrator that the granting of the
exemption will expand or support the
safety and welfare of apprentices. The
Department would not grant an
exemption that would reduce or
minimize the protections afforded
apprentices under this proposed
regulation. The Department is interested
in any comments regarding criteria the
Department could use to establish when
good cause may be found.
This proposed exemption provision
would be similar to the existing
exemption allowance contained in 29
CFR 30.19 of the EEO in Apprenticeship
regulations, except that SAAs would be
excluded from involvement in the
consideration or issuance of exemptions
under proposed § 29.23, and the
Administrator would retain the full and
exclusive authority to evaluate and
grant exemptions from the provisions of
subpart A of 29 CFR part 29.
The Department also wishes to note
that the proposed exemption provision
would not apply to any of the regulatory
provisions contained in either subpart B
or subpart C of the revised 29 CFR part
29. The Department is proposing this to
ensure the exemptions are solely based
on labor standards requirements. The
Department would consider comments
on exemptions for subpart B for
potential sponsors of registered CTE
apprenticeship. The Department is not
proposing an exemption authority for
subpart C because that subpart
addresses the collection of
apprenticeship data, which as described
below is a key priority of this
rulemaking to ensure a comprehensive
data set on registered apprenticeship
programs. Subpart C also governs the
SAAs; the Department is not proposing
any exemptions regarding their
individual governance, in an effort to
build a more cohesive system. While the
Department may consider individual
program level exemptions on labor
standards, given the Department’s goal
of building a National Apprenticeship
System, the elements of subpart C are
not being proposed to be eligible for
exemption.
Section 29.23—Exemptions
Proposed § 29.23 would permit the
Administrator to entertain requests for
exemptions from any or all of the
provisions contained in subpart A of 29
CFR part 29. Such requests would be
required to be made in writing and
transmitted to the Administrator and
would also be required to contain a
statement of the reasons supporting the
request. The Administrator would only
grant an exemption for good cause.
Good cause may be found in instances
C. Subpart B—Career and Technical
Education Apprenticeship
The Department has long heard from
National Apprenticeship System
stakeholders that creating additional
apprenticeship opportunities would
expand the benefits of apprenticeship
and maximize its workforce
development potential, particularly for
individuals who are in the early stages
of career development, such as students
in high school and postsecondary
students who are actively taking steps to
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Proposed § 29.21(b) would carry
forward existing § 29.10(c) with the only
additions being added citations to the
ARB’s recently promulgated Rules of
Practice and Procedure and the
inclusion of a standard of review for the
OALJ. The Department proposes to
clarify that the arbitrary and capricious
standard of review applies because it is
regularly used in administrative
adjudications reviewing final agency
determinations. The arbitrary and
capricious standard of review would
require the Administrative Law Judge to
uphold the Administrator’s decision
unless it is shown by the sponsor to be
arbitrary, capricious, an abuse of
discretion, or otherwise not in
accordance with the law.
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begin their future careers and assessing
the postsecondary opportunities
available to them. It also would be a
beneficial model for businesses looking
to expand their talent pipelines,
including businesses that participate in
registered apprenticeship programs
under subpart A. Registered
apprenticeship has been a successful
workforce development tool for job
seekers for decades, and the Department
recognizes that many of the
occupational training and professional
development elements of registered
apprenticeship would be valuable for
the subset of the population who are
enrolled in high school and in
community and technical colleges and
are taking steps to improve their career
opportunities. However, the existing
National Apprenticeship System has
had very limited participation from
high-school-aged youth. In FY 2022,
only 1.2 percent of active apprentices,
or 7,643 apprentices, in registered
apprenticeship programs were 16–18
years old.144 Most youth ages 16–18 are
in high school, and these years are
critical for helping students understand
and make informed choices for their
education and career paths, particularly
for youth who do immediately enter
postsecondary education.145
More broadly, the Department is
concerned about the persistent decline
in youth labor force participation, as
well as an unemployment rate more
than twice as high as the national
average, for those individuals aged 16 to
24 years old. The summer labor force
participation rate for 16- to 24-year-olds
was 60.2 percent in July 2023, down
from 61.8 percent in July 2019.146 Youth
labor force participation has been
trending downward since reaching a
high of 77.5 percent in July 1989 due to
a number of factors, such as lack of
training and work experience,
transportation and access to work sites,
and the lasting impact of labor market
disruptions during and following
economic downturns.147 While some
individuals aged 16 to 24 years old may
be attending some type of education or
144 OA, ‘‘Data and Statistics,’’ https://
www.apprenticeship.gov/data-and-statistics (last
updated June 16, 2023).
145 OA, ‘‘Data and Statistics,’’ https://
www.apprenticeship.gov/data-and-statistics (last
updated June 16, 2023).
146 BLS, The Economics Daily, Aug. 29, 2023,
https://www.bls.gov/opub/ted/2023/60-2-percent-ofyouth-participated-in-the-labor-force-in-july2023.htm (last visited Oct. 5, 2023).
147 Note: After peaking at 77.5 percent in July
1989, the rate trended downward then ranged
between 60.0 to 60.6 percent during 2012 to 2018.
Congressional Research Service, ‘‘Youth and The
Labor Force: Background and Trends,’’ Aug. 20,
2018, https://crsreports.congress.gov/product/pdf/
R/R42519.
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training and forgoing employment,
research indicates these factors may also
underlie why the unemployment rate
for this population, those who are
actively looking for work but are
unemployed, is more than twice as high
as the national average. This
population’s unemployment rate (ages
16–24) remains well above the national
average based on the BLS ‘‘Employment
and Unemployment Among Youth
Summary,’’ published in August 2023,
which showed the July 2023
unemployment rate for youth was 8.7
percent,148 compared to 3.5 percent
overall at the same time. Ongoing
declines in labor force participation and
disparities in unemployment may create
long-term challenges for those
individuals in this population who seek
job opportunities that provide economic
mobility and may disrupt the
development of a skilled workforce
needed to address demographic shifts
and sustain U.S. economic
competitiveness. The Department
recognizes the need to engage and
support school-aged individuals and
adult learners who are seeking to enter
a career pathway and utilize an earnand-learn model such as registered
apprenticeship, which will help to
increase labor force participation and
close the gap in unemployment rates
relative to the rest of the working
population.
Nationally, Perkins CTE programs
enroll roughly 8.3 million secondary
students and 3.5 million postsecondary
students,149 and they are open for
enrollment by students looking to attain
industry-recognized competencies and
skills, a recognized postsecondary
credential, and work-based learning
experiences. Additionally, the inclusion
of CTE programs within the current
registered apprenticeship model has
provided a promising opportunity to
bridge education and workforce
development. After working and
consulting with registered
apprenticeship stakeholders, workforce
development analysts and experts, and
Federal partners at ED, the Department
is proposing a new and emergent type
of registered apprenticeship—registered
CTE apprenticeship—modeled on the
most relevant elements of traditional
registered apprenticeship but with key
distinguishing features to accommodate
148 BLS, Economic News Release, ‘‘Employment
and Unemployment Among Youth Summary,’’ Aug.
16, 2023, https://www.bls.gov/news.release/
youth.nr0.htm.
149 ED, Perkins Collaborative Resource Network,
‘‘National Summary,’’ https://cte.ed.gov/profiles/
national-summary (last visited Sept. 8, 2023).
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students in high school and
postsecondary education.
This proposed registered CTE
apprenticeship model seeks to
strengthen the connection with
secondary and postsecondary education
programs by bringing together the core
concepts of registered apprenticeship
and CTE, and working to ensure that
strong State-level coordination exists to
manage the program. To this end, the
Department has proposed the registered
CTE apprenticeship program be
delivered through a Perkins-eligible
recipient’s CTE program because
Perkins already provides a high-quality
framework for apprenticeship-related
instruction and can capture economies
of scale in matching students interested
and involved in CTE with registered
apprenticeship. Perkins-eligible
recipients may choose to become CTE
apprenticeship sponsors to expand and
enhance their Perkins CTE program
with high-quality on-the-job experience
for their students, culminating in a
credential that would enhance CTE
students’ prospects to transition to
employment, registered apprenticeship
under subpart A, or postsecondary
education. The proposed regulation and
registered CTE apprenticeship program
would not impact the independence and
function of ED’s Perkins program or that
of Perkins grantees and subgrantees.
That is, the proposed subpart would
only apply to States that develop a
written agreement between their State
CTE Agency and a Registration Agency,
States that wish to become Registration
Agencies, and States and CTE programs
that wish to become registered CTE
apprenticeship sponsors as recognized
by DOL. Further, ED’s implementation
and oversight of the Perkins CTE
program would be unaffected. In
addition, though the regulations
propose that the State CTE Agency (i.e.,
the agency with authority to oversee
Perkins) is a required partner, the
regulations would not alter the existing
authorities of the State CTE Agency for
implementation and oversight of
Perkins.
The proposed requirements for
registered CTE apprenticeship’s labor
standards, program registration, and
program administration would largely
reflect the labor standards, program
registration, and program administration
requirements for registered
apprenticeship, with some distinctions
and differences as explained in this
NPRM’s preamble for subpart B. Many
of the proposed requirements are
already common practice in highquality CTE programs and related workbased learning programs. The primary
distinctions between these two types of
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registered apprenticeship programs,
under subparts A and B, would be: (1)
the required use of industry skills
frameworks to support CTE
apprenticeship-related instruction and
provide direction for on-the-job training;
(2) different hours thresholds for related
instruction and on-the-job training; (3)
different eligibility requirements for
who may serve as program sponsors;
and (4) student outcomes focused on
post-completion career pathways. The
Department proposes to center
registered CTE apprenticeship programs
around industry skills frameworks
(rather than the occupational basis of
most registered apprenticeship
programs). Industry skills frameworks
more broadly encompass the range of
career options available to high school
and college students by integrating
industry-recognized competencies and
skills. Registered CTE apprenticeship
programs would be guided by an
approved industry skills framework and
delivered through a Perkins-eligible
recipient’s CTE program and paid onthe-job training.150
In addition, the registered CTE
apprenticeship model would place a
greater emphasis on the related
instruction element of registered
apprenticeship, and proposes to involve
a higher amount of required time spent
in related instruction (CTE
apprenticeship-related instruction) with
postsecondary credit hours and a lesser
amount of on-the-job training, compared
to the proposed program in subpart A.
For registered CTE apprenticeship, the
Department proposes a minimum of 540
hours of required CTE apprenticeshiprelated instruction, which encompasses
not less than 12 postsecondary credit
hours as part of the program. The
proposed 540 hours of CTE
apprenticeship-related instruction and
900 hours of on-the-job training could
occur while a student is enrolled in high
school, or while a student is enrolled in
postsecondary education, or the
program could be structured to span
high school and postsecondary
education.
For secondary school systems, the
registered CTE apprenticeship model
may expand opportunities for students
150 The Perkins statute safeguards local control
over instructional content, academic standards and
assessments, curricula, and programs of instruction.
20 U.S.C. 2306a(a). Accordingly, the regulations
proposed would only impact and control DOL CTE
apprenticeship programs and would not create any
rules governing the operation of Perkins programs.
Nothing in this proposed regulation would
mandate, direct, or control a State’s, local
educational agency’s, eligible Perkins recipient’s, or
school’s specific instructional content, academic
standards and assessments, curricula, or program of
study.
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to pursue postsecondary coursework,
create opportunities to earn recognized
postsecondary credentials that students
earn in CTE programs, including a
nationally recognized certificate of
completion of registered CTE
apprenticeship, and expand work-based
learning to include paid on-the-job
training with designed wage increases,
and support the alignment of CTE
programs to registered apprenticeship
programs under subpart A, in addition
to postsecondary credential and degree
programs.
For postsecondary institutions the
registered CTE apprenticeship model
may create opportunities to develop
additional employer-driven educational
programs, particularly in programs
where clinical experiences and similar
models may not exist, and where
students would benefit from paid onthe-job training offered alongside or
included as part of a postsecondary
credential and/or degree program.
Registered CTE apprenticeship may also
help postsecondary institutions to create
education programs that bridge their
workforce and degree programs within
their institution, potentially creating
opportunities for students to access
federal student aid to support their
participation in the program, in addition
to creating opportunities to embed an
apprenticeship program within a degree
program, and expand programs that are
offered as an ETP under WIOA.
For regions that are seeking to create
or have already established strong
linkages between their secondary
education system and community and
technical college system, registered CTE
apprenticeship can be structured to
bridge these two education systems,
ensuring that students graduate high
school, transition into postsecondary
education with at least 12
postsecondary credit hours, earn a
recognized postsecondary credential,
and have strong pathways to continue
their education while simultaneously
participating in the workforce and
receiving progressive wage increases.
Registered CTE apprenticeship may also
help these communities to better
position employers as co-owners of their
education and workforce systems,
support paid on-the-job learning and
other forms of Federal and State
financial aid that may be available, to
help to offset their education costs,
provide additional student mentorship,
and leverage additional support from
community-based organizations to
provide wraparound or other student
services.
In contrast, for registered
apprenticeship under subpart A, the
Department is proposing 144 hours of
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related instruction for every 2,000 hours
of on-the-job training. The higher
amount of CTE apprenticeship-related
instruction is proposed to ensure that
CTE apprentices have the requisite
number of hours to successfully
complete a program and academic
requirements for graduation. The lower
amount of on-the-job training hours is
proposed to ensure that CTE apprentices
receive the technical, hands-on
opportunities to demonstrate their
progress and attainment of industryrecognized competencies and skills
while also ensuring that CTE
apprentices work an age-appropriate
number of hours while attending school.
Specifically, researchers have
consistently found that there are
negative academic outcomes for
students who work intensively (e.g.,
more than 20 hours) during high school.
For example, one study that examined
the impact of employment on academic
performance and behavioral outcomes
(e.g., effort, truancy, misbehavior, and
suspensions) of students in 8th, 10th,
and 12th grade found that intensive
work in high school, defined as working
more than 20 hours per week, was
associated with lower grade point
averages, lower school effort, and
greater frequencies of misbehavior.
Those who worked more limited hours
(20 hours or less per week) increased
their odds of obtaining a bachelor’s
degree and exhibited no differences in
high school academic or behavioral
outcomes than those who did not work
at all.151
Standards of registered CTE
apprenticeship would be based on
approved industry skills frameworks
and delivered through CTE programs
and paid on-the-job training that must
be completed by a CTE apprentice to
receive a certificate of completion of
registered CTE apprenticeship.
Completing a registered CTE
apprenticeship program would provide
a CTE apprentice with industrywide
skills and competencies, a recognized
postsecondary credential(s) and at least
12 transferable postsecondary credit
hours, which would enable CTE
apprentices to enroll in a postsecondary
educational program, enroll in a
registered apprenticeship under subpart
A, potentially with advanced standing,
or continue employment.
While the new model of registered
CTE apprenticeship is designed to align
with Perkins CTE programs, CTE
apprenticeship programs under this
151 Jeremy Staff et al., ‘‘Adolescent work intensity,
school performance, and academic engagement,’’
Sociology of Education, 83(3), 183–200 (July 2010),
https://www.ncbi.nlm.nih.gov/pmc/articles/
PMC2926992/.
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proposal also would have the option to
design programs that meet the
registration requirements of subpart A,
particularly in CTE program areas that
are more occupationally based. In doing
so, secondary and postsecondary
institutions may choose to build onto
their existing registered apprenticeship
programs to create additional
opportunities for learners or they may
wish to connect registered
apprenticeship programs that are
developed under subparts A and B to
create stackable instructional models.
For secondary and postsecondary
institutions that already support
registered apprenticeship programs
under subpart A, the development of
registered CTE apprenticeship programs
may help to create new pathways into
registered apprenticeship, may support
diversity, equity, inclusion, and
accessibility efforts, and may create
opportunities to engage existing or new
employers to expand their partnership
in new or different occupations and
industries.
Registered CTE apprenticeship would
be an additional model designed to
specifically align labor standards with
State-approved CTE programs and,
where appropriate, State or locally
developed educational curriculum,
where it may not always be feasible
under subpart A and, in doing so, would
provide multiple postsecondary
pathways for CTE students and
employment, and may include
opportunities for CTE students to earn
advanced standing in registered
apprenticeship under subpart A.
Registered CTE apprenticeship would
retain most of the key elements of the
registered apprenticeship model as set
forth in proposed subpart A, with some
differences or adjustments based on the
unique characteristics of the population
registered CTE apprenticeship will
serve—namely, high school and college
students—including, among other
considerations, their age and typical
experience, their courseload, schedule,
and stage of career development or
transition into a new career. As
proposed, the Department envisions
some key adjustments to the registered
apprenticeship model for registered CTE
apprenticeship. The Department
considered using exemptions proposed
under subpart A to accommodate this
program design, but determined that the
requirement for Registration Agency
coordination with State CTE Agencies is
an essential element of this proposal
and could not be implemented through
use of exemptions under subpart A. In
addition, programs are not exempt from
the establishment and implementation
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of robust standards of registered CTE
apprenticeship. Such standards are
essential to ensuring that registered CTE
apprenticeship programs deliver
consistently high-quality education and
training, while also ensuring that CTE
apprentices are trained in a safe and
accessible workplace environment
where they are protected from
exploitation and abuse.
The Department coordinated and
sought consultation with ED in
developing the proposed regulations for
registered CTE apprenticeship. In
addition, this new model is informed by
existing and ongoing efforts to develop
youth and registered apprenticeship
models that incorporate CTE.152 In
coordination with ED, the Department
will seek to provide technical assistance
to States and local stakeholders as
needed to implement this new model.
The Department has also taken into
consideration the recommendations
from the ACA to expand apprenticeship
opportunities that offer postsecondary
credit and the ability to advance along
a career pathway for in-school youth
and other individuals.153 The registered
apprenticeship model has been highly
successful, as described throughout this
rulemaking, in successfully training
individuals outside of the current
secondary and postsecondary education
systems. However, it has not been able
to systematically align with CTE
programs and employment
opportunities for those students who
may have difficulty meeting the
minimum eligibility requirements for
entering into a registered apprenticeship
program under subpart A.
The Department recognizes that
previous efforts to create and strengthen
articulation between secondary and
postsecondary institutions have had
positive effects for the populations
targeted by this proposal. From fall 2019
to fall 2021, 586,000 fewer recent high
school graduates were enrolled in
community college compared with
277,000 fewer older adults, a troubling
trend as students of all ages enter or reenter the labor market without the
necessary education and training for
152 Joseph B. Fuller et al., The Project on
Workforce, Harvard University, ‘‘The Options
Multiplier: Decoding the CareerWise Youth
Apprenticeship Journey,’’ Nov. 14, 2022, https://
www.hbs.edu/faculty/Pages/item.aspx?num=63353.
153 See ACA, ‘‘Interim Report to the Secretary of
Labor,’’ May 16, 2022, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf. ACA
recommendations on this topic include to
coordinate with ED and education institutions to
promote the provision of academic credit for
apprenticeship training or tuition reimbursement
and to enhance high school-level apprenticeships
with credit given for direct entry into formal
registered apprenticeship programs.
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economic success. However, during this
same time, dual enrollment, a hallmark
of successful CTE programs and youth
apprenticeship models that incorporate
CTE, continued to grow with high
school students accounting for one in
five community college students.154 The
impact of obtaining postsecondary
education is profound: for all
demographic groups by gender and race,
the labor force participation rate
increases by 4.4 percent and the
unemployment rate decreases by 0.5
percent for high school graduates with
some college compared to those who
graduated high school but have no
college.155 In addition, data from the
High School Longitudinal Study of 2009
indicate that, 3 years after completing
high school, public high school
graduates who were not enrolled in a
postsecondary credential program and
who had earned 3.00 or more CTE
credits during high school had a lower
unemployment rate than their peers
who earned fewer CTE credits.156
Additionally, at the secondary level
students who concentrate 157 in a CTE
program have a 96.2 percent 4-year
graduation rate in the aggregate and
greater than 90 percent for all students
subgroups disaggregated by gender,
race, ethnicity, and special populations
with the exception of youth in foster
care (86.7 percent) and youth who are
single parents (89.3 percent),158 which
are closer to the national average of 87
percent.159 By incorporating the benefits
154 John Fink, ‘‘What Happened to Community
College Enrollment During the First Years of the
Pandemic? It Depends on the Students’ Age,’’ Jan.
9, 2023, https://ccrc.tc.columbia.edu/easyblog/
what-happened-to-community-college-enrollmentdepends-students-age.html.
155 BLS, Labor Force Statistics from the Current
Population Survey, ‘‘Employment status of the
civilian noninstitutional population 25 years and
over by educational attainment, sex, race, and
Hispanic or Latino ethnicity,’’ https://www.bls.gov/
cps/cpsaat07.htm (last updated Jan. 25, 2023).
156 National Center for Education Statistics, ‘‘Data
Point: Labor Market Outcomes for High School
Career and Technical Education Participants:
2016,’’ Apr. 2020, https://nces.ed.gov/pubsearch/
pubsinfo.asp?pubid=2020060.
157 In Perkins, the term ‘‘CTE concentrator’’
means: (1) at the secondary school level, a student
served by an eligible recipient who has completed
at least two courses in a single career and technical
education program or program of study; and (2) at
the postsecondary level, a student enrolled in an
eligible recipient who has either earned at least 12
credits within a career and technical education
program or program of study or completed such a
program if the program encompasses fewer than 12
credits or the equivalent in total (Perkins sec. 3(12)).
This means that once a student completes two
courses in a single CTE program of study, they are
counted as a CTE concentrator.
158 ED, Perkins Collaborative Resource Network,
‘‘National Summary,’’ https://cte.ed.gov/pcrn/
profile/national/performance/2021/population/1s1/
met/secondary/race (last visited Oct. 23, 2023).
159 National Center for Education Statistics, ‘‘Fast
Facts, High School Graduation Rates,’’ https://
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of strong academic and technical
preparation and established articulation
between secondary and postsecondary
credits, which is found in high-quality
CTE programs, along with establishing
quality labor standards for the paid
work-based learning component for
students in the registered CTE
apprenticeship program, the Department
anticipates this model will be successful
in establishing a strong skills-based
foundation with quality work
experience to jumpstart CTE
apprentices’ careers, while also ensuring
that students continue to meet core
educational milestones.
The Department believes a unique
model of quality labor standards, based
on the success of registered
apprenticeship, that is designed for
individuals in secondary or
postsecondary education can help
students have successful careers and
can benefit employers in developing a
skilled workforce. This model, in
conjunction with an existing
infrastructure that supports the capacity
and expertise to administer and provide
quality CTE curricula and program
offerings, could help to close a widening
divide and ensure all learners and
workers who face labor market
disparities have greater opportunities
for economic mobility. These quality
labor standards while participating in
education activities can be especially
beneficial for youth and other
individuals starting their careers by
ensuring they are receiving and
applying industry-validated skills and
competencies in a paid work setting.
Section 29.24—Registration of Career
and Technical Education
Apprenticeship Programs
Proposed § 29.24 would create the
regulatory structure for registered CTE
apprenticeship programs to meet the
following core requirements:
coordination between a Registration
Agency and State CTE Agency; program
standards and the requirement that they
be registered with a Registration
Agency; alignment of competencies
obtained through on-the-job training
outlined in approved industry skills
frameworks that provide CTE
apprentices with industry-recognized
skills and competencies; CTE
apprenticeship-related instruction
component of the standards delivered
through a CTE program; program
sponsor eligibility and requirements for
LEA, institutions of higher education,
State CTE Agencies, or designated
intermediaries; partnership
nces.ed.gov/fastfacts/display.asp?id=805 (last
visited Oct. 23, 2023).
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requirements and coordination with
employers and intermediaries; and CTE
apprenticeship agreements. This is a
new and emerging model that is
intended to integrate labor standards
and industrywide skills and
competencies into CTE programs and
would support the development of a
talent pipeline to meet current and
future employer workforce needs. The
Department is interested in comments
regarding these proposed core
requirements, which are described
herein, including any recommendations
regarding different or additional
requirements and any information that
can substantiate those
recommendations.
29.24(a) Required coordination
Proposed § 29.24(a)(1) would
establish the requirement for a
Registration Agency, whether it is OA or
the SAA, and the State CTE Agency to
coordinate on the administration of
Registered CTE apprenticeship
programs in each State. The purpose of
this requirement is to facilitate a flexible
framework between the Registration
Agency, which would have the
responsibility for approving standards
of registered CTE apprenticeship, and
the State CTE Agency, which has the
existing responsibility to oversee
Perkins CTE programs within respective
States and approved CTE programs.
Areas of coordination include the
process of program approvals, program
reviews, data collection, and
compliance activities established within
this part. The purpose of coordinating
administrative responsibilities is to
ensure that both parties work
cooperatively to support registered CTE
apprenticeship program sponsors, such
as LEAs, institutions of higher
education, and their designated
intermediaries, in the coordination of
registered CTE apprenticeship programs
while ensuring that such programs meet
the requirements of this part. Most
importantly, coordination is necessary
to ensure the welfare of CTE
apprentices, many of whom are likely to
be high school and community college
students who will be transitioning into
a postsecondary educational program, a
registered apprenticeship program
under subpart A, or other employment
following the completion of the
registered CTE apprenticeship.
Coordination to engage industry and
business is integral to the success of all
registered apprenticeship programs,
especially a new model that would
provide career readiness and
exploration through paid on-the-job
training for students in State-approved
CTE programs. A State CTE Agency and
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Registration Agency are encouraged to
coordinate industry engagement,
provide services to business and
employers, promote CTE
apprenticeships, and provide technical
assistance on developing program
standards.
While high school youth can
currently participate in registered
apprenticeship programs under subpart
A, this new model would provide an
opportunity for secondary and
postsecondary schools to engage with
the National Apprenticeship System
and work with education
administrators, instructors, and
practitioners to utilize and leverage
their institutional expertise in
developing and structuring CTE related
instruction and paid on-the-job training.
The Department understands that the
State CTE Agency would have the
statutory responsibility for a number of
requirements under this part. If the
proposed rule is adopted as drafted, it
would be incumbent on States to
develop the proper coordination to
ensure that the welfare of CTE
apprentices and administrative
oversight by each party meet all existing
Federal and State statutory and
regulatory requirements. The
Department notes that nothing in this
proposed rule is intended to alter the
existing authorities of the State CTE
Agency for oversight of Perkins and the
Registration Agency for oversight of any
registered apprenticeship program. The
Department is interested in comments
on how Registration Agencies and State
CTE Agencies should develop the
necessary coordination, what elements
should be included in the coordination
process, and what challenges and
barriers may exist that would require
technical assistance or additional
subregulatory guidance.
Proposed § 29.24(a)(2) would
establish the requirement for the State
CTE Agency and Registration Agency to
enter into a written agreement for the
statewide coordination and operation of
registered CTE apprenticeship
programs. The written agreement should
describe the roles and responsibilities of
each agency that has programmatic and
administrative responsibilities
throughout this part. The Department
recognizes that States can develop
various agreements, such as memoranda
of understanding, interagency
agreements, and other types of written
agreements, that establish roles and
responsibilities for the purposes of
aligning State resources, administrative
infrastructure, and program
accountability. States should have
maximum flexibility in developing such
written agreements, but the requirement
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to have a written agreement is designed
to ensure that a formal understanding
about roles and responsibilities has been
agreed upon. The Department is
interested in comments about whether
there should be additional guidance on
what should be included in a written
agreement. The Department is also
interested in comments about existing
coordination mechanisms for the
establishment of written coordination
agreements between a Registration
Agency and State CTE Agency that
might be incorporated into SAA State
Apprenticeship Plan efforts described
below and in subpart C to facilitate
program oversight and fulfill
administrative requirements, such as
program review processes and data
sharing agreements.
§ 29.24(b) Approval of Industry Skills
Framework
Proposed § 29.24(b) would establish
industry skills frameworks as a distinct
requirement and component of
registered CTE apprenticeship that
would be required to be included in
registered CTE apprenticeship program
standards. An industry skills framework
describes industrywide competencies
and skills that are foundational to any
number of career pathways within an
industry or industry sector for which
the framework has been developed.
Industry skills frameworks would
provide the basis for assessing
competency and skill attainment of CTE
apprentices in the on-the-job training
component of a registered CTE
apprenticeship. They also would be the
framework whereby high-quality labor
standards can be applied and integrated
into the registered CTE apprenticeship
model. In conjunction with CTE
apprenticeship-related instruction,
industry skills frameworks would
enable the programmatic outcomes of
placement into employment, a
postsecondary educational program, or a
registered apprenticeship program
under subpart A.
Industry skills frameworks are similar
in concept to the National Occupational
Standards for Apprenticeship detailed
in proposed § 29.13 but are different in
that they focus on industrywide
competencies, whereas National
Occupational Standards focus on
occupational proficiency. Industry skills
frameworks are foundational
industrywide skills and competencies
that enable access to a career pathway
and are the essential ‘‘building blocks’’
for greater occupational proficiency.
Similar to National Occupational
Standards for Apprenticeship, the
Administrator would oversee the
development of and updates to industry
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skills frameworks. As part of the
proposed approval process, the
Administrator would ensure that such
frameworks are industry validated,
rigorously developed, and portable.
Industry skills frameworks should be
designed to incorporate foundational
skills and competencies, such as
employability skills or workplace
competencies, that are accepted
industrywide and, in combination with
technical skills, are applicable to realworld workplace tasks and activities.
Industry skills frameworks comprehend
skills and competencies that are
portable across a number of occupations
within the industry. As such, registered
CTE apprenticeship programs would
provide an opportunity for CTE
apprentices to discover occupations that
would be included within any one
industry skills framework.
Industry skills frameworks can be the
foundational component for developing
both standards of registered CTE
apprenticeship and a work process
schedule for greater occupational
proficiency if a potential program
sponsor endeavors to operate both
models of registered apprenticeship
under subparts A and B. Industry skills
frameworks are not, however, a
replacement for a work process
schedule in the determination of an
occupation suitable for registered
apprenticeship under proposed § 29.7 in
subpart A or a framework that is a
substitute for National Occupational
Standards for Apprenticeship under
proposed § 29.13 in subpart A. The
Department notes that creating a broad
industry skills and competency
foundation as a starting point in
program development for registered CTE
apprenticeship programs as opposed
one that ultimately requires to
proficiency in a specific occupation is
one of the key departures from the
registered apprenticeship model under
subpart A. However, the Department
envisions the industry skills framework
can be complementary in helping
students get skills and competencies
that can be built into registered
apprenticeship programs under subpart
A. These proposed industry skills
frameworks establish the floor for
student skill development, allowing
programs to build on top of this
foundation to create programmatic
opportunities for greater specificity as to
the skills and competencies that would
lead toward occupational proficiency,
including opportunities for alignment to
registered apprenticeship programs
under subpart A where appropriate.
Proposed § 29.24(b)(1) describes the
criteria that must be met before the
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Administrator will approve an industry
skills framework for use in a registered
CTE apprenticeship program.
Proposed § 29.24(b)(1)(i) would
establish the requirement for an
industry skills framework to include a
structure for the development of
professional behaviors, workplace
competencies, and academic
competencies required by an industry.
Examples of professional behaviors
include but are not limited to reliability,
initiative, interpersonal skills, and
adaptability; academic competencies
might include the ability to effectively
read and write, problem-solve, and
think critically; and workplace
competencies might include
collaboration and teamwork, oral and
written communication, and customer
service.
Proposed § 29.24(b)(1)(ii) would
establish the requirement that industry
skills frameworks are validated, widely
recognized, and nationally applicable in
the industry to which the framework is
intended to apply. Industry skills
frameworks recognize that many skills
and competencies are cross-cutting,
across industries and sectors, and
provide a strong foundation for greater
technical proficiency applied toward
learning an occupation or across an
occupational cluster. To the extent that
industry skills frameworks align with
CTE Career Clusters and the process by
which State and local advisory councils
address workforce needs by providing
recommendations on CTE programmatic
alignment, the Department is interested
in comments that explore this
interconnection and alignment to create
greater feedback on the development of
industry skills frameworks and their
required use in standards of registered
CTE apprenticeship.160 The Department
envisions leveraging the proposed
process for establishing National
Occupational Standards for
Apprenticeship (see § 29.13 in subpart
A of this proposal) to develop industry
skills frameworks. The Department
anticipates that the initial process for
160 The National Career Clusters® Framework
serves as an organizing tool for CTE programs,
curriculum design and instruction. There are 16
Career Clusters in the National Career Clusters
Framework, representing 79 career pathways to
help learners navigate their way to greater success
in college and career. The framework also functions
as a useful guide in developing programs of study
bridging secondary and postsecondary systems and
for creating individual student plans of study for a
complete range of career options. As such, it helps
learners discover their interests and their passions,
and empowers them to choose the educational
pathway that can lead to success in high school,
college, and career. More information, including
crosswalks with DOL’s O*Net occupational codes
can be found here: https://careertech.org/careerclusters.
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developing industry skills frameworks
would engage a broad set of industry
stakeholders.
Proposed § 29.24(b)(1)(iii) would
require that the skills and competencies
specified within the on-the-job training
outline be obtained by a CTE apprentice
through the attainment of at least 900
hours of on-the-job training over the
course of the program, as explained
below. The 900 hours may be spread
across multiple years; however, the
Department does consider a minimum
requirement of on-the-job training hours
to be an important requirement of the
registered CTE apprenticeship model to
ensure CTE apprentices are obtaining
employment in the program, at a
sufficient length, in order to obtain
industrywide or industry-sector
technical competencies.161
Proposed § 29.24(b)(1)(iv) would
establish the requirement that an
industry skills framework align with an
approved CTE program so that the
employment component of the
registered CTE apprenticeship is
providing the appropriate practical onthe-job training supported by the CTE
apprenticeship-related instruction. In
this connection to the National
Apprenticeship System, registered CTE
apprenticeship programs with approved
industry skills frameworks will align
with the National Career Clusters®
Framework Perkins Career Clusters
published by Advance CTE and
associated CTE programs. The
Department is interested in comments
that address potential alignment and
implementation to create systematic
cohesion and seamless transitions for
CTE apprentices to successfully
participate, progress through, and
complete a registered CTE
apprenticeship.
Proposed § 29.24(b)(1)(v) would
establish the requirement that industry
skills frameworks detail the industryvalidated methods for ongoing
evaluations to assess an apprentice’s
attainment of a competency to make
sure that CTE apprentices are regularly
evaluated as they progress through the
registered CTE apprenticeship. As
explained in the preamble for subpart
A’s proposed § 29.16, the Department
views regular evaluations of apprentices
in registered apprenticeship programs as
a central element of program design that
verifies whether or not programs are
meeting apprenticeship’s foundational
goal of preparing apprentices for their
future careers. The Department notes
161 See DOL, ‘‘Building Blocks Model,’’ https://
www.careeronestop.org/CompetencyModel/
competency-models/building-blocks-model.aspx
(last visited July 20, 2023).
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that student skill demonstrations and
evaluation currently exist in highquality CTE programs. Programs must
perform assessments or evaluations to
verify that apprentices have learned and
retained the job skills, knowledge of
theoretical concepts that underpin
successful performance of such skills,
and professional behaviors that will
make them successful in their careers.
At proposed § 29.24(b)(1)(v), the
Department proposes to include regular
evaluations as a required element of
registered CTE apprenticeship, and as
with the proposed assessment
framework for registered apprenticeship
in subpart A, would leave all aspects of
the design of such assessments up to
registered CTE apprenticeship program
sponsors. The Department expects that
industry stakeholders, educational and
workforce development experts, and
other leaders will be instrumental in
developing frameworks for the
evaluation of CTE apprentices in
registered CTE apprenticeship
programs, and that individual programs
would tailor such frameworks to the
specific elements and needs of their
program, course of study, and CTE
apprentice population.
For registered CTE apprenticeship,
such evaluations will be important, but
should take a different form than the
more robust evaluation and end-point
assessment framework proposed in this
rulemaking for registered
apprenticeship programs (at proposed
§ 29.16). In the Department’s view,
registered CTE apprenticeship programs
would not need to confer occupational
proficiency for all participants.
Registered CTE apprenticeship
programs may serve more secondary
and postsecondary student apprentices
than registered apprenticeship programs
under subpart A and would benefit such
apprentices by introducing them to
career options and ideas, developing
professional behaviors, and conferring
occupational competencies that will aid
them in their efforts to find and retain
meaningful careers and pursue higher
levels of education. The Department
does not view the attainment of
occupational proficiency as an
appropriate baseline requirement for
registered CTE apprenticeship
programs, because the unique design of
this model focuses more on
foundational industry skills than on
occupational proficiency, which the
Department has determined requires
more on-the-job training hours to
achieve, as described in subpart A.
However, the Department notes that
some registered CTE apprenticeship
programs and registered apprenticeship
programs under subpart A should align
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to support student learning progression
through both programs, and in doing so
will blend industry skills frameworks
with established occupational work
process schedules or National
Occupational Standards for
Apprenticeship under subpart A to
support student mastery of both models.
The Department invites public
comments on the proposed requirement
to regularly assess CTE apprentices’
progress at proposed § 29.24(b)(1)(v),
including the differences between the
minimum requirements for evaluating
apprentices across registered
apprenticeship and registered CTE
apprenticeship. The Department notes
that there are already existing
assessments being utilized by many
high quality CTE programs; however,
the Department is seeking comments as
to whether an industry-recognized endpoint assessment for registered CTE
apprenticeship would strengthen the
relevance of the skills and competencies
attained and maximize the likelihood
that students seeking to directly enter
high-quality careers will be able to do
so. The Department is generally
interested in comments regarding ideas
and approaches to strengthen the
connection between registered CTE
apprenticeship programs and the labor
market, and specifically whether the
inclusion of an end-point assessment
requirement would strengthen this
connection.
Proposed § 29.24(b)(2) would
establish the requirement for the
Administrator to solicit public feedback,
including from industry in evaluating
suitability of industry skills frameworks.
The purpose of this proposed provision
is to ensure the Administrator would be
able to engage the public and industry
leaders, such as industry associations,
large, medium, and small employers,
labor unions and, to the extent feasible,
State and local CTE advisory council
industry membership, to ensure that
industry skills frameworks are
continuously updated to reflect the
changing needs of industry for which a
skills framework has been developed.
Such a process, along with the
requirement of 30 days of public
comment would ensure the opportunity
for robust feedback on the applicability
of standards to industry and ensure
standards are of the highest quality and
relevance. Additionally, to ensure
transparency OA would maintain a
publicly accessible link to the approved
industry skills frameworks as well as
any that were not approved. Lastly, this
provision provides that the
Administrator may also use relevant
industry data or information to validate
the relevance of industry skills
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frameworks. Such resources may
include the O*NET database, industry
and occupational data from BLS and
other federal agencies, as well as other
data and information available to ensure
industry skills frameworks are aligned
with the needs of their respective
industries.
The Department recognizes that for a
potential program sponsor looking to
develop a registered CTE apprenticeship
program, an industry skills framework
must first be developed and approved
by the Administrator. The Department
also recognizes that as a new model of
registered apprenticeship,
implementation will require a
reasonable timeframe to develop
processes through subregulatory
guidance, a written agreement for the
coordination between a Registration
Agency and State CTE Agency,
registered CTE apprenticeship
programs, and approved industry skills
frameworks. The Department anticipates
a robust process for the development of
industry skills frameworks will be
required to ensure that industry, across
both the National Apprenticeship
System stakeholder and Perkins
communities, are engaged and invited to
participate in such frameworks. State
CTE Agencies will be important leaders
in these conversations and State CTE
standards may provide a foundation for
some industry skills frameworks. This
process will also help the Department
determine in which industries such
industry skills frameworks must first be
developed, the number of industry skills
frameworks, and their alignment and
application with other frameworks.
Until the frameworks are developed and
approved, a registered CTE
apprenticeship program sponsor will
not be able to properly develop and
align their on-the-job training outlines
with the approved industry skills
framework required in this section.
§ 29.24(c) Standards of Registered CTE
Apprenticeship
Proposed § 29.24(c) would describe
the minimum standards of registered
CTE apprenticeship that all registered
CTE apprenticeship programs must
include to be registered by a
Registration Agency. The establishment
and implementation of robust standards
of registered CTE apprenticeship is
essential to ensuring that registered CTE
apprenticeship programs deliver
consistently high-quality education and
training to registered CTE apprentices,
while also ensuring that CTE
apprentices are trained in a safe and
accessible workplace environment
where they are protected from
exploitation and abuse. Standards of
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registered CTE apprenticeship largely
would follow the labor standards of
apprenticeship under subpart A that
elaborate and strengthen the current
standards of apprenticeship for the
conduct of registered apprenticeship
programs that address key program
components, such as progressively
increasing wages, apprentice-tojourneyworker ratios, safety
requirements, advanced standing and
credit, cost transparency, and effective
measures to ensure that apprentices are
free from violence, intimidation, and
retaliation in the workplace. These are
the core requirements that help ensure
that apprentices receive high-quality
training in a safe, healthy environment.
Registered CTE apprenticeship
program standards would differ from
the standards set forth in subpart A by
incorporating key concepts such as
industry skills frameworks that inform
the outline for the on-the-job training
component, CTE apprenticeship-related
instruction that utilize State-approved
CTE programs for the curriculum of
non-duplicative coursework, the
requirement that standards include the
awarding of at least 12 postsecondary
credit hours leading to a recognized
postsecondary credential attainment,
and which may include advanced
standing in registered apprenticeship
programs under subpart A, and how
such standards will enable CTE
apprentices to enroll in postsecondary
educational programs, engage in
employment, or both. The Department’s
intention in creating the Registered CTE
apprenticeship model with quality labor
standards in conjunction with CTE
apprenticeship-related instruction is to
enable the foundation for sustained
academic success within the program
and beyond program completion,
provide the opportunity for continuous
skill and competency attainment that
will enable greater proficiency in a job
as students enter the labor market, and
ensure the program is able to fulfill the
Department’s mission to safeguard the
welfare of apprentices, which includes
CTE apprentices. Similar to proposed
§ 29.8, proposed § 29.24(c) would
ensure program sponsors, participating
employers, registered CTE apprentices,
and other interested parties understand
the minimum standards of registered
CTE apprenticeship and seek to provide
apprentices the necessary skills and
competencies for lifelong labor market
success. Given the unique partnerships
required at the State level and the
incorporation of State-approved CTE
programs embedded into the CTE
apprenticeship-related instruction, the
Department is not proposing a National
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Program Standards for Apprenticeship
registration framework for registered
CTE apprenticeship.162 The Department
considers local registration as defined in
proposed § 29.2 as the appropriate
method for registering CTE
apprenticeship programs.
Proposed § 29.24(c)(1) would
establish the requirement for program
sponsors to include an on-the-job
training outline that aligns with an
approved industry skills framework in
standards for registered CTE
apprenticeship. The Department
envisions industry skills frameworks to
be the guiding framework for program
sponsors to use in determining the
appropriate work activities that lead to
proficiency of skills and competencies
that a CTE apprentice would attain in a
paid, on-the-job training work
experience. Industry skills frameworks
would be inclusive of all the requisite
skills and competencies that an industry
would both recognize and find valuable
for employment in a number of
occupations that are predominantly
found within a single industry or across
an industry sector. Such on-the-job
training outlines aligned to industry
skills frameworks would provide
measurable proficiency in the
attainment of industry-recognized skills
and competencies. Registration
Agencies would have the discretion to
determine whether a proposed on-thejob training outline submitted by a
sponsor aligns with an approved
industry skills framework approved by
the Administrator. The Department
acknowledges the need for a balance
and customization of on-the-job training
outlines with the goal of ensuring
programs are providing competencies
on the job in a way that is industry
validated to ensure CTE apprentices
have recognized work experience and
are set up for career success in
occupations throughout the respective
industry.
Proposed § 29.24(c)(2) would
establish the requirement for program
sponsors of a registered CTE
apprenticeship to include a description
of the CTE apprenticeship-related
162 As previously stated, these proposed
regulations would govern the proposed DOL CTE
apprenticeship program; they would not govern ED
or the Perkins program. In particular, the Perkins
statute safeguards local control over instructional
content, academic standards and assessments,
curricula, and programs of instruction. 20 U.S.C.
2306a(a). These regulations would only impact and
control DOL CTE apprenticeship programs and
would not create any rules governing the operation
of Perkins programs. Nothing in this proposed
regulation would mandate, direct, or control a
State’s, local educational agency’s, eligible Perkins
recipient’s, or school’s specific instructional
content, academic standards and assessments,
curricula, or program of instruction.
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instruction that must, at a minimum,
include a State-approved CTE program
and have a duration of at least 540
hours. The Department proposes a
minimum of 540 hours of CTE
apprenticeship-related instruction to
earn a certificate of completion of
registered CTE apprenticeship which
would allow the CTE apprentice to
concentrate in a postsecondary CTE
program, as applicable, complete a
recognized postsecondary credential
and earn and receive at least 12
postsecondary credit hours towards a
recognized postsecondary credential or
degree, while also providing flexibility
for eligible program sponsors to
determine the appropriate number of
hours above this requirement based on
State and local CTE programs and the
development of career pathway
programs that connect registered CTE
apprenticeship programs with
additional postsecondary education
opportunities.
The Department proposes a minimum
of 540 hours of CTE apprenticeshiprelated instruction to earn a certificate
of completion of registered CTE
apprenticeship because 540 hours
would provide a CTE apprentice the
opportunity to complete foundational
coursework and more advanced
coursework necessary to demonstrate
success in postsecondary education,
pursue registered apprenticeship under
subpart A, and to seek further
employment.
Related to the 540 hour minimum
requirement for CTE apprenticeshiprelated instruction, the Department is
proposing that CTE apprentices must
receive a minimum of 12 postsecondary
credit hours as part of their program.
The Department intends for the use of
the term ‘‘credit hour’’ to align with the
definition under the Higher Education
Act of 1965 and its implementing
regulations, as amended.163 The
Department notes that each
postsecondary credit hour translates to
approximately 30 clock hours.164
Generally, 12 postsecondary credit
hours should comprise approximately
360 clock hours of the required 540
hour minimum for CTE apprenticeshiprelated instruction. However, the
Department notes that postsecondary
credit hours may also be acquired as
part of the on-the-job training
component of the program, that when
combined with credit hours earned
during the CTE apprenticeship-related
163 https://www.ecfr.gov/current/title-34/part600#p-600.2(Credit%20hour).
164 https://fsapartners.ed.gov/knowledge-center/
library/electronic-announcements/2021-05-25/
implementation-updated-clock-credit-conversionregulations-ea-id-general-21-34.
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instruction should equal not less than
12 postsecondary credit hours.
The Department notes that the
remaining CTE apprenticeship-related
instruction hours may be acquired
through additional postsecondary credit
hours, secondary education, or through
other industry or employer designed
related instruction, as applicable. This
proposal is designed to provide
sponsors flexibility of how to attain the
540 hours, in addition to the 12
postsecondary credit hour requirement.
The postsecondary credit hour
requirement is proposed so that the CTE
apprenticeship-related instruction
includes industrywide skills and
competencies and the acquisition of
college credit to ensure that CTE
apprentices make significant progress
toward a postsecondary credential or
degree such as an associate’s degree
and/or bachelor’s degree. Evidence
shows clear economic gains for
individuals as they attain higher levels
of education after high school, such as
the acquisition of postsecondary credit
and credentials. According to the
Department’s Bureau of Labor Statistics
(BLS), earnings increase and
unemployment decreases among
individuals who have attained
postsecondary education and
credentials when compared to
individuals who have only completed
high school.165 In addition, the
Department believes the requirement for
12 postsecondary credit hours that can
be applied towards a recognized
postsecondary credential or degree will
incentivize the greater utilization of
college programs while students are in
high school, which evidence suggests
leads to improved student outcomes.
These benefits include higher student
performance on state assessments,
higher high school graduation rates,
increased enrollment and completion of
postsecondary programs, and increased
lifetime earnings for students.166
Finally, the model of adopting college,
including postsecondary credit hours, in
high schools has been shown to increase
access and opportunity to college and
postsecondary education for lowincome students, underserved
populations, and first-generation college
students.167 The Department believes
the evidence associated with
postsecondary educational attainment is
a critical component and benefit to
165 https://www.bls.gov/emp/chartunemployment-earnings-education.htm.
166 https://www.air.org/project/evaluatingimpact-early-college-high-schools.
167 Six Years and Counting: The ECHSI Matures
(air.org).
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students in the design of registered CTE
apprenticeship programs.
The Department is proposing a 12
postsecondary credit hour standard
because the Department believes that
this level of credit has multiple benefits
for CTE apprentices, while balancing
the ability to design programs under this
proposed approach. This includes
helping CTE apprentices who are in
secondary school to complete high
school and transition into higher levels
of education and employment, as
evidenced by the benefits of dual
enrollment, as well as serving adults
who may be career changers, and
subsequently providing these
apprentices with a head start to pursue
additional postsecondary education.
Evidence suggests that the benefits of
dual enrollment increase for secondary
students with every postsecondary
credit earned, particularly that benefits
and educational attainment increase for
those students with 12 or more credits
than those with less than 12
credits.168 169 Therefore, the Department
is proposing this approach to ensure the
benefits of this evidence is incorporated
into the program design of registered
CTE apprenticeship. CTE apprentices
under this approach will be in a strong
position to build their careers with
continued employment, including
through registered apprenticeship
programs under subpart A, continue
their postsecondary education towards a
postsecondary credential and degree, or
both.
The Department is seeking comments
on its proposal to require that all
registered CTE apprentices earn 12
postsecondary credit hours as part of
their participation in a registered CTE
program, and is interested in comments
that identify: (1) how this proposal
supports the broader goal of the program
to increase the labor market
connectivity for CTE apprentices; (2) the
benefits for CTE apprentices of this
approach or an alternative standard of
postsecondary credit hours should be
considered; and (3) the feasibility for
secondary school sponsors of registered
CTE apprenticeship programs to design
168 Taylor, J.L., Allen, T.O., An, B.P., Denecker,
C., Edmunds, J.A., Fink, J., Giani, M.S., Hodara, M.,
Hu, X., Tobolowsky, B.F., & Chen, W. (2022),
Research priorities for advancing equitable dual
enrollment policy and practice. Salt Lake City, UT:
University of Utah. Retrieved from: https://
cherp.utah.edu/_resources/documents/
publications/research_priorities_for_advancing_
equitable_dual_enrollment_policy_and_
practice.pdf.
169 Radunzel, J., Noble, J., & Wheeler, S. (2014).
Dual-credit/dual-enrollment coursework and longterm college success in Texas. ACT. https://
www.act.org/content/dam/act/unsecured/
documents/DualCreditTexasReport.pdf.
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programs that include these
requirements. Additionally, the
Department is interested in comments
regarding the impact of the 12
postsecondary credit hour requirement
across all industries that would utilize
registered CTE apprenticeship and
registered apprenticeship programs
under subpart A or if other factors
should be considered on an industry
basis.
The Department is particularly
interested in comments about how it
can a support the growth of secondary
educational models that imbed
postsecondary credit hours into the
program design. The Department is also
interested in comments regarding the
attainment of a minimum of 12
postsecondary credit hours, including
that it leads to a postsecondary
credential or degree, evidenced by a
postsecondary institution’s official
transcript(s) for a CTE apprentice, and
any other factors that can increase
access to the labor market and higher
education opportunities for CTE
apprentices. Finally, we recognize that
many registered CTE sponsors will not
be credit awarding institutions,
particularly local education agencies.
The Department is seeking comment on
whether it will be feasible for sponsors
to enter into partnerships with
institutions of higher education or to
make other arrangements for the
awarding of the requisite credit hours,
and whether the Department should
include an affirmative partnership
requirement between postsecondary
institutions and local education
agencies if they seek to sponsor a
registered CTE apprenticeship program.
In considering whether to establish a
floor for the number of hours required
in CTE apprenticeship-related
instruction, the Department evaluated a
number of factors, such as application of
standard credit-bearing unit, State
flexibility for establishing credit hours,
and Perkins performance accountability.
Initially, the Department regarded the
Carnegie unit as a universal unit of
measurement in credit-bearing hours for
a student’s ability to successfully
complete the necessary credits for
attaining a recognized secondary or
postsecondary degree.170 While the
Carnegie unit is a standardized unit of
measurement, under Perkins, States
have flexibility in how they define
courses and assign credits to courses.
States that use Carnegie or other units
170 Carnegie Foundation for the Advancement of
Teaching, ‘‘What is the Carnegie Unit?,’’ https://
www.carnegiefoundation.org/faqs/carnegie-unit
(last visited July 20, 2023).
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may translate those units into hours of
instruction.
Perkins-eligible recipients typically
calculates contact hours for State
accountability purposes. As an example
calculation, a P–12 school year is
typically 180 days, and if a student
attends school every day and has 6 CTE
contact hours during a school day, that
student would accumulate 540 hours of
contact hours. In this example, 540
hours supports the establishment of the
required number of hours in CTE
apprenticeship-related instruction,
provided that these hours include the
required postsecondary coursework.
Postsecondary Perkins recipients may
also choose to calculate instruction time
using clock hour and credit hour
requirements. In this example, 540 clock
hours would equate to 18 credit hours
using the guidance provided by Federal
Student Aid.171
In establishing a floor of 540 hours,
the Department is allowing flexibility to
accommodate variability in how eligible
program sponsors define hours and how
they are applied to meet the
requirement for the CTE apprenticeshiprelated instruction component. The
inclusion of at least 12 postsecondary
credit hours within the 540 hours of
CTE apprenticeship-related instruction
is designed to ensure that there are
strong linkages between secondary and
postsecondary programs, and
opportunities for students to achieve the
desired outcomes of the program. The
Department anticipates that there will
be a range of applicable credit hours
that are counted toward a CTE
apprentice’s participation in a program
as a requirement of a CTE
apprenticeship-related instruction
component included in the standards. A
program sponsor would need to
determine the required length of time a
student may be enrolled in a
corresponding program and as part of
the overall CTE apprenticeship-related
instruction. The Department recognizes
that the requirement for 540 hours for
CTE apprenticeship-related instruction
may solely occur while students are in
high school, may solely occur while
students are enrolled in postsecondary
education, and may also span students’
high school experience and into
postsecondary education. To the extent
that States have CTE programs that
include dual or concurrent enrollment
agreements or articulation agreements
that facilitate the extension of programs
171 See Federal Student Aid, ‘‘Implementation of
updated clock-to-credit conversion regulations,’’
May 25, 2021 https://fsapartners.ed.gov/knowledgecenter/library/electronic-announcements/2021-0525/implementation-updated-clock-creditconversion-regulations-ea-id-general-21-34.
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that have similar characteristics to
registered CTE apprenticeship
programs, the Department is interested
in commenters’ examples of such
programs and the necessary
coordination amongst CTE stakeholders
to achieve the 540 hours of CTE
apprenticeship-related instruction and
the inclusion of at least 12
postsecondary credit hours that will be
necessary to enable and expand these
types of educational pathways. The
Department is also interested in
comments about the established floor
for CTE apprenticeship-related
instruction and whether it should be
lower or higher to best accommodate the
proposed model while providing
educational attainment pathways for
enrolled students.
This proposal also includes a
provision found in subpart A regarding
whether apprentices, or CTE
apprentices in this instance, would be
provided wages and fringe benefits
during their participation in CTE
apprenticeship-related instruction. The
Department acknowledges that under
the registered CTE apprenticeship
model, where the CTE program is the
primary form of CTE apprenticeshiprelated instruction, sponsors and
employers may be less likely to provide
support wages for the hours in which
the CTE apprentices are participating in
their CTE program. However, the
Department encourages, where possible,
registered CTE apprenticeship models
in which employers elect to provide
wages or fringe benefits during CTE
apprenticeship-related instruction. This
may also be relevant where employerspecific training is added to the CTE
program as part of the total amount of
CTE apprenticeship-related instruction.
Proposed § 29.24(c)(3) would
establish the requirement that program
sponsors of a registered CTE
apprenticeship include a description of
any recognized postsecondary
credentials that would be awarded to a
CTE apprentice as a programmatic
outcome either during or at the
completion of registered CTE
apprenticeship. Program sponsors also
would be required to include, as
applicable, any associate or
baccalaureate degree associated with the
program and the amount of
postsecondary credit hours that students
will earn as a result of the registered
CTE apprenticeship. Program sponsors
must also include the name of any
credential or certificate awarding entity,
typically an accredited education
institution, as part of the description.
The Department has proposed a similar
requirement in subpart A, requiring the
disclosure of credentials provided by
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the program; however, the requirement
to disclose the number of postsecondary
credit hours is a proposed requirement
for registered CTE apprenticeship. The
Department has determined this
information is valuable for Registration
Agencies to have as part of its desire to
build high-quality registered
apprenticeship programs in both
models.
Proposed § 29.24(c)(4) would
establish the requirement that program
sponsors of a registered CTE
apprenticeship include a description of
how the program will result in CTE
apprentices’ selection into an
apprenticeship program registered
under subpart A, enrollment in a
postsecondary educational program,
employment, or some combination
thereof. The Department considers a
program that accomplishes any one of
these three outcomes as key to
measuring the success of the registered
CTE apprenticeship model, and believes
it is important for sponsors to have
considered these outcomes and for
apprentices to have visibility into the
potential outcome of their participation.
Registered CTE apprenticeship
programs should establish a
documented relationship with a
registered apprenticeship program
established under proposed subpart A,
especially in sectors where such
programs are well-established, and with
an institution of higher education, to
maximize educational and employment
opportunities for CTE apprentices.
As previously discussed, an industry
skills framework is utilized in
developing the on-the-job outline that is
a core component of a registered CTE
apprenticeship. Such outlines must
have a minimum duration of 900 hours
of paid on-the-job training and lead to
proficiency in the skills and
competencies described in the industry
skills framework. Proposed § 29.24(c)(5)
would establish the requirement that
program sponsors of a registered CTE
apprenticeship include a description of
the employment in which CTE
apprentices will be employed in on-thejob training with criteria included in the
on-the-job training outline. The
Department is proposing this
requirement because registered
apprenticeship programs under subpart
A are responsible for training in a
specific occupation and, therefore, the
specific type of employment is known
in that model, under the registered CTE
apprenticeship model, the Department
is approving broader industry skills
frameworks that could lead to
attainment of foundational skills in
multiple occupations within an
industry. The Department considers the
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requirement critical to ensuring the
employment associated with the
registered CTE apprenticeship is
relevant to the industry skills
framework. By including this
description, a Registration Agency can
better ascertain that the skills identified
in the framework are being achieved by
the CTE apprentice through employed
on-the-job training.
The Department is basing the 900
hours requirement on certain State
youth apprenticeship models that
require a minimum of 450 hours of onthe-job training per year.172 The
Department has also reviewed several
State requirements of State youth
apprenticeship models and how States
and localities have incorporated CTE
into such models, as well as the
incorporation of CTE into preapprenticeship and registered
apprenticeship.173 174 Such practices are
the basis for establishing the
requirement of 900 hours of on-the-job
training. For example, the State of
Wisconsin has established that a youth
apprenticeship consists, at minimum, of
1 year of employment of at least 450
hours and related instruction of at least
two semester-long courses.175 In
addition to completing 1 year of a youth
apprenticeship, high school juniors or
seniors may choose to also complete 2
years of employment of at least 900
hours and related instruction of at least
four semester-long courses, which can
be completed during the junior or senior
year of high school (including over the
summer or during breaks between
semesters). Similarly, the State of
Maryland offers youth apprenticeship
opportunities for students typically in
their junior and senior year of high
school and requires students in such
programs work a minimum of 450 hours
with an employer approved by the
172 Wisconsin Department of Public Instruction,
‘‘Career-Based Learning Experience: State-Certified
Youth Apprenticeship,’’ Aug. 2022, https://
dpi.wi.gov/sites/default/files/imce/acp/pdf/2022_
08_State-Certified_Youth_Apprenticeship_
handout.pdf.
173 An explanation of youth apprenticeship
utilizing registered apprenticeship can be found at
https://www.jff.org/what-we-do/impact-stories/
center-for-apprenticeship-and-work-based-learning/
youth-apprenticeship. See also Joseph B. Fuller et
al., The Project on Workforce, Harvard University,
‘‘The Options Multiplier: Decoding the CareerWise
Youth Apprenticeship Journey,’’ Nov.14, 2022,
https://www.hbs.edu/faculty/Pages/
item.aspx?num=63353.
174 ED, ‘‘Opportunities for Connecting Secondary
Career and Technical Education (CTE) Students and
Apprenticeship Programs,’’ June 2017, https://
careertech.org/resource/connecting-secondary-cteand-apprenticeships.
175 Wisconsin Department of Workforce
Development, ‘‘Youth Apprenticeship,’’ https://
dwd.wisconsin.gov/apprenticeship/ya (last visited
July 20, 2023).
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Maryland Division of Workforce
Development and Adult Learning while
receiving concurrent related educational
instruction that has been approved by
their local school system.176 The
Department is basing its approach off of
these models’ 1-year youth
apprenticeship standard, which
balances a student’s education and
work-life, and applying it to a model
that requires the equivalent of a 2 year
duration. This would help to ensure the
programmatic goal of bridging
secondary and postsecondary education
with quality labor standards. Rather
than impose a yearly requirement, the
hourly requirement provides flexibility
for multiple models of when the
employment may take place, including
during the school year or semester and
over the summer or during breaks
between semesters. The Department
welcomes comments both on
establishing a floor of paid on-the-job
training hours for registered CTE
apprenticeship, as well as any
recommendations on the number of
hours needed for that floor. The
Department is interested in comments
about whether this proposed floor limits
program development. To the extent
that potential program sponsors are
interested in pursuing this new model,
the Department is interested in
comments addressing whether existing
program design and outcomes provide
evidence that the number of 900 hours
should be lessened. The Department is
also interested in comments addressing
whether the 900-hour floor is sufficient
to train apprentices on core industry
competencies in a work setting or if a
higher number should be considered.
Proposed § 29.24(c)(6) largely follows
proposed § 29.8(a)(17) and would
require the written standards to include
wages that the CTE apprentice will
receive during the registered CTE
apprenticeship program. The current
regulation at 29 CFR 29.5(b)(5)
stipulates the payment of a
progressively increasing schedule of
wages to be paid to the apprentice with
the skill required. It further provides
that the entry wage may not be less than
the Fair Labor Standards Act minimum
wage, where applicable, unless a higher
wage is required by other applicable
Federal, State, or local law, or respective
regulations, or by collective bargaining
agreement.
The Department also proposes to
retain the requirement of a minimum
wage floor at the outset of the
176 Maryland Department of Labor, ‘‘Policy
Issuance 2022–12: Youth Apprenticeship,’’ Dec. 19,
2022, https://www.labor.maryland.gov/
employment/mpi/mpi12-22.pdf.
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apprenticeship and a graduated
schedule of progressively increasing
wages for apprentices during the
remainder of the apprenticeship term.
However, similar to proposed
§ 29.8(a)(17), proposed § 29.24(c)(6)
would stipulate that the graduated
schedule of wages paid to a CTE
apprentice would increase over the
balance of the apprenticeship term to
reflect the apprentice’s progressive
acquisition of industry skills and
competencies.
The Department invites comments on
these provisions to bolster the registered
CTE apprenticeship progressive wage
requirements. The Department is
interested in comments regarding the
feasibility of this approach across
industries, and whether this
requirement effectively balances the
goal of providing continuous
progressive wages with competency
attainment against industry needs for
flexibility regarding wage increases.
In addition to these proposed wage
progression revisions, the Department
reminds sponsors that, consistent with
the requirements of 29 CFR part 30, the
wages paid by a sponsor or a
participating employer to a CTE
apprentice must not discriminate
against such persons on the basis of
race, color, religion, national origin, sex,
sexual orientation, gender identity, age
(40 or older), genetic information, or
disability. In addition, the Department
reminds both registered CTE
apprenticeship program sponsors and
participating employers that CTE
apprentices who meet the definition of
an employee under either the Internal
Revenue Code or the Fair Labor
Standards Act—which they will in
virtually every instance—must not be
misclassified by such sponsors or
employers as independent contractors.
Proposed § 29.24(c)(7) would follow
proposed § 29.8(a)(19) in subpart A,
regarding the ratio of apprentices to
journeyworkers, and would apply ratio
requirements for registered CTE
apprenticeship in this part. The
intended purpose of this ratio
requirement is to further the
Department’s goal of ensuring the safety
and welfare of CTE apprentices while
engaged in on-the-job training. Proposed
§ 29.24(c)(7)(i) would specify that the
sponsor’s ratio must be approved by a
Registration Agency, consistent with the
proper safety, health, supervision, and
training of the CTE apprentice. This
requirement would center apprentice
safety and welfare as the main
considerations in the establishment of
the specific numeric ratio for a
registered CTE apprenticeship program.
To ensure that the ratio is consistent
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with the proper safety, health,
supervision, and training of the
registered CTE apprentice, program
sponsors and the reviewing Registration
Agency should consider factors that
could endanger the welfare of an
apprentice who is participating in their
program such as risk of exposure to
hazardous working conditions and risk
of serious bodily injury or death while
on the job.
In practice, a ratio of one apprentice
to one journeyworker has been the norm
for programs under subpart A; however,
registered CTE apprenticeship may
require greater scrutiny for ratios
because there is a greater likelihood that
high-school-aged CTE apprentices may
participate in settings where they will
need more supervision to ensure proper
training and safety.
While apprentice safety is the focus of
the proposed requirement, there would
also be flexibility provided to sponsors
in setting the specific numeric ratio.
Proposed § 29.8(c)(7)(ii) would specify
that sponsors must use a ratio that is
consistent with the provisions of any
applicable collective bargaining
agreements, as well as any applicable
Federal and State laws governing ratios
of apprentices to journeyworkers, and
specific and clearly described as to its
application to a particular workforce,
workplace, job site, department, or
plant. The Department recognizes that a
one-size-fits-all approach is not feasible
with respect to ratios. Instead, the
Department is cognizant that ratios may
be different depending upon the specific
industry or on-the-job training
opportunity in which the registered CTE
apprenticeship program is taking place.
The Department also recognizes that a
specific numeric ratio of an
apprenticeship program may be set in
an applicable collective bargaining
agreement or by applicable Federal and
State laws. As described in subpart A at
proposed § 29.8, the current practice has
been to approve a 1:1 ratio, with some
deviations based on safety and other
considerations of specific industries.
The Department anticipates a similar
ratio for registered CTE apprenticeship.
Ultimately, each program must have a
ratio specific to that program that is
designed to protect the safety of its CTE
apprentices consistent with the
considerations described and discussed
above. The Department is seeking
comments on these longstanding
criteria, particularly to ensure how the
ratios are applied in both emerging and
traditional industries that provide CTE
apprentices with foundational skills and
competencies and work experiences.
The Department is also interested in
comments about setting ratios where
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there is a blended on-the-job training
component with a registered
apprenticeship under subpart A.
Finally, the Department seeks comments
on whether it should require a different
CTE apprentice-to-journeyworker ratio
because of the nature of this model
being designed for students and their
related employment.
Proposed § 29.24(c)(8) would
establish the requirement for a
probationary period that program
sponsors of a registered CTE
apprenticeship must include in program
standards. The probationary period for
registered CTE apprenticeship programs
may not exceed 30 days. Proposed
§ 29.24(c)(8) differs from proposed
§ 29.8(a)(12) by creating a shorter
probationary timeframe for registered
CTE apprenticeship. The 30-day
probation period aligns with customary
practices Perkins-eligible recipients and
institutions utilize to allow students to
change courses at the outset of a
semester. For example, a CTE
apprentice may choose to change their
course schedule or enroll in another
program or other coursework unrelated
to the registered CTE apprenticeship for
which they were admitted. The
probationary period is also shortened to
recognize that registered CTE
apprenticeship programs’ on-the-job
training hours are shorter in length than
those of registered apprenticeship
programs under subpart A. The
Department is interested in comments
about whether the probationary period
length is appropriate for CTE students’
participation in and program sponsors’
operation of CTE programs and
registered CTE apprenticeship
programs.
Proposed § 29.24(c)(9) follows
proposed § 29.8(a)(15) and would
require that the standards of registered
CTE apprenticeship include an
attestation that the program sponsor will
provide adequate, safe, and accessible
facilities for the training and
supervision of apprentices. The
attestation must include that the
program sponsor will provide accessible
facilities (including for individuals with
disabilities), aligning with the
Department’s broader goal that
registered CTE apprenticeship programs
registered under this part are career
pathways available to everyone. The
Department adds that the attestation
would also require that the facilities be
compliant with all applicable Federal,
State, and local laws, including, but not
limited to, disability, occupational
safety, and occupational health laws.
Proposed § 29.24(c)(10) follows
proposed § 29.8(a)(16) and would
require that the standards of registered
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CTE apprenticeship include an
attestation that the program sponsor will
provide adequate, industry-recognized
safety training for apprentices in both
the on-the-job training and CTE
apprenticeship-related instruction
components of the registered CTE
apprenticeship program. Proposed
§ 29.24(c)(10) would require that safety
training provided to CTE apprentices be
tailored to mitigate the potential
workplace hazards that may be
encountered in the covered industry
skills framework on-the-job training
outline. This proposed requirement
would help ensure the safety of
apprentices participating in registered
CTE apprenticeship programs.
Proposed § 29.24(c)(11) would
establish the requirement that program
sponsors of a registered CTE
apprenticeship include in their
standards the minimum qualifications,
if any, required by a sponsor and its
participating employers for persons
entering the CTE apprenticeship
program. The purpose of this provision
is to ensure that program eligibility and
subsequent opportunities for CTE
apprentices to participate in the paid
on-the-job component of their registered
CTE apprenticeship program have
inclusive, achievable, and standardized
minimum qualifications to ensure fair
and equitable opportunities for all
students looking to access and enter a
registered CTE apprenticeship. This
provision would also acknowledge that
program sponsors and employers have
minimum qualifications for entry, such
as a student’s responsibility to have
completed requisite coursework, and
have an appropriate attendance history.
The Department requests comment on
whether program sponsors and
employers should be permitted to
establish a certain minimum grade point
average for CTE apprentices to obtain
entry into, or maintain enrollment in, a
registered CTE apprenticeship program.
Proposed § 29.24(c)(12) would follow
existing requirements under the current
regulations at 29 CFR part 29 and
proposed § 29.8(a)(2) under subpart A
and would apply to this part. Proposed
§ 29.24(c)(12) would require program
sponsors of registered CTE
apprenticeship programs to include a
provision in their program standards
that describes the program’s method for
the selection of apprentices. The current
regulations specify that program
standards for all registered
apprenticeship programs must fully
comply with the EEO in Apprenticeship
regulations at 29 CFR part 30, and
current 29 CFR 29.5(b)(21)—which
forms the basis for the language
proposed at § 29.8(a)(2) in subpart A
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and in this part in this NPRM—specifies
that selection procedures must conform
to the regulations governing the
selection of apprentices at current 29
CFR 30.10. The current regulatory text
covers selection procedures within a
provision that includes other
requirements for program sponsors that
have EEO elements and corresponding
part 30 requirements. The Department
has determined that the regulated
community would benefit from the
clarity that would arise from separating
these elements out into distinct
provisions. Accordingly, the
Department proposes to include a
provision covering selection procedures
for registered CTE apprenticeship
programs, similar to proposed 29 CFR
29.8(a)(2). Such selection procedures
must conform to the corresponding
requirements at 29 CFR 30.10.
The EEO in Apprenticeship
regulations at 29 CFR 30.10 reiterate the
part 29 requirement that sponsors must
submit selection procedures in the
written plan for their program
standards, which are submitted to and
approved by the Registration Agency.
The regulations at 29 CFR 30.10
stipulate that sponsors may use any
method or combination of methods for
the selection of apprentices, as long as
the selection method(s) comply with the
Uniform Guidelines on Employee
Selection Procedures found at 41 CFR
part 60–3, which require an evaluation
of the selection procedures’ impact on
race, sex, and ethnic groups, as well as
a demonstration of the business
necessity for procedures that result in
an adverse impact across any of these
demographic groups. The regulations at
29 CFR 30.10 also stipulate that
selection procedures be applied
uniformly and consistently across all
applicants and apprentices, and that the
selection procedures must comply with
title I of the ADA and the implementing
regulations at 29 CFR part 1630. Finally,
the regulations at 29 CFR 30.10 clarify
that selection procedures must be
facially neutral with respect to race,
color, religion, national origin, sex,
sexual orientation, age (40 or older),
genetic information, and disability. Per
the ruling from Washington v. Davis,
426 U.S. 229 (1976), a decision (or
selection procedures, in the case of the
apprenticeship regulations at parts 29
and 30) appears facially neutral if it
neither creates a ‘‘suspect classification’’
nor infringes on a ‘‘fundamental
right.’’ 177 As stated in subpart A, these
177 Thomas B. Henson, ‘‘Proving Discriminatory
Intent From a Facially Neutral Decision With A
Disproportionate Impact,’’ 36 Wash & Lee L. Rev.
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regulatory requirements would be
unchanged by this NPRM. However, for
this subpart all potential program
sponsors seeking approval of a
registered CTE apprenticeship must be
in compliance with the selection
procedures regulations at parts 29 and
30, and the Department stands ready to
provide subregulatory guidance on these
requirements or any other requirements
related to the development, submission,
and approval of program standards.
Proposed § 29.24(c)(13) would require
program sponsors to provide a list of
any supportive services that may be
available to the CTE apprentice,
including childcare, transportation,
equipment, tools, or any other
supportive service provided by the
sponsor or a partnering organization.
This proposal would provide an
opportunity for the CTE apprentice to be
aware of any supports they may have
access to or receive during their
participation in the program. Such
supports may be arranged through
partner organizations or in coordination
with the workforce development
system.
Proposed § 29.24(c)(14) would largely
follow proposed § 29.8(a)(20), which
would change an existing requirement
concerning the granting of advanced
standing, credit, and an increased wage
to an apprentice and confers this
recognition to CTE apprentices. The
proposed provision would require that
the program sponsors’ standards of
registered CTE apprenticeship programs
not only grant advanced standing,
credit, and an increased wage to a CTE
apprentice when appropriate, but
explicitly instruct sponsors to include a
process by which they will reduce the
usual term of on-the-job training or CTE
apprenticeship-related instruction. This
change would recognize that the
reduction of the usual term of on-the-job
training or related instruction may be
appropriate in two scenarios: (1) where
a CTE apprentice comes to a program
with prior qualifications that warrant
the reduction of the usual term of onthe-job training or related instruction,
such as previous enrollment in a
program that aligns with the program in
CTE apprenticeship-related instruction
in a registered CTE apprenticeship
program; and (2) where an apprentice
demonstrates expedited progress while
in a registered CTE apprenticeship
program that warrants the reduction of
the usual term of on-the-job training or
related instruction, such as the
attainment of postsecondary credit that
109, 1979, https://scholarlycommons.law.wlu.edu/
cgi/viewcontent.cgi?article=2745&context=wlulr.
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may be counted for matriculation
purposes.
Further, proposed § 29.24(c)(14)
would create two requirements for the
process by which sponsors must abide.
Proposed § 29.24(c)(14)(i) would require
that the established process be fair,
transparent, and objective in
identifying, assessing, and documenting
a registered CTE apprentice’s prior
learning or experience as well as any
accelerated progress made by a CTE
apprentice. Proposed § 29.24(c)(14)(ii)
would require that the process must
result in advanced standing, credit, and
an increased wage that is commensurate
with any progression granted because of
the registered CTE apprentice’s prior
qualifications or accelerated progress.
The Department notes that this feature
of accelerating CTE apprentices was a
feature of the competency-based model
of registered apprenticeship under the
current rule, which the Department is
proposing to remove as a separate
model. The Department recognizes that
the utilization of industry skills
frameworks for the attainment of
industrywide skills and competencies
resembles the competency model in
some regards but is differentiated by the
successful attainment of industrywide
skills and competencies and not
proficiency in any one occupation
suitable for registered apprenticeship.
The Department’s proposal seeks to
embed the benefits of competency
attainment from this model with
minimum employment duration
requirements for on-the-job training.
This proposal would allow sponsors the
flexibility to advance apprentices, and
for CTE apprentices to receive
commensurate advancement in wages,
based on their prior experience. This
proposal would help to ensure sponsors
continue to have some of the key
flexibility components of the
competency-based approach that are
well-suited for registered CTE
apprentices, with key quality
enhancements enabling the Registration
Agency, in coordination with a State
CTE Agency, to review to ensure CTE
apprentices are progressed fairly, and
such processes are equitable, objective,
and align with educational requirements
embedded within a program.
The Department’s proposed method of
requiring a minimum amount of on-thejob training hours while allowing
advanced standing based on existing
competency is similar to the current
‘‘hybrid’’ model of registered
apprenticeship and would provide the
right balance of training participants to
an industry standard and duration,
while recognizing the unique skill and
competency progressions of CTE
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apprentices. This provision would also
ensure that a CTE apprentice does not
have an abbreviated on-the-job training
experience in the program if
circumstances do not warrant it, so that
a program is not graduating apprentices
from their program before they have
completed their training and
demonstrate the requisite proficiency.
CTE apprentices may need to complete
on-the-job training even when an
academic school year has ended. The
Department is interested in comments
about the applicability of such
mechanisms for recognition, such as
prior learning in a program or
transferable credit through dual or
concurrent enrollment, in this new
model and welcomes comments about
other mechanisms that would enable
CTE apprentices the opportunity for
advanced standing, credit, and
increased wages.
Proposed § 29.24(c)(15) would create
a requirement that the standards of
registered CTE apprenticeship include
an attestation to document in writing
that the qualifications and experience of
the trainers and instructors providing
the on-the-job training and CTE
apprenticeship-related instruction to
CTE apprentices satisfy the
requirements in proposed § 29.12 of
subpart A. The requirement in this
section would be an acknowledgment in
the standards that the requirements of
proposed § 29.12 are being met. The
Department believes it is important that
the standards of registered CTE
apprenticeship include this requirement
so that the Registration Agency can
ensure that trainers are qualified and so
that apprentices know that they are
being trained by qualified individuals.
Proposed § 29.24(c)(16) would require
that registered CTE apprenticeship
program sponsors identify the
Registration Agency and State CTE
Agency for which the program is being
registered. The purpose of this proposed
provision is to ensure that both
coordinating entities are accurately
identified and that such information is
available to the CTE apprentices and
their parents or guardian, if applicable,
as well as the Registration Agency for
conducting program reviews and
coordinating with a State CTE Agency
as applicable in the written agreement.
Proposed § 29.24(c)(17) would
address a program’s adherence to EEO
Requirements and would stipulate that
the standards of registered CTE
apprenticeship must include the equal
opportunity pledge as required in
§ 30.3(c), as well as a statement that the
program must be conducted, operated,
and administered in conformity with all
applicable provisions of 29 CFR part 30.
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Proposed § 29.24(c)(18) would require
program sponsors of a registered CTE
apprenticeship to include in standards
the contact information of the
appropriate party to address complaints
within the program. In addition to filing
complaints with the program, CTE
apprentices may make complaints to a
Registration Agency consistent with
paragraph (g) of this section, and
information on how to do so must be
included in the apprentice agreement as
required by paragraph (e) of this section.
§ 29.24(d) Registered CTE
Apprenticeship Program Sponsors
Proposed § 29.24(d) would describe
the entities eligible to be a sponsor of a
registered CTE apprenticeship program,
the process for which a sponsor registers
a registered CTE apprenticeship
program, additional responsibilities for
intermediaries designated to be program
sponsors, and the requirement for
program sponsors to enter into an
adoption agreement.
§ 29.24(d)(1) Eligible Registered CTE
Apprenticeship Program Sponsors
Proposed § 29.24(d)(1) would
establish the types of organizations and
entities that may be eligible for
registration by a Registration Agency to
serve as a sponsor of a registered CTE
apprenticeship program. For the
registered CTE apprenticeship model,
the Department envisions LEAs,
institutions of higher education, State
CTE Agencies, or another State
government agency that shares
responsibility for CTE in the State, as
the primary organizations and entities
that may serve as a program sponsor.
Such Perkins-eligible recipients and
agencies are embedded within the
existing infrastructure of Perkins and
are well-positioned to perform many of
the programmatic and administrative
requirements that program sponsors
must perform under this part. The
proposed eligible registered CTE
apprenticeship program sponsor
organizations and entities have
institutional experience and acumen
working with and supporting students
who are enrolled in CTE programs.
Consistent with statutory Perkins
requirements as administered by ED,
Perkins-eligible recipients and agencies
that provide administrative and
programmatic oversight would be
required to ensure that rigorous
academic standards are developed,
implemented, successfully met, and
continuously refined to provide CTE
students with educational outcomes that
prepare them for career pathways in
high-demand industries that offer good
jobs. In addition, administrators and
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CTE faculty would be equipped with
certified training to perform the
requisite administration and execution
of recognized programs that registered
CTE apprenticeship has included as an
integral component for CTE
apprenticeship-related instruction. To
the extent that any of the
aforementioned organizations and
entities chose to designate as a program
sponsor an intermediary, they may do
so by entering into an agreement.
Proposed § 29.24(d)(1)(iv) would
allow a State CTE Agency, State
Educational Agency, LEA, or institution
of higher education to designate an
intermediary to act as a program
sponsor. To serve as a sponsor,
intermediaries should have expertise in
organizing and coordinating registered
CTE apprenticeship programs or
registered apprenticeship programs
under subpart A. The following
organizations and entities are examples
of entities that may qualify to be
designated as an intermediary: the local
affiliate of a labor organization, such as
a joint apprenticeship and training
committee; an employer; the local
affiliate of a trade or industry
organization; a local workforce
development board as established under
WIOA; an institution of higher
education (including community or
technical colleges, 4-year degree
granting institutions, Historically Black
Colleges and Universities, Tribal
Colleges and Universities, and Minority
Serving Institutions); an LEA; and any
other public, private, or not-for-profit
entity that has experience coordinating
Perkins funding. This broad list of
examples shows the potential models
that may be developed in coordination
and partnership at the State or local
level. In practice, a number of potential
program sponsors that would be eligible
under this part operate consortia and
designate responsibility to LEAs,
institutions of higher education, or nonprofit organizations that specialize in
the administration and operation of
education programs. The Department
understands that States and local
education systems may need flexibility
in designing registered CTE
apprenticeship programs to
accommodate nuances in the
development and articulation. The
Department is most interested in
comments about both the feasibility and
capacity of the proposed eligible
organizations and entities and the types
of intermediaries that may be designated
through an agreement to develop
registered CTE apprenticeship programs
within existing CTE programs.
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§ 29.24(d)(2) Sponsor Program
Registration
Proposed § 29.24(d)(2) would contain
the requirements for a program sponsor
to submit an application for registration
of a new registered CTE apprenticeship
program. The Department anticipates
electronic submission of applications,
which would lead to increased timely
technical assistance. The Department
has successfully launched a web-based
platform called Standards Builder,
which has also been leveraged by SAAs
and could be utilized for the registration
of registered CTE apprenticeship
programs. While there is no requirement
that standards must be submitted
electronically in the current rule for
registered apprenticeship programs, the
Department anticipates that requiring
submissions electronically would result
in better customer service, enable
technical assistance to be provided
electronically and timely, and could
yield more responsive approvals of
programs that meet the requirements of
this part and part 30. The Department
anticipates continuing to expand and
refine its development of web-based
tools to assist in the registration process,
and requiring electronic submissions
would allow OA to focus its efforts more
on providing sponsors technical
assistance than on reviewing and
providing feedback through
nonelectronic means.
Proposed § 29.24(d)(2)(i) through (v)
would require a prospective program
sponsor to submit: (1) an on-the-job
training outline that aligns with an
associated industry skills framework, set
forth in proposed § 29.24(b); (2) a
registered CTE apprenticeship-related
instruction outline, set forth in
proposed § 29.24(c)(2); (3) standards of
registered CTE apprenticeship for the
proposed program, set forth in proposed
§ 29.24(c); and (4) the CTE
apprenticeship agreement for the
registered CTE apprenticeship, set forth
in proposed § 29.24(e). These
requirements would capture the core
elements of a registered CTE
apprenticeship program and ensure that
program sponsors have addressed such
core elements in the submission process
to register a program.
Proposed § 29.24(d)(2)(v)(A) through
(G) would require a registered CTE
apprenticeship program sponsor to
include a written plan with seven
components. Proposed
§ 29.24(d)(2)(v)(A) would require a
description of how the program will
ensure the students who are selected to
participate in the registered CTE
apprenticeship program reflect a diverse
and inclusive cross-section of the
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current student body enrollment of the
participating secondary or
postsecondary school(s), consistent with
the requirements of 29 CFR part 30. The
purpose of this component of the
written plan is for the program sponsor
to demonstrate to the Registration
Agency that the program sponsor is
providing equitable opportunities for all
students within the educational
institution. Proposed § 29.24(d)(2)(v)(B)
would require a description of how the
approved industry skills framework
aligns with the existing CTE program.
The purpose of this component of the
written plan is to ensure that there is
alignment between the industrywide
skills and competencies detailed within
an Administrator-approved industry
skills framework with a State-approved
CTE program. Standards of registered
CTE apprenticeship would not impact,
direct, or control Perkins CTE programs,
as such are completely within local
control as established in 20 U.S.C.
2306a. Proposed § 29.24(d)(2)(v)(C)
would require a description of
recognized postsecondary credentials
the program may provide, including
how the program confers such
credentials, and its usefulness for
apprentices’ entry into employment, a
registered apprenticeship program
under subpart A, a postsecondary
educational program, or some
combination thereof. The purpose of
this component of the written plan is to
demonstrate the likelihood that the
registered CTE apprenticeship would
provide corresponding educational
credentials and provide a pathway for a
CTE apprentice to enter into any one of
the aforementioned outcomes.
Proposed § 29.24(d)(2)(v)(D) would
require a written description from the
registered CTE apprenticeship program
sponsor of how they will ensure that
each employer participating in the
program has an established record of
maintaining a safe and inclusive
workplace that is free from
discrimination, violence, harassment,
intimidation, and retaliation against
employees. The purpose of including
this description is to ensure the safety
and welfare of CTE apprentices
participating in the on-the-job training
component of the program.
Proposed § 29.24(d)(2)(v)(E) would
require a written description from the
registered CTE apprenticeship program
sponsor of how CTE apprentices will
have access to a broad range of career
services and supportive services that
enable participation in, and successful
completion of, the CTE apprenticeship
program. The purpose of including this
assurance is to provide transparency to
potential program participants and their
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families that such services are available
so students can equitably access,
participate in, and complete a CTE
apprenticeship program regardless of
potential socioeconomic barriers that
would otherwise provide a financial
hardship to the CTE apprentice or their
families.
Proposed § 29.24(d)(2)(v)(F) would
require a written description from the
registered CTE apprenticeship program
sponsor of how it will conduct routine
monitoring and oversight of all aspects
of the registered CTE apprenticeship
program. The purpose of this written
assurance is to ensure a program
sponsor is aware of its responsibility to
provide timely and accurate monitoring
and oversight to maintain the
functionality and integrity of the
registered CTE apprenticeship program
and to allow the Registration Agency to
take necessary corrective action if the
sponsor fails to abide by this assurance.
Proposed § 29.24(d)(2)(v)(G) would
require a written description from the
registered CTE apprenticeship program
sponsor of how the program will take
affirmative steps to adhere to the
requirements of 29 CFR part 30. This
section is the same concept as proposed
for registered apprenticeship programs
in proposed § 29.10(a)(8) and the
Department is including this provision
here, with updates to account for
registered CTE apprenticeship programs
and CTE apprentices in the proposed
text to ensure this provision is
referencing the terms of subpart B.
Proposed § 29.24(d)(2)(vi) would
require a written assurance from the
registered CTE apprenticeship program
sponsor that parties involved with the
operation of the registered CTE
apprenticeship program, such as
employers, partnering educational
institutions, and designated
intermediaries, agree to the specific
commitments, roles, and responsibilities
addressed in the program standards. In
addition, proposed § 29.24(d)(2)(vii)
would require an assurance that such
agreements be formalized through
memoranda of understanding or other
written agreements. This proposed
provision would help establish that the
prospective sponsor has engaged with
these stakeholders and partners and
would allow the Registration Agency to
hold the sponsor accountable if they
have not engaged these stakeholders and
partners.
Proposed § 29.24(d)(2)(vii) would
require a written assurance from the
registered CTE apprenticeship program
sponsor that, consistent with § 29.18,
the sponsor will maintain any required
records that the Registration Agency
considers necessary to determine
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whether the sponsor has complied or is
complying with the requirements of this
part and any applicable Federal or State
laws. The purpose of this written
assurance is to provide a Registration
Agency with pertinent records for
conducting program reviews and other
compliance activities. All records
referenced in proposed § 29.24(d)(2)(i)
through (vii) would be subject to the
records retention requirement in
proposed § 29.24(d)(2)(viii).
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§ 29.24(d)(3) Additional Responsibilities
for Intermediaries Serving as a Sponsor
Proposed § 29.24(d)(3) would require
an intermediary that has been
designated as a program sponsor under
proposed § 29.24(d)(1)(iv) to comply
with the requirements of this subpart
and coordinate with relevant Perkins
educational institutions and agencies to
ensure program sponsor requirements
are met, including the complete
electronic submission of written
assurances under proposed § 29.24(d)(2)
as well as any and all State and local
State laws, requirements of a State CTE
Agency, and any other agency that
administers Perkins CTE programs in
the State for which there may be
additional requirements that apply. The
Department recognizes that
intermediaries, depending upon the
organization or entity designated, may
need to coordinate with partnering
educational institutions and agencies to
share applicable registered CTE
apprenticeship information, in
compliance with section 444 of the
General Education Provisions Act, as
amended, commonly known as the
Family Educational Rights and Privacy
Act of 1974 (FERPA), to meet the
proposed requirements of this part. The
Department is interested in hearing from
potential registered CTE apprenticeship
intermediaries about the potential
challenges and opportunities for
meeting requirements of a program
sponsor in this part and the role
Registration Agencies and State CTE
Agencies may play to facilitate an
intermediary’s participation in this new
model.
§ 29.24(d)(4) Sponsor Standards
Adoption Agreements
Proposed § 29.24(d)(4) follows the
entirety of proposed § 29.11 in subpart
A and would prescribe the content and
operational requirements for a written
sponsor standards adoption agreement,
as defined in proposed § 29.2, between
a sponsor and a participating employer
that is reached outside of a collective
bargaining process. The Department
believes this addition would be critical
for the registered CTE apprenticeship
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model because employers are not
eligible sponsors of this model. Given
the vital role employers play in
providing the on-the-job training in both
the registered apprenticeship and
registered CTE apprenticeship model, it
is important that an adoption agreement
for employers is developed. The
Department notes that the main
difference in subpart B is the name of
the agreement, so the regulated
community can distinguish between the
agreements an employer signs for
subpart A (a program standards
adoption agreement) and the agreement
an employer signs for subpart B (a
sponsor standards adoption agreement).
Agreements between the sponsors of a
registered CTE apprenticeship program
and an individual employer that
participates in that sponsor’s program
would be required under this proposal
for registered CTE apprenticeship. The
Department believes that the inclusion
of a regulatory provision expressly
obligating participating employers to
comply with the sponsor’s standards of
registered CTE apprenticeship and to
adhere to the requirements contained in
29 CFR parts 29 and 30 would serve to
bolster registered CTE apprenticeship
program accountability and integrity
and protect the safety and welfare of
CTE apprentices. Because a
participating employer in a sponsor’s
group program will typically be the
entity that employs and pays wages to
CTE apprentices enrolled in a registered
CTE apprenticeship program, and that
also typically provides close on-the-job
direct supervision and training to such
individuals, it follows that such
employers should be obligated to adhere
to the same standards of CTE
apprenticeship and regulatory
obligations as the sponsor of the
program so that apprentices are
protected and receive the full benefit of
the program.
§ 29.24(e) CTE Apprenticeship
Agreement
As with registered apprenticeship, the
Department views the formal
apprenticeship agreement between a
program sponsor and a CTE apprentice
as a foundational element of registered
CTE apprenticeship that protects the
welfare of CTE apprentices by clarifying
the terms and conditions of the program
in which they intend to participate, and
by serving as a verifiable record of such
terms and conditions. The Department
views the apprenticeship agreement as
holding equal value and importance
under each model, and accordingly has
proposed provisions in subpart B that
largely mirror the apprenticeship
agreement provisions in subpart A, with
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some minor adjustments or revisions
that reflect the relevant entities and
context for registered CTE
apprenticeship programs. As with
registered apprenticeship, the
Department views CTE apprenticeship
agreements as a critical tool for
protecting CTE apprentices’ welfare by
establishing transparency and
accountability. Further, the Department
recognizes that the success of efforts to
expand registered apprenticeship,
including through the creation of this
newly proposed registered CTE
apprenticeship model, depends in part
on the effective communication of the
benefits of CTE apprenticeship and
what CTE apprentices can expect to
achieve in terms of their career
development through participation in a
registered CTE apprenticeship program.
The Department views the CTE
apprenticeship agreement as an
important tool not only for holding all
parties accountable to a program’s
agreed-upon terms and conditions, but
also as a tool to succinctly explain the
purpose, benefits, and intended
outcomes of a registered CTE
apprenticeship program. For registered
CTE apprenticeship, clarifying the
shape and value of such outcomes, and
the program’s training and instruction
plan for achieving such outcomes, is
critical for explaining the potential
value of this new apprenticeship model
and encouraging enrollment in any
newly created registered CTE
apprenticeship programs.
Proposed § 29.24(e)(1) mirrors the
proposed regulatory text at proposed
§ 29.9(a) and would establish that all
registered CTE apprenticeship programs
must develop an apprenticeship
agreement containing the terms and
conditions of the training and
instruction plan for CTE apprentices.
The proposed text at § 29.24(e)(1) differs
slightly in that it would require that the
agreement include the program’s terms
and conditions for education of
registered CTE apprentices, in addition
to the employment and training of
apprentices contained at proposed
§ 29.9(a). This reflects the educational
context of registered CTE
apprenticeship, including the entities
the Department expects would establish
and participate in such programs, and
the model’s increased focus on
education and classroom learning.
Proposed § 29.24(e)(1)(i) through (v)
would establish the list of parties that
must sign the apprenticeship agreement
for registered CTE apprenticeship
programs. These parties would include
the CTE apprentice (proposed paragraph
(e)(1)(i)), the CTE apprentice’s parent or
legal guardian if the CTE apprentice is
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under 18 years of age (proposed
paragraph (e)(1)(ii)), the sponsor
(proposed paragraph (e)(1)(iii)), the
secondary or postsecondary educational
institution where the CTE apprentice is
enrolled (proposed paragraph (e)(1)(iv)),
and any employers participating in the
registered CTE apprenticeship program
that have adopted or agreed to the
sponsor standards adoption agreement
(proposed paragraph (e)(1)(v)). These
parties would reflect the same list as the
parties that must sign the
apprenticeship agreement for registered
apprenticeship programs at proposed
§ 29.9(a)(1) through (4), with one
addition that reflects the educational
context of the registered CTE
apprenticeship program (the proposed
requirement at § 29.24(e)(1)(iv) that the
secondary or postsecondary institution
sign the agreement for registered CTE
apprenticeship). The Department views
educational institutions as critical
partners in the development and
success of registered CTE
apprenticeship, given that the
Department envisions that this model
would complement and build upon
established CTE programs, curricula,
and networks. The Department proposes
to include educational institutions as
required signatories for apprenticeship
agreements to extend the transparency
and accountability the agreement would
establish to these partners. Further, as
discussed earlier, enrollment as a
student in a CTE program in a
secondary or postsecondary institution
is a proposed requirement to participate
as a registered CTE apprentice, and the
Department expects that requiring such
institutions to sign apprenticeship
agreements would further confirm and
clarify participants’ eligibility.
Proposed § 29.24(e)(2) would provide
that the signed apprenticeship
agreement (which includes the program
standards for the registered CTE
apprenticeship program) must be
provided to the CTE apprentice and
their parent or legal guardian, as
applicable, prior to the apprenticeship’s
start date. This provision largely reflects
the proposed requirement at proposed
§ 29.9(b), but would intentionally
include the CTE apprentice’s parent or
legal guardian as parties who must
receive the agreement prior to the start
of the apprenticeship term. This
difference between the recipients of the
apprenticeship agreement at proposed
§ 29.9(b) and proposed § 29.24(e)(2)
reflects the school-aged population
(secondary or postsecondary students)
that may participate in registered CTE
apprenticeship programs, and the
importance of keeping their parents or
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legal guardians informed of the terms
and conditions of this new career
development opportunity for their child
or dependent, including the hourly
demands it will place on the students’
schedules, assurances of the safe and
welcoming environment the student
would encounter through the program,
and what their child or dependent can
expect to receive through participating
in the program to support their
professional development.
Proposed § 29.24(e)(3)(i) through (xvi)
would list 16 elements that
apprenticeship agreements must contain
for registered CTE apprenticeship, and
this list of elements mirrors the
elements that must be contained in
apprenticeship agreements for registered
apprenticeship at proposed § 29.9(c)(1)
through (16). Proposed § 29.24(e)(3)(i)
and (ii) would provide that
apprenticeship agreements for registered
CTE apprenticeship programs must
include contact and identifying
information for CTE apprentices
(including date of birth and, on a
voluntary basis, their Social Security
number) and contact information for the
Registration Agency, sponsor, and any
participating employers. While the
Social Security number is not required
to be reported to the Registration
Agency, it will need to be provided to
the employer. These elements would
mirror the required elements for the
apprenticeship agreements in registered
apprenticeship at proposed § 29.9(c)(1)
and (2) and would ensure that the
apprenticeship agreement is a reliable
source for up-to-date contact
information for those individuals
participating in registered CTE
apprenticeship programs, and those
parties involved in registering,
overseeing, and operating a program.
Proposed § 29.24(e)(3)(iii) would
contain some differences from its
companion provision at proposed
§ 29.9(c)(3). For registered CTE
apprenticeship, the Department
proposes that the apprenticeship
agreement must include the
identification of the job or occupation
the CTE apprentice will be employed in,
as well as the industry skills framework
and CTE apprenticeship-related
instruction outline that underpin the
program’s alignment with an established
CTE course of study and a career
readiness framework (in the context of
registered CTE apprenticeship, this is
known as the industry skills
framework). These elements would
mirror the related instruction and work
process schedule for registered
apprenticeship (the subject of proposed
§ 29.9(c)(3)) and the Department is
including the relevant terminology at
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proposed § 29.24(e)(3)(iii) for clarity
regarding which terminology applies
within each model.
Proposed § 29.24(e)(3)(iv) would
provide that the apprenticeship
agreement includes the program’s
standards for the registered CTE
apprenticeship and would mirror the
proposed regulatory text at proposed
§ 29.9(c)(4) for apprenticeship
agreements in registered apprenticeship.
Proposed § 29.24(e)(3)(v) would mirror
the proposed regulatory text at proposed
§ 29.9(c)(5) and would provide that
apprenticeship agreements under the
registered CTE apprenticeship model
must describe the roles, duties, and
responsibilities of CTE apprentices,
sponsors, and participating employers.
As with proposed § 29.9(c)(5), proposed
§ 29.24(e)(3)(v) would stipulate that any
employers participating in registered
CTE apprenticeship programs must
provide CTE apprentices with
information about their rights and
protections under Federal, State, and
local labor laws and the process for
filing complaints with the relevant
Registration Agency. The reasons for
these proposed requirements in the CTE
apprenticeship agreement are the same
as for the apprenticeship agreement
under subpart A.
Proposed § 29.24(e)(3)(vi) would
provide that the apprenticeship
agreement must provide the beginning
and expected end date for the term of
the CTE apprenticeship, as well as the
date when on-the-job training will
begin. This differs from the requirement
at proposed § 29.9(c)(6), which would
require that apprenticeship agreements
for registered apprenticeship programs
provide the beginning dates for the
program overall, the beginning date for
on-the-job training, and the duration of
the probationary period for the program.
Regarding the probationary period, this
proposal would provide that
apprenticeship agreements for registered
CTE apprenticeship programs must
include a description of the program’s
probationary period and would stipulate
that such period may not exceed 30
days. The Department is proposing to
take a slightly different approach to
probationary periods under the
registered CTE apprenticeship model
and recognizes that allowing a
probationary period that lasts longer
than 30 days would not serve the best
interests of CTE apprentices.
Apprentices in registered CTE
apprenticeship programs must also
enroll in an established CTE program,
while job seekers considering
participating in a registered
apprenticeship program are not so
connected to the program or occupation
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via other established enrollments.
Accordingly, the Department believes
that the probationary period for
registered apprenticeship programs
should be more flexible and subject to
the sponsor’s discretion, while the
probationary period for registered CTE
apprenticeship programs should have a
shorter maximum length and should
reflect that the CTE apprentice is firmly
established in the job training program
and course of study via multiple
agreements and enrollments.
Proposed § 29.24(e)(3)(vii) concerns
wages paid to CTE apprentices and
contains some differences from the
apprenticeship agreement section for
wages in registered apprenticeship at
proposed § 29.9(c)(7). Proposed
§ 29.24(e)(3)(vii) would require the
apprenticeship agreement include the
entry wage and graduated scale of
increasing wages for registered CTE
apprentices, as would be required at
proposed § 29.9(c)(7), but would not
include the ‘‘journeyworker wage’’ nor
the ‘‘fringe benefits’’ information that
would be required at proposed
§ 29.9(c)(7). The Department is not
proposing any wage requirements tied
to journeyworker wages in registered
CTE apprenticeship programs. The CTE
apprenticeship model’s focus is on
industry skills frameworks, and thus
reflects an inherent flexibility in terms
of a program’s relation to several
occupations, rather than just a single
occupation as in registered
apprenticeship. Thus, the Department
does not view the journeyworker wage
in an occupation as relevant to the
apprenticeship agreement for registered
CTE apprenticeship.
Proposed § 29.24(e)(3)(viii) would
provide that the apprenticeship
agreement must contain the allocation
of hours between a registered CTE
apprenticeship program’s on-the-job
training component and CTE
apprenticeship-related instruction
component, mirroring proposed
§ 29.9(c)(8) with the slight adjustment of
the term ‘‘CTE apprenticeship-related
instruction.’’
Proposed § 29.24(e)(3)(ix) would
provide that the apprenticeship
agreement must explain the methods
used over the course of the registered
CTE apprenticeship program to measure
CTE apprentices’ attainment of
competencies, which differs slightly
from the requirement at proposed
§ 29.9(c)(9) that would also include
measuring the apprentice’s progress
towards acquiring the competencies
necessary for a registered
apprenticeship program’s end-point
assessment. As discussed above, the
Department has determined that end-
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point assessments will be a useful tool
for measuring and affirming
apprentices’ proficiency in registered
apprenticeship programs; however, such
assessments would not be appropriate
for the registered CTE apprenticeship
model. The latter model is based on
providing training and instruction
within a broader scope of career
readiness than the registered
apprenticeship model, which focuses
more acutely on proficiency within a
specific occupation and aligns with an
end-point assessment measuring such
occupational proficiency. As such, the
Department’s proposed model for
registered CTE apprenticeship does not
include an end-point assessment and
would grant registered CTE
apprenticeship programs more
flexibility in designing program
completion measures that apply to the
program’s associated career pathways.
Proposed § 29.24(e)(3)(x) would
mirror the proposed regulatory language
at § 29.9(c)(10) and would provide that,
under both models, the apprenticeship
agreement should describe any
supportive services available to
apprentices or CTE apprentices. These
may include childcare services,
transportation stipends or
reimbursement programs, equipment or
tools, or other supportive services under
both models. This reflects the
Department’s consideration of advice
from apprenticeship stakeholders,
including the ACA, that the provision of
supportive services is an important
factor in addressing barriers to
participation, particularly for
underserved communities, individuals
in rural communities, and individuals
who face challenges or bear
responsibilities for providing dependent
care during typical working hours. The
Department requests comment on
whether registered CTE apprenticeship
programs should be required to provide
CTE apprentices with access to
supportive services.
Similarly, proposed § 29.24(e)(3)(xi)
would mirror the requirement at
proposed § 29.9(c)(11) that
apprenticeship agreements contain a
description of the nature and amount of
any unreimbursed costs associated with
a program. As discussed above, the
Department is concerned about
excessive or undue participation costs
and the burden they place on job
seekers seeking to improve their career
readiness through participation in a
registered CTE apprenticeship program.
The Department therefore proposes that
registered CTE apprenticeship programs
disclose all participation costs in the
apprenticeship agreement so that CTE
apprentices are not faced with
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unexpected costs once they have taken
steps to participating in a registered CTE
apprenticeship program.
To further its goal of establishing
transparency throughout all
apprenticeship programs registered for
Federal purposes (including registered
apprenticeship programs and registered
CTE apprenticeship programs), the
Department proposes to require that
apprenticeship agreements under both
models must include a description of
any credentials, secondary credits, or
postsecondary credit hours conferred
upon participants who progress through
the program. However, the Department
expects that registered CTE
apprenticeship programs may not
provide the same breadth of credentials
as a registered apprenticeship program
more closely aligned with a specific
occupation. Accordingly, the proposed
regulatory text at proposed
§ 29.24(e)(3)(xii) would differ slightly
from the proposed regulatory text at
§ 29.9(c)(12) in that the former would
not refer to ‘‘occupational
qualifications,’’ nor would it refer to
other conditions or requirements that
may be related to attaining an
occupational qualification or licensure
under Federal, State, or local laws or
requirements. The Department expects
that registered CTE apprenticeship
programs would confer equally valuable
credentials to registered CTE
apprentices, in particular secondary
credits or at least 12 postsecondary
educational credit hours that may
accelerate their progress through an
educational curriculum or career
development program. As such, for CTE
apprenticeship agreements, the
Department proposes that registered
CTE apprenticeship programs include
descriptions of the ‘‘secondary or
postsecondary credits or credentials’’
associated with completing the program.
Proposed § 29.24(e)(3)(xiii) would
provide that apprenticeship agreements
for the registered CTE apprenticeship
model must include an affirmation from
all parties that they will adhere to the
applicable requirements of parts 29 and
30 governing registered apprenticeship
and EEO in registered apprenticeship.
This language would mirror the
proposed regulatory text at proposed
§ 29.9(c)(13) and would reflect the
Department’s reiteration that, except
when explicitly stated otherwise, the
requirements of parts 29 and 30 would
apply to any apprenticeship program
registered for Federal purposes.
Proposed § 29.24(e)(3)(xiv) would
require a statement addressing whether
the CTE apprentice is paid wages and
benefits during the CTE apprenticeshiprelated instruction component of the
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program and, if so, what the wage rate
is, and whether the CTE apprenticeshiprelated instruction is provided during
work hours. This requirement would be
the same as the proposed requirement in
§ 29.9(c)(14) that the apprenticeship
agreement specify whether CTE
apprenticeship-related instruction is
compensated; however, it would more
precisely require that the apprenticeship
agreement address both wages (i.e., not
some other form of compensation) and
whether CTE apprenticeship-related
instruction occurs during work hours.
This would provide notice to the CTE
apprentice of whether to expect CTE
apprenticeship-related instruction to
occur on their own time and, regardless
of when CTE apprenticeship-related
instruction takes place, whether it is
paid and at what rate. The Department
acknowledges that, under the registered
CTE apprenticeship model, the CTE
program would be the primary form of
CTE apprenticeship-related instruction
and less likely to result in a CTE
apprentice receiving wages. The
Department encourages, where possible,
registered CTE apprenticeship models
in which employers invest in their CTE
apprentices with wages or fringe
benefits paid during CTE
apprenticeship-related instruction. As
discussed in proposed paragraph (c)(2)
sponsors must consider, as a part of
their programs’ standards of registered
CTE apprenticeship, whether to pay
wages for CTE apprenticeship-related
instruction. Since registered CTE
apprenticeship is an ‘‘earn-and-learn’’
model, this provision would provide
transparency to the CTE apprentice
about when and what wages would be
received, and during what component(s)
of the program. This provision would
also make transparent a schedule of
paid and unpaid time an CTE
apprentice is expected to be present to
fulfill learning and worksite
productivity objectives when attending
CTE apprenticeship-related instruction
and on-the-job training. Making this
information available to CTE
apprentices for transparency purposes
would provide apprentices with the
necessary information to make financial
decisions, seek out resources or
supportive services through a program
sponsor to attend CTE apprenticeshiprelated instruction or compensate costs
incurred, and manage time to
accommodate responsibilities, such as
providing care to family members.
Proposed § 29.24(e)(3)(xv) would
mirror the proposed regulatory language
at proposed § 29.9(c)(15) and would
require that apprenticeship agreements
for registered CTE apprenticeship
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contain the contact information of those
individuals or entities designated by the
program to receive, review, and address
any controversies or complaints that
may arise. The Department expects that
CTE apprentices would benefit from the
clarity of understanding the process for
filing, reviewing, and resolving
complaints, and as such, is including
proposed regulatory language to include
contact information related to the
program’s complaint process for both
registered apprenticeship and registered
CTE apprenticeship.
Proposed § 29.24(e)(3)(xvi) would
require the apprenticeship agreement to
include the consent of the CTE
apprentice, or their parent or guardian
if the CTE apprentice is under 18 and
not in attendance at a postsecondary
institution, permitting the secondary or
postsecondary institution in which the
CTE apprentice is enrolled as a student
to disclose individual apprentice level
information to the program sponsor, to
the entity designating any intermediary
organization as a sponsor, to
participating employers, to the
Registration Agency and the
Department, if OA is not the
Registration Agency, and to and any
other institution involved in
administering the registered CTE
apprenticeship program, as would be
required under proposed subpart B of
this part. Secondary and postsecondary
institutions that receive Federal
education funds under a program
administered by ED must comply with
FERPA. FERPA requires, among other
things, that a parent of a student, or an
‘‘eligible student’’ (namely, a student
who is 18 years of age or older or in
attendance at a postsecondary
institution at any age), provide prior
written consent before an educational
institution discloses personally
identifiable information from the
student’s education records, unless an
exception to FERPA’s general written
consent requirement applies. This
provision would ensure that secondary
or postsecondary institutions can meet
their obligations under FERPA and
disclose individual apprentice level
information as required under the
registered CTE apprenticeship program.
Proposed § 29.24(e)(4) would mirror
the proposed regulatory text at proposed
§ 29.9(d) that would prohibit registered
apprenticeship program sponsors from
including any non-compete provisions
or other provisions that would serve to
restrict an apprentice’s labor market
mobility. The Department views this
proposed prohibition of non-compete
and other restrictive labor clauses as a
key reform in this proposed update to
the part 29 regulations and seeks to
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apply this prohibition to any
apprenticeship programs registered for
Federal purposes. Given the nature of
the registered CTE apprenticeship
model’s outcomes being designed for
placement in employment, a
postsecondary educational program, or a
registered apprenticeship program
under subpart A, the Department does
not expect non-compete provisions
would be as likely as in registered
apprenticeship programs under subpart
A. Nevertheless, the Department expects
that this important worker protection
would maximize the potential benefits
of apprenticeship training for all
participants, whether they are students,
job seekers seeking to receive training in
a specific occupation, or experienced
workers seeking to change careers. As
such, the Department proposes
including the prohibition on noncompete and other restrictive labor
clauses in the apprenticeship
agreements section for registered CTE
apprenticeship.
Similarly, at proposed § 29.24(e)(5),
the Department proposes to apply the
same prohibition against non-disclosure
provisions from the proposed § 29.9(e)
covering apprenticeship agreements for
registered apprenticeship programs. The
Department sees no reason to exempt
registered CTE apprenticeship programs
from these proposed prohibitions on
clauses that would serve to restrict an
apprentice’s labor market mobility and
future success finding employment. On
the contrary, CTE apprentices who
receive training and instruction via an
industry skills framework, potentially
covering multiple occupations, are
potentially more at risk of suffering
career consequences via the inclusion of
such clauses given that they are at an
early stage of their careers and would
not be well-served by any restriction on
the employers or occupations they may
wish to pursue.
Finally, proposed § 29.24(e)(6) would
mirror the proposed requirement at
proposed § 29.9(f) and would stipulate
that registered CTE apprenticeship
program sponsors must submit a
completed copy of the executed
apprenticeship agreement for each
individual apprentice it registers for
participation in its program to the
Registration Agency within 30 days of
the execution of the agreement. In this
NPRM’s preamble section-by-section
discussion at proposed § 29.9(f), the
Department explains that the proposed
30-day timeframe for submitting
executed apprenticeship agreements to
the Registration Agency would be a
reduction from existing policy (from 45
days to 30 days) in the amount of time
a sponsor has to submit agreements, and
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that this proposed timeframe would be
reasonable given the advancements in
technology that enable streamlined
submission of apprenticeship
agreements via the RAPIDS system. The
Department expects that these same
technological advancements would
facilitate the submission of
apprenticeship agreements for registered
CTE apprenticeship programs and
proposes to align the timelines for
submitting apprenticeship agreements
under both models.
The Department invites comments
from the public on all aspects of the
apprenticeship agreement requirements
for registered CTE apprenticeship
programs, including whether any of the
apprenticeship agreement elements
from proposed § 29.9 (applying to
registered apprenticeship programs)
should not apply to registered CTE
apprenticeship, or whether the
Department should apply different
parameters based on the differences
between these two models of registered
apprenticeship, or whether additional
elements should be added.
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§ 29.24(f) Certificate of Completion of
Registered CTE Aprenticeship
Proposed § 29.24(f) provides that
Registration Agencies would issue
certificates of completion of registered
CTE apprenticeship to CTE apprentices
who complete all of the requirements of
the program. This proposal is similar to
the Certificate of Completion
Registration Agencies would issue to
apprentices in registered apprenticeship
programs in subpart A. These
Certificates of Completion are important
milestones for all apprentices and help
to signify their value in the job market
and opportunities for advancement in
their career. The Department envisions
registered apprenticeship programs in
subpart A would consider providing
advanced standing as described in
§ 29.8 to CTE apprentices who complete
a registered CTE apprenticeship
program and can demonstrate their
completion with a certificate of
completion of registered CTE
apprenticeship.
§ 29.24(g) Administrative Requirements
of the Registration Agency
Proposed § 29.24(g) contains the
provisions related to the administrative
requirements for Registration Agencies
operating Registered CTE
apprenticeship programs. This section is
designed to address the core duties of
Registration Agencies and their roles
and responsibilities in the registered
CTE apprenticeship model. Included in
this are key provisions related to
technical assistance and registration of
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programs, establishment of a compliant
process for CTE apprentices, the
operation of program reviews,
deregistration processes, the recognition
of Registration Agencies, data collection
and metrics from programs, and
program exemptions.
Proposed § 29.24(g)(1) would provide
the process that the Registration Agency
uses when it receives an application
from a prospective program sponsor.
Similar to subpart A, the Registration
Agency must make a determination
within 90 days of the receipt of a
complete application as to whether the
program has met the requirements of
this subpart and is eligible for program
registration. The Registration Agency
would be responsible for informing
applicants in writing of all decisions
regarding the program registration.
Additionally, if programs are denied
approval for registration, the reasons for
the denial must be explained in writing.
These provisions would help to ensure
a transparent process for sponsors and
Registration Agencies for the review and
approval of programs.
Proposed § 29.24(g)(2) is a provision
on the role of Registration Agencies in
providing technical assistance and other
support, including outreach, technical
assistance, and other assistance such as
referrals to registered apprenticeship
programs under subpart A to sponsors
or other potential partners to support
the adoption and expansion of
registered CTE apprenticeship programs
in a State.
Proposed § 29.24(g)(3) would provide
a provision for CTE apprentice
complaints similar to what the
Department has proposed for registered
apprenticeship programs in subpart A at
proposed § 29.17. The Department
anticipates that complaints arising
under the registered CTE apprenticeship
model would undergo a similar process
to complaints submitted by apprentices
under subpart A, and the discussion of
that process is described in § 29.17.
Though this section cites to § 29.17 for
this process, the Department is
proposing one difference, which would
provide that the Registration Agency
may refer complaints to the State CTE
Agency as appropriate. Due to the close
coordination with the State CTE
Agencies envisioned under this
proposed subpart, the Department
anticipates that some complaints filed
with the Registration Agency may be
better addressed through a referral to the
State CTE Agency. For example, a CTE
apprentice who has a concern about
their CTE program may submit a
complaint to the Registration Agency. In
those instances, and depending on the
nature of the complaint, the Department
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believes that the CTE apprentice’s issue
may be best addressed by the State CTE
Agency. The Department envisions that
the process for such referrals may be
addressed in the written agreement
between the Registration Agency and
the State CTE Agency proposed in
paragraph (a). The Department
welcomes any comments on the value of
a proposed alignment of complaint
provisions with subpart A, or if any
other processes or deviations other than
the one discussed above should be
considered.
Proposed § 29.24(g)(4) would provide
for the conduct of program reviews to
confirm the Registration Agency can
ensure the program is operating in
compliance with this subpart. The
Department, under paragraph (g)(4)(i), is
proposing to utilize the process
described in proposed § 29.19 in subpart
A for the process and conduct of
program reviews by a Registration
Agency. Proposed paragraph (g)(4)(ii)
would provide that the reviews should
be coordinated between the Registration
Agency and the State CTE Agency, the
process for which would be addressed
in the written agreement described in
paragraph (a). The Department
envisions that examples of quality
program reviews may include the State
CTE Agency reviewing the CTE portions
of the program while the Registration
Agency reviews the labor standards. The
Department is allowing flexibility on
how this is coordinated but does expect
a strategy or agreement to be included
in the written agreement described in
paragraph (a). Proposed paragraph
(g)(4)(iii) provides clarity that program
reviews under this subpart would not
impact an entity’s eligibility under, or
compliance with, the Perkins programs.
This provision is to make clear that the
Registration Agency’s authority is
limited to the registration of the
program and would not extend to
determining eligibility for CTE funding.
Perkins CTE programs would not be
governed by this subpart, but rather
must meet the requirements of the
Perkins statute as administered by ED.
The Department welcomes comments
on the alignment of program review
provisions, including about the goal of
a joint review process with the State
CTE Agency. The current proposal
encourages the idea of concurrent
reviews but is proposing to provide
flexibility to Registration Agencies and
State CTE Agencies to address that
process or alternatives as part of the
written agreement in paragraph (a).
Proposed § 29.24(g)(5) would provide
for the deregistration of programs that
fail to meet the requirements of this
subpart. The ability to deregister
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programs for noncompliance with this
subpart and part 30 is critical to the
effective oversight of registered
apprenticeship programs both under
subparts A and B. Provided that the
Department is proposing a registration
process for programs that meet the
requirements of this subpart and part
30, a deregistration process is necessary
for those that do not continue to meet
those requirements. The process for the
deregistration of programs would be the
same as the process in proposed § 29.20
of subpart A. The Department envisions,
similar to the process in subpart A, that
a program review would occur to
ascertain a sponsor’s compliance with
this subpart and part 30. The
Department welcomes any comments on
the alignment of deregistration
proceedings, and the goals of aligning
processes, where possible, with subpart
A.
Proposed § 29.24(g)(6) would provide
the same hearings process as described
in proposed § 29.21 in subpart A. Given
that both models of registered
apprenticeship under subparts A and B
have similar processes for registration,
review, and deregistration, the
Department is proposing to align this
process for hearings. The Department
welcomes any comments on the
proposed alignment of this process with
subpart A, particularly regarding if any
deviations would provide
administrative efficiencies.
Proposed § 29.24(g)(7) would provide
the same hearings on deregistration
process proposed in § 29.21 of subpart
A. As described throughout this
paragraph, the Department is proposing
to align administrative processes as
much as possible to minimize parallel
processes for the registration, review,
data collection, and oversight of
registered CTE apprenticeship programs
with registered apprenticeship programs
in subpart A.
Proposed § 29.24(g)(8) would provide
for the process of recognizing
Registration Agencies for registered CTE
apprenticeship. Registration Agencies
would be responsible for the registration
of CTE apprenticeship programs, which
would provide opportunities to build
alignment between registered
apprenticeship programs in subpart A
and registered CTE apprenticeship
programs. Registration Agencies may be
OA or a recognized SAA. Given the
proposed requirement in paragraph (a)
that there be a written agreement
between the State CTE Agency and the
Registration Agency, the Department
does not anticipate considering National
Program Standards for Apprenticeship,
as proposed in subpart A, as an option
for this model. One of the primary goals
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of this rulemaking is to bring greater
alignment between registered
apprenticeship models with State and
local education systems. The
Department envisions this localized
alignment would result in quality
program design tailored to local
economies. As such, OA is only
considering local registration by the
State’s respective Registration Agency.
The Department is open to comments on
national program registration models,
and whether that could ensure
alignment with State and local
educational systems.
The Department clarifies that
adopting the requirements of subpart B
would not be a requirement for an SAA
to obtain or maintain recognition as a
Registration Agency and SAA. The
Department acknowledges the unique
requirements and partnerships needed
at the State and local level to develop
quality registered CTE apprenticeship
programs and would not condition an
SAA’s recognition to register
apprenticeship programs under subpart
A of this part on a requirement that they
must also register programs described in
this subpart.
Proposed § 29.24(g)(8)(i) would
identify the circumstances in which OA
may serve as the Registration Agency in
a particular State. OA may serve as the
Registration Agency in States where the
OA Administrator has not recognized an
SAA in the State, and there is a written
agreement between OA and the State
CTE Agency, as described in paragraph
(a), for the registration of CTE
apprenticeship programs in the State.
Under this proposal, OA would not
serve as a Registration Agency in States
that have a recognized SAA or if there
is not a written agreement with the State
CTE Agency. Given the importance of
aligning the State’s education system
with this model, the Department does
not anticipate the registration of
programs in States that do not develop
written agreements with OA or do not
have a recognized SAA.
Proposed § 29.24(g)(8)(ii)(A) through
(D) would provide the process by which
SAAs may seek recognition for the
registration of CTE apprenticeship
programs. The Department is proposing
to limit the ability to be a Registration
Agency to those entities that are
Registration Agencies for the purposes
of registering apprenticeship programs
under subpart A. This would ensure
alignment at the State level by providing
that entities approving registered
apprenticeship programs under subpart
A are the same entities approving
registered CTE apprenticeship programs
under subpart B. This would help
ensure greater alignment in program
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design, technical assistance, and
administrative procedures and
minimize redundancies at the State
level for the registration of programs.
SAAs recognized or seeking recognition
under subpart C of this proposed rule
would be recognized as Registration
Agencies for CTE apprenticeship if they
meet the criteria described in proposed
paragraphs (g)(8)(ii)(A) through (D).
Proposed § 29.24(g)(8)(ii)(A) would
provide that the State’s proposed or
current apprenticeship laws for
registered CTE apprenticeship meet or
exceed the requirements for protecting
the safety and welfare of CTE
apprentices set forth in subpart B. This
is the same standard that is being
proposed for SAAs seeking recognition
under subpart C. The proposed
regulations are designed to set the
minimum standards for registration, and
SAAs may adopt requirements that
include more protections for CTE
apprentices in their laws.
Proposed § 29.24(g)(8)(ii)(B) would
provide that the SAA must have entered
into a written agreement with the
respective State CTE Agency as
described in paragraph (a), which
outlines the required coordination
between the respective agencies,
including roles and responsibilities.
This requirement would allow the
Administrator to be sure that necessary
coordination is occurring at the State
level.
Proposed § 29.24(g)(8)(ii)(C) would
provide that the State has submitted its
relevant apprenticeship laws and CTE
engagement strategies as part of its State
Apprenticeship Plan submitted
according to proposed § 29.27 in subpart
C. This may be done concurrently as the
State government agency is seeking
recognition under subpart C for the
purposes of registering apprenticeship
programs under subpart A, or may be
submitted as a modification to a State
Apprenticeship Plan according to the
criteria for modifications outlined in
proposed § 29.27(a)(2).
Proposed § 29.24(g)(8)(ii)(D) would
provide that the Administrator must
approve concurrently, or have
previously approved, the State
government agency for recognition as an
SAA under proposed § 29.27. This is
designed to ensure that State
government agencies would not be
recognized for registering
apprenticeship programs under subpart
B without being approved to register
programs for subpart A. The Department
discussed previously that it believes it
is critical that the Registration Agency
for a particular State must be approved
to register apprenticeship programs for
subpart A purposes in order to be able
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to register programs for subpart B
purposes. However, a State government
agency may serve as an SAA only for
the purposes of registering
apprenticeship programs for subpart A.
Proposed § 29.24(g)(9) is a provision
related to the collection of data and
quality metrics concerning registered
CTE apprenticeship programs. The
Department is largely proposing to align
the data collection from sponsors and
SAAs consistent with the requirements
described in proposed § 29.25 of subpart
C. The Department anticipates utilizing
RAPIDS as the primary database and
case management system for the
collection and reporting of data on
registered CTE apprenticeship programs
and apprentices. The Department
welcomes comments on the data
collection for registered CTE
apprenticeship, the proposed alignment
with proposed § 29.25, and the key
differences discussed below in data
collection. Collectively, the Department
envisions that a comprehensive data set
and the alignment of reporting across
both models of registered
apprenticeship in this proposed rule
will enable the Department to provide
robust technical assistance to support
stakeholders’ compliance with these
regulations.
Proposed § 29.24(g)(9)(i) is a provision
for the collection of CTE apprentice
information. The information being
proposed to be collected is largely
consistent with apprentice information
that would be collected for apprentices
under subpart A as described in
proposed § 29.25(a). The discussion of
those provisions is discussed in the
preamble for § 29.25(a). The Department
is proposing a consistent collection here
with a few exceptions. For registered
CTE apprenticeship under paragraph
(g)(9)(i)(A), the Department would
collect an associated industry skills
framework with the program rather than
the occupation associated with a
registered apprenticeship under
proposed § 29.25(a). This difference is
based on the unique requirements in
subpart B regarding associated industry
skills frameworks as the basis for
training in registered CTE
apprenticeship rather than occupations
suitable for registered apprenticeship.
Separately, the Department is not
proposing to collect pre-apprenticeship
participation information as a regulatory
requirement in this section because the
Department anticipates preapprenticeship models to be more
closely associated with registered
apprenticeship programs under subpart
A.
Proposed paragraph (g)(9)(i)(B) would
provide for sponsors to report status
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updates based on similar changes as
discussed in proposed § 29.25(a), with
the exception that the updates would be
made on an academic semester basis
rather than within 30 days. This is to
account for the unique nature of this
model, and requirement that sponsors
be largely from the education system.
Proposed § 29.24(g)(9)(1)(ii) is a
provision for the collection of program
sponsor information and quality metrics
that would be generally consistent with
the proposed program sponsor
information proposed for collection
under § 29.25 for registered
apprenticeship programs under subpart
A. The primary differences are that the
program sponsor information would be
collected for each industry skills
framework in this section rather than by
occupation under proposed § 29.25.
Additionally, this paragraph proposes
collecting information on the outcomes
of registered CTE apprenticeship, which
are placement in a registered
apprenticeship under subpart A, a
postsecondary educational program, or
employment at the time of program
completion. Employment for this
purpose would mean employment
outside of the employment associated
with a registered apprenticeship
program under subpart A.
Proposed § 29.24(g)(9)(iii) is a
provision for information and reports
based on the information collected in
paragraph (g)(9)(ii) to be made publicly
available by the Registration Agency,
which would align with proposed
§ 29.25(c). This section also would
include similar language to proposed
§ 29.28 regarding the reporting of
information from SAAs. These
provisions would help support a
comprehensive system data on both
models of registered apprenticeship
envisioned under these proposed
regulations.
Proposed § 29.24(g)(10) would
provide for exemptions from the subpart
B requirements similar to the proposal
in § 29.23 of subpart A for registered
apprenticeship. As described in the
preamble to proposed § 29.23, such
requests would be required to be made
in writing and transmitted to the
Administrator and would also be
required to contain a statement of the
reasons supporting the request. The
Administrator would only grant an
exemption for good cause. Examples of
good cause can be found in the
preamble to proposed § 29.23. The
Department has added proposed
language regarding exemptions that
cannot be made because they are
outside of this subpart, including
exemptions to requirements provided
for in other applicable Federal, State, or
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local laws. For instance, the
Administrator cannot consider
exemption requests from any CTE
participation requirements related to a
CTE program or provisions governing
the Perkins programs.
D. Subpart C—Administration and
Coordination of the National
Apprenticeship System
Section 29.25—Collection of Data and
Quality Metrics Concerning
Apprenticeship
In the 15 years since the registered
apprenticeship regulations were last
updated, advancements in technology
and data functionality have transformed
daily life in the United States and
throughout the world. These
developments include a major
expansion of the ability to capture,
collect, store, and use data. Institutions,
businesses, governments, and
organizations have prioritized the
collection, application, and analysis of
data to capitalize on opportunities to
improve programs, policies, and
outcomes. Within the world of
registered apprenticeship, significant
developments have been made since
2008 to keep pace with the increasing
significance of data, including OA’s
efforts to develop and refine RAPIDS as
a case management platform, with the
goal of aligning with the growing role of
data in the daily operations of
employers and program sponsors within
the National Apprenticeship System.
As part of the Department’s effort to
modernize data collection and reporting
capabilities through RAPIDS, significant
investments have been made to improve
functionality and provide access and
interoperability to SAAs for their data
collection and reporting needs. The
enhanced collection of quality data by
Federal agencies is supported by the
provisions of the Foundations for
Evidence-Based Policymaking Act of
2018 (Pub. L. 115–435), as well as
President Biden’s January 27, 2021
memorandum on restoring trust in
government through evidence-based
policymaking.178 RAPIDS is the case
management system administered by
OA, and it serves as the primary
platform for program sponsors’
management of apprentices,
occupations, job openings, and other
relevant program information. The
Department plans to continue RAPIDS
178 President Joesph R. Biden, Jr., ‘‘Memorandum
on Restoring Trust in Government Through
Scientific Integrity and Evidence-Based
Policymaking,’’ Jan. 27, 2021, https://
www.whitehouse.gov/briefing-room/presidentialactions/2021/01/27/memorandum-on-restoringtrust-in-government-through-scientific-integrityand-evidence-based-policymaking/.
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as the primary database and case
management system for the foreseeable
future, but RAPIDS may undergo
improvements or be altered over time,
including to the name and affiliated
acronym of such database and case
management system, to meet the needs
of National Apprenticeship System
stakeholders. Technical assistance will
be provided by OA, Apprenticeship
Training Representatives, and
applicable SAA staff as needed. This
will help facilitate a connection
between program sponsors using
RAPIDS and Registration Agencies.
While not a requirement for State
recognition, SAA States and their
sponsors may voluntarily opt to use the
Department’s case management system
as a cost-effective approach to enable
and support the data collection and
reporting process described in proposed
§ 29.28(d).
Proposed § 29.25 would formalize the
requirements for sponsors to report
apprentice and sponsor information to
their Registration Agency and establish
a requirement for the Department to
make this information publicly available
in the form of sponsor level and
national summary reports. In practice,
the Department has made available
related information, but this proposal
would provide stakeholders with more
robust and consistent information about
the National Apprenticeship System.
The Department is interested in
comments about the benefits of making
public more information about the
performance of registered
apprenticeship programs and their
benefits to apprentices or career seekers
while balancing expectations for
sponsors and apprentices with respect
to program burden and privacy. While
some of this type of reporting currently
occurs through approved ICRs (see OMB
Control Number 1205–0223), the
requirements for reporting have not
been included in regulations in the past
and are therefore subject to some
uncertainty in terms of how the
requirements might change from year to
year. The Department has made
significant investments in reporting
capabilities through RAPIDS, including
by making it available to SAAs for their
reporting and data collection needs.
Additionally, the increased Federal
funding and benefits associated with
registered apprenticeship programs
(such as Apprenticeship grants, WIOA,
the Davis-Bacon and related Acts, and
the IRA) enhance the need to develop a
more structured, uniform, and
accountable reporting structure while
balancing the burdens associated with
collecting this information from
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sponsors, apprentices, and employers.
The Department is particularly
interested in any comments about
whether the proposed approach strikes
the proper balance, if other critical
information should be included, or if
less critical information should be
omitted. The Department is also
interested in any proposed quality
measures for Registration Agencies or
sponsors described below. Lastly, the
Department is interested in comments
on how it can utilize the collection of
quality participant data and identify
effective performance measures at the
National, State, industry, and
occupational level to achieve greater
equity across and within the National
Apprenticeship System.
Proposed § 29.25(a) would establish
the requirements for what information
about individual apprentices must be
collected and reported by sponsors to
the Registration Agency. Under the
current approach, this is done primarily
through sponsors entering data into the
RAPIDS system, and the Department
anticipates this approach will continue.
Sponsors in States that do not use the
system provided by the Department,
whether RAPIDS or another system,
would use the case management system
provided by their Registration Agency to
collect this information. SAA States and
their sponsors may voluntarily opt to
use the Department’s case management
system as a cost-effective approach to
enable and support the data collection
and reporting process described in
proposed § 29.28(d). The Department is
exploring approaches that would allow
for apprentices to self-report and update
demographic information through the
mechanisms provided by the
Department, which would help to meet
this requirement. Such mechanisms
would allow individual apprentices to
report to the Department sensitive
information that they might be hesitant
to provide to their employer.
The collection of individual
information included in this proposed
section would enable substantive
program analyses, including crosssectional analyses and improved data
disaggregation that would serve to
identify strengths and weaknesses of the
National Apprenticeship System when
it comes to crucial goals like DEIA,
identifying best practices, increasing
economic mobility, and improving
performance outcomes. Collecting data
in this manner in a more uniform way
and utilizing a system provided by the
Department would also reduce the
burden of data collection on employers
and would enable the Department to
ensure the questions being posed to
apprentices are asked in a consistent
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manner during data collection. The
Department will follow all applicable
laws and procedures to ensure data
security.
Improved collection of demographic
information would enable the
Department to better disaggregate
demographic data, in addition to
leveraging such data to develop and
track indices relating to equity in
program access, exit, and completion,
which can serve to inform and drive
improvements towards greater equity in
the National Apprenticeship System.
These goals are not only important to
the Department, but they are also
aligned to the recommendations from
the ACA on this subject. The
Department is interested in comments
about the Department’s and SAAs’
ability to collect individualized data
and its benefits, particularly with regard
to the ability to use cross-sectional
analysis of demographic information to
ensure that programs are operating
equitably. The Department is also
interested in comments discussing
information or strategies that would
help the Department assess the
performance of programs in a more
standardized manner.
Additionally, this section would
establish that within 30 days of a
change, in addition to a change of
apprentice’s status, sponsors must also
report on the start date of on-the-job
training for apprentices, changes to
credentials attained, employment
retention, and wage progression. This
requirement would enable the
Department to more fully track an
apprentice’s progress throughout the
program including the issuance of
licenses, degrees, and the full scope of
credentials earned through registered
apprenticeship programs, as
recommended by the ACA. This
additional information obtained through
more regular updates would enable
better analyses and more complete
understanding of programs, particularly
when it comes to assessments of
program quality and informing potential
apprentices’ understanding of what to
expect during their participation in a
program.
Another benefit of these proposed
requirements is that they would result
in closer alignment between the
National Apprenticeship System and
WIOA, as these updates would ensure
that reporting timeframes, processes,
and many of the definitions are brought
into closer alignment with the
requirements for WIOA programs. By
aligning the reporting requirements,
reporting definitions, and reporting
processes more closely, States would
benefit from efficiency improvements
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and easier cross program collaboration
as information collected by one program
can be collected once and shared rather
than similar information being collected
separately in different ways. More
congruity between programs and
improved information would also
enable both States and job seekers to
make more data-driven decisions. For
example, collecting data in a similar
manner to WIOA’s data collection can
facilitate more direct comparisons
between the data on WIOA ETPs and
registered apprenticeship programs.
Aligning this data collection would
benefit job seekers and potential
apprentices by enabling them to make
informed decisions based on workforce
data from these programs. This can also
be beneficial to employers, as more
transparent information can lead job
seekers to seek out programs that they
are more likely to stay with long term.
Proposed § 29.25(b) would establish
the requirements for what information
about sponsors and their programs must
regularly be collected and reported by
sponsors to the Registration Agency.
Currently, this information is provided
to the Department primarily by
Registration Agencies entering data into
the RAPIDS system, and the Department
is anticipating that approach will
continue. This information would
include data about the sponsor and any
participating employers. This section is
divided into two paragraphs. Paragraph
(b)(1) focuses on what type of
information sponsors must update
within 30 days of a status change, and
paragraph (b)(2) describes items that
must be updated and certified by
sponsors on an annual basis. For
sponsors using the system provided by
the Department, whether RAPIDS or
another system capable of collecting this
data should updates be made in the
future to the Department’s IT and
reporting systems, the Department
anticipates that this process would
involve sponsors ensuring that their
data and information in the system are
up to date and then certifying in that
system that the records are current and
accurate. The Department anticipates
that sponsors that are not using the
system provided by the Department
would need to submit and certify a
report in the system provided by the
Department.
Under proposed § 29.25(b)(2) the
Department anticipates the annual
information being made available to the
public to assist job seekers in being able
to make informed choices about
programs, and stakeholders would have
a greater understanding of the scope,
scale, and effectiveness of registered
apprenticeship programs. This proposal
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would significantly enhance the amount
of public information made available
about registered apprenticeship
programs and their outcomes. The
Department is interested in comments
on the appropriate amount of
information collected and reported for
public purposes, taking into account
any burdens and privacy protections
afforded to apprentices or programs. In
balancing this, the Department is
proposing to largely use measures that
a Registration Agency would be able to
calculate on behalf of a sponsor, rather
than requiring unique measures that
may require manual tracking.
One new measure would assist
Registration Agencies in seeing if
programs are exiting significant
numbers of apprentices and not
graduating them, which they can use as
the basis for technical assistance. This
measure, unlike the proposed cohort
completion rate, would not exclude
exiters during the probationary period
of the program. However, the
Department does consider this measure
as being useful for considering any
impacts in program design that lead to
apprentices not completing their
programs once they are apprentices.
This measure would also align with the
Department’s ETP reporting under
WIOA for program completion rates.
This measure would be calculated as
part of the data requirements of
proposed § 29.25 and be subject to
program reviews under proposed
§ 29.19. The Department is interested in
any comments on this approach,
including whether exits during the
probationary period should be included
and any other potential measures.
Another new measure, proposed
§ 29.25(b)(2)(viii), would assist
Registration Agencies in determining
the percentage of exiters that enter a
postsecondary educational program or a
career pathway program at the time of
exit. The purpose of this new measure
is to identify the extent to which
apprentices who have either left a
program prior to completion or
completed a program enter into a
postsecondary educational program or a
career pathway program.179 In some
non-traditional industries for which
registered apprenticeship programs
currently exist, such as health care and
education, some apprentices complete a
program, receive a Certificate of
Completion, and then enroll in a
postsecondary educational program or
another registered apprenticeship to
continue education and training that
leads to corresponding occupations that
may provide a higher wage, are along a
179 WIOA
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career pathway, and require additional
competencies, skills, and recognized
postsecondary credentials. The
Department recognizes that the
calculation of this metric may yield
small percentages since it is not
common across all industries and
suitable occupations for apprentices to
enroll in a postsecondary educational
program or a career pathway program
following the successful completion of a
registered apprenticeship program.
However, the calculation of this metric
would help Registration Agencies
identify which programs provide
articulation and connections to the
postsecondary system. These
connections may be critical for
programs that serve high-school-aged
youth or are designed as entry-level
opportunities in the health care or
education industry. In addition, the
information collected would enable the
capacity for disaggregation by industry
and occupation for registered
apprenticeship exiters who enter into a
postsecondary educational program or a
career pathway program.
Proposed § 29.25(c) would establish
annual reporting requirements for
Registration Agencies, including OA,
based on the information collected in
paragraph (b)(2) of this section. This
would include State and sponsor-level
reporting and a national summary
report. These requirements would serve
to further enhance equity in the
National Apprenticeship System;
improve the overall quality of registered
apprenticeship programs through
improved transparency and
accountability; and allow for
disaggregating registered apprenticeship
data for more informative publicly
available and accessible products, as is
recommended by the ACA. The
Department is proposing in § 29.25(c)(3)
that Registration Agencies use a series of
supplemental information sources, in IC
efforts. Registration Agencies should
provide the necessary sources of
information, such as surveys, wage
records, or other valid support and
technical assistance to sponsors to
ensure that supplemental sources are
valid and meet the criteria for ensuring
effective reporting requirements. These
supplemental sources would enable the
calculation of quality metrics on a
system level, such as postapprenticeship employment retention
rates calculated 6 and 12 months after
program exit; annualized median
earnings of exited apprentices;
percentage of all completers of a
registered apprenticeship program that
are earning an income that allows them
to support themselves and their
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families, or are placed in a
postsecondary educational program or a
career pathway program, 1 year after
program completion; and customer
service metrics for Registration Agencies
focused on customer satisfaction of
sponsors with registered apprenticeship
and Registration Agency services. In
addition, the Department believes that
system-level metrics for registered
apprenticeship can be utilized as a
mechanism to improve the overall job
quality of a range of occupations as well
as improve wages and working
conditions for individuals pursing these
careers.
The registered apprenticeship system
is intended to secure apprenticeshiprelated pathways that lead to
occupations providing income that
allow individuals to support themselves
and their families. Accordingly, the
Department seeks to establish a systemlevel performance reporting measure
that would quantify income outcomes
for apprentices registered under subpart
A and CTE apprentices registered under
subpart B. The Department is
considering setting the income
performance reporting measure at 200
percent of the Federal poverty level.
(The Federal poverty level is a measure
of income calculated annually by the
Department of Health and Human
Services and often used to determine
Federal benefit eligibility.) If an
individual receives at least 200 percent
of the Federal poverty level (i.e.,
$49,720 a year for a family of 3 in the
48 contiguous States and the District of
Columbia, or about $23.90 an hour
assuming 2,080 work hours in a year) in
the year after the successful completion
of a registered apprenticeship program,
this would be understood to be a
successful program outcome. The
Department envisions that making
available to the public the data from this
system-level performance reporting
measure would benefit prospective
apprentices exploring potential
occupations and apprenticeship
programs. The Department invites
comments on this proposed
methodology, including whether and
how the Department should define a
successful outcome for apprentices in
terms of income and suggestions for
modifying this proposed system-level
performance reporting measure.
The Department in proposed
paragraph (c)(5) may decide to withhold
certain information described above
from publication for good cause (for
example, if the publication of data may
result in personally identifiable
information becoming attributable to
individuals, or if the data collected has
been documented to be inaccurate). The
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Department is interested in any other
comments regarding potentially
withholding information from
publication.
To support operability and
implementation of proposed system
level metrics the Department would
conduct additional research, such as
researching the effective mechanisms
needed for training through a registered
apprenticeship model that leads to
sustainable careers, how supportive
services may increase the annual
completion rate, the cohort completion
rate, and the subsequent earnings
potential of apprentices. Utilizing this
framework, as noted in proposed
paragraph (c)(4), the Administrator
plans to conduct evaluations and
longitudinal studies to assess the impact
and improve the effectiveness of
registered apprenticeship programs. To
the extent that information is collected
in this process for the development,
calculation, and implementation of
publicly facing products, such as
program and Registration Agency
reports or dashboards, the Department
may omit or suppress data or data
elements necessary to protect apprentice
personally identifiable data. The
Department also may omit or suppress
other information provided by sponsors
that is collected through standards or
requisite agreements that sponsors
request to not be disclosed. The
Department will provide guidance on
this process and operational protocol
through subregulatory guidance.
The Department is interested in any
comments regarding these proposed
measures, including additional or
alternative measures. The Department is
also interested in comments about the
proposed measurement and IC
framework as a means to make more
programmatic information available to
the public, particularly balancing the
business needs of employers and
sponsors, the privacy of apprentices,
and the overarching goal of providing
more information to the public,
particularly to job seekers to assist in
their career decisions.
Section 29.26—Roles and
Responsibilities of State Apprenticeship
Agencies
The concept of SAAs serving as
extensions of the Department in the
registration of apprenticeship programs
for Federal purposes has been and can
continue to be an effective model to
expand capacity, expertise, and local
partnerships. SAAs can also serve as
laboratories to promote innovative
models of apprenticeship. SAAs have
been innovative in moving into more
formal roles in pre-apprenticeship
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programs and in youth apprenticeship
models, even if those efforts to date are
not officially recognized for Federal
purposes. The Department supports
these innovations at the State level that
are designed to make more
apprenticeship models and quality
standards available to career seekers and
youth.
However, ambiguity about the roles
and responsibilities of SAAs relative to
the roles and responsibilities of State
Apprenticeship Councils, and
inconsistent alignment with the
Department’s current apprenticeship
regulations, has created a highly
fragmented, inconsistent system that has
deviated from the model envisioned by
the current regulation and that has, in
some instances, created a challenging
market for sponsors and employers
seeking to enhance and invest in their
worker training through the registered
apprenticeship training model.
Proposed § 29.26 would substantially
revise the content of the provisions in
existing § 29.13 concerning the duties
and responsibilities of SAAs that are
recognized by OA for Federal purposes.
Among other things, this updated
regulatory provision would describe the
duties and responsibilities of recognized
SAAs, as well as the proper allocation
of responsibilities between such SAAs
and the State Apprenticeship Councils
that they are responsible for establishing
and overseeing. The Department is
concerned that the current version of
the regulation has not been effective in
delineating the respective duties and
powers of the foregoing administrative
and advisory bodies, which has
seriously impeded the fair, efficient,
consistent, and transparent operation of
the National Apprenticeship System.
The Department has long taken the
view that SAAs—acting as impartial and
disinterested governmental bodies that
are accountable to the elected executive
authority within their respective
States—are best suited to fairly and
equitably discharge the administrative
and oversight duties with respect to
apprenticeships that have been
entrusted to such SAAs by the
Administrator. While the Department
notes that many SAAs have admirably
fulfilled these administrative
responsibilities in accordance with the
current regulatory requirements
established at 29 CFR 29.13, the
Department has also observed that other
States have not operated in accordance
with the current regulation. Specifically,
while the current regulation (at 29 CFR
29.13(a)(2)) stipulates that a State
Apprenticeship Council, which
functions in a regulatory or advisory
capacity, must be established by an SAA
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and must operate under the direction of
that SAA, the authority to evaluate and
register apprenticeship programs in a
number of States has been improperly
ceded—on either a de facto or a de jure
basis—to State Apprenticeship Councils
or other non-governmental, external
entities.
The Department has received
disturbing complaints from potential
program sponsors—particularly those
operating within the skilled trades—that
have unsuccessfully sought to register
apprenticeship programs in certain
States where State Apprenticeship
Councils have impermissibly exercised
the authority to approve or deny
applications for program registration.
These complaints have often cited the
infrequency of State Apprenticeship
Council hearings to consider
applications for registration (as these
bodies typically meet only on a
quarterly basis), repeated
postponements of decisions by a State
Apprenticeship Council on whether to
approve or deny program standards or
registration, and the absence of
procedural due process, appeal rights,
and a written record in those instances
where a Council has improperly issued
a negative final determination on a
potential program’s registration. Such
conduct by State Apprenticeship
Councils may help to explain why the
speed of program registration in SAA
States lags behind the pace of
registrations in those States
administered by OA.180 In instances
where an applicant who otherwise
appears to meet the existing regulatory
requirements for program registration
has encountered such inappropriate
barriers to registration, the Department
has been obligated to consider whether
the exercise of its residual, plenary
authority under existing 29 CFR 29.13(i)
to register apprenticeship programs in
any State would be warranted.
Accordingly, this revised provision
would clarify that an SAA that has
received recognition (under proposed
§ 29.27) from the Administrator
possesses the exclusive, non-delegable
authority to evaluate, approve, register,
monitor, oversee, suspend, and
deregister apprenticeship programs
operating within that State. The only
exception would be when the
Administrator—taking into account the
interests of the National Apprenticeship
System as a whole—chooses to exercise
its residual authority to register an
180 See Apprenticeships for America, ‘‘The State
of Apprenticeships in the U.S.: A Plan for Scale,’’
July 2022, https://
www.apprenticeshipsforamerica.org/white-paper.
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apprenticeship program on either a
State-by-State or a nationwide basis.
Specifically, as a prerequisite for the
recognition or continued recognition of
an SAA by the Department, the
proposed rule (at § 29.26(b)) would
expressly prohibit a State—either in law
or in practice—from delegating,
assigning, or relinquishing any of the
discretionary authority conferred by the
Department upon an SAA, including
with respect to registration
determinations and the oversight of
apprenticeship programs and standards
within that State, to any external thirdparty entity, including a State
Apprenticeship Council.
In a related vein, the proposed rule (at
§ 29.26(b)) would reiterate the
requirement contained in the current
rule (at 29 CFR 29.13(a)(2)) that State
Apprenticeship Councils must operate
under the direction and control of the
SAAs that have established them, and
would also expressly prohibit State
Apprenticeship Councils from assuming
or exercising any of the discretionary
and inherently governmental regulatory
and oversight duties with respect to
apprenticeship that are properly vested
in an SAA. The proposed rule would
also eliminate the somewhat inchoate
distinction posited under the current
version of the regulation (at 29 CFR 29.2
and 29.13(a)(2)) between those State
Apprenticeship Councils whose
purposes and functions are ‘‘advisory’’
in nature from those that are
‘‘regulatory’’ in nature. The proposed
rule instead would stipulate that all
State Apprenticeship Councils must
serve an exclusively advisory function.
Specifically, the proposed rule (at
§ 29.26(c)) would limit the duties and
powers of State Apprenticeship
Councils to providing their respective
SAAs with written, non-binding advice,
recommendations, research, and reports
concerning apprenticeship-related
matters, and to providing advice in
connection with the State’s submission
of the State Apprenticeship Plan that is
required under § 29.27 of the proposed
rule.
However, the Department wishes to
note that the foregoing prohibition
would not prohibit an SAA from using
contractors or other third parties to
perform tasks that do not involve or
relate to duties described in proposed
§ 29.26(a), such as providing assistance
to the SAA with promotional and public
outreach activities. The SAA must
retain the ultimate decision-making
authority regarding whether an
apprenticeship program qualifies for
registration. In addition, the proposed
regulation (at § 29.26(a)(5)) would
require SAAs, as a precondition for
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receiving either initial or continued
recognition, to provide OA with data
relating to apprentices and registered
apprenticeship programs in that State.
This regulatory data-sharing
requirement described in proposed
§ 29.28, if adopted, would enhance
registered apprenticeship program
transparency, and provide the public
with a truly national picture of the
performance of the National
Apprenticeship System.
SAAs are defined, both under current
regulations and under proposed § 29.2,
as the agency of a State government that
has responsibility and accountability for
apprenticeships within the State. An
approved SAA steps into the role of OA
in that State, administering registered
apprenticeship in lieu of OA and in a
manner consistent with OA’s role as
outlined in these proposed regulations.
In furtherance of a unified National
Apprenticeship System, an SAA can
only exercise this responsibility once it
has established, among other things,
that its laws, statutes, and regulations
are consistent with Federal regulations,
as discussed below. This serves to
promote uniformity and consistency of
experience, particularly for sponsors of
registered apprenticeship programs and
apprentices, among not only SAAs, but
also those States where apprenticeship
is regulated and overseen by OA. In
short, it facilitates the establishment of
a more unified National Apprenticeship
System. Currently, there are 30 SAAs
serving as Registration Agencies, a
number that has increased over the last
several years. This section would
provide an explanation of the roles and
responsibilities of SAAs and the general
requirements to obtain recognition from
the Administrator.
Proposed paragraph (a) is new and
explains, upon recognition, what
actions an SAA would be allowed to
conduct for Federal purposes.
Proposed § 29.26(a)(1) and (7) would
detail the SAA’s role and
responsibilities with respect to
establishing and implementing
apprenticeship-related regulations,
policies, and procedures to meet the
requirements of proposed parts 29 and
30. Proposed § 29.26(a)(2) through (6)
and (8) through (10) would describe the
SAA’s role and responsibilities over the
day-to-day establishment, operation,
and oversight of registered
apprenticeship programs. Efforts to
expand and modernize the
apprenticeship system must be
inclusive of industries that are wellestablished within the apprenticeship
system as well as industries seeking to
begin or expand their participation. In
furtherance of this goal, the SAA would
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bear the responsibility of promoting
cohesion and alignment among program
sponsors and employers. Lastly,
proposed § 29.26(a)(11) would provide
for the role SAAs may provide as
Registration Agencies for registered CTE
apprenticeship under subpart B. The
primary discussion of SAA recognition
for the purposes of subpart B is located
in the preamble for § 29.24(g)(8).
The Department proposed paragraph
(a) to clarify the expected role and
responsibilities of the SAA. The
requirements in current § 29.13 have
some description of the expected roles
and responsibilities of the SAA, but that
section is not clear, and the relevant
roles and responsibilities are spread
throughout the section. This proposed
paragraph would make those roles and
responsibilities clear and include them
in one location for ease of use. Further,
the Department is adding proposed
paragraph (a) to establish the key
responsibilities of SAAs, which also
applies to Registration Agencies
generally and supports establishing the
key roles and responsibilities in the
system. The activities listed in proposed
paragraph (a) are those that OA would
ordinarily perform if a State did not
have a recognized SAA. The Department
anticipates that proposed paragraph (a)
would reduce confusion about the
expectations of the SAA and ensure that
the SAA is fulfilling the needs of
apprentices, sponsors, and employers in
the State for which it has been
recognized to be the Registration
Agency for Federal purposes.
Proposed paragraph (b) is new and
explains that SAA functions in
proposed § 29.26(a) cannot be delegated,
assigned, devolved, or relinquished to
any other entity. Proposed paragraph
(c), which describes the role of the State
Apprenticeship Council, would further
clarify that the functions described in
(a) cannot be performed by the State
Apprenticeship Council. In the
preamble to the 2008 final rule that last
updated the apprenticeship regulations
in 29 CFR part 29, the Department
confirmed that it would only recognize
SAAs and would not recognize State
Apprenticeship Councils in the
discussion of public comments received
on 29 CFR 29.13.181 The Department
acknowledged that State Apprenticeship
Councils comprise knowledgeable
apprenticeship stakeholders
representing ‘‘diverse employer, labor,
and public interests,’’ but ultimately
concluded that State Apprenticeship
Council members are not State officials
181 See existing regulation at 29 CFR 29.13,
concerning ‘‘Recognition of State Apprenticeship
Agencies.’’
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and are thus not accountable to the State
nor the Department. The Department
continues to view State Apprenticeship
Councils as a valuable advisory resource
for SAAs but continues to believe that
authority over registered apprenticeship
in a State should rest with a State
government agency. The Department
further believes that clarifying that
SAAs cannot delegate regulatory and
oversight functions to State
Apprenticeship Councils would
strengthen accountability within the
National Apprenticeship System.
Despite the 2008 final rule’s
clarification that the Department would
not recognize State Apprenticeship
Councils, in some States, such entities
have overtaken regulatory and oversight
functions from SAAs. Commenters
responding to the 2007 NPRM that
preceded the 2008 final rule confirmed
that this practice was ongoing before the
2008 update to the regulations and
remarked that some State laws granting
State Apprenticeship Councils oversight
of the State’s apprenticeship system or
granting State Apprenticeship Councils
the authority to promulgate regulations
dictating the role and functions of
SAAs, would need to be overturned.
Such delegation of critical
apprenticeship system oversight has
continued in the intervening years, and
in some States, State Apprenticeship
Councils continue to perform key
apprenticeship oversight functions,
including making determinations on an
occupation’s suitability for registered
apprenticeship training and making
registration determinations. The
Department is concerned that the State
Apprenticeship Councils continue to
play this role in some States, and
maintains the view expressed in the
preamble to the 2008 final rule that
administration and oversight functions
are the responsibility of government
entities comprising Federal or State
officials. State officials are accountable
to the interests of an entire State and
that State’s population, while State
Apprenticeship Council members are
not. State Apprenticeship Council
members appropriately comprise equal
numbers of representatives from
different sectors and bring diverse
perspectives on apprenticeship to the
table, but they are ultimately not
accountable to the public in the same
manner as State officials working in
SAAs.182 As expressed in the preamble
to the 2008 final rule, the Department
maintains that the effective function of
the relationship between the Federal
government and State governments
necessitates a direct relationship
between Federal and State government
agencies. The Department recognizes
and appreciates the valuable expertise
and advice that State Apprenticeship
Councils have historically provided and
expects that they will continue to serve
as a valuable source of advice helping
to inform matters related to registered
apprenticeship, including ongoing
efforts to expand registered
apprenticeship into new and emerging
industries and to new and diverse
populations. However, in order to
further establish effective accountability
throughout the National Apprenticeship
System and to provide optimal clarity to
the regulated community, the
Department has determined to propose
revisions to the apprenticeship
regulations to expressly state the
appropriate, solely advisory role of State
Advisory Councils and clarify that
SAAs may not delegate apprenticeship
oversight nor regulatory functions to
such entities. SAAs are reminded that if
the State Apprenticeship Council
performs functions that can only be
exercised by the SAA, then the
Administrator can take appropriate
remedial action including the initiation
of derecognition proceedings.
The regulatory and oversight
functions of an SAA are foundational in
ensuring the establishment and
maintenance of high-quality and safe
apprenticeship training. For the reasons
discussed above, the Department has
determined that these functions should
remain as responsibilities of the SAA,
which it has recognized for the purpose
of discharging these responsibilities for
Federal purposes and which the
Department monitors and oversees for
compliance with the requirements in
proposed parts 29 and 30.
Proposed paragraph (c) is new and
would consolidate requirements around
the establishment and duties of State
Apprenticeship Councils into one
provision. Proposed paragraph (c)
explains SAAs would be required to
establish a State Apprenticeship
Council. The Department emphasizes
that proposed paragraph (c) would
envision the creation of a single State
Apprenticeship Council. While existing
requirements may have been unclear as
182 The existing apprenticeship regulations at
§ 29.13(a)(2)(ii) require that State Apprenticeship
Councils ‘‘must include an equal number of
representatives of employer and of employee
organizations and include public members who
shall not number in excess of the number named
to represent either employer or employee
organizations.’’ The Department proposes to retain
this requirement on the makeup of State
Apprenticeship Councils in this proposed rule but
offers more details on who would constitute a
member of an ‘‘employer organization,’’ ‘‘labor
organizations,’’ and ‘‘members of the public’’ at
proposed § 29.26(d)(1)(i) through (iii).
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to the Department’s intention, in this
rulemaking the Department makes clear
that proposed part 29 would intend for
only one State Apprenticeship Council
to be established by a given SAA. As a
purely advisory body, State
Apprenticeship Councils’ focus should
be convening stakeholders from
different sector perspectives—namely,
employers, organized labor, and the
public sector—to offer guidance and
advice on apprenticeship matters that
balances the priorities and perspectives
of each sector. State Apprenticeship
Councils should serve as the forum for
meeting the challenge of balancing
different sectoral perspectives and
arriving at consensus advice through
robust discussion, deliberation, and
compromise among stakeholders from
these sectors. The Department
recognizes that the challenge of
balancing competing perspectives to
arrive at consensus advice on
apprenticeship matters would be
compounded if multiple State
Apprenticeship Councils were operating
in a single State. In such a situation, one
State Apprenticeship Council may be
engaged in robust debate on a
challenging issue and arrive at a
consensus recommendation over the
course of a series of meetings, while
another State Apprenticeship Council
may take up the same issue, engage in
such debate, and arrive at a completely
different recommendation. Within each
State Apprenticeship Council, the views
of stakeholders from different sectors
will have been heard and considered,
but because discussions took place in
two different forums, the ultimate
recommendation for the State’s
consideration may be unclear. In the
Department’s view, based in part on
successful interactions with the ACA at
the national level, maintaining a single
State Apprenticeship Council would be
the best approach for convening
apprenticeship stakeholders from
different sectors to produce useful
advice for SAAs on apprenticeship
matters.
In order to address the many issue
areas and topics related to registered
apprenticeship, and to more closely
align the advisory work of a State
Apprenticeship Council with the
specific expertise and professional
backgrounds of the individuals who
comprise a State Apprenticeship
Council, it may be useful for such
Councils to establish subcommittees,
appoint chairs, cochairs, or other
leadership roles, and otherwise divide
responsibilities within the Council.
Aside from stipulating that State
Apprenticeship Councils contain equal
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representation from employers,
organized labor, and members of the
public, and limiting the number of State
Apprenticeship Councils in a State to
one, the Department is not proposing
any limitations or restrictions on the
composition, division of
responsibilities, or internal functions of
State Apprenticeship Councils in this
proposed regulation, provided the
Council exercises only those functions
that it is authorized to exercise under
this proposed regulation.
Proposed paragraph (c) would explain
that State Apprenticeship Councils are
strictly advisory bodies that are created
by, and with the purpose to serve, the
SAA by providing non-binding advice.
State Apprenticeship Councils have
historically provided valuable advice
and insights for consideration by SAAs,
and the Department recognizes the
value such entities add to the National
Apprenticeship System through the
provision of non-binding advice and
recommendations at the State level.
State Apprenticeship Councils have
provided, and will continue to provide,
useful advice on sector-specific
strategies to inform efforts to expand
registered apprenticeship,
considerations on how best to align
different workforce development
programs (such as WIOA), LEA
initiatives, or public-private sector
partnerships with registered
apprenticeship, and other issues where
an SAA benefits from the synthesis of
diverse industry perspectives that may
not exist among State employees
working at an SAA. As this proposed
rule would explicitly clarify the
advisory role of State Apprenticeship
Councils, the Department expects that
State Apprenticeship Councils would be
more effective and timelier in executing
their pivotal role of providing advice on
apprenticeship matters based on the
input from diverse stakeholders from
different sectors. This is especially true
in cases where a State Apprenticeship
Council has been performing functions
that should have been reserved for
SAAs, such as reviewing and
adjudicating applications for an
occupation’s suitability for registered
apprenticeship training or program
registration. In such cases, these
responsibilities would be appropriately
retained by the SAA, and the State
Apprenticeship Councils formerly
acting in such capacity would be free to
focus on deliberations on challenging
issues and the provision of useful,
consensus advice reflecting input from
multiple sectors and industry
stakeholders.
The Department is also interested in
hearing from stakeholders on the
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Department’s proposal to transition
State Apprenticeship Councils to a more
strategic role and away from reviewing
applications from prospective sponsors
to allow for greater focus on expansion,
quality improvements, equity, and
system alignment initiatives within the
State.
Proposed § 29.26(c)(1) concerns the
composition of State Apprenticeship
Councils and would expand upon the
language in the existing regulation at 29
CFR 29.13(a)(2)(i) and (ii). The existing
regulation provides that State
Apprenticeship Councils must comprise
individuals who are knowledgeable in
matters pertaining to ‘‘apprenticeable
occupations’’ and must include equal
numbers of representatives from
employer and employee organizations,
as well as public members ‘‘who shall
not number in excess of the number
named to represent either employer or
employee organizations.’’ 183 This
proposed rule would retain the
requirement that State Apprenticeship
Councils contain an equal number of
representatives from these three
sectors—employers or employer
organizations, labor organizations, and
members of the public.184 It would
further provide more granular
information about the backgrounds of
such individuals that would be useful
for aligning State Apprenticeship
Council membership with the
Department’s goals for expansion of the
National Apprenticeship System and
alignment with other workforce
development entities and LEAs. This
proposal also envisions that State
Apprenticeship Councils would be
balanced from an employer and labor
perspective, but also that the
membership would be reflective and
inclusive of underserved communities
so the State Apprenticeship Council can
provide key recommendations that
promote the goals of expansion,
diversification, and greater equity in the
National Apprenticeship System.
For example, at proposed 29 CFR
29.26(c)(1)(i), the Department explains
that representatives from the employer
sector (either employers or employer
183 See
29 CFR 29.13(a)(2)(i) and (ii).
the current regulation does stipulate
equal numbers of representatives from the employer
and labor sectors, it only requires that the number
of public representatives be equal to (or less than)
the number of representatives from the employer
sector or the labor sector (which are required to be
equal). For example, the current regulation would
allow for a State Apprenticeship Council to be
made up of 10 representatives from each of the
employer and labor sectors, and up to 10 (but no
more than 10) representatives from the general
public. The proposed regulation would require
equal numbers of representatives from all three
sectors—employer, labor, and public.
184 While
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organizations) may include
representatives from sectors where
apprenticeship is not currently
widespread. Similarly, proposed
paragraph (c)(1)(ii) explains that
representatives from labor organizations
or joint labor-management organizations
(an organization that is known to and
relevant for registered apprenticeship,
wherein representatives from both the
management and labor divisions of an
organization form a deliberative body
that addresses issues with input from
both sides) may include those from
industries or occupations where
apprenticeship has not traditionally
been utilized. This additional detail
would align with the Department’s goal
of expanding registered apprenticeship
generally, and particularly into new
industries where registered
apprenticeship has yet to take hold as
an effective workforce training tool. The
Department expects that State
Apprenticeship Councils would be a
useful resource to support this goal and
encourages such bodies to recruit
members who can provide insights from
industries targeted for registered
apprenticeship expansion.
At proposed 29 CFR 29.26(c)(1)(iii),
the Department proposes to require that
State Apprenticeship Councils’
representatives from the general public
include at least one representative from
the State’s workforce development
system, and at least one representative
from the secondary or postsecondary
education system in the State who is
familiar with registered apprenticeship.
The Department expects that improved
alignment between the National
Apprenticeship System and State-level
workforce development programs and
educational networks would be another
area where State Apprenticeship
Councils can provide valuable insight,
advice, and recommendations to guide
the ongoing integration of these related
job strategies. Apprenticeship,
workforce training, and education all
share the common goal of preparing
participants—whether apprentices, job
seekers, or students—for success in the
labor market, for stable careers, and for
achieving financial security. Successful
outcomes for such participants also
benefit U.S. employers by helping them
address their talent needs. Ultimately,
successful outcomes for job seekers and
employers make U.S. businesses more
competitive in the global marketplace
and provide a meaningful boost to the
U.S. economy; achieving optimal
alignment among apprenticeship,
workforce development, and education
is a critically important national
interest. Accordingly, the Department
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proposes to require that State
Apprenticeship Councils would recruit
and retain members who represent
workforce development and education
to facilitate connections and provide
insight for the mutual benefit of their
respective systems and the National
Apprenticeship System.
Proposed § 29.26(c)(2) is a new
provision that, for the reasons discussed
above, would prohibit State
Apprenticeship Councils from assuming
or carrying out any of the
responsibilities and functions of the
SAA listed in proposed § 29.26(a).
Proposed paragraph (d) would require
that an SAA must establish a reciprocity
process for providing approval in the
SAA’s State to apprentices, registered
apprenticeship programs, and standards
of apprenticeship that are registered by
other Registration Agencies for Federal
purposes. Proposed paragraph (d) would
expand upon an existing requirement
that an SAA must accord reciprocal
approval for Federal purposes. The
existing requirement does not specify
how, or on what basis, an SAA must
provide reciprocal approval which has
led to uncertainty by sponsors on the
process for being granted such
reciprocity across SAAs. To address this
gap, proposed paragraph (d) would
specify that the process must provide
for a determination on a program
sponsor’s application for reciprocity no
later than 45 calendar days after receipt
of the request. Further, proposed
paragraph (e) would specify a
reciprocity process established by an
SAA provide reciprocal approval only
when certain conditions are met.
Proposed § 29.26(d)(1) would require
that the reciprocity process must ensure
reciprocal approval only be provided
where the program sponsor meets the
statutory and regulatory wage and hour
requirements and apprentice-tojourneyworker ratios of the State in
which reciprocal approval is sought.
Proposed § 29.26(d)(2) would require
that the reciprocity process ensures that
the program and apprentices to which
reciprocal approval is accorded are
registered by the SAA.
Proposed § 29.26(d)(3) would require
that the reciprocity process must
account for the development of
standards that meet or exceed the
requirements of State or local licensure,
if licensure is required for the
occupation that is the subject of the
program that is being accorded
reciprocal approval. This proposed
change from requiring reciprocity is a
recognition of an evolution in the
Department’s understanding of how
reciprocity works with regard to SAAs,
State labor laws, licensing laws, and the
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expansion of State benefits associated
with registration by an SAA. The
Department believes the current
regulatory text at § 29.13(b)(7), which
essentially requires SAAs to provide
reciprocal approval, is overly simplistic
and, if read literally, could jeopardize
the ability of apprentices to legally work
in a State. The current effect has been
a barrier to registration status access and
a failure to properly account for all the
State issues related to apprenticeship
programs. However, the Department
does believe that reciprocity is a vital
tool in assisting sponsors that have
already met the registration
requirements in a State but that have
operations in another to more easily
acquire registration status in that State.
The Department, in acknowledging
these two needs, is proposing to require
that States develop a process in which
they would provide reciprocity and
articulate that process as part of their
State Apprenticeship Plan submission
in proposed § 29.27(b)(3). The
Department anticipates that expansion
of this requirement and further
elaboration upon the criteria that a
reciprocity process must address would
further its goal of driving alignment in
the National Apprenticeship System
and is interested in comments about this
approach in terms of providing
transparency to potential sponsors
while balancing the complex State
needs.
Section 29.27—Recognition of State
Apprenticeship Agencies
Proposed § 29.27 would provide the
framework for OA to confer recognition
to States that seek to obtain recognition
or renewal of recognition as an SAA
State. In the process of obtaining
recognition, States would undergo a
strategic planning process that seeks to
establish a broad vision of registered
apprenticeship expansion,
modernization, diversification, and
equitable opportunities for all learners
and workers. The strategic planning
process would be an opportunity for
States to convene stakeholders at the
State level that find value and
opportunity in bolstering the system of
registered apprenticeship in the State.
Through this process, States can build
consensus around a shared strategic
vision and goals; promote program
quality and good jobs; leverage and
align with an existing workforce and
education infrastructure; meet the
skilled workforce needs of employers in
existing and emerging high-growth
industries and occupations; galvanize
commitments for increasing access to
and support within registered
apprenticeship for individuals from
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underserved communities; and utilize
data collection and reporting capacity
for greater system accountability and
transparency.
The Department envisions that the
State Apprenticeship Plan would be a
blueprint for how a State will prioritize
Federal and State investments in
registered apprenticeship and align
administrative, operational, and
governance principles for more effective
and efficient implementation of
expansion and equity strategies and
goals. To the extent this process for
recognition and State apprenticeship
planning is currently underway in
States, either through executive
order,185 statutory mandate,186 or
unified or combined planning under
WIOA 187 and Perkins, States can build
off of their lessons learned in this
proposed process and continuously
incorporate new investments, statutory
or governance changes, and system
innovations through utilization of
maximum flexibility to modify plans.
States also would have the opportunity
to receive recognition from the
Department for the purposes of
operating registered CTE apprenticeship
programs in their States as part of the
State Apprenticeship Plan.
Through the State planning process
for SAA recognition, States would have
an opportunity to incorporate new and
existing investments, innovations, and
strategies into their plans. States can
incorporate recent investments in the
transportation, clean energy, and
manufacturing sectors, and in more
resilient infrastructure, for example,
through the Bipartisan Infrastructure
Law, IRA, and CHIPS Act. These laws
185 Office of the Governor of Kansas, Laura Kelly,
Executive Order No. 22–07, ‘‘Establishing the Office
of Registered Apprenticeship,’’ Sept. 6, 2022,
https://sos.ks.gov/publications/Register/Volume-41/
Issues/Issue-37/09-15-22-50504.html.
186 Governor’s Workforce Board, Rhode Island,
‘‘Unlocking Apprenticeship: A Strategic Plan for
Expanding New and Innovative Apprenticeship
Models in Rhode Island,’’ Dec. 2017, https://
apprenticeshipri.org/wp-content/uploads/2018/01/
2017-Apprenticeship-Report-Final.pdf.
187 DOL, ‘‘Required Elements for Submission of
the Unified or Combined State Plan and Plan
Modifications under the Workforce Innovation and
Opportunity Act,’’ OMB Control Number 1205–
0522, Sept. 5, 2019, https://www.dol.gov/sites/
dolgov/files/ETA/wioa/pdfs/State-Plan-ICR.pdf.
Note: States must address all program-specific
requirements for the WIOA core programs
regardless of whether the State submits either a
Unified or Combined State Plan. The Unified or
Combined State Plan must, with respect to activities
carried out under subtitle B of title I of WIOA,
describe how the State will incorporate registered
apprenticeship into its strategy for service design
and delivery as well as provide the procedure,
eligibility criteria, and information requirements for
determining training provider initial and continued
eligibility, including for registered apprenticeship
programs.
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aim to encourage the use of registered
apprenticeship and would offer an
opportunity to engage and convene
stakeholders in new and emergent
industries that may not have
traditionally been participating in the
National Apprenticeship System.
Furthermore, investments that have
been made by the Department under
AAI, Apprenticeship Building America,
and State Apprenticeship Expansion,
Equity, and Innovation grants have been
and continue to be a catalyst for
encouraging States to make strategic
investments through coordinated
partnership with regional and local
program sponsors and employers and to
build a dynamic system of registered
apprenticeship in their States. States
also would have the opportunity to
create and join an interconnected
network of industry intermediaries at
the national and State level to facilitate
effective industry engagement and
support efforts for program sponsors to
better integrate equity into programs. To
the extent that States choose to better
align cross-system planning with WIOA
or Perkins or both, States can use the
State Apprenticeship Plan process for
coordination at the State and local level
to leverage resources for related
instruction and on-the-job training.
Additionally, this would enable the
leveraging of Federal- and State-funded
workforce and education infrastructure
and provide necessary supportive
services for shared priority populations,
underserved communities, and
individuals who face barriers to
economic mobility. This approach
would also enable equitable access to
career exploration, pre-apprenticeship,
and Job Corps that lead to registered
apprenticeship career pathways for job
seekers. Lastly, this approach would
enable SAAs to engage in employerdriven, innovative sector strategies and
State economic development initiatives,
as well as align measurable outcomes
and disaggregated demographic data
through data sharing and reporting
strategies.
Finally, proposed § 29.27 would
modify the existing regulatory
requirement (found at 29 CFR
29.13(a)(1)) that an SAA, to be eligible
for recognition by OA, must submit a
State apprenticeship law that conforms
to the requirements contained in 29 CFR
parts 29 and 30. The proposed rule
would instead require that a State’s
apprenticeship laws either meet or
exceed the minimum requirements set
forth in 29 CFR parts 29 and 30 for
protecting the safety and welfare of
apprentices, as discussed further below.
Over time, the Department has observed
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that the existing State law conformity
standard has greatly impeded the
efficient and reasonable consideration of
applications for recognition by many
SAAs. The Department believes that this
revision would ensure that all SAAs
satisfy the minimum Federal labor
standards and EEO in apprenticeship
requirements established by the
foregoing regulations, while also
providing States with the regulatory
flexibility to innovate and expand the
scope of protections available to
apprentices who are enrolled in, or
seeking admission into, registered
apprenticeship programs. This
provision would also harmonize with
the State law flexibilities that would be
preserved under the proposed
regulatory provision concerning
‘‘Relation to Other Laws’’ at proposed
§ 29.5.
The process proposed in this section
would further promote consistency
within the National Apprenticeship
System as it is intended to establish a
process that would be uniform and
transparent for States seeking
recognition or continued recognition as
an SAA State. The implementation of a
4-year State planning process would
satisfy each of those goals by
simultaneously creating a consistent
cadence by which all States would have
their suitability for recognition assessed,
and a basis to be used by the
Administrator to approve or deny
submitted State Apprenticeship Plans.
This augmentation to the current
process would leave in place integral
components of systemic consistency
such as demonstrated compliance with
Federal regulations and submission of a
State EEO plan. The addition of
components such as the
operationalization of requirements
outlined in proposed § 29.26, and clear
communication of a strategic vision for
the continued expansion and
modernization of apprenticeship are
needed to strengthen the existing
recognition process. The Department
intends to make the contents of such
plans publicly available to promote
greater transparency in the National
Apprenticeship System.
Proposed § 29.27 would set forth new
requirements for State government
agencies to obtain or maintain
recognition as an SAA. Specifically, this
section describes the process by which
a State government agency would
submit a State Apprenticeship Plan to
the Administrator for review and
approval. As discussed below, this
process would require a State
government agency to submit, as part of
the State Apprenticeship Plan, strategic
planning elements that address the
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State’s goals to expand the registered
apprenticeship model.
Proposed paragraph (a) would outline
the application process for the
submission, review, approval, or
disapproval of the State Apprenticeship
Plan. Current § 29.13(d) prescribes that
the State’s apprenticeship law will be
reviewed for Federal conformity every 5
years based on their last approval from
OA. To address the lack of consistency,
proposed § 29.27(a)(1) would establish a
clear process and a regular cadence for
all States to submit a State
Apprenticeship Plan for review and
approval by the Administrator.
Proposed § 29.27(a)(1) would set forth
that State Apprenticeship Plans are due
every 4 years, beginning for a State
seeking recognition for a 4-year period
after December 31, 2026, a departure
from the current SAA recognition
period of 5 years. This change is
precipitated by ETA’s desire to better
align apprenticeship with the greater
workforce development system,
including WIOA and the Perkins
program, which also utilizes a State
planning process on a 4-year cycle. The
selection of December 31, 2026, would
provide at least 2 full calendar years for
States to make the necessary changes to
their laws and develop plans consistent
with the requirements in this proposed
rule. The timing of 2026 generally aligns
with the next WIOA State planning
process that States undergo as required
by title I of that Act as well as the
Perkins program. While there is some
inconsistency with the WIOA State
planning process, which is for the
period beginning July 1, 2026, the
Department believes that States do need
sufficient time to make changes,
particularly in instances where State
apprenticeship laws may need to be
updated. While the cycles do not
completely overlap, they do occur
during the same calendar year and the
Department considers this alignment in
timing as a strategic opportunity to
build greater cohesion and strategic
State operations and coordination with
the State’s workforce system, CTE
system, and system of registered
apprenticeship, all of which are engaged
in planning around the same time
period. This alignment could lead to
increased system cohesion and
coordination. To address this gap in
time, the Department is proposing the
first State Apprenticeship Plan cycle to
be slightly less than 4 years. Proposed
paragraph (a)(1)(ii) would provide that
the first State apprenticeship planning
cycle would cover SAA recognition
from January 1, 2027, through June 30,
2030. Proposed paragraph (a)(1)(iii)
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would provide that the second State
apprenticeship planning period would
cover the 4-year period beginning on
July 1, 2030. The goal of this proposal
is to align with WIOA’s State planning
process in the future. Proposed
paragraph (a)(1)(iv) would provide that
while a State can seek SAA recognition
at any time, consistent with it being at
least 120 days prior to when a State is
requesting such recognition, the
approved SAA must also submit a State
Apprenticeship Plan to align with the
next State apprenticeship planning
cycle. For instance, if a State that has
not been previously recognized as an
SAA State applies for and receives SAA
recognition from the Administrator in
July 2028, they must still submit a State
Apprenticeship Plan for recognition for
the 4-year period spanning July 1, 2030,
to June 30, 2034. The goal of this
proposal is to ensure that all SAAs are
on a consistent and aligned State
planning cycle. In addition to ensuring
consistency with other programs such as
WIOA and Perkins to enhance synergies
between the systems, it also may lead to
benefits from SAAs sharing their
planning experiences with each other to
strengthen State coordination and
alignment. Under proposed paragraph
(a)(1)(i), SAAs seeking recognition from
the Administrator must submit their
plans for the Administrator’s review at
least 120 days prior to the proposed
effective date of their recognition. This
would mean that State government
agencies seeking recognition for a
period after December 31, 2026, must
submit on approximately September 1,
2026, to meet the 120-day criteria. The
Department is interested in comments
about this approach, the ability of States
to successfully transition, and any
potential flexibilities the Administrator
may need to provide under this
approach. Commenters requesting
flexibility are encouraged to describe a
standard by which this could be
accomplished so as to not perpetuate
longstanding misalignment with these
proposed regulations.
Proposed § 29.27(a)(2) would specify
the circumstances that would lead to an
SAA seeking a modification to their
State Apprenticeship Plan. Proposed
paragraph (a)(2)(i) outlines when a
modification would be required. These
circumstances would include changes
in Federal or State law, changes to labor
market conditions, or changes to State
vision, strategies, policies, operational
procedures, or organizational structure
of the SAA that would materially
impact the ability of the SAA to fulfill
its plan as written and approved. For
example, modifications would be
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necessary when a new State
apprenticeship law adds further
requirements not called for under these
proposed regulations, or a State may
restructure its oversight of its workforce
training programs by shifting oversight
to a different State government agency.
However, a determination would need
to be made that the modified
submission meets the requirements for
approval.
Proposed § 29.27(a)(2)(ii) would
describe that an SAA also has the
discretion to modify its State
Apprenticeship Plan. This may include
an SAA seeking a change in its
recognition status from provisional to
full under proposed paragraph (c) of this
section. While regulatory in nature for
the compliance of the SAA, the
Department believes Plans are also
strategic documents that can lead to
greater institutionalizing of State-based
systems of registered apprenticeship
into not just a regulatory or passive role
in reviewing programs but in proactive
approaches and strategies to expanding
high-quality registered apprenticeship
programs. Another example of when an
SAA may seek a modification to its
State Apprenticeship Plan is if the SAA
is seeking recognition for the purposes
of registering CTE apprenticeship
programs under subpart B. The
Department envisions that SAAs may
seek this recognition at a different time
period than the initial SAA recognition
process, and a State Apprenticeship
Plan modification would be an
appropriate method to seek recognition
for the purposes of subpart B.
Proposed § 29.27(a)(2)(iii) would
specify that modifications to an
approved State Apprenticeship Plan
must be submitted to the Administrator
at least 120 days prior to the requested
effective date of the modification. The
Department is including this
requirement to allow the Administrator
sufficient time to review and confirm
that any proposed modifications meet
the requirements for approval.
Proposed § 29.27(a)(2)(iv) would
provide that, if the modifications are
approved by the Administrator,
modified State Apprenticeship Plans
remain approved until the end of the
original cycle of the Plan.
Proposed paragraph (b) describes the
contents of the State Apprenticeship
Plan. Proposed paragraph (b) begins by
setting forth the minimum requirements
by which a recognized SAA must abide.
Then, proposed paragraph (b) goes on to
describe the full contents of what a State
Apprenticeship Plan must include.
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Proposed § 29.27(b)(1) would
establish what the Department has
determined to be the core requirements
of the registered apprenticeship model
that a recognized SAA must meet or
exceed. As part of this process the State
must submit its proposed or current
apprenticeship laws governing the
standards of apprenticeship,
apprenticeship agreements, registration
requirements, program standards
adoption agreements, qualifications of
apprentice trainers and providers of
related instruction, end-point
assessments, complaints, recordkeeping,
processes by which a program will be
reviewed and if necessary deregistered,
the roles and responsibilities of SAAs,
and the reporting requirements for an
SAA. This provision also would require
that the SAA coordinate with the State’s
education system, including institutions
of higher education, LEAs, State CTE
and Educational Agencies, and other
educational entities that support CTE
programs and career pathways, and
mandate that the SAA provide a
description of any efforts to align and
leverage apprenticeship-related data
with education system and workforce
development system data. The
Department believes that these are core
requirements of Registration Agencies
and, as such, must govern the roles of
SAAs. Instead of the current standard of
conformity with 29 CFR part 29, the
Department is proposing a standard that
the State laws meet or exceed these
requirements for protecting the safety
and welfare of apprentices. The
Department is proposing this more
flexible approach for States to innovate
beyond the current conformity standard,
which essentially requires that the State
laws mirror 29 CFR part 29 with few
exceptions. This standard is designed to
set the minimum quality requirements
and would provide States the flexibility
to innovate if they can demonstrate that
it advances the goal of protecting the
safety and welfare of apprentices. This
standard is at the heart of the
Department’s mission under the NAA.
The Department welcomes comments
on this proposed standard including
ideas by which the Department may
apply it. Under the proposed standard,
State laws that, for example, provide
higher or more frequent wage
progressions than the proposed rule,
would require more frequent program
reviews, or require more training for
instructors or protections for
apprentices may all be acceptable
deviations.
Proposed § 29.27(b)(2) would identify
the Strategic Planning Elements to be
submitted as part of the State
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Apprenticeship Plan. Strategic planning
elements provide an opportunity for the
SAA to develop a vision for expanding
and improving the registered
apprenticeship model in its respective
State, something that is integral to the
robust cooperation between OA and
SAAs. The absence of strategic
alignment in the current recognition
process limits OA’s ability to promote
and embed high-quality apprenticeship
as a talent development strategy within
States. Increased Federal benefits and
strategies tied to the leveraging of
registered apprenticeship programs have
created a need to ensure further
cooperation by SAAs to perform a
strategic role in the State’s strategic
workforce initiatives. Examples of this
increased need include the passage of
WIOA and the strategic role registered
apprenticeship programs are designed to
play in fostering registered
apprenticeship strategies, and the need
to ensure an active role in promoting
equity in apprenticeship in light of both
the 29 CFR part 30 regulation and the
Department’s priorities. By mapping out
both short-term and long-term strategies
through utilization of available
individual and cross-sectional labor
market data that speaks to the past,
present, and future potential of
registered apprenticeship as a workforce
development strategy, a State would be
better positioned to work with OA and
ETA to grow and modernize
apprenticeship within the State. The
strategic planning elements would allow
OA to ascertain how an SAA will align
with the Department’s goal of, and
initiatives around, driving ongoing
modernization and system alignment
across stakeholders. Components of the
strategic planning elements would
include goals for expanding the
registered apprenticeship model in the
State; goals for promoting registered
apprenticeship programs for
underserved communities in the State;
goals for aligning a State’s registered
apprenticeship activities with broader
education and workforce development
activities; activities to coordinate with
economic development entities within
the State; and strategies for engaging
and leveraging industry intermediaries
as part of the State’s strategy for
expanding registered apprenticeship
programs.
Proposed § 29.27(b)(3) would identify
the Operational Planning Elements to be
submitted as part of the State
Apprenticeship Plan. Operational
planning elements would identify key
items that are necessary to the
implementation of the vision developed
in the strategic planning elements and
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3221
that generally describe how the State
government agency would perform the
roles and responsibilities of an SAA
described in proposed § 29.26. Proposed
§ 29.27(b)(3) would specify the required
operational planning elements when a
State is submitting its State
Apprenticeship Plan for recognition as
an SAA State every 4 years. The
operational planning elements required
in an initial State Apprenticeship Plan
would be: the State’s EEO plan, in
conformity with part 30; the State’s
technical assistance plan; the State’s
process by which it will meet
performance reporting requirements of
proposed § 29.28 including utilizations
details of data management tools and
data management procedures; the plan
for conducting program reviews; the
State’s plans to operationalize
registration standards; the State’s
reciprocity policy, in accordance with
proposed § 29.26(f); and the structure of
how the State Apprenticeship Council is
or will be structured consistent with the
requirements of proposed § 29.26.
Proposed § 29.27(b)(4) would identify
the assurances to be provided to the
Administrator as part of the State
Apprenticeship Plan. The assurances
would provide a simplified method for
OA to ensure that an SAA is meeting
other requirements of proposed parts 29
and 30, not already identified in the
other subsections of proposed
§ 29.27(b)(4). The assurances identified
would be: that the State will provide a
process for local registration of National
Guidelines for Apprenticeship
Standards; that the State has the
resources necessary to operate the SAA
and is capable of carrying out all of the
responsibilities of the SAA; that the
State will have a publicly available
website describing its apprenticeshiprelated laws, regulations, policies, and
procedures; and that the State will
require from sponsors a written
assurance that they are complying with
the requirements of the Support for
Veterans in Effective Apprenticeships
Act of 2019. The Department has
determined that these assurances would
be necessary to align the operations of
recognized SAAs with that of OA. The
Department anticipates that these
assurances would help drive system
alignment and deliver high-quality
apprenticeship training to all
apprentices by all Registration Agencies.
The Department has proposed these
provisions as assurances as a balance of
prioritizing the most important elements
where a narrative is needed for a State
Apprenticeship Plan versus the need to
have an SAA provide a more
streamlined process for meeting these
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key goals. The Department welcomes
comments on these assurances,
including the value an assurance in this
situation brings, whether an assurance
is sufficient to drive the alignment
desired, and what, if any, other
assurances should be considered in a
State Apprenticeship Plan.
Proposed § 29.27(b)(5) would provide
for the process by which a State
government agency operating or seeking
to operate as an SAA may apply for and
receive recognition to register CTE
apprenticeship programs in their State.
States would not be required to seek
recognition for registering CTE
apprenticeship programs under subpart
B to receive recognition for registering
apprenticeship programs under subpart
A. States that do seek this recognition
would be required to submit their
proposed or current registered CTE
apprenticeship laws as described in
proposed § 29.24(g)(8) as part of their
State Apprenticeship Plan or
modification. Additionally, this section
would include the requirement that the
written agreement between the
Registration Agency in proposed
§ 29.24(a)(2) would be submitted with
the State Apprenticeship Plan so that
OA can ascertain that this requirement
has been met prior to granting
recognition. Lastly, the State
Apprenticeship Plan must include a
narrative description of how the State
would seek to develop and expand
registered CTE apprenticeship programs
in the State. The Department is
requiring this to ensure strategic
alignment for the SAA in their strategies
for expanding both registered
apprenticeship under subpart A as well
as registered CTE apprenticeship under
subpart B.
Proposed paragraph (c) explains the
designations that OA would convey
upon review of a State Apprenticeship
Plan submitted by a State. The
Department anticipates that this
approach would better ensure that it can
both further its goal of driving system
alignment and high-quality
apprenticeship training across the
National Apprenticeship System and
provide flexibility to States in
transitioning to the State planning
process.
Proposed § 29.27(c)(1) would describe
the conditions that must be met for OA
to convey full recognition. The
Department has determined that the
State Apprenticeship Plan must
demonstrate all conditions in proposed
§ 29.27(c)(1) for full recognition because
they would be necessary to ensure the
State has addressed all of the
requirements in the proposed rule
regarding the increased role that the
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Department envisions for SAAs. Those
requirements would include, but are not
limited to, minimum labor standards, a
comprehensive State Apprenticeship
Plan that addresses all of the strategic
and operational elements necessary to
drive the expansion of quality registered
apprenticeship programs, clear
commitments and progress in promoting
equity throughout the system, and
strategies that integrate workforce
development and educational activities.
Proposed § 29.27(c)(2) describes when
OA would convey provisional
recognition. Provisionally approved
SAAs have provided a minimally
sufficient State Apprenticeship Plan
that has met the minimum requirements
and standards set forth in proposed
parts 29 and 30. However, these are
plans that the Department has
determined have one or more
deficiencies regarding the State’s
planning that prevent the plan from
obtaining full recognition. Proposed
§ 29.27(c)(2)(i) describes the deficiencies
that may result in provisional
recognition, including strategic
planning or operational elements that
are not complete or responsive, such as
not having a technical assistance
strategy for the period covering the State
Apprenticeship Plan.
Proposed § 29.27(c)(2)(ii) explains
that OA would provide technical
assistance to States as they develop, and
prior to the submission of, any
subsequent State Apprenticeship Plan,
either a modification of the initially
submitted plan or a new 4-year plan.
OA would require the submission and
approval of a corrective action plan for
the purpose of obtaining full
recognition. A corrective action plan
would detail a set of actionable steps the
SAA will undertake to address areas of
concern in the State Apprenticeship
Plan, including a timeline for the
implementation of such activities. This
provision also would contain the
requirement that a State may not be
provisionally recognized for more than
one full planning cycle. This would
allow provisionally recognized States
the time needed to make the necessary
adjustments to be fully recognized.
Proposed paragraph (c)(3) would
describe denial of recognition. Proposed
§ 29.27(c)(3)(i) specifies that denial of
recognition would mean that the
Administrator has determined that the
State’s apprenticeship laws do not meet
the minimum standards described in
proposed § 29.27(b)(1). Proposed
§ 29.27(c)(3)(ii) would specify that
denial of recognition would also be
conveyed when the Administrator is
unable to fully approve a State
Apprenticeship Plan after the State was
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provisionally recognized for one full
planning cycle as described in proposed
§ 29.27(c)(2). Proposed § 29.27(c)(3)(iii)
goes on to explain that the processes
and procedures applicable to such
denial of recognition would be
described in proposed § 29.29.
Proposed paragraph (d) continues the
concept in the current regulation at 29
CFR 29.13(i) that OA would also retain
its existing authority to register an
apprenticeship program on either a local
registration or (with respect to National
Program Standards for Apprenticeship)
nationwide basis in instances where
such an action would serve the interests
of the National Apprenticeship System.
Proposed paragraph (e) provides that
OA would monitor and review SAAs to
ensure they are operating consistent
with their approved State
Apprenticeship Plans. While the State
Apprenticeship Plan would provide a
regular 4-year cycle for the review of
SAAs through their plan submissions,
certain instances may warrant more
frequent reviews. For example, if a State
is provisionally granted recognition, OA
may schedule a review to go over the
corrective action plan and provide
technical assistance to ensure the agreed
upon benchmarks in the plan are being
met or conclude that a revision is
needed. The Department is interested in
any comments about when periodic
reviews could or should happen outside
of the 4-year State apprenticeship
planning cycle.
Proposed paragraph (f) would provide
for the derecognition of an SAA,
whether fully or provisionally
approved, when the Administrator
determines that an SAA is not operating
consistent with its approved State
Apprenticeship Plan, and references the
procedures described in proposed
§ 29.29 below.
Proposed paragraph (g) explains that
OA may suspend an SAA’s authority to
register new apprenticeship programs
where a corrective action plan is not
submitted for review and approval, as
contemplated by proposed paragraph
(c)(2). Proposed paragraph (g) goes on to
describe the process by which the
suspension would take effect and the
duration of the suspension. The
Administrator would provide written
notice to the State of the suspension,
which would take effect 30 calendar
days after the date of the written notice.
The suspension would end upon the
State’s submission of a corrective action
plan, as described in proposed
paragraph (c)(2). The Department has
determined that this provision is
necessary to ensure that States submit
corrective action plans to OA to address
their provisional status and a plan to
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make the changes necessary for full
recognition. While an SAA that does not
submit a corrective action plan as part
of its requirement for provisional
recognition would ultimately be
considered for derecognition
proceedings, the Department envisions
this suspension provision as an interim
step that the Administrator may take
prior to derecognition. The Department
is interested in comments regarding an
interim approach towards
accountability in this regard, including
if other interim steps should be
considered, or if a State’s failure to
submit corrective action plans should
immediately lead to denial of a State
Apprenticeship Plan and derecognition.
Proposed paragraph (h) explains that
where a State Apprenticeship Plan is
denied or where the Administrator
derecognizes an SAA, a State would not
be permitted to have a State government
agency function as an SAA. Specifically,
a State would not be authorized to
conduct operations and activities, for
Federal purposes, in connection with
those responsibilities enumerated in
proposed § 29.26(a). Further, proposed
paragraph (h) explains that this
prohibition would continue until OA
conveys full or provisional recognition
to a State Apprenticeship Plan. States
that have been denied recognition or
derecognized may always submit an
updated or new State Apprenticeship
Plan to address the recognition
requirements.
Section 29.28—Reporting Requirements
for State Apprenticeship Agencies
One of the key goals of the
Department’s proposed rule is the
collection of accurate and complete
registered apprenticeship data. A key
goal for the Department to fully and
accurately oversee the National
Apprenticeship System, is to have
comprehensive and complete data from
the entire system, including SAAs.
While the existing regulations do not
impose a specific requirement regarding
data collection from SAAs, OA and
SAAs have made great strides to
enhance and increase SAA data
reporting to OA. While those voluntary
submissions have greatly increased
OA’s ability to oversee the system and
report its successes to stakeholders, the
lack of a consistent reporting
requirement leaves significant gaps in
the quality of data. Data collection
requirements that fail to mandate a
central repository for program data and
the data of individual apprentices do
not give sufficient credence to the
importance of data to the continued
growth and modernization of
apprenticeship. Data collection and data
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integrity are not optional tools to
optimize the National Apprenticeship
System, but rather compulsory
elements. Replacing voluntary
recommendations with mandatory
requirements impresses upon SAAs the
Department’s commitment to the
creation and sustainment of a
transparent, unified data system.
Proposed § 29.28 would establish
requirements for SAAs to collect and
report apprentice and sponsor data and
information to the Department. These
requirements would include at least
quarterly submission of individual
apprentice records and annual
submission of sponsor records, as
defined in proposed § 29.25. This
requirement could be met by using the
Department-provided case management
system, such as many SAAs currently
do with RAPIDS, or creating
interoperable mechanisms in which the
required information is reported
accurately, timely, and with validity in
the format determined by the
Administrator on a quarterly and annual
basis. Utilizing a central information
and case management system provided
by the Department would defer costs for
States related to the development and
ongoing maintenance of such systems
and make available technical assistance
to States to enable the technological
expertise and capacity to reliably and
validly enter accurate information to
manage registered apprenticeship
program participants while also
fulfilling reporting requirements.
The purpose of this proposed
provision is to facilitate modernization
of the National Apprenticeship System,
as recommended in the ACA’s 2022
Interim Report,188 and to increase the
SAAs’ reporting to OA’s RAPIDS, by
making data collection and reporting
more uniform and standardized across
the Department’s and SAAs’ case
management systems. Creating a more
unified and standardized approach to
188 ACA recommendations from its 2022 Interim
Report related to the uniform collection of
apprenticeship data on a national scale include:
• Analyze how to encourage more State
participation in RAPIDS and consider withholding
OA State-level funding for States that do not fully
participate in the RAPIDS system. Encourage States
that do not participate in the RAPIDS system, or
participate only partially, to take part in the
collection and sharing of apprenticeship data for
the benefit of the national dataset (RAPIDS).
• Encourage sponsors and apprentices to provide
requested data for the benefit of a robust, national
apprenticeship dataset.
• To assist stakeholders, including States and
sponsors, with improved data collection and usage,
OA should consider investments or other financial
support to incentivize complete and accurate data
collection.
ACA, ‘‘Interim Report to the Secretary of Labor,’’
May 16, 2022, https://www.apprenticeship.gov/
sites/default/files/aca-interim-report-may-2022.pdf.
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data collection and reporting also would
enable system transparency and
accountability. Greater transparency is
another recommendation in the ACA’s
2022 Interim Report, as enabling greater
transparency can help States develop
validation strategies for more reliable
data.189 Furthermore, increased
accountability can help States assess
program quality and support equity
strategies to increase registered
apprenticeship program access,
participation, and improve outcomes for
underserved communities. Through
more robust data collection and
reporting, National Apprenticeship
System stakeholders can make more
informed, data-driven decisions about
how to best target investments in
registered apprenticeship programs.
States would also be able to have a
framework for disaggregating
demographic data to support planning
requirements and align State planning
goals with State strategic planning
efforts under WIOA and Perkins.
Increased data collection and reporting
can facilitate opportunities for States to
rigorously evaluate and assess
apprenticeship pathways.
Understanding that many States have
their own case management systems for
sponsor and apprentice data, this
modernization effort would support
flexibility and create mechanisms for
increased interoperability.
Proposed § 29.28(a) would establish
the requirement that information about
individual apprentices and sponsors
must be collected by the Registration
Agency, which is described in proposed
§ 29.25(a) and (b). This requirement
makes clear that SAAs would be
responsible for reporting to the
Department the information that
sponsors report to the Registration
Agency under proposed § 29.25(a) and
(b). These requirements are key to
improving collection of demographic
information that would enable the
Department to better disaggregate and
leverage such data to develop and track
indices relating to equity. This data
analysis can serve to inform and drive
improvements towards greater equity in
the apprenticeship system. These goals
are not only important to the
Department, they are also aligned to the
recommendations from the ACA to
189 One recommendation from the ACA’s 2022
Interim Report was to ‘‘[m]ake RAPIDS data more
publicly available and accessible to improve
transparency and accountability, and enable
improved insights and analysis related to
apprenticeship.’’ ACA, ‘‘Interim Report to the
Secretary of Labor,’’ May 16, 2022, at 16, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
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increase SAA reporting to OA on this
subject.
These changes not only serve the
goals of greater transparency and equity,
but would also enable the Department to
modernize its systems to capture more
fully an apprentice’s progress
throughout the program, including the
capture of licenses, degrees, and the full
scope of credentials earned through
registered apprenticeship programs, as
recommended by the ACA.
Proposed § 29.28(b) would establish
the requirement that information
collected under proposed § 29.25(a)
must be reported by the Registration
Agency to the Department on at least a
quarterly basis. Under the current
approach, this type of reporting is done
primarily through sponsors and
Registration Agencies entering data into
the RAPIDS system, and the Department
anticipates that approach would
continue. This would ensure that
Registration Agencies are responsible
for reporting quarterly to the
Department the information that
sponsors report to the Registration
Agency under proposed § 29.25(a).
Reporting on a quarterly basis would
align the reporting cadence with WIOA
and most other workforce programs, and
enable more timely availability of
information as well as more timely
identification of any reporting
difficulties and deficiencies so that
those issues can be resolved in advance
of the submission of annual reports.
Quarterly reporting also would enable
the identification of patterns that occur
within the year, such as seasonal
changes in employment patterns.
Proposed § 29.28 (c) would establish
the requirement that information
collected under proposed § 29.25(b)
must be reported by the Registration
Agency to the Department on an annual
basis. Under the current approach, this
type of reporting is done primarily
through sponsors and Registration
Agencies entering data into the RAPIDS
system, and the Department anticipates
that approach would continue. This
would ensure that Registration Agencies
are responsible for reporting annually to
the Department the information that
sponsors report to the Registration
Agency under proposed § 29.25(b).
Proposed § 29.28(d) would establish
that the Department will make the
information collected under proposed
§ 29.28(c) publicly available. The
Department anticipates utilizing a
public-facing website on
apprenticeship.gov to share this
information. Information shared will
include raw data in a variety of file
formats. This would be responsive to
the recommendation from the ACA to
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make disaggregated demographic data
publicly available and modernize the
National Apprenticeship System
through quality data and analytics.
Proposed § 29.28(e) would establish
that to meet the requirements in
proposed § 29.28(a) through (c), SAAs
must either utilize a case management
system provided by the Department,
such as RAPIDS, or maintain a State
system that is capable of reporting
individual apprentice record level
information to the Department in a
manner that meets requirements
prescribed by the Administrator and
minimum security requirements
consistent with FERPA. This would be
a vital component to ensure that the
data reported to OA is consistent
nationally and across State lines. The
Department is not proposing to mandate
the use of RAPIDS or a future system;
however, as of the end of fiscal year
2023, 19 States do utilize RAPIDS as
their primary system and it is a service
available to them to assist in meeting
these requirements and 11 States use an
external case management system,
uploading results into RAPIDS on a
quarterly basis. Separately, the
Department acknowledges that some
SAAs have their own systems and may
collect additional information that is
important for their stakeholders. This
proposal would not require them to no
longer use that system but would
require that they report in a consistent
format.
Section 29.29—Denial of a State
Apprenticeship Plan for Recognition as
a State Apprenticeship Agency and
Derecognition of Existing State
Apprenticeship Agencies
The current regulations at § 29.13
include a paragraph regarding the denial
of an application for a State to become
an SAA as well as a paragraph regarding
procedures when an SAA voluntarily
withdraws from recognition. The
current regulations also feature a
separate section describing the
derecognition process at § 29.14.
Proposed § 29.29 is new and would
consolidate the processes and
procedures concerning the denial of a
State Apprenticeship Plan and the
derecognition of an existing SAA into
one section. Proposed § 29.29 would
update the existing language and align
these existing processes with the new
State apprenticeship planning process
in proposed § 29.27. The procedures
concerning requests for a hearing after a
final determination denying recognition
or derecognizing an existing SAA would
largely be the same as the current
regulation but have been updated to
align with the deregistration hearing
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procedures in proposed § 29.21. Further,
State obligations after derecognition of
an existing SAA would largely retain
the language in the current regulation.
Proposed paragraph (a) would outline
the processes and procedures when OA
denies a State Apprenticeship Plan or
derecognizes an existing SAA.
Proposed § 29.29(a)(1) explains that a
written notice would be provided to a
State when OA denies a State
Apprenticeship Plan, pursuant to
proposed § 29.27(c)(3), or derecognizes
an existing SAA, pursuant to proposed
§ 29.27(f). The notice would include the
reason, or reasons, for the denial or
derecognition. The notice would also
identify what remedial measures the
State will need to take to address the
denial or derecognition. Finally, the
notice would set a timeline for
addressing those measures, which must
be no longer than 12 months after the
date of the written notice. Corrective
action plans would be required in the
case of a provisionally recognized SAA.
Here, in the case of derecognition,
corrective action plans would not exist.
Instead, upon issuance of the written
notice that is provided to an SAA that
it will be derecognized including the
reasons leading to the derecognition, the
State would be given a timeline to
complete necessary remedial measures
to address the reasons leading to
derecognition. The inclusion of a
timeline is necessary so that a State can
make the necessary changes or take the
necessary actions to ensure compliance.
If a State does not make the necessary
changes or take the necessary actions,
the Department would proceed with the
denial or derecognition procedures
described in proposed § 29.29. The
Department acknowledges that the
reason for the denial or derecognition
will vary based on the facts specific to
the scenario, and, as a result, the time
needed to address those measures will
vary. However, the Department believes
that a specific timeframe is necessary to
ensure that the reason for denial or
derecognition would be addressed in an
expeditious manner. Accordingly, the
Department determined that proposed
§ 29.29(a)(1) should include a provision
specifying that a State would be given
no longer than 12 months after the date
of the written notice to address
identified remedial measures. The
Department determined that 12 months
would be an appropriate timeframe to
allow a State to make potential changes
to their State laws, which may require
a significant amount of State legislative
session scheduling. However, the
Department does not want this
timeframe to remain open-ended, and
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12 months would provide the urgency
needed to make the necessary changes.
Proposed § 29.29(a)(2) is based on the
existing regulation and would explain
that if a State does not address or fails
to remedy the reason(s) for the denial or
derecognition in the timeframe
identified in the written notice, the
Administrator may issue a final
determination. In the final
determination, the Administrator would
include the reason(s) for the denial or
derecognition and the State would be
provided an opportunity to request a
hearing within 30 calendar days of the
date of the final determination. The
Department would provide notice to the
public if a State has been derecognized
by the Department.
Proposed § 29.29(a)(3) is based on
existing provisions at § 29.13(g) and
§ 29.14(c)(3). This section would
describe the procedural requirements
when a State requests a hearing upon
receiving the Administrator’s final
determination. Proposed § 29.29(a)(3)
would provide that a request for a
hearing must be sent to the OALJ and
the Administrator, who, in turn,
transmits the request to the Office of the
Solicitor. The Administrator would also
promptly provide the OALJ with the
administrative file containing all
relevant documents relied upon by the
Administrator in making the final
determination.
Proposed § 29.29(a)(4) and (5) are
based on the existing provisions at
§ 29.13(g)(1) through (4), respectively.
Both proposed § 29.29(a)(4) and (5) have
been updated to align with the
procedures for hearings on
deregistration, described in proposed
§ 29.21.
Proposed § 29.26(a)(6) would describe
the procedures applicable when an SAA
voluntarily seeks withdrawal from
recognition. This section would
recognize that States have the discretion
to voluntarily relinquish recognition of
recognized SAAs.
Proposed paragraph (b) is based on
existing provisions at § 29.14(d) and (e)
and would describe what actions the
Administrator must take when an
existing SAA is denied recognition,
derecognized, or voluntarily seeks
withdrawal of derecognition. Proposed
§ 29.29(b)(1) would be the same as
existing § 29.14(d)(1). Proposed
§ 29.29(b)(2) would combine existing
§ 29.14(d)(2) and (e) into a single
provision and also update the
procedures described therein.
Specifically, proposed § 29.29(b)(2)
would set forth a requirement that the
Administrator must notify sponsors, in
the State where the SAA is
derecognized, that the Department will
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cease to recognize their programs that
were previously registered unless the
sponsor submits an application for
registration with OA within 45 calendar
days after the date of the final agency
determination to derecognize the SAA.
Proposed § 29.29(b)(2) goes on to
describe that the sponsor’s application
for registration would be reviewed in
accordance with the requirements and
procedures described in proposed
§ 29.10. Within 90 calendar days of
receiving the application for
registration, OA would review the
application to determine if it meets the
requirements for registration described
in proposed § 29.10(a) and would
approve any applications for registration
in accordance with the procedures and
requirements described in proposed
§ 29.10(b). OA would deny any
applications for registration if the
application does not meet the
requirements in proposed § 29.10(b).
The procedures described in proposed
§ 29.10(c) would apply to any
applications for registration that are
declined.
Proposed paragraph (c) is based on a
requirement at existing § 29.14(h) and
would explain what a State must do
when its existing SAA has been denied
recognition or derecognized by OA or
has voluntarily withdrawn from
recognition. Proposed § 29.29(c)(1)
would describe the transfer of
apprenticeship-related records and
information to the Department after
derecognition. Proposed § 29.29(c)(2)
would update language from the current
regulation to align with proposed
paragraph (b), adding an additional
requirement that the State must notify
sponsors that their programs will no
longer be registered for Federal
purposes as of 45 calendar days after the
date of the Administrator’s final
determination. Sponsors interested in
registration with OA must submit an
application for registration to OA,
pursuant to proposed paragraph (b).
Finally, proposed § 29.29(c)(3) would
require that States must cooperate fully
with the Administrator during a
transition period. For example, the
Department, during such a transition,
envisions that the State would maintain
open lines of communication with the
Department and would facilitate the
transfer of pertinent records and
information in a timely manner. The
Department includes this proposed
provision to ensure smooth, seamless
continuity of operations in the National
Apprenticeship System, and to further
support the Department in fulfilling its
obligations and responsibilities to
apprentices and program sponsors.
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Section 29.30—Apprenticeship
Requirements in Other Laws
Proposed § 29.30 is designed to help
the National Apprenticeship System
integrate with other Federal or State
laws that have been designed to support
the expansion of registered
apprenticeship programs by providing a
Certificate of Participation to
stakeholders, which provides
information on apprentice participation
that may be required by other Federal or
State laws. This provision would seek to
address situations where information on
apprentices in registered apprenticeship
programs is necessary to document
compliance with Federal and State laws
separate from the NAA. For example,
the Department has a long history of
providing information on apprentice
participation to satisfy the prevailing
wage requirements of the Davis-Bacon
and related Acts and 29 CFR part 5.
Additionally, with the expansion of
registered apprenticeship as an
allowable activity under WIOA, the
apprenticeship requirements of the IRA,
and other Federal and State laws that
provide Federal and State benefits
associated with utilizing registered
apprenticeship, there is, and will
continue to be, a need for OA or SAAs
to provide information to Federal and
State officials responsible for
implementing Federal and State laws,
sponsors or participating employers
seeking Federal or State benefits for
participation in registered
apprenticeship programs, workforce
development system partners funding
individual training accounts or on-thejob training contracts under WIOA with
registered apprenticeship programs, and
potentially future stakeholders as
Federal and State policymakers
continue to embrace the registered
apprenticeship model. The Department
is adding this provision to make it clear
that provision of this information would
be permissible to allow other, related
laws to be effectively implemented
provided that it would be done so
consistent with the requirement of any
applicable Federal or State privacy law
or other relevant law.
E. Part 30 Revisions
As part of this proposed rule for 29
CFR part 29, the Department is
proposing technical and conforming
edits to 29 CFR part 30, which would
address EEO in apprenticeship. The
Department invites commenters to
opine on the proposed technical and
conforming edits to part 30; however,
the scope of these changes is narrow
and primarily confined to necessary
adjustments to align with proposed
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changes to 29 CFR part 29. The
Department is fully committed to the
enhanced alignment of the labor
standards of 29 CFR part 29 with the
part 30 requirements and has proposed
changes through part 29 to bring about
greater alignment. The Department
believes that this increased alignment
between the two parts would enhance
the implementation of 29 CFR part 30
across the National Apprenticeship
System and promote greater equity and
opportunity for job seekers and
apprentices nationwide.
Correspondingly, the Department
proposes limited changes to 29 CFR part
30 to ensure consistency with the
quality enhancements proposed for 29
CFR part 29 in this rulemaking.
The Department proposes a technical
change to replace all cross-references in
part 30 that currently cite to specific
sections of part 29 with citations that
simply cite to ‘‘part 29.’’ The
Department proposes this change to
remove what will now be outdated
references and to avoid the need to
update these cross-references again
following any future reorganization of
part 29. This change would affect the
following sections: 29 CFR 30.3(b)(2)(i),
30.10(a), and 30.12(a)(3); the
introductory language of 29 CFR
30.18(a)(1); 29 CFR 30.18(a)(3) and (4);
the introductory language of 29 CFR
30.18(c); and 29 CFR 30.18(c)(3) and (d).
The Department also proposes a
conforming change to replace the terms
‘‘EEO compliance review’’ and
‘‘compliance review’’ with ‘‘program
review’’ throughout part 30. This would
be consistent with the terminology
being proposed in part 29 and more
accurately reflects the scope of OA’s
reviews, which include both parts 29
and 30 components. This change is
strictly one of terminology and the
Department is not proposing to change
anything about the nature of the reviews
as they are described in part 30. This
terminology change would affect the
following sections: 29 CFR 30.5(b)(2)
and (c)(6), 30.7(d)(2)(ii), 30.12(f), and
30.13(a), (b), and (c); the introductory
language to 29 CFR 30.15; and 29 CFR
30.17(a)(3) and 30.18(b) and (c)(1).
Section 30.2—Definitions
Proposed 29 CFR 30.2 would revise
the definition section to cite to the
definitions of 29 CFR 29.2. The
Department is proposing this change to
place all definitions related to the
National Apprenticeship System in one
section. The Department considers this
technical change an important one for
the regulated community to be able to
navigate and access all the required
definitions in one section of regulatory
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text more easily. The Department is
proposing all the definitions that were
in part 30, but not in part 29, to be
inserted into § 29.2, with these changes
discussed in that section.
Section 30.13—Program reviews
In addition to the proposed
terminology change to ‘‘program
reviews,’’ discussed above, the
Department proposes to amend § 30.13
by replacing references to ‘‘business
days’’ with simply ‘‘days.’’ Days would
be defined in 29 CFR 29.2 to mean
calendar days, and not business days or
workdays. The Department is proposing
to use calendar days instead of business
days for consistency with part 29 and to
improve clarity for the regulated
community. In situations where
sponsors currently have 30 business
days to comply or respond to a review
finding, under this proposed rule they
would have 45 calendar days to do so.
The Department views these timeframes
as roughly equivalent and would not
intend to alter the substantive amount of
working time within which sponsors
would need to act. The Department is
including a reference to the EEO
requirements contained in this part to
ensure that as the Department is
proposing the term program reviews to
address compliance with both parts 29
and 30, this edit would ensure the
regulatory text of part 30 is in alignment
with this provision.
Section 30.14—Complaints
The Department proposes to add a
new subordinate paragraph (c)(1)(vi) to
§ 30.14(c), which would require the
Registration Agency to protect the
identity of the complainant to the extent
practicable. This addition would
maintain consistency with the
complaint process being proposed
under part 29. The Department invites
comments on the substance of this
provision under § 29.17(e)(2), where the
rationale is more fully laid out.
Section 30.15—Enforcement Actions
The Department proposes to amend
§ 30.15(b) by deleting ‘‘or if the
Registration Agency does not institute
such proceedings within 45 days of the
start of the suspension, the suspension
is lifted’’ at the end of the paragraph.
This alteration would maintain
consistency between the suspension and
enforcement procedures under both
parts 29 and 30. This change would also
permit the Registration Agency to
impose a suspension for a set period of
time without being required to proceed
to deregistration proceedings within 45
days of the imposition of the
suspension, thus providing sponsors
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and Registration Agencies more time to
resolve any deficiencies.
Section 30.20—Severability
The Department proposes to include a
severability provision, identical to that
proposed in 29 CFR 29.5, as part of the
conforming edits being proposed for
part 30 to maintain consistency between
the two parts.
V. Regulatory Analysis and Review
A. Executive Orders 12866 (Regulatory
Planning and Review), 14094
(Modernizing Regulatory Review), and
13563 (Improving Regulation and
Regulatory Review)
Under E.O. 12866, OMB’s Office of
Information and Regulatory Affairs
(OIRA) determines whether a regulatory
action is significant and, therefore,
subject to the requirements of the
executive order and review by OMB.
See 58 FR 51735 (Oct. 4, 1993). Section
1(b) of E.O. 14094 amends sec. 3(f) of
E.O. 12866 to define a ‘‘significant
regulatory action’’ as an action that is
likely to result in a regulation that may:
(1) have an annual effect on the
economy of $200 million or more
(adjusted every 3 years by the
Administrator of OIRA for changes in
gross domestic product), or adversely
affect in a material way the economy, a
sector of the economy, productivity,
competition, jobs, the environment,
public health or safety, or State, local,
territorial, or Tribal governments or
communities; (2) create a serious
inconsistency or otherwise interfere
with an action taken or planned by
another agency; (3) materially alter the
budgetary impact of entitlements,
grants, user fees, or loan programs, or
the rights and obligations of recipients
thereof; or (4) raise legal or policy issues
for which centralized review would
meaningfully further the President’s
priorities or the principles set forth in
E.O. 12866. See 88 FR 21879 (Apr. 11,
2023). This proposed rule is a
significant regulatory action under
section 3(f)(1) of E.O. 12866, as
amended by E.O. 14094.
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
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qualitatively values that are difficult or
impossible to quantify, including
equity, human dignity, fairness, and
distributive impacts.
1. Summary of the Economic Analysis
The Department anticipates that the
proposed rule would result in benefits,
costs, cost savings, and transfers for
sponsors, participating employers,
apprentices, and society. The benefits of
the proposed rule are described
qualitatively in section V.A.2 (Benefits).
The estimated costs are explained in
sections V.A.3 (Quantitative Analysis
Considerations), V.A.4 (Subject-bySubject Analysis), and V.A.5 (Summary
of Costs). The nonquantifiable costs and
cost savings are described qualitatively
in section V.A.6 (Nonquantifiable Costs
and Cost Savings). The nonquantifiable
transfer payments are described
qualitatively in section V.A.7
(Nonquantifiable Transfer Payments).
An analysis of distributional impacts of
the proposed rule is in section V.A.8
(Distributional Impact Analysis).
Finally, the regulatory alternatives are
explained in section V.A.9 (Regulatory
Alternatives).
The quantified costs of the proposed
rule for participating employers are rule
familiarization and recordkeeping. The
quantified costs of the proposed rule for
sponsors include rule familiarization,
on-the-job training documentation, wage
analysis and career development, data
collection and reporting, program
registration, program standards and
adoption agreement, administration of
end-point assessments to apprentices
and program reviews. The quantified
costs of the proposed rule for
apprentices include data collection and
reporting and end-point assessments.
The quantified costs of the proposed
rule for SAAs are associated with rule
familiarization, data collection and
reporting, program registration, program
reviews, data sharing, reciprocity of
registration, and submission of State
Apprenticeship Plans. The quantified
costs of the proposed rule for the
Federal Government are associated with
the occupation suitability determination
process, program registration, National
Occupational Standards for
Apprenticeship, National Program
Standards for Apprenticeship, National
Guidelines for Apprenticeship
Standards, end-point assessments, and
program reviews. The quantified costs
of the proposed rule for apprentices are
the requirement to take an end-point
assessment.
3227
Exhibit 1 shows the total estimated
costs of the proposed rule over 10 years
(2025–2034) at discount rates of 3
percent and 7 percent. The proposed
rule is expected to have first-year costs
of $147.9 million in 2022 dollars. Over
the 10-year analysis period, the
annualized costs are estimated at $151.9
million at a discount rate of 7 percent
in 2022 dollars. In total, over the first 10
years, the proposed rule is estimated to
result in costs of $1.066 billion at a
discount rate of 7 percent in 2022
dollars. The majority of these costs are
from changes to registered
apprenticeship that would result in an
estimated annualized cost of $145.9
million at a discount rate of 7 percent
and total 10-year costs of $1.024 billion
at a discount rate of 7 percent. The
creation of registered CTE
apprenticeship is expected to result in
lower costs than the changes to
registered apprenticeship as the
Department anticipates that it would be
a smaller program. The Department
estimates annualized costs from
registered CTE apprenticeship at $6.0
million at a 7-percent discount rate and
total 10-year costs of $42.1 million at a
7-percent discount rate.
EXHIBIT 1—ESTIMATED COSTS
[2022 $millions]
Registered
apprenticeship
program costs
Year
Total costs
1 .............................................................................................................................................
2 .............................................................................................................................................
3 .............................................................................................................................................
4 .............................................................................................................................................
5 .............................................................................................................................................
6 .............................................................................................................................................
7 .............................................................................................................................................
8 .............................................................................................................................................
9 .............................................................................................................................................
10 ...........................................................................................................................................
$147.2
126.8
131.9
137.3
142.6
148.2
153.3
158.7
164.1
169.6
$0.8
2.5
3.7
4.9
6.1
7.3
8.6
9.7
11.0
12.2
$147.9
129.3
135.6
142.2
148.8
155.5
161.9
168.4
175.0
181.8
Annualized, 3% discount rate, 10 years ........................................................................
Annualized, 7% discount rate, 10 years ........................................................................
147.0
145.9
6.4
6.0
153.4
151.9
Total, 3% discount rate, 10 years ..................................................................................
Total, 7% discount rate, 10 years ..................................................................................
1,254.2
1,024.5
54.4
42.1
1,308.6
1,066.6
2. Benefits
lotter on DSK11XQN23PROD with PROPOSALS2
CTE
program costs
This section provides a qualitative
description of the anticipated benefits
associated with the proposed rule. The
Department is unable to quantify the
anticipated benefits due to data
limitations and therefore is providing a
qualitative description of those benefits.
The Department seeks public comments
and inputs to allow for quantification of
the benefits in the final rule.
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a. Benefits From Improvements and
Updates to Registered Apprenticeship
There are numerous benefits that are
expected to result from the updates to
registered apprenticeship programs,
including greater worker protections,
advancements in equity, higher quality
apprenticeship training, and enhanced
program transparency. The addition of
program reviews would increase worker
protections and program transparency
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through reviews of registered
apprenticeship programs to ensure
compliance and identify any
deficiencies that require remedy. In
addition, program reviews must be
conducted if the Registration Agency
receives credible information or
allegations that the program is not being
operated in accordance with program
standards and requirements. This
requirement would offer greater
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accountability in the operation of
apprenticeship programs and provide an
avenue for investigating any potential
instances of noncompliance. In doing
so, the Department would create more
safeguards for apprentices to ensure that
they have healthy and safe working and
learning environments.
The proposed updates to registered
apprenticeship would also yield
additional benefits to apprentices
through changes to the process for
determining occupations suitable for
apprenticeship. The Department’s
proposal would create a more objective,
proactive, and transparent process for
determining occupations suitable for
apprenticeship, which would allow
occupations in non-traditional
apprenticeship industries to grow while
providing protections against the
splintering of existing occupations,
which could have a negative impact on
workers’ wages and job quality. These
modifications also would reinforce that
new occupations suitable for
apprenticeship must meet industryrecognized criteria that place workers
on a pathway to earning an income that
allows them to support themselves and
their families, with a fair opportunity
for career advancement and economic
mobility.
b. General Apprenticeship Benefits
From the Creation of the Registered CTE
Apprenticeship Model
The proposed registered CTE
apprenticeship model would offer
multiple benefits to individuals who are
seeking career opportunities and
looking to develop the skills necessary
to be successful in a certain field.
Apprenticeships help workers to master
both hard skills that are relevant to
occupations, and soft skills such as
communication, problem-solving,
respectful workplace behavior, and
teamwork, all while being paid for their
work.190 Development of these skills is
highly valued by potential employers
and offers benefits for future
employment opportunities. Studies
have found that individuals who
participated in a registered
apprenticeship program were 8.6
percent more likely than
nonparticipants to be employed 6 and 9
years after enrollment.191 In addition,
apprenticeship participants and those
who completed registered
apprenticeship programs were also
found to have greater lifetime earnings
benefits compared to those who had not
participated in or completed a registered
apprenticeship program.192 These
benefits amounted to $100,000 in
lifetime earnings benefits for registered
apprenticeship participants and over
$240,000 for those who completed
registered apprenticeship programs.193
It should be noted, however, that the
results of these studies are correlational
in nature. Apprenticeships not only
provide individuals with valuable
training and skill development without
requiring a period of unpaid training
time—or even requiring educational
loans—but also serve a long-term benefit
in overall career success.
For businesses sponsoring a program,
registration provides a structure and
framework for developing a diverse pool
of skilled workers critical to a
company’s success and a positive net
benefit through value creation and an
ROI. One report shows that utilizing
apprenticeships can contribute to the
financial success of a business by
reducing employee turnover; promoting
a diverse, inclusive, and accessible
talent pipeline; and contributing to a
more positive company culture.194 In
embracing DEIA in the workforce,
research shows that businesses will
outperform less diverse companies in
terms of profitability. One study found
that businesses in the top quartiles for
gender diversity were 21 percent more
likely to experience above-average
profitability than companies in the
fourth quartile, while companies in the
top quartiles for ethnic and cultural
diversity were 35 percent more likely to
outperform other companies in terms of
profitability.195 Thus, businesses
sponsoring an apprenticeship program
will not only have the ability to add
diversity to their own workforce but
also may outperform other companies
profit-wise. Some examples of indirect
benefits include ‘‘improved pipeline of
skilled employees, improved
productivity of coworkers, improved
firm culture and employee engagement
and loyalty, reduced turnover, and even
192 Ibid.
lotter on DSK11XQN23PROD with PROPOSALS2
193 Ibid.
190 Robert
Lerman, ‘‘Expanding Apprenticeship—
A Way to Enhance Skills and Careers,’’ Apr. 15,
2010, https://www2.ed.gov/PDFDocs/collegecompletion/03-expanding-apprenticeship.pdf.
191 Debbie Reed et al., ‘‘An Effectiveness
Assessment and Cost-Benefit Analysis of Registered
Apprenticeship in Ten States,’’ July 25, 2012,
https://mathematica.org/publications/aneffectiveness-assessment-and-costbenefit-analysisof-registered-apprenticeship-in-10-states.
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194 Accenture, ‘‘Getting to Equal: The Disability
Inclusion Advantage,’’ 2018, https://
www.accenture.com/_acnmedia/PDF-89/AccentureDisability-Inclusion-Research-Report.pdf.
195 Dame Vivian Hunt, Lareina Yee, Sara Prince,
and Sundiatu Dixon-Fyle, ‘‘Delivering through
diversity,’’ Jan. 18, 2018, https://
www.mckinsey.com/business-functions/people-andorganizational-performance/our-insights/deliveringthrough-diversity.
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process or product innovation.’’ 196
Another report shows that registered
apprenticeship programs help eliminate
the biasing factors that traditionally
create barriers to entry and promotion
for workers. This opportunity creates
equity for those who are part of
registered apprenticeship programs and
allows for fairness and transparency
throughout the process.197
The proposed registered CTE
apprenticeship model would have
numerous benefits for students who are
enrolled in high school or in community
and technical colleges. This new model
would allow students to continue their
education while participating in the
labor market, provide students with
opportunities to attain a recognized
postsecondary credential, complete
college coursework and a registered
apprenticeship program, and participate
in paid on-the-job learning. These
opportunities would allow students to
earn and learn, accelerate their
completion of postsecondary credentials
through dual enrollment, and put
students on a career path. Earn and
learn programs provide students with an
opportunity to gain access to good jobs
and stable careers without debt or
substantial financial burden.198 A study
completed on the CareerWise Colorado
program found that nearly 64 percent of
CareerWise students achieve the
program’s goal of apprenticeship serving
as an ‘‘options multiplier,’’ in which
they transition on to postsecondary
education, employment, or both.199 The
program would also provide
developmental benefits for youth
participants, both at the personal and
professional level.200 This relationship
can be especially impactful for youth
whose caregivers are inconsistent or
unavailable by providing these
196 Kevin Hollenbeck, Daniel Kuehn, Robert
Lerman, and Siobhan Mills De La Rosa, ‘‘Do
Employers Earn Positive Returns to Investments in
Apprenticeship? Evidence from Registered
Programs under the American Apprenticeship
Initiative,’’ Oct. 26, 2022, https://wdr.doleta.gov/
research/FullText_Documents/ETAOP2022-36_
AAI_ROI_Final_Report_508_9-2022.pdf.
197 Intelligent Partnerships, ‘‘Expanding DEIA
Programs Through Apprenticeship,’’ Apr. 2022,
https://www.apprenticeship.gov/sites/default/files/
expanding-deia-programs-throughapprenticeship.pdf.
198 Joseph B. Fuller et al., The Project on
Workforce, Harvard University, ‘‘The Options
Multiplier: Decoding the CareerWise Youth
Apprentice Journey,’’ Nov. 14, 2022, https://
www.hbs.edu/faculty/Pages/item.aspx?num=63353.
199 Joseph B. Fuller et al., The Project on
Workforce, Harvard University, ‘‘The Options
Multiplier: Decoding the CareerWise Youth
Apprentice Journey,’’ Nov. 14, 2022, https://
www.hbs.edu/faculty/Pages/item.aspx?num=63353.
200 Jean E. Rhodes et al., ‘‘A Model for the
Influence of Mentoring Relationships on Youth
Development,’’ Oct. 5, 2006, https://
www.rhodeslab.org/files/Model.pdf.
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individuals with a source of stability
and a role model. Registered CTE
apprenticeship would also help to
develop young people’s career-relevant
skillsets at an early age, particularly in
the realm of soft and interpersonal
skills. Gaining practical experience in
organization, problem-solving,
teamwork, and time management would
help these individuals build the
necessary skills for future success in
their occupations.201 We welcome
comments providing resources and best
practices in mentorship to ensure that
programs help apprentices, including
those from underserved communities,
excel in mentorship programs.
lotter on DSK11XQN23PROD with PROPOSALS2
c. Prohibiting Non-Disclosure and NonCompete Provisions (§ 29.9(d)(1) and
(2), (e))
While the proposed prohibitions on
non-compete and non-disclosure
provisions in apprenticeship agreements
may impose cost burdens on those
program sponsors and participating
employers that might otherwise elect to
use them (i.e., the forfeiting of any
investment made by such an employer
to train an apprentice), the Department
is persuaded that any such costs would
be outweighed on a macroeconomic
level by the substantial economic
benefits that would accrue to other
employers in the same sector or
occupation that can offer a more
competitive salary and package of
benefits to those employees (such as
apprentices) who might otherwise be
effectively prevented from offering their
skills in the labor market because of
such restrictive employment contract
covenants. By prohibiting or limiting
the use of such anticompetitive
practices with respect to apprenticeship
agreements, the Department seeks to
promote a freer and more competitive
marketplace for both employers and
skilled workers.
The Department acknowledges that
prohibiting non-compete provisions
may lead to the unintended
consequence of disincentivizing
investment in apprenticeship training.
However, the Department has
determined that this risk would be
outweighed by the benefit of prohibiting
anticompetitive practices during the
term of the registered apprenticeship
program. The Department is seeking to
encourage the growth of high-quality
apprenticeship and the increased use of
registered apprenticeship as a training
tool. Encouraging competition in the
201 Robert
Lerman, ‘‘Expanding Apprenticeship—
A Way to Enhance Skills and Careers,’’ Apr. 15,
2010, https://www2.ed.gov/PDFDocs/collegecompletion/03-expanding-apprenticeship.pdf.
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market would serve these goals by
incentivizing employers to seek to retain
their apprentices through high-quality
training and employment rather than
through limiting apprentices’ ability to
seek employment opportunities
elsewhere during the term of the
apprenticeship. In other words,
providing high-quality registered
apprenticeship would be a more
effective and fair method of retaining
apprentices in a registered
apprenticeship program rather than
through a prohibition on labor
movement, which the Department views
as harmful to both employers as a
restraint on a free and competitive
market and to apprentices as a restraint
on their mobility.
In addition, there are several benefits
that would accrue to apprentices by
prohibiting non-disclosure and noncompete provisions. The proposed rule
would increase apprentice mobility and
labor market competition by removing
certain restrictions such as non-compete
provisions, thus allowing them to move
freely between jobs. The absence of
these restrictions would provide
apprentices with the opportunity to seek
higher paying positions, which would
result in an overall increase in wages
and offer greater opportunities for
growth. Increased mobility is
particularly beneficial to younger
apprentices, as job changes account for
approximately one-third of early career
wage growth.202 One recent study
estimated that a nationwide ban on noncompete provisions would increase
average earnings by 3.3 to 13.9
percent.203 The FTC recently estimated
that one in five American workers is
bound by a non-compete provision.204 A
2014 survey of workers found that 18
percent of respondents work under a
non-compete provision at the time of
the survey and that 38 percent had been
subject to a non-compete provision
during their career.205 Although these
studies are for the general workforce,
the Department does not expect the
prevalence of non-compete provisions
to be materially different in registered
apprenticeship. Therefore, the financial
202 Robert Topel and Michael Ward, ‘‘Job Mobility
and the Careers of Young Men,’’ May 1, 1992, Q.J.
Econ. 107(2), 439–479, https://academic.oup.com/
qje/article-abstract/107/2/439/1838303.
203 Matthew S. Johnson, Kurt Lavetti, and Michael
Lipsitz, ‘‘The Labor Market Effects of Legal
Restrictions on Worker Mobility,’’ 2020, at 2,
https://papers.ssrn.com/sol3/papers.cfm?abstract_
id=3455381.
204 88 FR 3482 (Jan. 19, 2023) (NPRM on noncompete provisions).
205 Evan P. Starr, James J. Prescott, and Norman
D. Bishara, ‘‘Noncompete Agreements in the U.S.
Labor Force,’’ 64 J. L. & Econ. 1, 53–84 (2021),
https://repository.law.umich.edu/articles/2263.
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3229
benefits of removing non-compete
provisions from apprentice agreements
could be significant, especially for
young apprentices.
In addition to earnings increases, the
proposed rule could provide greater
opportunities for completed apprentices
to potentially engage in entrepreneurial
activities.206 The absence of noncompete provisions generally allows
entrepreneurial activity to increase
through the formation of intra-industry
spinoffs, which serve as grounds for
knowledge sharing, innovation, and
career growth.207 The Department is
unable to estimate the extent to which
recently completed apprentices remain
under non-compete provisions and their
ability to engage in entrepreneurial
activity, but the ability for apprentices
to freely leverage their skills and
knowledge through entrepreneurial
ventures would increase career growth
opportunities and the potential for wage
increases.
d. National Occupational Standards for
Apprenticeship, National Program
Standards for Apprenticeship, and
National Guidelines for Apprenticeship
Standards (§§ 29.13 through 29.15)
Under the proposed rule, the
Department seeks to facilitate the use of
registered apprenticeship models
currently available by defining
‘‘National Program Standards for
Apprenticeship’’ and ‘‘National
Guidelines for Apprenticeship
Standards.’’ This would promote
innovation of and enable ease of access
to industry-recognized, standardized
products that are intended to facilitate
the expansion of new quality programs
to be registered expeditiously and
efficiently. This would create a more
efficient process for National Program
Standards for Apprenticeship approval
and for local registration of National
Guidelines for Apprenticeship
Standards. The proposed rule also
defines ‘‘National Occupational
Standards for Apprenticeship.’’ This
new product would build, and
continuously reinforce and improve
with validated industry feedback, a
national system of occupational
frameworks that incentivize quality in
registered apprenticeship programs and
feature industry-validated training
standards and curricula. The National
Occupational Standards for
Apprenticeship would provide a
template for national occupations,
programs, and guidelines that would
206 John M. McAdams, ‘‘Non-Compete
Agreements: A Review of the Literature,’’ Dec. 31,
2019, https://dx.doi.org/10.2139/ssrn.3513639.
207 88 FR 3482 (Jan. 19, 2023) (NPRM on noncompete provisions).
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create time and cost savings for
sponsors or SAAs that would have
submitted new occupation
determinations, by allowing them to
leverage national frameworks that are
already developed by OA.
e. Complaints (§ 29.17)
The proposed rule would extend the
amount of time for apprentices to file
complaints against sponsors as well as
provide requirements that Registration
Agencies better protect the identity of
apprentices who file complaints. These
changes would result in apprentices
having more time and feeling more
comfortable in filing complaints against
sponsors, which could result in better
work conditions, improved
apprenticeships, and more apprentices
completing their programs.
f. Deregistration (§ 29.20)
Currently, deregistration of an
apprenticeship program occurs when a
sponsor fails to demonstrate compliance
with 29 CFR part 29. The proposed rule
would add a suspension step allowing
sponsors an adequate span of time to
update their practices and come into
compliance without having to be
deregistered and then reregistered at a
later date. Under this procedure, a
Registration Agency would suspend a
registration of new apprentices until the
sponsor has achieved compliance with
part 29 through the completion of a
voluntary compliance action plan or
until a final order is issued in formal
deregistration proceedings initiated by
the Registration Agency.
The intermediary step of suspension
represents a benefit because it would
allow sponsors to become compliant
without having to be deregistered and
then reregister or abandon their
program. The benefits of this provision
are difficult to quantify because of a lack
of data on how many suspensions might
occur as well as the fact that some
programs eligible for deregistration may
seek deregistration voluntarily.
Voluntary deregistration, however, can
occur for several reasons and it would
be incorrect to assume that all voluntary
deregistrations directly correlate with
sponsors that have been deregistered.
The Department expects that fewer
programs would be required to
deregister or voluntarily deactivate as a
result of the suspension procedure,
enabling more active total sponsors and
the associated apprenticeship
opportunities.
3. Quantitative Analysis Considerations
The Department estimated the costs of
the proposed rule relative to the existing
baseline (i.e., regulations at 29 CFR part
29). 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 (i.e., the costs that are
expected to accrue to the affected
entities). The analysis covers 10 years to
ensure it captures the major costs that
are likely to accrue over time. The
Department expresses the quantifiable
impacts in 2022 dollars and uses
discount rates of 3 and 7 percent,
pursuant to Circular A–4.
a. Estimated Number of Registered
Apprenticeship Program SAAs
The proposed rule would impact
SAAs through new regulatory
requirements that result in new burdens
to or transfer payments. The Department
currently works with 31 SAAs, and
these are used as the affected population
through the period of analysis.
b. Estimated Number of Registered
Apprenticeship Program Sponsors
The proposed rule would affect
registered apprenticeship programs and
their sponsors. A sponsor can have more
than one program but, due to data
availability, this analysis assumes the
number of registered apprenticeship
programs is the same as the estimated
number of sponsors. The Department
used historical data from the Energy
Document Portal (EDP) on the number
of registered apprenticeship programs
from 2017 to 2022 to calculate the
annual average growth in the number of
programs. To project the number of
registered apprenticeship programs and
sponsors from 2025 to 2034 the
Department calculated the average
annual increase in programs (942),
presented in Exhibit 2. This increment
was applied to project the population of
programs from 2025 to 2034.
The proposed rule would add
requirements for new registered
apprenticeship program registrations.
New program registrations differ from
the average annual increase in sponsors
because the increase in program
registrations is partially offset by
deregistrations. The Department used
historical data from EDP on the number
of new program registrations from 2017
to 2022 to calculate an average annual
increase in the number of new programs
(73) based on the average difference in
programs from year to year and applied
to project the population of new
programs from 2025 to 2034. Data on
new program registrations are presented
in Exhibit 2.
EXHIBIT 2—HISTORICAL NUMBER OF REGISTERED APPRENTICESHIP PROGRAMS
Total
programs *
Year
lotter on DSK11XQN23PROD with PROPOSALS2
2017
2018
2019
2020
2021
2022
New
programs **
Competency-based
programs
Hybrid
programs
Non-collectively
bargained
programs
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
18,956
20,371
21,872
22,495
23,785
23,666
2,176
2,691
2,540
2,376
2,688
2,543
833
1,102
1,386
1,670
2,096
2,474
980
1,295
1,544
1,755
1,981
2,114
2,083
2,115
2,119
2,138
2,122
2,095
Average Annual Increase *** ................................
Average *** ............................................................
942
......................
73
........................
328
................................
227
..................
................................
2,112
* Total number of programs does not sum from the detailed components because only a small subset of programs are competency-based, hybrid, or non-collectively bargained. The remaining programs not competency-based or hybrid are hourly programs with at least 2,000 hours of onthe-job training and the remaining programs not included in the non-collectively bargained figures are collectively bargained. These two categories of program do not face unique costs and therefore are not included in the table.
** New programs are newly registered apprenticeship programs for a particular year. They add to the total number of programs but are not
equal to the difference in total programs between years due the occurrence of deregistered programs.
*** The average annual increase was calculated by averaging the differences in population from year to year. For example, 942 =
((20,371¥18,956), (21,872¥20,371), (22,485¥21,872), (23,785¥22,485), (23,666¥23,785))/5. When the average annual increase or average
has a value, that indicates the value used to develop projections.
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The Department derived
subpopulations of registered
apprenticeship programs to estimate the
effect of the proposed rule on programs
with certain characteristics. The number
of programs that were not solely timebased (i.e., competency-based programs
or hybrid programs) were calculated by
the Department using historical data
from EDP from 2017 to 2022. The
Department calculated the average
annual increase in the number of
competency-based programs (328) and
the average annual increase in the
number of hybrid programs (227) based
on the average differences in these
programs from year to year. These
estimates were applied to project the
populations of these programs from
2025 to 2034. Lastly, the proposed rule
would have new requirements for
registered apprenticeship programs that
are not collectively bargained, so the
Department estimated the number of
programs for which these requirements
would apply. Using historical EDP data
from 2017 to 2022, the Department
assumed that the number of noncollectively bargained programs would
remain constant across years, based on
3231
the average number of these programs
across years (2,112).
Exhibit 2 above presents the historical
data on the above five program
populations across available years of
data as well as average annual increase
used to derive the projected number of
entities or, in the case of programs
reviewed, the average population
assumed constant across years. The
projected number of each entity from
2025 through 2034, based on either the
average annual increase or the average
annual value from Exhibit 2, are
provided in Exhibit 3 below.
EXHIBIT 3—PROJECTED NUMBER OF REGISTERED APPRENTICESHIP PROGRAMS
Total
programs *
Year
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
.............................................................................
The number of programs reviewed by
either OA or SAAs would also be
affected by the proposed rule. The
Department used a percentage-based
approach to estimate the number of
programs reviewed by either
Registration Agency. The Department
reviews each program every 5 years,
meaning that 20 percent of programs are
reviewed every year. Of the programs
reviewed, the Department estimates that
58.2 percent are reviewed by SAAs and
41.8 percent are reviewed by OA, based
on an average of 12,946 programs
registered by SAAs yearly and 9,288
registered by OA yearly. Therefore, the
Department calculates that 8.4 percent
of all programs are reviewed by OA
yearly and 11.6 percent of all programs
are reviewed by SAAs yearly.208 The
Department applies these percentages to
the projected number of programs from
2025 to 2034 to determine the number
of programs reviewed by each agency.
lotter on DSK11XQN23PROD with PROPOSALS2
c. Estimated Number of Registered
Apprenticeship Program Participating
Employers
The proposed rule would increase
requirements for participating
employers in each registered
apprenticeship program. The
Department used RAPIDS to gather data
percent = 41.8 percent × 20 percent; 11.6
percent = 58.2 percent × 20 percent.
208 8.4
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New
programs **
26,492
27,434
28,376
29,318
30,260
31,202
32,144
33,086
34,028
34,970
Competency-based
programs
2,763
2,837
2,910
2,983
3,057
3,130
3,204
3,277
3,350
3,424
3,459
3,787
4,115
4,443
4,771
5,100
5,428
5,756
6,084
6,412
on the number of participating
employers in 2022 and derive the ratio
of employers to programs. By dividing
the number of participating employers
in 2022 by the number of programs in
2022, it was calculated that there are
roughly 1.53 employers per program.209
This ratio was applied to the projected
number of sponsors from Exhibit 3 to
derive the number of employers from
2025 to 2034, presented in Exhibit 4
below.
Number of
participating
employers
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
40,533
41,974
43,415
44,857
46,298
47,739
49,180
50,622
52,063
53,504
d. Estimated Number of Apprentices
2,794
3,021
3,248
3,475
3,702
3,928
4,155
4,382
4,609
4,836
Non-collectively
bargained
programs
2,112
2,112
2,112
2,112
2,112
2,112
2,112
2,112
2,112
2,112
historical data on the number of
apprentices from 2017 to 2022 to project
the population of apprentices from 2025
to 2034 by calculating the average
annual increase in the number of
apprentices (32,512).210 Exhibit 5
presents the number of apprentices from
2017 to 2022 as well as the average
annual increase.
EXHIBIT 5—HISTORICAL NUMBER OF
APPRENTICES
EXHIBIT 4—PROJECTED NUMBER OF
PARTICIPATING EMPLOYERS
Year
Hybrid
programs
Year
2017
2018
2019
2020
2021
2022
Total
apprentices
..................................
..................................
..................................
..................................
..................................
..................................
415,458
466,560
520,411
538,204
549,747
578,020
Average Annual Increase ....................
32,512
The average annual increase in
apprentices is used to project the
number of apprentices in 2025–2034,
presented in Exhibit 6 below.
The proposed rule would affect
apprentices. The Department used
209 36,218
participating employers in 2022/23,666
programs in 2022 = 1.53.
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210 See OA, ‘‘Data and Statistics,’’ https://
www.apprenticeship.gov/data-and-statistics (last
updated June 16, 2023).
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EXHIBIT 6—PROJECTED NUMBER OF
APPRENTICES
Year
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
Number of
apprentices
675,557
708,070
740,582
773,094
805,607
838,119
870,632
903,144
935,656
968,169
e. Estimated Number of Occupations
lotter on DSK11XQN23PROD with PROPOSALS2
The proposed rule would impose new
requirements in the occupation
determination application process and
introduce new administrative burdens
to sponsors, SAAs, and OA, based on
the number of occupation determination
applications. The Department used
historical data from RAPIDS to calculate
the average annual number of
occupation determination applications.
Data on the number of new and revised
occupation determination applications
were available from 2019 to 2022. The
Department calculated the average
annual number of new occupation
applications (15) and used this to
project new applications for a suitability
determination from 2025 to 2034.
However, for revised occupations, the
proposed rule at § 29.7(h) envisions that
OA would review existing approved
occupations for revisions every 5 years.
There are currently approximately 1,100
approved occupations, so the
Department estimates approximately
220 revised occupations per year (1100
÷ 5 years = 220). The proposed rule
would allow the establishment of
national occupations, so the Department
also estimates that there would be 15
new national occupations yearly based
on the bulletin list of national
occupations from Apprenticeship.gov.
Exhibit 7 presents the historical data on
the number of new occupations
applications and the average number
used in the analysis for each year from
2025 to 2034.
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19:54 Jan 16, 2024
EXHIBIT 7—HISTORICAL NUMBER OF
NEW OCCUPATION APPLICATIONS
Jkt 262001
Number of
new occupation
determinations
applications
Year
2019
2020
2021
2022
..................................
..................................
..................................
..................................
17
14
12
16
Average .....................
15
f. Estimated Number of CTE SAAs
The creation of registered CTE
apprenticeship would result in CTE
SAAs entering into agreements with OA
to run CTE programs. The Department
expects that over the 10-year analysis
period that States running their CTE
programs would be a proportion of the
States with recognized SAAs for
registered apprenticeship. The
Department estimates that half of the
States that are registered apprenticeship
SAAs would become CTE SAAs by
2034. Therefore, the Department
estimates a steady increase to 16 CTE
SAAs by 2035 by assuming 3 percent
enter each year (1 SAA per year). Those
projected number of CTE SAAs are
presented in Exhibit 8. The Department
seeks public comment on the
assumption that half of States that are
registered apprenticeship SAAs would
become CTE SAAs by 2034. The
Department thinks this estimate is
reasonable since it is a voluntary model
that States may or may not subscribe to,
but the public’s input is still requested.
EXHIBIT 8—PROJECTED NUMBER OF
CTE SAAS
Number of
CTE SAAs
Year
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
..................................
1
2
3
4
5
6
7
7
8
9
g. Estimated Number of Registered CTE
Apprenticeship Program Sponsors, CTE
Participating Employers, and CTE
Apprentices
Secondary schools and postsecondary
institutions would be eligible to be
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Sfmt 4702
registered CTE apprenticeship program
sponsors. The Department estimated the
population based on the number of
school districts that receive Perkins
Federal Grant Program funds and the
number of postsecondary institutions
offering approved CTE programs. The
Institute of Education Services estimates
that 65 percent of LEAs receive Perkins
funds. Based on National Center for
Education Statistics (NCES) data, there
were 19,359 LEAs in 2021–2022,
resulting in an estimate of 12,583
receiving Perkins funds. Data collected
by NCES through the Integrated
Postsecondary Education Data System
indicate that the number of public 2year and less than 2-year institutions
with CTE programs is 1,134 institutions.
This results in a total potential
population of 13,717 sponsors.
However, because of requirements to
register, maintain 540 hours of CTE
apprenticeship-related instruction over
the program, and expectations for
registered CTE apprenticeship to slowly
ramp up, the Department estimates a
small percent of these would become
sponsors in the first year (1 percent or
137 sponsors), second year (3 percent or
412 sponsors), and in each subsequent
year (3 percent or 412 sponsors).
To estimate the number of
participating employers and apprentices
associated with registered CTE
apprenticeship program sponsors, the
Department used data from registered
apprenticeship. As discussed in the
population estimates for registered
apprenticeship, there are approximately
1.53 participating employers per
sponsor and 23.4 apprentices per
sponsor. The Department expects
similar ratios under CTE and used these
with the projected number of sponsors
to project participating employers and
apprentices.
The Department’s projections of
registered CTE apprenticeship program
sponsors, participating employers, and
apprentices are presented in Exhibit
9.211
211 Year 1, 137 = 0.01 × 13,717. Year 2, 549 = 137
+ 0.03 × 13,717; Year 3, 960 = 549 + 0.03 × 13,717;
Year 4, 1,372 = 960 + 0.03 × 13,717; Year 5, 1,783
= 1,372 + 0.03 × 13,717; Year 6, 2,195 = 1,783 +
0.03 × 13,717; Year 7, 2,606 = 2,195 + 0.03 × 13,717;
Year 8, 3,018 = 2,606 + 0.03 × 13,717; Year 9, 3,429
= 3,018 + 0.03 × 13,717; Year 10, 3,841 = 3,429 +
0.03 × 13,717.
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EXHIBIT 9—PROJECTED NUMBER OF REGISTERED CTE APPRENTICESHIP PROGRAM SPONSORS, PARTICIPATING
EMPLOYERS, AND APPRENTICES
Registered CTE
apprenticeship
program sponsors
Year
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
...................................................................................................................
h. Estimated number of new CTE
apprentices.
The Department estimated the costs of
the proposed CTE program based on the
number of new apprentices who are
projected to enter registered CTE
apprenticeship programs. Accordingly,
the Department developed projections
for the number of new CTE apprentices
CTE participating
employers
137
549
960
1,372
1,783
2,195
2,606
3,018
3,429
3,841
entering each year of the program based
on the number of projected CTE
apprentices in Exhibit 10. Given that
540 hours of CTE apprenticeship-related
instruction would be required for
apprentices in registered CTE
apprenticeship programs, the
Department expects that it would take 1
to 2 years to complete a registered CTE
apprenticeship. To develop its
CTE apprentices
210
839
1,469
2,099
2,728
3,358
3,988
4,617
5,247
5,876
3,210
12,839
22,468
32,098
41,727
51,356
60,986
70,615
80,244
89,874
projections, the Department assumed
the value of 2 years and estimated the
cohorts that would enter each year and
exit after 2 years based on the projected
CTE apprenticeship population. The
projected number of new CTE
apprentices and the cohorts those
numbers are derived from are presented
in Exhibit 10.
EXHIBIT 10—PROJECTED NUMBER OF ANNUAL NEW CTE APPRENTICES
Year 1
2
3
4
5
6
7
8
9
10
1 ...................
2 ...................
3 ...................
4 ...................
5 ...................
6 ...................
7 ...................
8 ...................
9 ...................
10 .................
3,210
................
................
................
................
................
................
................
................
................
3,210
9,629
................
................
................
................
................
................
................
................
................
9,629
12,839
................
................
................
................
................
................
................
................
................
12,839
19,259
................
................
................
................
................
................
................
................
................
19,259
22,468
................
................
................
................
................
................
................
................
................
22,468
28,888
................
................
................
................
................
................
................
................
................
28,888
32,098
................
................
................
................
................
................
................
................
................
32,098
38,517
................
................
................
................
................
................
................
................
................
38,517
41,727
................
................
................
................
................
................
................
................
................
41,727
48,147
New Apprentices
3,210
9,629
12,839
19,259
22,468
28,888
32,098
38,517
41,727
48,147
Total Apprentices ...............
3,210
12,839
22,468
32,098
41,727
51,356
60,986
70,615
80,244
89,874
Cohort
Cohort
Cohort
Cohort
Cohort
Cohort
Cohort
Cohort
Cohort
Cohort
lotter on DSK11XQN23PROD with PROPOSALS2
i. Compensation Rates
Exhibits 11a through 11c present the
hourly compensation rates for the
occupational categories that are
expected to experience a change in level
of effort (workload) due to the proposed
rule. We used BLS’s mean hourly wage
rate for private sector and State
employees.212 We also used the wage
rate from the Office of Personnel
Management’s Salary Table for the 2022
General Schedule for Federal
212 BLS, ‘‘May 2022 National Industry-Specific
Occupational Employment and Wage Estimates:
NAICS 999200—State Government, excluding
schools and hospitals (OEWS Designation),’’
https://www.bls.gov/oes/current/naics4_
999200.htm (last updated Apr. 25, 2023).
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19:54 Jan 16, 2024
Jkt 262001
employees.213 To reflect total
compensation, wage rates include
nonwage factors, such as overhead and
fringe benefits (e.g., health and
retirement benefits). For all labor groups
(i.e., private sector, State, and Federal
Government), we used an overhead rate
of 17 percent.214 For the private sector,
213 Office of Personnel Management, ‘‘Salary
Table 2022–GS,’’ Jan. 2022, https://www.opm.gov/
policy-data-oversight/pay-leave/salaries-wages/
salary-tables/pdf/2022/GS_h.pdf.
214 U.S. Environmental Protection Agency, ‘‘Wage
Rates for Economic Analyses of the Toxics Release
Inventory Program,’’ June 1, 2002, https://
www.regulations.gov/document?D=EPA-HQ-OPPT2014-0650-0005. DOL has used 17 percent in prior
final rules, including the Adverse Effect Wage Rate
Methodology for the Temporary Employment of H–
2A Nonimmigrants in Non-Range Occupations in
the United States final rule (RIN 1205–AC05),
Temporary Agricultural Employment of H–2A
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we used a fringe benefits rate of 42
percent, which represents the ratio of
average total compensation to average
wages for private industry workers in
2022.215 For the State government
sector, we used a fringe benefits rate of
Nonimmigrants in the United States (RIN 1205–
AB89), Cranes and Derricks in Construction:
Railroad Roadway Work (RIN 1218–AD07), and
Occupational Exposure to Beryllium and Beryllium
Compounds in Construction and Shipyard Sectors
final rule (RIN 1218–AD29).
215 BLS, ‘‘Employer Costs for Employee
Compensation—2022,’’ May 16, 2023, https://
data.bls.gov/cgi-bin/srgate. Calculated using Series
Id CMU2020000000000D and
CMU2020000000000P, CMU2010000000000D and
CMU2010000000000P. Average of 2022 Q1–Q4 for
private industry total compensation cost per hour
worked divided by average of 2022 Q1–Q4 for
private industry wages and salaries cost per hour
worked.
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62 percent, which represents the ratio of
average total compensation to average
wages for State government workers in
2022.216 For the Federal Government,
we used a fringe benefits rate of 63
percent.217 We then multiplied the sum
of the loaded wage factor and overhead
rate by the corresponding occupational
category wage rate to calculate an
hourly compensation rate.218
EXHIBIT 11a—COMPENSATION RATES FOR PRIVATE SECTOR EMPLOYEES
[2022 dollars]
Position
Grade level
Training and Development Manager .........................
Office and Administrative Support Occupation ..........
Apprentice ..................................................................
Industry Leader ..........................................................
N/A
N/A
N/A
N/A
Base hourly
wage rate
Loaded wage factor
Overhead costs
Hourly
compensation
rate
(a)
(b)
(c)
d=a+b+c
$27.23 (=$64.84 × 0.42) ..
$9.08 (=$21.62 × 0.42) ....
$6.86 (=$16.33 × 0.42) ....
$26.94 (=$64.15 × 0.42) ..
$11.02 (=$64.84 × 0.17) ..
$3.68 (=$21.62 × 0.17) ....
$2.78 (=$16.33 × 0.17) ....
$10.91 (=$64.15 × 0.17) ..
.......................
.......................
.......................
.......................
$64.84
21.62
16.33
64.15
$103.09
34.38
25.96
102.00
EXHIBIT 11b—COMPENSATION RATES FOR STATE EMPLOYEES
[2022 dollars]
Position
Grade level
Training and Development Manager .........................
Secretary and Administrative Assistant .....................
Computer Systems Analyst .......................................
Base hourly
wage rate
Loaded wage factor
Overhead costs
Hourly
compensation
rate
(a)
(b)
(c)
d=a+b+c
$25.72 (=$41.48 × 0.62) ..
$14.10 (=$22.74 × 0.62) ..
$24.25 (=$39.11 × 0.62) ..
$7.05 (=$41.48 × 0.17) ....
$3.86 (=$22.74 × 0.17) ....
$6.65 (=$39.11 × 0.17) ....
N/A .......................
N/A .......................
N/A .......................
$41.48
22.74
39.11
$74.25
40.70
70.01
EXHIBIT 11c—COMPENSATION RATES FOR FEDERAL EMPLOYEES
[2022 dollars]
Position
Grade level
Administrative Assistant .............................................
4. Subject-by-Subject Analysis
The Department’s subject-by-subject
analysis covers the estimated costs and
cost savings of the proposed rule. The
hourly time burdens and other estimates
used to quantify the costs are largely
based on the Department’s experience
with registered apprenticeship.
lotter on DSK11XQN23PROD with PROPOSALS2
a. Registered Apprenticeship Costs
(1) Rule Familiarization
When the proposed rule becomes
final and takes effect, sponsors,
employers, and SAAs would need to
familiarize themselves with the new
regulation, thereby incurring a one-time
cost. To estimate the cost of rule
familiarization to sponsors, the
Department estimates that each sponsor
would have a Training and
Development Manager (private sector)
spend 4 hours reading and reviewing
the new rule. The estimate is based on
216 Ibid. Calculated using Series Id
CMU3020000000000D and CMU3020000000000P,
CMU3010000000000D and CMU3010000000000P.
Average of 2022 Q1–Q4 for State and local
government total compensation cost per hour
worked divided by average of 2022 Q1–Q4 for State
VerDate Sep<11>2014
19:54 Jan 16, 2024
Jkt 262001
GS–7, Step 5 .......
Base hourly
wage rate
Loaded wage factor
Overhead costs
Hourly
compensation
rate
(a)
(b)
(c)
d=a+b+c
I
$20.91
I $13.17 (=$20.91 × 0.63) ..
$3.55 (=$20.91 × 0.17) ....
$37.63
the length and complexity of this rule,
and the Department’s program
experience with previous
apprenticeship regulations. This
estimate aligns with the time estimate
made in the 2016 DOL Apprenticeship
Equal Employment Opportunity (EEO)
RIA for the time required to read and
review the rule. The Department seeks
public comment on this estimate. In
subsequent years, this cost is only
applied to new sponsors. The estimated
cost in year 1 is $10,924,835 (= 26,492
sponsors in year 1 × 4 hours × $103.10
per hour). In years 2–10, only new
sponsors would incur this cost. In year
2, for example, new sponsors would
face a cost of $1,169,764 (= 2,837 new
sponsors × 4 hours × $103.10 per hour).
To estimate the cost of rule
familiarization to participating
employers, the Department estimates
that each participating employer would
have a Training and Development
Manager (private sector) spend 2 hours
reading and reviewing the new rule.
This estimate was made by dividing the
time estimate of 4 hours to read and
review the rule from the 2016 DOL
Apprenticeship EEO RIA in half. The
Department anticipates it will take
participating employers less time to
read and review the rule since only
certain provisions will be relevant to
them. The Department seeks public
comment on this estimate with the goal
of providing refined estimates in the
final rule. In subsequent years, this cost
is only applied to new participating
employers. The estimated cost in year 1
is $8,357,498 (= 40,533 participating
employers in year 1 × 2 hours × $103.10
per hour). In years 2–10, only new
participating employers would incur
this cost. In year 2, for example, new
employers would face a cost of $297,175
and local government wages and salaries cost per
hour worked.
217 DOL ‘‘Workforce Innovation and Opportunity
Act (WIOA) Common Performance Reporting,’’
OMB Control No. 1205–0526, concluded May 5,
2021, https://www.reginfo.gov/public/do/
PRAViewICR?ref_nbr=202012-1205-003.
218 The hourly compensation rates presented in
Exhibit 11a, Exhibit 11b, and Exhibit 11c are
rounded. Calculations used throughout the
regulatory impact analysis (RIA) use the unrounded
value. Therefore, numbers may not sum due to
rounding for the convenience of the reader.
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(= 1,441 new participating employers ×
2 hours × $103.10 per hour).
To estimate the cost of rule
familiarization to SAAs, the Department
estimates that each SAA would have a
Training and Development Manager
(State level) spend 4 hours reading and
reviewing the new rule. This estimate
aligns with the time estimate made in
the 2016 DOL Apprenticeship EEO RIA
for the time required to read and review
the rule. The Department seeks public
comment on this estimate with the goal
of providing refined estimates in the
final rule. This would result in a firstyear cost to SAAs of $9,207 (= 31 SAAs
× 4 hours × $74.25 per hour). The
Department estimates that SAAs would
only incur costs from rule
familiarization in the first year.
In total, rule familiarization would
have annualized costs over the 10-year
analysis period of $3.6 million at a
discount rate of 3 percent and $3.9
million at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $30.7 million at
a discount rate of 3 percent and $27.6
million at a discount rate of 7 percent.
lotter on DSK11XQN23PROD with PROPOSALS2
(2) New Requirements for On-the-Job
Training Documentation (§ 29.7(b)(3))
The proposed rule would require
sponsors to submit documentation of
the industry standard of minimum
hours needed to obtain proficiency in
the occupation under consideration, and
that the minimum hours are not less
than 2,000 hours. Programs that do not
meet the 2,000-hour minimum
requirement would need to update their
on-the-job training requirements and
submit documentation. There are
currently an average of 3,459 programs
that have occupations that are
competency-based and 2,794 registered
apprenticeship programs that have
occupations that are hybrid (time-based
and competency-based). It is assumed
that these programs would not meet the
minimum 2,000-hour requirement of onthe-job training and would incur onetime costs to update their requirements.
The Department estimates that sponsors
would have a Training and
Development Manager (private sector)
spend 8 hours updating their on-the-job
training requirements and spend 2
hours submitting documentation. These
estimates are based on program
experience, and the Department seeks
public comment on these estimates. In
year 1, the Department estimates the
cost to be $6,446,568 (= 6,253
occupations with programs with <2,000
hours on-the-job training × 10 hours ×
$103.10 per hour). In years 2–10, only
sponsors with new occupations would
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need to submit the documentation of
training requirements and incur costs.
In total, the annualized cost over the
10-year analysis period of new
requirements for on-the-job training
documentation is estimated at $733,723
at a discount rate of 3 percent and
$857,800 at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $6.3 million at a
discount rate of 3 percent and $6.0
million at a discount rate of 7 percent.
(3) Wage Analysis and Career
Development Profile (§ 29.7(b)(2))
The proposed rule would require
sponsors to submit documentation of
the typical compensation and career
advancement profile for each
occupation that places workers in an
occupation that leads to a sustainable
career. The Department estimates that
this new requirement would impose
costs on sponsors to submit
documentation of the wage analysis and
career advancement profile for existing
occupations and new and revised
occupation determinations. The
Department estimates that sponsors
would have a Training and
Development Manager (private sector)
spend 2 hours to develop and submit
the documentation for each existing,
new, and revised occupation. This
estimate aligns with the time estimates
for similar activities in the 2019 DOL
Industry-Recognized Apprenticeship
Programs (IRAP) RIA for the time
required to prepare and submit the wage
analysis and career development profile.
The Department seeks public comment
on this estimate with the goal of
providing refined estimates in the final
rule. This would result in an annual
cost to sponsors of $48,455 (= 235 new
and revised occupation determinations
× 2 hours × $103.10 per hour).
In total, the annualized cost over the
10-year analysis period of documenting
the wage analysis and career
development profile is estimated at
$48,455 at a discount rate of 3 percent
and $48,455 at a discount rate of 7
percent. The total cost over the 10-year
analysis period is estimated at $413,330
at a discount rate of 3 percent and
$340,327 at a discount rate of 7 percent.
(4) DOL–OA Occupation Determination
Evaluation Process (§ 29.7(c))
The proposed rule would update the
process by which OA evaluates
occupation determinations by providing
more clarity and being more precise on
what is being evaluated including all
the new documentation submissions
under proposed § 29.7(b). In addition,
the proposed rule formalizes the process
by which OA solicits feedback from
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industry leaders on the suitability of an
occupation for registered
apprenticeship.
The Department estimates that OA
would incur costs for a GS–13 manager
to spend an additional 4 hours
reviewing the new documentation
under proposed § 29.7(b) for each
occupation application. This estimate is
based on program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to OA for new and revised
occupation determinations, with a cost
in year 1 of $74,617 (= 235 new and
revised occupation determinations × 4
hours × $79.38).
In addition, the Department estimates
that industry leaders would spend a
total of 2 hours providing feedback on
the suitability of an occupation for
registered apprenticeship. This estimate
is based on program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to private industry for new
and revised occupation determinations,
with a cost in year 1 of $47,939 (= 235
new and revised occupation
determinations × 2 hours × $102.00).
In total, the annualized cost over the
10-year analysis period of the new OA
occupation determination evaluation
process is estimated at $122,556 at a
discount rate of 3 percent and $122,556
at a discount rate of 7 percent. The total
cost over the 10-year analysis period is
estimated at $1.0 million at a discount
rate of 3 percent and $860,786 at a
discount rate of 7 percent.
(5) Data Collection and Reporting
(§§ 29.25, 29.8(a), 29.9(b) and (c))
The proposed rule would create new
data collection and reporting
requirements for apprentices,
participating employers, sponsors, and
SAAs. Proposed § 29.25(a) would create
new apprentice level data collections,
including information on preapprenticeship services, occupations,
and wage schedules. Proposed
§ 29.25(b) would create new data
collections on program sponsors
including information such as
participating employers, copies of
program standards adoption agreements,
participation with credentialing
agencies, numbers of new and active
apprentices, completed apprentices,
out-of-pocket costs by apprentices,
earnings from completed apprentices.
Proposed § 29.8(a) on standards of
apprenticeship would update
requirements for the written set of
standards of apprenticeship including
information on term of the
apprenticeship program, and related
instruction. Proposed § 29.9 would
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require sponsors to give the signed
apprenticeship agreement to the
apprentice and to include new
information in the apprenticeship
agreements such as descriptions of
roles, terms and conditions, end-point
assessments, unreimbursed costs,
expenses or fees, and credentials.
The Department estimates that
complying with these additional data
collections and transmitting them to OA
would impose additional time burdens
on apprentices, sponsors, and SAAs.
The majority of these data collections
are simple drop down or choice answers
similar to the existing form ETA–671
covered under existing ICR 1205–0223.
The Department estimates that
apprentices would spend an additional
5 minutes (0.083 hours) providing
information to sponsors (proposed
§ 29.25(a)). This estimate aligns with the
time estimate in the supporting
statement for Registration and Equal
Employment Opportunity in
Apprenticeship Programs (OMB Control
Number 1205–0223, hereafter referred to
as the EEO Supporting Statement),
Table 1 for the time apprentices spend
on apprenticeship agreements and
program registration additions. The
Department seeks public comment on
this estimate. This would result in an
annual cost to apprentices, with a cost
in year 1 of $1,455,873 (= 675,557
apprentices × 0.083 hour × $25.96 per
hour).
The Department estimates that
sponsors would require a Training and
Development Manager (private sector) to
spend 0.33 hour to provide information
on standards of apprenticeship
(proposed § 29.8(a)). This estimate
aligns with the time estimate in the EEO
Supporting Statement, Table 1 for the
time sponsors spend updating standards
of apprenticeship. The Department
seeks public comment on this estimate.
The Department estimates that sponsors
would also have an office and
administrative support staff (private
sector) spend 5 minutes (0.083 hour) per
apprentice providing additional data on
apprentices (proposed § 29.25(a)) and
providing the apprenticeship agreement
(proposed § 29.9). This estimate aligns
with the time estimate in the EEO
Supporting Statement, Table 1 for the
time sponsors spend providing
additional data on apprentices and
providing the apprenticeship agreement.
The Department seeks public comment
on this estimate. Finally, the
Department estimates that sponsors
would also have an office and
administrative support staff (private
sector) spend 5 minutes (0.083 hour) per
participating employer providing
additional data on employers in their
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programs (proposed § 29.25(b)). This
estimate aligns with the time estimate in
the EEO Supporting Statement, Table 1
for the time sponsors spend providing
additional data on employers in their
programs. The Department seeks public
comment on this estimate. This would
result in an annual cost to sponsors,
with a cost in year 1 of $2,944,441 (=
26,492 programs × 0.33 hour × $103.10
per hour + 675,557 apprentices × 0.083
hour × $34.38 per hour + 40,533
participating employers × 0.083 hour ×
$34.38 per hour).
The Department estimates that SAAs
would have a Training and
Development Manager (State level)
spend an additional 1.5 hours per
sponsor providing additional data to OA
(proposed § 29.25(a) and (b), as required
by proposed § 29.28). This estimate is
made by multiplying the time estimate
in the EEO Supporting Statement, Table
1 by 1.5 to account for the added length
of the form. The Department seeks
public comment on this estimate. This
would result in an annual cost to SAAs,
with a cost in year 1 of $2,950,515 (=
26,492 sponsors × 1.5 hours × $74.25
per hour).
In total, the annualized cost over the
10-year analysis period of the new data
collection and reporting requirements is
estimated at $8.64 million at a discount
rate of 3 percent and $8.55 million at a
discount rate of 7 percent. The total cost
over the 10-year analysis period is
estimated at $73.7 million at a discount
rate of 3 percent and $60.0 million at a
discount rate of 7 percent.
(6) Program Registration (§ 29.10)
The proposed rule would require
sponsors that submit new applications
to include additional information in
their applications including a narrative
on how they are working with the
workforce system, information on their
financial capacity and other resources to
operate the proposed program, and any
history of violations. OA and SAAs
would need to review this new
information when making a registration
determination.
The Department estimates that
sponsors would have a Training and
Development Manager (private sector)
spend 1 hour submitting the additional
information with applications for new
programs. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to sponsors submitting new
program applications, with a cost in
year 1 of $284,874 (2,763 new programs
× 1 hour × $103.10 per hour).
Each Registration Agency would
spend additional time reviewing the
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added information to registration
applications. The Department estimates
that SAAs would have a Training and
Development Manager (State level)
spend 0.5 hour reviewing the additional
information. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to SAAs based on the
number of new registration applications
they would review. The Department
assumes they would review the same
proportion of new registration
applications as there are programs
registered with SAAs (58.2 percent, on
average between 2019 and 2022), with a
cost in year 1 of $59,730 (= 2,763 new
program registrations × 58.2% × 0.5
hour × $74.25 per hour).
The Department estimates that OA
would have a GS–13 level employee
spend 0.5 hour reviewing the additional
information. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to OA based on the number
of new registration applications they
would review (41.8 percent), with a cost
in year 1 of $45,814 (= 2,763 new
program registrations × 41.8% × 0.5
hour × $79.38 per hour).
In total, the annualized cost over the
10-year analysis period of the new
program registration requirements is
estimated at $434,561 at a discount rate
of 3 percent and $431,342 at a discount
rate of 7 percent. The total cost over the
10-year analysis period is estimated at
$3.7 million at a discount rate of 3
percent and $3.0 million at a discount
rate of 7 percent.
(7) Reporting for Program Standards
Adoption Agreement (§ 29.11)
The proposed rule would require noncollectively bargained programs to
include requirements that participating
employers would adopt and comply
with the sponsor’s standards of
apprenticeships as well as applicable
requirements under 29 CFR part 30.
This primarily formalizes existing
arrangements between employers and
sponsors. In addition to formalizing
these agreements, they must be
transmitted by the sponsor to OA,
thereby imposing a new burden on
sponsors.
The Department estimates that
sponsors that have non-collectively
bargained programs would have a
Training and Development Manager
(private sector) spend 1 hour
transmitting the adoption agreements
with employers to OA. This estimate is
based on program experience, and the
Department seeks public comment on
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(8) National Occupational Standards for
Apprenticeship, National Program
Standards for Apprenticeship, and
National Guidelines for Apprenticeship
Standards (§§ 29.13 Through 29.15)
The proposed rule would allow OA to
create National Occupational Standards
for Apprenticeship that would be
suitable for adoption by program
sponsors. This would extend existing
work to identify and characterize
competency-based occupational
frameworks and ensure they meet the
new standards of proposed § 29.7. The
Department estimates that a GS–13 level
employee would require 40 hours to
commission each new national
occupational standard. This estimate is
based on program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost of $47,628 (= 15 annual new
national occupation determinations × 40
hours × $79.38 per hour).
In total, the annualized cost over the
10-year analysis period of
commissioning National Occupational
Standards for Apprenticeship is
estimated at $47,628 at both a discount
rate of 3 percent and 7 percent. The total
cost over the 10-year analysis period is
estimated at $406,277 at a discount rate
of 3 percent and $334,519 at a discount
rate of 7 percent.
end-point assessments as a result of the
proposed rule. The Registration Agency
would award a Certificate of Completion
to the apprentice after successful
completion of the end-point assessment.
The Department estimates that
apprentices would spend 1 hour
working with the sponsor answering
questions and completing the end-point
assessment. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to apprentices, with a cost
in year 1 of $17,540,640 (= 675,557
apprentices × 1 hour × $25.96 per hour).
The Department estimates that sponsors
would also have a Training and
Development Manager (private sector)
spend 1 hour working with the
apprentices to assess their proficiency
in the occupation covered by the
program. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to sponsors, with a cost in
year 1 of $69,646,975 (= 675,557
apprentices × 1 hour × $103.10). The
Department estimates the Registration
Agency would have a GS–7 staff spend
15 minutes (0.25 hour) per program
awarding a Certificate of Completion to
each apprentice after successful
completion of the end-point assessment.
This estimate is based on program
experience, and the Department seeks
public comment on this estimate. This
would result in an annual cost, with a
cost in year 1 of $249,276 (= 26,492 ×
0.25 hour × $37.64 per hour).
In total, the annualized cost over the
10-year analysis period of the end-point
assessment requirements is estimated at
$105.3 million at a discount rate of 3
percent and $104.0 million at a discount
rate of 7 percent. The total cost over the
10-year analysis period is estimated at
$898.5 million at a discount rate of 3
percent and $730.7 million at a discount
rate of 7 percent.
(9) End-Point Assessments (§ 29.16)
The proposed rule would require
sponsors to conduct an end-point
assessment with the apprentice after
their completion of the registered
apprenticeship program. The end-point
assessment would objectively measure
the apprentice’s acquisition of the
relevant knowledge, skills, and
competencies necessary to demonstrate
proficiency in the occupation covered
by the program. The Department
understands that many sponsors already
perform end-point assessments but does
not have data on how many do so.
Therefore, the Department estimates the
costs based on all sponsors conducting
(10) Recordkeeping (§ 29.18)
The proposed rule would require
participating employers to record and
maintain additional information on endpoint assessments and safety records.
The Department estimates that office
and administrative support staff (private
sector) would spend 4 hours recording
and maintaining the additional
information. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. This would result in an
annual cost to participating employers,
with a cost in year 1 of $5,573,384 (=
40,533 participating employers × 4
hours × $34.38 per hour).
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this estimate. This would result in an
annual cost to sponsors with noncollectively bargained programs of
$217,738 (= 2,112 average annual noncollectively bargained programs × 1
hour × $103.10).
In total, the annualized cost over the
10-year analysis period of the program
standards adoption agreement provision
is estimated at $217,738 at a discount
rate of 3 percent and $217,738 at a
discount rate of 7 percent. The total cost
over the 10-year analysis period is
estimated at $1.9 million at a discount
rate of 3 percent and $1.5 million at a
discount rate of 7 percent.
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In total, the annualized cost over the
10-year analysis period of this
recordkeeping requirement is estimated
at $6.42 million at a discount rate of 3
percent and $6.36 million at a discount
rate of 7 percent. The total cost over the
10-year analysis period is estimated at
$54.7 million at a discount rate of 3
percent and $44.6 million at a discount
rate of 7 percent.
(11) Program Reviews (§ 29.19)
The proposed rule would require
Registration Agencies to conduct
periodic program reviews at least every
5 years. Program reviews can consist of
off-site reviews such as desk audits of
submitted records or on-site reviews at
the workplace of the sponsor or
participating employer, and could
involve examination and copying of
relevant documents or interviews. The
Registration Agency must also present a
Notice of Program Review Findings to
the sponsor. If a sponsor receives a
Notice of Program Review Findings that
indicates a failure of compliance, the
sponsor must develop a compliance
action plan that details a commitment to
remediate the areas of noncompliance,
precise actions to be taken, the time
period over which the deficiency would
be remedied, and identification of
individuals responsible for corrections
of deficiencies.
The Department assumes that 20
percent of program sponsors would be
subject to program reviews annually,
such that in a 5-year period all program
sponsors would be reviewed. The
Department estimates that OA would
conduct annual program reviews for 8.4
percent of sponsors based on the
proportion of programs registered by OA
and that a GS–13 level employee would
spend 40 hours conducting each
program review. This estimate aligns
with the time estimate made in the 2016
Apprenticeship EEO RIA for the time
required to conduct compliance
reviews. The Department seeks public
comment on this estimate. This would
result in an annual cost to OA, with a
cost in year 1 of $7,027,755 (= 26,492
sponsors in year 1 × 8.4% × 40 hours ×
$79.38 per hour).
The Department estimates that SAAs
would conduct annual program reviews
for the remaining 11.6 percent of
sponsors and that a Training and
Development Manager (State level)
would spend 40 hours conducting each
program review. This estimate aligns
with the time estimate made in the 2016
Apprenticeship EEO RIA for the time
required to conduct compliance
reviews. The Department seeks public
comment on this estimate. This would
result in an annual cost to SAAs, with
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a cost in year 1 of $9,162,569 (= 26,492
sponsors in year 1 × 11.6% × 40 hours
× $74.25 per hour).
The Department estimates that 20
percent of sponsors would be found
noncompliant and need to develop a
compliance action plan. The
Department thinks this estimate is
reasonable due to the number of new
program requirements that sponsors
would need to implement but seeks
public comment on this estimate. The
Department estimates that a Training
and Development Manager (private
sector) would require 8 hours to develop
and write the compliance action plan
and 0.17 hour to submit it
electronically. These estimates are based
on program experience, and the
Department seeks public comment on
these estimates. This would result in an
annual cost to sponsors, with a cost in
year 1 of $892,559 (= 26,492 sponsors in
year 1 × 20% undergoing program
reviews × 20% found noncompliant ×
8.17 hours × $103.10 per hour).
In total, the annualized cost over the
10-year analysis period of program
reviews is estimated at $19.7 million at
a discount rate of 3 percent and $19.5
million at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $167.8 million at
a discount rate of 3 percent and $136.8
million at a discount rate of 7 percent.
(12) Data Sharing (§ 29.28)
The proposed rule would require
SAAs to furnish OA with
apprenticeship-related data applicable
to proposed §§ 29.25 and 29.28. Most
SAAs already use RAPIDS and therefore
would not face costs to develop software
or IT infrastructure as a result of this
provision. For the three SAAs that do
not currently use RAPIDS, the
Department assumes that they would
face costs associated with developing
the software and IT infrastructure as
well as new costs for compiling and
submitting their apprenticeship data.
The Department assumes that all SAAs
would face new costs for compiling and
submitting their apprenticeship data.
The Department estimates that the
three SAAs not using RAPIDS would
face a one-time cost associated with
software and IT systems infrastructure
of $100,000 and $50,000 in licensing
costs. The Department also assumes that
they would face annual costs associated
with consulting costs and system
maintenance of $75,000. This would
result in costs to SAAs not using
RAPIDS of $2,475,000 in the first year
(= 11 SAAs not using RAPIDS ×
$225,000 for system infrastructure,
licensing, and consulting and
maintenance costs) and annual costs in
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years 2–10 of $825,000 (= 11 SAAs not
using RAPIDS × $75,000 for annual
consulting and system maintenance
costs).
The Department estimates that all
SAAs would have a Training and
Development Manager (State level)
spend 32 hours compiling and
submitting apprenticeship data. This
estimate aligns with time estimates for
similar activities in the 2016 WIOA RIA.
The Department seeks public comment
on this estimate. The Department
further estimates that all SAAs would
have 3 computer systems analysts (State
level) spend 80 hours each working to
help compile and submit apprenticeship
data. This estimate aligns with time
estimates for similar activities in the
2016 WIOA RIA for the time required to
compile and submit apprenticeship
data. The Department seeks public
comment on this estimate. Finally, the
Department estimates that all SAAs
would have an office and administrative
support staff (State level) spend 72
hours to assist with compiling and
submitting apprenticeship data. This
estimate aligns with time estimates for
similar activities in the 2016 WIOA RIA.
The Department seeks public comment
on this estimate. This would result in an
annual cost to SAAs of $685,359 (= 31
SAAs × 32 hours × $74.25 per hour +
31 SAAs × 240 hours × $70.01 per hour
+ 31 SAAs × 72 hours × $40.70 per
hour).
In total, the annualized cost over the
10-year analysis period for data sharing
is estimated at $1.70 million at a
discount rate of 3 percent and $1.73
million at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $14.5 million at
a discount rate of 3 percent and $12.1
million at a discount rate of 7 percent.
(13) SAA Reciprocity of Registrations
(§ 29.26(d))
In order to obtain or maintain full or
provisional recognition status, SAAs
would be required to establish a process
and criteria for providing approval to
apprentices, apprenticeship programs,
and standards of apprenticeship. Under
this requirement, SAAs would face a
burden to develop and write a
reciprocity statement. The Department
estimates that each SAA would have a
Training and Development Manager
(State level) spend 4 hours to develop
and write the reciprocity statement.
This estimate is based on program
experience, and the Department seeks
public comment on this estimate. This
would be a one-time cost resulting in a
first-year cost of $9,207 (= 31 SAAs × 4
hours × $74.25 per hour). In total, the
annualized cost over the 10-year
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analysis period is estimated at $1,048 at
a discount rate of 3 percent and $1,225
at a discount rate of 7 percent. The total
cost over the 10-year analysis period is
estimated at $8,939 at a discount rate of
3 percent and $8,605 at a discount rate
of 7 percent.
(14) Submission of State Apprenticeship
Plan (§ 29.27)
In order to maintain recognition as an
SAA, each SAA would be required to
submit a State Apprenticeship Plan
every 4 years, beginning in 2026. The
State Apprenticeship Plan would
contain strategic planning elements
such as goals for expansion; promotion
of DEIA; a narrative describing
workforce development activities; and a
description of its strategy and initiatives
for ensuring its registered
apprenticeship programs feature highquality apprenticeships. The State
Apprenticeship Plan also would include
operational planning elements such as
regulatory documentation, State EEO
plan, complaint investigation plan,
technical assistance plan, performance
reporting process, program review plan,
registration standards, reciprocity
policy, and data sharing policy. Finally,
the State Apprenticeship Plan would
include a variety of assurances that the
State would abide by relevant regulatory
requirements, registration requirements,
resource availability, and information
availability. Under this requirement,
SAAs would face a burden to write and
document these requirements, and then
submit their State Apprenticeship Plan.
The Department estimates that each
SAA would have a Training and
Development Manager (State level)
spend 86 hours to develop, write,
review, and submit the State
Apprenticeship Plan. This estimate
aligns with the time estimate made in
the 1205–0522 Supporting Statement for
WIOA State Plans for the time required
to write state plans. The Department
seeks public comment on this estimate.
This periodic cost would occur every 4
years, beginning in 2026. Therefore,
SAAs would face costs in years 2, 6, and
10 of $197,948 (= 31 SAAs × 86 hours
× $74.25 per hour). In total, the
annualized cost over the 10-year
analysis period is estimated at $58,575
at a discount rate of 3 percent and
$57,723 at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $499,656 at a
discount rate of 3 percent and $405,424
at a discount rate of 7 percent.
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b. CTE Costs
(1) Rule Familiarization
When the proposed rule becomes
final and takes effect, registered CTE
apprenticeship program sponsors,
participating employers, and SAAs
would need to familiarize themselves
with the new regulation, thereby
incurring a one-time cost. To estimate
the cost of rule familiarization to
sponsors, the Department estimates that
each registered CTE apprenticeship
program sponsor would have a Training
and Development Manager (private
sector) spend 4 hours reading and
reviewing the new rule. This estimate
aligns with the time estimate made in
the 2016 DOL EEO Apprenticeship RIA
for the time required to read and review
the rule. The Department seeks public
comment on this estimate. In
subsequent years, this cost is only
applied to new registered CTE
apprenticeship program sponsors. The
estimated cost in year 1 is $56,566 (=
137 sponsors in year 1 × 4 hours ×
$103.10 per hour). In years 2–10, only
new sponsors would incur this cost. In
years 2–10, new sponsors would face a
cost of $169,699 (= 412 new sponsors ×
4 hours × $103.10 per hour).
To estimate the cost of rule
familiarization to participating
employers, the Department estimates
that each participating employer would
have a Training and Development
Manager (private sector) spend 2 hours
reading and reviewing the new rule.
This estimate was made by dividing the
time estimate of 4 hours to read and
review the rule from the 2016 DOL EEO
Apprenticeship RIA in half. The
Department anticipates it will take
participating employers less time to
read and review the rule since only
certain provisions will be relevant to
them. The Department seeks public
comment on this estimate. In
subsequent years, this cost is only
applied to new CTE participating
employers. The estimated cost in year 1
is $43,273 (= 210 participating
employers in year 1 × 2 hours × $103.10
per hour). In years 2–10, only new
participating employers would incur
this cost. In year 2, for example, new
employers would face a cost of $129,820
(= 630 new participating employers × 2
hours × $103.10 per hour).
To estimate the cost of rule
familiarization to SAAs, the Department
estimates that each CTE SAA would
have a Training and Development
Manager (State level) spend 4 hours
reading and reviewing the new rule.
This estimate aligns with the time
estimate made in the 2016 DOL EEO
Apprenticeship RIA for the time
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required to read and review the rule.
The Department seeks public comment
on this estimate. This would result in an
annual cost to new CTE SAAs, with an
estimated year 1 cost of $297 (= 1 CTE
SAAs × 4 hours × $74.25 per hour).
In total, rule familiarization would
have annualized costs over the 10-year
analysis period of $278,274 at a
discount rate of 3 percent and $274,349
at a discount rate of 7 percent. The total
cost over the 10-year analysis period is
estimated at $2.4 million at a discount
rate of 3 percent and $1.9 million at a
discount rate of 7 percent.
(2) Development of Industry Skills
Frameworks (§ 29.24(b))
The proposed rule would require OA
to develop industry skills frameworks.
OA would be required to develop
training outlines that provide a structure
for developing the personal
effectiveness, academic, and workplace
competencies required by an industry.
The proposed rule would require the
industry skills frameworks to describe
the core competencies to be developed
across an industry and must specify an
on-the-job training outline detailing the
minimum number of on-the-job training
hours apprentices must attain in order
to meet the specific benchmarks
required by an industry.
The Department assumes that OA
would develop a specific industry skills
framework for 16 industries 219
participating in the program and
estimates that OA would have a GS–13
level employee spend 80 hours per
industry developing the training
material and course content. This
estimate aligns with the time estimate
made in the 2020 DOL IRAP rule for the
time required to develop a training plan.
The Department seeks public comment
on this estimate. The Department
assumes that it can develop 8 industry
skills frameworks per year and therefore
that it will develop 8 in year 1 and 8 in
year 2. The Department also assumes
there will be engagement from industry
leaders to support the review of the
industry skills frameworks and industry
leaders will spend a total of 2 hours
providing their support for this review.
This estimate is based on program
experience, and the Department seeks
public comment on this estimate.
To estimate the costs to OA associated
with developing industry skills
frameworks, the Department multiplied
the anticipated number of industry
skills frameworks developed per year by
219 The basis for the 16 industries is the 16 Career
Clusters that were created by Advance CTE on
behalf of ED. Advance CTE, ‘‘Career Clusters,’’
https://careertech.org/career-clusters (last visited
Oct. 23, 2023).
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the hour burden to develop the Skills
Frameworks and by the GS–13 (Federal)
loaded hourly wage. In years 1–2, the
Department estimates costs to OA
associated with developing industry
skills frameworks to be $50,803 per year
(= 8 industry skills frameworks × 80
hours × $79.38 per hour).
To estimate the costs to industry
leaders associated with supporting the
development of the industry skills
frameworks, the Department multiplied
the anticipated number of industry
skills frameworks developed per year by
the hour burden to develop the Skills
Frameworks and by the industry
leader’s loaded hourly wage. In years
1–2, the Department estimates costs to
industry leaders associated with
supporting the development of the
industry skills frameworks to be $1,632
per year (= 8 industry skills frameworks
× 2 hours × $102 per hour).
In total, the annualized cost over the
10-year analysis period for program
sponsors to develop industry skills
frameworks is estimated at $11,762 at a
discount rate of 3 percent and $13,498
at a discount rate of 7 percent. The total
cost over the 10-year analysis period is
estimated at $100,333 at a discount rate
of 3 percent and $94,804 at a discount
rate of 7 percent.
(3) CTE Apprenticeship Program
Registration Applications (§ 29.24(d)(2))
The proposed rule would require a
prospective program sponsor to
electronically submit to a Registration
Agency an application that includes
written plans and assurances. The
Department anticipates the program
sponsor’s Training and Development
Manager (private sector) would spend
10 hours carrying out the duties
associated with CTE apprenticeship
registration applications. This estimate
is based on program experience, and the
Department seeks public comment on
this estimate.
To estimate the costs associated with
CTE apprenticeship program
registration applications, the
Department multiplied the number of
anticipated program sponsors in each
year by the hour burden to compile
application information and by the
Training and Development Manager
(private sector) loaded hourly wage. In
year 1, the Department estimates costs
associated with compiling and
submitting program applications to be
$141,416 (= 137 program sponsors × 10
hours × $103.10 per hour). In year 2, the
Department estimates costs associated
with compiling and submitting program
applications to be $424,249 (= 412 new
program sponsors × 10 hours × $103.10
per hour).
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In total, the annualized cost over the
10-year analysis period for program
sponsors to compile and submit
program applications is estimated at
$392,058 at a discount rate of 3 percent
and $386,614 at a discount rate of 7
percent. The total cost over the 10-year
analysis period is estimated at $3.3
million at a discount rate of 3 percent
and $2.7 million at a discount rate of 7
percent.
(4) Selection of Diverse and Inclusive
Cross-Section of Students
(§ 29.24(d)(2)(v)(A))
The proposed rule would require
program sponsors to ensure a diverse
and inclusive cross-section of students
is selected for participation. The
Department assumes that in order to be
compliant with the proposed rule,
program sponsors would ensure that
information is distributed regularly to
underserved communities. The
Department anticipates the program
sponsor’s human resources (HR)
manager and administrative assistant
would spend 0.5 hours, respectively,
carrying out the duties associated with
distributing information. This estimate
aligns with the time estimate made in
the 2016 EEO Apprenticeship RIA for
the time spent on outreach to students
from underserved communities. The
Department seeks public comment on
this estimate.
To estimate the costs associated with
ensuring a diverse and include crosssections of students are selected, the
Department multiplied the anticipated
number of program sponsors per year by
the hour burden to distribute
information to underserved
communities and by the HR manager as
well as the administrative assistant
loaded hourly wage (private sector),
respectively. In year 1, the Department
estimates costs associated with
distributing information to underserved
communities to be $10,086 (= 137
program sponsors × 0.5 hours × $32.93
per hour + 137 program sponsors × 0.5
hours × $114.13 per hour).
In total, the annualized cost over the
10-year analysis period for program
sponsors to ensure a diverse and
inclusive cross-section of students is
selected is estimated at $138,880 at a
discount rate of 3 percent and $129,487
at a discount rate of 7 percent. The total
cost over the 10-year analysis period is
estimated at $1.2 million at a discount
rate of 3 percent and $909,461 at a
discount rate of 7 percent.
(5) Sponsor Oversight of Participating
Employers (§ 29.24(d)(4))
The proposed rule would impose
costs on sponsors to ensure that each of
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the employers that participate in the
program adheres to all requirements of
the proposed rule. The Department
anticipates the program sponsor’s HR
manager would spend 8 hours
performing the duties associated with
overseeing the participating employers.
This estimate is based on program
experience, and the Department seeks
public comment on this estimate.
To estimate the costs associated with
sponsor oversight of participating
employers, the Department multiplied
the number of program sponsors
anticipated each year by the hour
burden to ensure participating
employers adhere to all the
requirements of the proposed rule and
by the HR manager hourly wage (private
sector). In year 1, the Department
estimates the costs associated with the
oversight of participating employers to
be $125,424 (= 137 program sponsors ×
8 hours × $114.13 per hour).
In total, the annualized cost over the
10-year analysis period for program
sponsors to oversee participating
employers is estimated at $1.7 million at
a discount rate of 3 percent and $1.6
million at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $14.7 million at
a discount rate of 3 percent and $11.3
million at a discount rate of 7 percent.
(6) CTE Apprenticeship Agreement
(§ 29.24(e))
The proposed rule would require all
program sponsors registered by a
Registration Agency to develop and
establish a written CTE apprenticeship
agreement that contains the terms and
conditions of the employment,
education, and training of the CTE
apprentice. The Department anticipates
the program sponsor’s Training and
Development Manager (private sector)
would spend 0.167 hours performing
the duties associated with the CTE
apprenticeship agreements. This
estimate aligns with the time estimate
made in the 2020 DOL IRAP rule for the
time required to prepare and sign the
apprenticeship agreement. The
Department seeks public comment on
this estimate.
To estimate the costs associated with
the CTE apprenticeship agreement, the
Department multiplied the number of
CTE apprentices anticipated to
participate each year by the hour burden
for program sponsors to prepare and
sign the CTE apprenticeship agreement
and by the Training and Development
Manager wage (private sector). In year 1,
the Department estimates the costs
associated with preparing and signing
CTE apprenticeship agreements to be
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$55,263 (= 3,210 CTE apprentices ×
0.167 hours × $103.10 per hour).
In total, the annualized cost over the
10-year analysis period for program
sponsors to develop written CTE
apprenticeship agreements is estimated
at $421,712 at a discount rate of 3
percent and $395,717 at a discount rate
of 7 percent. The total cost over the 10year analysis period is estimated at $3.6
million at a discount rate of 3 percent
and $2.8 million at a discount rate of 7
percent.
(7) Credentials Upon Completion of
Program (§ 29.24(f))
The proposed rule would impose
costs on the Registration Agency to
provide a nationally recognized
certificate of completion of registered
CTE apprenticeship and any other
industry-recognized credential to
students who meet the graduation
requirements for the registered CTE
apprenticeship program. The
Department estimates that OA would
issue 41.8 percent of the total
credentials based on the proportion of
certificates issued by SAAs (58.2
percent). The Department anticipates
that the duties associated with issuing
completion credentials would be
performed by a GS–13 level employee
who would spend 0.25 hour providing
a certificate of completion of registered
CTE apprenticeship and other
credentials to students. This estimate
aligns with the time estimate made in
the RAP section of this RIA for the time
required to provide a certificate of
compliance to each sponsor. The
Department seeks public comment on
this estimate. To estimate the costs
associated with OA providing
completion credentials to students, the
Department multiplied the number of
CTE apprentices anticipated to receive
certificates each year by the hour
burden for OA to prepare and issue the
certificates and by the GS–13 wage
(public sector). The Department
assumes that the first cohort of students
to receive completion credentials would
be eligible beginning in year 2, and
estimates the costs to OA associated
with providing completion credentials
to be $26,609 (= 3,210 CTE apprentices
× 41.8% × 0.25 hour × $79.38 per hour).
The Department estimates that SAAs
would issue 58.2 percent of the total
credentials based on the anticipated
total number of CTE apprentices per
year. The Department anticipates that
the duties associated with issuing
completion credentials would be
performed by a Training and
Development Manager (public sector)
who would spend 0.25 hour providing
a certificate of completion of registered
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CTE apprenticeship and other
credentials to students. This estimate
aligns with the time estimate made in
the RAP section of this RIA for the time
required to provide a certificate of
compliance to each sponsor. The
Department seeks public comment on
this estimate. To estimate the costs
associated with SAAs providing
completion credentials to students, the
Department multiplied the number of
CTE apprentices anticipated to receive
certificates each year by the hour
burden for SAAs to prepare and issue
the certificates and by the Training and
Development Manager wage (public
sector). In year 2, the Department
estimates the costs to SAAs associated
with providing completion credentials
to be $34,692 (= 3,210 CTE apprentices
× 58.2% × 0.25 hour × $74.25 per hour).
In total, the annualized cost over the
10-year analysis period for OA and
SAAs to issue completion credentials is
estimated at $376,291 at a discount rate
of 3 percent and $348,039 at a discount
rate of 7 percent. The total cost over the
10-year analysis period is estimated at
$3.2 million at a discount rate of 3
percent and $2.4 million at a discount
rate of 7 percent.
(8) Program Registration (§ 29.24(g)(1))
The proposed rule would require
Registration Agencies to review CTE
apprenticeship program registration
applications and determine whether the
program is eligible for registration
within 90 days of receipt. Additionally,
Registration Agencies would have to
inform applicants in writing of
decisions regarding program
registration.
The Department estimates that OA
would register 41.8 percent of programs
based on the proportion of programs
that are typically registered by SAAs
(58.2 percent). The Department
anticipates that the duties of reviewing
applications and making a
determination would be performed by a
GS–13 level employee who would
spend 2 hours reviewing program
registration applications and informing
applicants of their decision. This
estimate is based on program
experience, and the Department seeks
public comment on this estimate. To
estimate the costs associated with OA
reviewing CTE apprenticeship program
registration applications and informing
applicants of their decision, the
Department multiplied the number of
programs typically registered by OA by
the hour burden for OA to review
program registration applications and by
the GS–13 hourly wage. This would
result in an annual cost to OA, with a
cost in year 1 of $9,097 (= 137 program
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sponsors × 41.8% × 2 hours × $79.38 per
hour).
The Department estimates that SAAs
would register 58.2 percent of programs,
and the time required for a Training and
Development Manager to review
program registration applications and
inform applicants of their decision
would be consistent with that of OA’s
at 2 hours. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. To estimate the costs
associated with SAAs reviewing CTE
apprenticeship program registration
applications and informing applicants
of their decision, the Department
multiplied the number of programs
typically registered by SAAs by the hour
burden for SAAs to review program
registration applications and by the
Training and Development Manager
(State level) hourly wage. This would
result in an annual cost to SAAs, with
a cost in year 1 of $11,860 (= 137
program sponsors × 58.2% × 2 hours ×
$74.25 per hour).
In total, the annualized cost over the
10-year analysis period for Registration
Agencies to review CTE apprenticeship
program registration applications and
inform applicants of their decision is
estimated at $58,102 at a discount rate
of 3 percent and $57,295 at a discount
rate of 7 percent. The total cost over the
10-year analysis period is estimated at
$495,622 at a discount rate of 3 percent
and $402,418 at a discount rate of 7
percent.
(9) Technical Assistance and Other
Support (§ 29.24(g)(2))
The proposed rule would require
Registration Agencies to provide
outreach, technical assistance, and other
support to potential sponsors to support
the adoption of registered CTE
apprenticeship.
The Department estimates that OA
would provide technical assistance to
41.8 percent of program sponsors based
on the proportion of programs that are
typically registered by OA. The
Department anticipates that the time
required for a GS–13 level employee to
provide technical assistance and other
support to sponsors would be 3 hours.
This estimate aligns with time estimates
for similar activities in the 2016 WIOA
RIA. The Department seeks public
comment on this estimate. To estimate
the costs associated with OA providing
technical assistance, the Department
multiplied the number of programs
typically registered by OA, and thus
receiving technical assistance from OA,
by the hour burden for OA to provide
technical assistance and by the GS–13
hourly wage. This would result in an
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annual cost to OA, with a cost in year
1 of $13,646 (= 137 program sponsors ×
41.8% × 3 hours × $79.38 per hour).
The Department estimates that SAAs
would provide technical assistance to
58.2 percent of program sponsors based
on the proportion of programs that are
typically registered by SAAs. The
Department anticipates that the time
required for a Training and
Development Manager to provide
technical assistance and other support
to sponsors would be 3 hours. This
estimate aligns with time estimates for
similar activities in the 2016 WIOA RIA.
The Department seeks public comment
on this estimate. To estimate costs
associated with SAAs providing
technical assistance, the Department
multiplied the number of programs
typically registered by SAAs, and thus
receiving technical assistance from
SAAs, by the hour burden for SAAs to
provide technical assistance and by the
Training and Development Manager
(State level) hourly wage. This would
result in an annual cost to SAAs, with
a cost in year 1 of $17,791 (= 137
program sponsors × 58.2% × 3 hours ×
$74.25 per hour).
In total, the annualized cost over the
10-year analysis period for Registration
Agencies to provide outreach, technical
assistance, and other support to
potential sponsors is estimated at
$432,862 at a discount rate of 3 percent
and $403,586 at a discount rate of 7
percent. The total cost over the 10-year
analysis period is estimated at $3.7
million at a discount rate of 3 percent
and $2.8 million at a discount rate of 7
percent.
(10) Program Reviews (§ 29.24(g)(4))
The proposed rule would require
Registration Agencies to conduct
reviews of registered CTE
apprenticeship programs at least every 5
years. Program reviews can consist of
off-site reviews such as desk audits of
submitted records or on-site reviews at
the workplace of the sponsor. On-site
reviews could involve copying of
relevant documents and interviews with
employees, CTE apprentices,
journeyworkers, supervisors, managers,
and hiring officials. The Registration
Agency must also provide a written
Notice of Program Review Findings to
the sponsor. If a sponsor receives a
Notice of Program Review Findings that
indicates a failure of compliance, the
sponsor must develop a compliance
action plan or submit a written rebuttal
to the Registration Agency.
The Department assumes that 20
percent of program sponsors would be
subject to program reviews annually,
such that in a 5-year period all program
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sponsors would be reviewed. The
Department estimates that OA would
conduct annual program reviews for 8.4
percent of sponsors based on the
proportion of programs registered by OA
and that a GS–13 level employee would
spend 40 hours conducting each
program review. This estimate aligns
with the time estimate made in the RAP
section of this RIA for the time required
to conduct program reviews. The
Department seeks public comment on
this estimate. This would result in an
annual cost to OA, with a cost in year
1 of $36,388 (= 137 sponsors in year 1
× 8.4% × 40 hours × $79.38 per hour).
The Department estimates that SAAs
would conduct annual program reviews
for the remaining 11.6 percent of
sponsors and that a Training and
Development Manager (State level)
would spend 40 hours conducting each
program review. This estimate aligns
with the time estimate made in the RAP
section of this RIA for the time required
to conduct program reviews. The
Department seeks public comment on
this estimate. This would result in an
annual cost to SAAs, with a cost in year
1 of $47,442 (= 137 sponsors in year 1
× 11.6% × 40 hours × $74.25 per hour).
The Department estimates that 20
percent of sponsors would be found
noncompliant and need to develop a
compliance action plan. The
Department estimates that a Training
and Development Manager (private
sector) would require 8 hours to develop
the compliance action plan and 0.17
hour to submit it electronically. These
estimates align with the time estimates
made in the RAP section of this RIA for
the time required to develop and submit
the compliance action plan. The
Department seeks public comment on
these estimates. This would result in an
annual cost to sponsors, with a cost in
year 1 of $4,621 (= 137 sponsors in year
1 × 20% undergoing program reviews ×
20% found noncompliant × 8.17 hours
× $103.10 per hour).
In total, the annualized cost over the
10-year analysis period of program
reviews is estimated at $1.2 million at
a discount rate of 3 percent and $1.1
million at a discount rate of 7 percent.
The total cost over the 10-year analysis
period is estimated at $10.4 million at
a discount rate of 3 percent and $8.0
million at a discount rate of 7 percent.
(11) Request for Reconsideration of
Program Registration Status
(§ 29.24(g)(5) Through (7))
The proposed rule would allow
sponsors to file a request for
reconsideration if their initial
application is denied, renewal of the
registration of a program is denied, or
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the program is deregistered. It would
also require Registration Agencies to
review the request and issue a written
explanation of their final decision.
The Department assumes that 25
percent of program sponsors would
submit a request for reconsideration
annually but seeks public comment on
this assumption. The Department thinks
this estimate is reasonable due to the
level of coordination required for this
model and since the program is new.
The estimate is also based on the
Department’s experience with registered
apprenticeship. The Department also
assumes that the duties associated with
preparing and submitting requests for
reconsideration for program sponsors
would be performed by a Training and
Development Manager (private sector)
who would spend 6 hours preparing
requests. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. In year 1, the Department
estimates the costs for program sponsors
associated with requests for
reconsideration to be $21,212 (= 137
sponsors × 25% requesting
consideration × 6 hours × $103.10 per
hour). In year 2, the Department
estimates the costs for new program
sponsors associated with new requests
for reconsideration to be $63,637 (= 412
new sponsors × 25% requesting
consideration × 6 hours × $103.10 per
hour).
The Department assumes that 41.8
percent of programs will be registered
by OA. The Department also assumes
that the duties associated with
Registration Agencies reviewing
requests for reconsideration for OA will
be performed by a GS–13 level
employee who will spend 2 hours
reviewing requests. This estimate is
based on program experience, and the
Department seeks public comment on
this estimate. In year 1, the Department
estimates the costs for OA associated
with requests for reconsideration to be
$2,274 (= 137 sponsors × 41.8%
registered by OA × 25% requesting
consideration × 2 hours × $79.38 per
hour). In year 2, the Department
estimates costs for OA associated with
new request for reconsideration to be
$6,823 (= 412 new sponsors × 41.8%
registered by OA × 25% requesting
consideration × 2 hours × $79.38 per
hour).
The Department assumes that 58.2
percent of program sponsors will be
registered by SAAs. The Department
also assumes that the duties associated
with Registration Agencies reviewing
requests for reconsideration for SAAs
will be performed by a Training and
Development Manager (private sector)
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who will spend 2 hours reviewing
requests. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. In year 1, the Department
estimates costs for SAAs associated with
request for reconsideration to be $2,965
(= 137 sponsors × 58.2% registered by
SAAs × 25% requesting consideration ×
2 hours × $74.25 per hour). In year 2,
the Department estimates costs for SAAs
associated with new request for
reconsideration to be $8,895 (= 412 new
sponsors × 58.2% registered by SAAs ×
25% requesting consideration × 2 hours
× $74.25).
In total, the annualized cost over the
10-year analysis period associated with
requests for reconsideration of program
status is estimated at $73,334 at a
discount rate of 3 percent and $72,316
at a discount rate of 7 percent. The total
cost over the 10-year analysis period is
estimated at $625,555 at a discount rate
of 3 percent and $507,917 at a discount
rate of 7 percent.
(12) Data and Quality Metrics;
Submission to Registration Agency
(§ 29.24(g)(9))
The proposed rule would require CTE
apprentices to provide their information
to program sponsors. The Department
assumes that CTE apprentices would
spend 0.16 hour providing their
information to program sponsors. This
estimate aligns with the time estimate
made in the RAP section of this RIA for
the time apprentices spend providing
their information to program sponsors.
The Department seeks public comment
on this estimate. To calculate the costs
for CTE apprentices associated with
providing information to program
sponsors, the Department multiplied the
number of anticipated CTE apprentices
each year by the hour burden to provide
information and by the CTE apprentice
hourly wage (private sector). In year 1,
the Department estimates the costs for
CTE apprentices to provide their
information to program sponsors to be
$13,835 (= 3,210 CTE apprentices × 0.16
hour × $25.96 per hour).
The proposed rule would require
program sponsors to spend time
compiling and sending to OA data on
CTE apprentices, participating
employers, and themselves. The
Department assumes program sponsors
would spend 0.167 hour (10 minutes)
compiling and sending data on CTE
apprentices, 0.167 hour on participating
employers, and 0.67 hour on
themselves. These estimates align with
the time estimates made in the RAP
section of this RIA for the time required
to compile and send data. The
Department seeks public comment on
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these estimates. The Department also
assumes that the duties associated with
the hour burden to compile and send
data would be performed by a Training
and Development Manager (private
sector). To calculate the costs to
program sponsors associated with
compiling and sending data, the
Department multiplied the number of
CTE apprentices, program sponsors, and
employers anticipated each year by the
respective hour burden to compile and
send data and by the Training and
Development Manager wage (private
sector). In year 1, the Department
estimates the costs to program sponsors
associated with compiling and sending
data to be $67,857 (= 3,210 CTE
apprentices × 0.167 hour × $103.10 per
hour + 210 participating employers ×
0.167 hour × $103.10 per hour + 137
program sponsors × 0.67 hour × $103.10
per hour).
The Department assumes that the
duties associated with compiling and
developing reports to be made publicly
available would be performed by a GS–
13 level employee who would spend 60
hours compiling and developing
reports. This estimate is based on
program experience, and the
Department seeks public comment on
this estimate. To calculate the costs for
OA associated with compiling and
developing reports, the Department
multiplied the hour burden to compile
and develop reports by the GS–13 wage.
In year 1, the Department estimates the
costs to OA associated with compiling
and developing reports to be $4,763 (=
60 hours × $79.38 per hour).
The proposed rule would require CTE
SAAs to compile and submit all CTE
apprenticeship-related data. The
Department assumes that the duties
associated with compiling and
submitting CTE apprenticeship-related
data would be performed by
management, computer systems, and
administrative staff who would spend
32 hours, 240 hours, and 72 hours,
respectively, compiling and submitting
data. These assumptions are consistent
with the assumptions in registered
apprenticeship for similar activities.
Additionally, the Department assumes
that CTE SAAs would spend 40 hours
compiling and developing reports to be
made publicly available. This estimate
is based on program experience, and the
3243
Department seeks public comment on
this estimate. In year 1, the Department
estimates the costs to CTE SAAs
associated with compiling and
developing reports to be $25,078 (= 1
CTE SAA × 32 hours × $74.25 per hour
+ 1 SAA × 240 hours × $70.01 per hour
+ 1 SAA × 72 hours × $40.70 per hour
+ 1 SAA × 40 hours × $74.25 per hour).
In total, the annualized costs over the
10-year analysis period associated with
data quality and metrics are estimated at
$1.3 million at a discount rate of 3
percent and $1.2 million at a discount
rate of 7 percent. The total cost over the
10-year analysis period is estimated at
$10.7 million at a discount rate of 3
percent and $8.2 million at a discount
rate of 7 percent.
5. Summary of Costs
This proposed rule would result in
costs from changes to the registered
apprenticeship regulations and creation
of the registered CTE apprenticeship
model. Exhibit 12 presents a summary
of the estimated costs for each
quantified provision for the registered
apprenticeship and registered CTE
apprenticeship, respectively.
EXHIBIT 12—SUMMARY TABLE OF COSTS BY PROVISION
[2022 $millions, annualized, 7%]
Registered
apprenticeship
cost per
provision
Registered apprenticeship provisions
Rule familiarization ........................................................
New requirements for on-the-job training ......................
Wage analysis and career development .......................
Occupation determination evaluation process ..............
$3.93
0.86
0.05
0.12
Data collection and reporting .........................................
Program registration ......................................................
Reporting for program standards and adoption agreement.
National occupation, program, and guidance standards
End-point assessments .................................................
Recordkeeping ...............................................................
Program reviews ............................................................
8.55
0.43
0.22
0.05
104.03
6.36
19.48
Data sharing ..................................................................
SAA reciprocity of registrations .....................................
Submission of State Apprenticeship Plan .....................
1.73
0.001
0.06
The proposed rule would result in
quantified costs to registered
apprenticeship SAAs, sponsors,
participating employers, and
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CTE provisions
CTE
cost per
provision
Rule familiarization ........................................................
Development of industry skills frameworks ...................
Apprenticeship program registration application ...........
Selection of diverse and inclusive cross-section of students.
Sponsor oversight .........................................................
Apprenticeship agreement ............................................
Credentials upon completion of program ......................
$0.27
0.01
0.39
0.13
Program registration ......................................................
Technical assistance and other support .......................
Program reviews ...........................................................
Request for reconsideration of program registration
status.
Data and quality metrics ...............................................
0.06
0.40
1.14
0.07
apprentices. The proposed rule would
also result in quantified costs to CTE
program SAAs, sponsors, participating
employers, and apprentices. Exhibit 13
1.61
0.40
0.35
1.17
presents a summary of the quantifiable
costs to each type of entity associated
with the proposed rule.
EXHIBIT 13—SUMMARY TABLE OF COSTS BY PROVISION
[2022 $millions, annualized, 7%]
Registered Apprenticeship Program Entities:
SAAs .............................................................................................................................................................................................
Sponsors .......................................................................................................................................................................................
Participating Employers ................................................................................................................................................................
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$13.52
91.34
7.77
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EXHIBIT 13—SUMMARY TABLE OF COSTS BY PROVISION—Continued
[2022 $millions, annualized, 7%]
Apprentices ...................................................................................................................................................................................
OA .................................................................................................................................................................................................
CTE Program Entities:
SAAs .............................................................................................................................................................................................
Sponsors .......................................................................................................................................................................................
Participating Employers ................................................................................................................................................................
Apprentices ...................................................................................................................................................................................
OA .................................................................................................................................................................................................
22.60
10.62
1.19
3.66
0.12
0.18
0.84
Exhibit 14 presents a summary of the
quantifiable costs associated with this
proposed rule.
EXHIBIT 14–ESTIMATED COSTS
[2022 $millions]
Registered
apprenticeship
program costs
Year
Total
costs
1 .............................................................................................................................................
2 .............................................................................................................................................
3 .............................................................................................................................................
4 .............................................................................................................................................
5 .............................................................................................................................................
6 .............................................................................................................................................
7 .............................................................................................................................................
8 .............................................................................................................................................
9 .............................................................................................................................................
10 ...........................................................................................................................................
$147.2
126.8
131.9
137.3
142.6
148.2
153.3
158.7
164.1
169.6
$0.8
2.5
3.7
4.9
6.1
7.3
8.6
9.7
11.0
12.2
$147.9
129.3
135.6
142.2
148.8
155.5
161.9
168.4
175.0
181.8
Annualized, 3% discount rate, 10 years ........................................................................
Annualized, 7% discount rate, 10 years ........................................................................
147.0
145.9
6.4
6.0
153.4
151.9
Total, 3% discount rate, 10 years ..................................................................................
Total, 7% discount rate, 10 years ..................................................................................
1,254.2
1,024.5
54.4
42.1
1,308.6
1,066.6
6. Nonquantifiable Costs and Cost
Savings
This section addresses the
nonquantifiable costs and cost savings
of the proposed rule.
a. Costs
(1) Authority To Determine Occupations
Suitable for Apprenticeship (§ 29.7(a))
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CTE
program costs
The proposed rule would give the
authority to determine occupations
suitable for registered apprenticeship
only to OA. Currently, some
occupations are determined to be
suitable for registered apprenticeship
only by SAAs. Those occupations
determined only by SAAs, and not OA,
to be suitable for registered
apprenticeship would need to submit
new requests for the occupations to be
approved by OA for them to continue to
be suitable for registered
apprenticeship. The Department
assumes that sponsors would submit
new requests for all occupations only
approved by SAAs to be determined
suitable for registered apprenticeship
therefore incurring a one-time cost. The
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Department does not have data on the
number of occupations that are only
determined to be suitable for registered
apprenticeship by SAAs and therefore is
unable to quantify the cost of submitting
the new requests for occupation
suitability. The Department seeks public
comments on data supporting costs of
occupation suitability determinations to
SAAs and sponsors.
(2) New Requirements for Off-the-Job
Training Documentation (§ 29.7(b)(4))
The proposed rule would require
sponsors to submit documentation of
the curriculum and number of off-thejob training hours, which cannot be less
than 144 hours. Programs that do not
meet the 144-hour minimum
requirement would need to update their
off-the-job training requirements and
submit documentation. The Department
does not have data on the number of
programs that do not meet the minimum
144-hour requirements of off-the-job
training and is therefore unable to
quantify this cost.
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(3) Deregistration (§ 29.20)
As discussed under the benefits
section, the proposed rule would add a
suspension step prior to deregistration
allowing sponsors an adequate span of
time to update their practices and be in
compliance without having to be
deregistered and then reregistered at a
later date. Both SAAs and OA would
need to develop a process for
suspension procedures and offer
technical assistance to sponsors to
promote compliance with the
suspension process. The Department is
unable to quantify this cost due to
uncertainty with procedures that would
be developed and a lack of data on how
many suspensions would be expected to
occur. In addition, the addition of the
suspension step could reduce the
number of costly deregistrations,
potentially even leading to cost savings
for Registration Agencies.
(4) State Apprenticeship Councils
(§ 29.26(d))
The proposed rule would increase
and clarify the requirements for State
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Apprenticeship Councils that are
established by SAAs. State
Apprenticeship Councils provide SAAs
with written, nonbinding advice,
recommendations, research, and reports
concerning apprenticeship-related
matters, and on the submission of the
State Apprenticeship Plan. The
proposed rule would establish
requirements for State Apprenticeship
Council composition including
requiring State Apprenticeship Councils
to be composed of individuals who are
familiar with occupations suitable for
registered apprenticeship, registered
apprenticeship programs, and
opportunities across a wide range of
industries and sectors including
employers, representatives of
employers, representatives of labor
organizations, members of State
workforce development boards,
representatives of the secondary or
postsecondary education system, and
other stakeholders of the National
Apprenticeship System. State
Apprenticeship Council participation
would be voluntary and therefore
impose de minimis costs on individuals.
However, SAAs would have a cost to
recruit members and maintain the State
Apprenticeship Council. The
Department lacks data on the burden or
costs associated with establishing and
maintaining a State Apprenticeship
Council and is therefore unable to
quantify the costs of this provision. The
Department seeks public comment on
data or estimates of the costs associated
with establishing and maintaining a
State Apprenticeship Council for any
States that would need to create State
Apprenticeship Councils.
b. Cost Savings
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(1) Exemptions (§ 29.23)
The proposed rule would provide
relief to certain sponsors that can justify
being exempt from certain requirements
of subpart A of 29 CFR part 29. This
would result in cost savings for
sponsors and potentially participating
employers. The Department is unable to
project how many exemptions would be
requested and granted, as well as what
provisions the exemptions would be for.
Therefore, the Department is unable to
estimate the potential cost savings
resulting from exemptions. The
Department seeks public comment on
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how sponsors may use the exemption
provision.
7. Nonquantifiable Transfer Payments
a. Progressive Wage Increases
(§ 29.8(a)(17)(B))
The proposed rule would require a
graduated schedule of increasing wages
from entry wage to the journeyworker
wage that includes at least one
incremental wage step during the first
2,000 hours of on-the-job training and a
final wage that is at least 75 percent of
the journeyworker wage paid by the
employer for that occupation. These
changes would result in transfer
payments from participating employers
to apprentices. Participating employers
that, in the baseline, do not increase
wages during the first 2,000 hours or do
not pay an end-point wage of 75 percent
of the journeyworker wage, would need
to pay higher total wages over the
apprenticeship term. The Department
lacks data on the number of
participating employers that do not offer
at least one wage increase for every
2,000 hours or the number of
participating employers that do not pay
an end-point wage of 75 percent of the
journeyworker wage. Therefore, the
Department is unable to quantify the
transfer payments associated with either
change. The Department seeks public
comment on how progressive wage
increases from this provision would
impact apprentices and employers,
specifically data that would indicate
how many apprentices are currently not
receiving progressive wage increases.
b. Unreimbursed Costs to Apprentices
(§ 29.8(a)(18))
The proposed rule would limit the
unreimbursed costs, expenses, and fees
that an apprentice may incur during the
registered apprenticeship program to
those that are necessary and reasonable
and do not impose financial barriers.
The Department believes that there are
currently some instances in which
apprentices are required to pay costs,
expenses, or fees that are excessive and
unreasonably burden the apprentice.
The Department expects that this
provision would reduce the instances of
these and as a result, be a transfer
payment from sponsors or participating
employers to apprentices. The
Department does not have data on the
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3245
prevalence of excessive costs to
apprentices, and therefore is unable to
quantify this transfer payment.
8. Distributional Impact Analysis
E.O. 13985, ‘‘Advancing Racial Equity
and Support for Underserved
Communities Through the Federal
Government,’’ seeks to advance equity
in agency actions and programs. The
term equity is defined as consistent and
systematic fair, just, and impartial
treatment of individuals, including
individuals who belong to underserved
communities, such as women; Black,
Latino, and Indigenous and Native
American persons; Asian Americans
and Pacific Islanders; other persons of
color; members of religious minorities;
lesbian, gay, bisexual, transgender, and
queer persons; persons with disabilities;
persons who live in rural areas; and
persons otherwise adversely affected by
persistent poverty or inequality.
To assess the impact of the proposed
rule on equity, the Department analyzed
Census data from the 2020 American
Community Survey with data on the
demographic distribution of registered
apprenticeship programs. As shown in
Exhibit 15 below, certain underserved
communities are well represented in
registered apprenticeship programs and
are approximately equal to or exceed the
distribution of these groups in the
Census Workforce Population.220 This
includes individuals who identify as
Hawaiian/Pacific Islander, Hispanic,
Native American, Black, Veteran, and
Youth. Although the remaining
demographic groups’ representation in
registered apprenticeship programs does
not yet reflect the overall U.S.
workforce, significant progress has been
made and efforts continue to advance
equity for underserved communities.
This proposed rule tries to further
advance registered apprenticeship as an
equitable program by increasing the
rights of apprentices such as by
removing non-compete provisions,
improving the complaint process,
ensuring progressive wage increases
through an apprentice’s tenure, and
other quality improvements to
registered apprenticeship.
220 U.S. Census Bureau, ‘‘American Community
Survey Data,’’ 2020, https://www.census.gov/
programs-surveys/acs/data.html.
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EXHIBIT 15—DEMOGRAPHIC COMPARISON BETWEEN U.S. CENSUS WORKFORCE AND REGISTERED APPRENTICESHIP
PROGRAM
Census
(%)
Demographic
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Asian ........................................................................................................................................................................
Black or African American .......................................................................................................................................
Disabled ...................................................................................................................................................................
Hawaiian/Pacific Islander .........................................................................................................................................
Hispanic or Latino ....................................................................................................................................................
Multiracial .................................................................................................................................................................
Native American ......................................................................................................................................................
Veteran ....................................................................................................................................................................
White ........................................................................................................................................................................
Women .....................................................................................................................................................................
Youth ........................................................................................................................................................................
The advancement of worker rights
and pay through changes in registered
apprenticeship from removal of noncompete provisions, improvements to
the complaint process, progressive wage
increases, and other quality
improvements to registered
apprenticeship would have the potential
to have two distributional impacts: (1)
for the existing distribution of registered
apprenticeship, which serves
underserved communities at a rate equal
to or higher than the population,
improve their economic outcomes; and
(2) have the potential to make registered
apprenticeship more attractive and
increase further the representation of
underserved communities.
For the apprentices in the current
distribution of registered
apprenticeship, as shown in Exhibit 15,
improvements in registered
apprenticeship would improve their
economic outcomes as described by the
benefits of the proposed rule. Workers
could potentially receive higher wages
by improving their labor mobility,
would participate in higher quality
registered apprenticeship programs, and
would face fewer financial barriers
affecting their economic future.
The reduction in financial barriers
would potentially increase participation
by underserved communities. Many of
the underserved communities are
economically disadvantaged or face
other workplace-related barriers.
Reducing financial barriers and
improving economic outcomes from
registered apprenticeship could
incentivize greater participation by
those underserved communities.
Changes to the registered apprenticeship
model, combined with prior updated
EEO regulations for registered
apprenticeship programs, which were
released in 2016, would help businesses
to reach a larger and more diverse pool
of workers, while also protecting
apprentices and applicants from
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discrimination.221 The effects of the
Department’s efforts are evident in the
demographic data provided by 686,000
apprentices between 2010 and 2019.222
These data show that the representation
of Asian apprentices has increased from
1.7 percent in 2010 to 2.2 percent in
2019.223 Additionally, the distribution
of Black or African American
apprentices has grown from 12.8
percent in 2010 to 17.1 percent in
2019.224 This demonstrates that efforts
to advance equity in registered
apprenticeship programs have proven to
be effective thus far, and this work will
continue to ensure that underserved
communities are represented in these
programs. The new registered CTE
apprenticeship program would expand
worker protections and antidiscrimination initiatives to youth
apprentices.
Although the participation of nearly
all underserved communities has
become more closely aligned with the
makeup of the overall U.S. workforce,
women’s representation in registered
apprenticeship programs still falls well
below this metric. Although women
comprise 43.15 percent of the American
workforce in 2020,225 only 13.8 percent
of all apprentices are women in 2022.226
According to BLS, women accounted for
only 10.9 percent of total employed
221 OA,
‘‘Diversity, Equity, Inclusion, and
Accessibility,’’ https://www.apprenticeship.gov/
employers/diversity-equity-inclusion-accessibility
(last visited July 20, 2023).
222 DOL, ‘‘Equity Snapshot: Apprenticeships in
America,’’ Nov. 4, 2021, https://blog.dol.gov/2021/
11/03/equity-snapshot-apprenticeships-in-america.
223 Ibid.
224 Ibid.
225 U.S. Census Bureau, ‘‘American Community
Survey Data,’’ 2020, https://www.census.gov/
programs-surveys/acs/data.html.
226 OA, ‘‘Women in Apprenticeship,’’ Aug. 2022,
https://www.apprenticeship.gov/sites/default/files/
dol-industry-factsheet-series-women.pdf.
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6.11
11.89
4.94
0.18
17.86
4.34
0.68
4.20
71.63
43.15
12.64
OA
(%)
2.04
10.77
1.12
1.10
22.75
1.10
1.60
7.09
61.74
13.8
39.00
construction workers in 2022,227 and
only 4.2 percent of those working
skilled construction trades
occupations.228 The Department’s
Women’s Bureau has worked to expand
opportunities for women by
administering the WANTO grant
program.229 Since 2017, approximately
15 million in grant funding has been
awarded to help recruit, train, and
retain more women in preapprenticeship and registered
apprenticeship programs in industries
where they are typically
underrepresented.230 This grant
program, amongst the previously
discussed reduction of financial barriers
by this proposed rule, will continue to
create a pathway for more women,
including those that are economically
disadvantaged, to enter registered
apprenticeship programs.231 This
proposed rule would ensure that all
registered apprenticeship programs,
including those targeting the
disadvantaged, maintain high-quality
programming, report more data that can
be used to analyze participation and
outcomes, and do not impose
unnecessary financial burdens. The
creation of the registered CTE
apprenticeship model would also
provide more opportunities for women
to get into registered apprenticeship
227 BLS, ‘‘Labor Force Statistics from the Current
Population Survey,’’ Jan. 25, 2023, https://
www.bls.gov/cps/cpsaat18.htm.
228 Institute for Women’s Policy Research,
‘‘Numbers Matter: Women Working in
Construction,’’ July 2023, https://iwpr.org/wpcontent/uploads/2023/07/Quick-Figureconstruction-July-2023.pdf.
229 OA, ‘‘WANTO Grant Program,’’ https://
www.dol.gov/agencies/wb/grants/wanto (last visited
July 20, 2023).
230 Ibid.
231 DOL, Women’s Bureau, ‘‘Advancing
Opportunities for Women through Apprenticeship,’’
Jan. 2021, https://www.dol.gov/sites/dolgov/files/
WB/media/AdvancingOpportunities
WomenthroughApprenticeship-jan2021.pdf.
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programs at an earlier stage in their
career.
9. Regulatory Alternatives
OMB Circular A–4, which outlines
best practices in regulatory analysis,
directs agencies to analyze alternatives
if such alternatives best satisfy the
philosophy and principles of E.O.
12866. Accordingly, the Department
considered four regulatory alternatives
for changes to registered apprenticeship,
two less burdensome and two more
burdensome than the proposed rule.
Under the first alternative, end-point
assessments (proposed § 29.16) would
not be required under the proposed rule.
Under the second alternative, program
reviews (proposed § 29.19) would only
be conducted for cause. Under the third
alternative, program reviews (proposed
§ 29.19) would be conducted for all
sponsors every 2 years rather than every
5 years. Finally, under the fourth
alternative, end-point assessments
(proposed § 29.16) would be conducted
by an independent third party. The
Department seeks comment on these
four regulatory alternatives as well as
additional regulatory alternatives for the
Department to consider.
For the first alternative the
Department considered removing the
requirement for end-point assessments.
To estimate the reduction in costs under
this alternative, the Department
subtracted the estimated costs of endpoint assessments from the total costs
estimated of the proposed rule. Over the
10-year analysis period, the annualized
costs are estimated at $41.8 million at a
discount rate of 7 percent. In total, this
alternative is estimated to result in costs
of $293.8 million at a discount rate of
7 percent.
The Department decided not to
pursue this alternative because endpoint assessments are a key method for
sponsors to assess the skills and
knowledge acquired by the apprentice.
They help to measure and ensure the
quality of registered apprenticeship
programs.
For the second alternative the
Department considered conducting
program reviews only for cause, rather
than for all sponsors every 5 years. To
estimate the reduction in costs under
this alternative, the Department
adjusted the calculations described in
the subject-by-subject analysis for
program reviews (proposed § 29.19).
The Department estimated that instead
of all sponsors undergoing a program
review every 5 years, only 320 sponsors
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would receive program reviews in each
year. The Department maintained the
assumption that 20 percent of those
program reviews would find
noncompliance and require a
subsequent compliance action plan. The
Department maintained the cost
estimates for all other provisions. Over
the 10-year analysis period, the
annualized costs are estimated at $127.9
million at a discount rate of 7 percent.
In total, this alternative is estimated to
result in costs of $898.2 million at a
discount rate of 7 percent.
The Department decided not to
pursue this alternative because
conducting program reviews only for
cause would miss a large number of
programs that may need reviews. To
ensure high-quality registered
apprenticeship programs, and that all
programs abide by the regulatory
requirements of registered
apprenticeship, the Department believes
that all registered apprenticeship
programs should be reviewed over a 5year period as specified in the proposed
rule. This 5-year period ensures that the
Department has the resources available
to conduct reviews and that the review
is not overly burdensome on programs
undergoing the review.
For the third alternative, the
Department considered conducting
program reviews for all registered
apprenticeship programs every 2 years,
rather than for all programs every 5
years. This would increase the
frequency at which the Department
could identify noncompliance and
potentially improve the quality of
registered apprenticeship programs by
ensuring closer compliance with the
regulatory requirements. To estimate the
increase in costs under this alternative,
the Department adjusted the
calculations described in the subject-bysubject analysis for program reviews
(proposed § 29.19). The Department
estimated that instead of all sponsors
undergoing a program review every 5
years, they would receive a program
review every 2 years. This would
increase the annual number of program
reviews conducted by SAAs (from 3,085
in year 1 to 7,713) and by OA (from
2,213 in year 1 to 5,533). The
Department maintained the cost
estimates for all other provisions. Over
the 10-year analysis period, the
annualized costs are estimated at $196.9
million at a discount rate of 7 percent.
In total, this alternative is estimated to
result in costs of $1,383.1 million at a
discount rate of 7 percent.
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The Department decided not to
pursue this alternative because
conducting program reviews every 2
years would increase costs by more than
the benefit of more frequent program
reviews. In addition, OA, and
potentially SAAs, would lack the
resources to conduct the large number
of annual program reviews required.
The Department welcomes comments
with recommendations for how OA
could use its resources most effectively
to identify and review more frequently
programs that need improvement.
For the fourth and final alternative the
Department considered requiring endpoint assessments to be conducted by an
independent third party. An
independent third party would remove
any potential for conflicts of interest
related to the perceived effectiveness of
the sponsor’s registered apprenticeship
program that could occur by having
sponsors conduct end-point assessments
themselves. Requiring the end-point
assessment to be conducted by an
independent third party would have the
potential to increase the quality of
registered apprenticeship programs and
ensure apprentices complete the
program with the tools and skills
needed to succeed. To estimate the
increase in costs under this alternative,
the Department adjusted the
calculations described in the subject-bysubject analysis for end-point
assessments (proposed § 29.16). The
Department increased the time required
for a Training and Development
Manager (private sector) from 1 hour to
4 hours to account for additional
preparation, synthesis of findings, and
reporting of findings by the independent
third party. The Department maintained
the estimated cost of all other provisions
of the proposed rule. Over the 10-year
analysis period, the annualized costs are
estimated at $646.3 million at a
discount rate of 7 percent. In total, this
alternative is estimated to result in costs
of $4,539.5 million at a discount rate of
7 percent.
The Department decided not to
pursue this alternative because the
burden placed on registered
apprenticeship programs is estimated to
be too high for the resulting benefits of
independent third-party end-point
assessments.
The Department presents a
comparison of the costs of each of the
four alternatives and the proposed rule
in Exhibit 16 below.
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EXHIBIT 16—SUMMARY OF PROPOSED AND ALTERNATIVES COSTS
[2022 $millions]
Year
NPRM
Alt. 2
Alt. 3
Alt. 4
1 ...........................................................................................
2 ...........................................................................................
3 ...........................................................................................
4 ...........................................................................................
5 ...........................................................................................
6 ...........................................................................................
7 ...........................................................................................
8 ...........................................................................................
9 ...........................................................................................
10 .........................................................................................
$147.2
126.8
131.9
137.3
142.6
148.2
153.3
158.7
164.1
169.6
$59.7
35.1
36.1
37.2
38.4
39.7
40.7
41.8
43.0
44.3
$131.2
110.1
114.7
119.4
124.2
129.1
133.7
138.4
143.2
148.1
$172.8
153.3
159.4
165.6
171.9
178.4
184.4
190.7
197.0
203.4
$408.7
400.9
418.7
436.6
454.6
472.7
490.4
508.4
526.3
544.5
Annualized, 3% discount rate .......................................
Annualized, 7% discount rate .......................................
147.0
145.9
41.7
41.8
128.6
127.9
185.4
196.9
539.4
646.3
Total, 3% discount rate, 10 years ................................
Total, 7% discount rate, 10 years ................................
1,254.2
1,024.5
355.6
293.8
1,097.0
898.2
1,581.8
1,383.1
4,601.3
4,539.5
In addition to the four regulatory
alternatives discussed above, the
Department also considered maintaining
the status quo. E.O. 12866 states, ‘‘In
deciding whether and how to regulate,
agencies should assess all costs and
benefits of available regulatory
alternatives, including the alternative of
not regulating.’’ Accordingly, the
Department considered not
implementing any of the provisions in
this proposed rule. Under the status quo
alternative, the Department would
retain current program standards,
apprenticeship agreements, and state
governance requirements, and would
not develop a registered CTE
apprenticeship model. Doing so would
incur no new costs or benefits. The
Department decided against maintaining
the status quo because the Department
believes the proposed rule would
improve the capacity of the National
Apprenticeship System to respond to
evolving employer needs, provide
workers equitable pathways to good
jobs, and increase the system’s longterm resilience.
lotter on DSK11XQN23PROD with PROPOSALS2
Alt. 1
B. Regulatory Flexibility Act, Small
Business Regulatory Enforcement
Fairness Act of 1996, and Executive
Order 13272 (Proper Consideration of
Small Entities in Agency Rulemaking)
The Regulatory Flexibility Act of 1980
(RFA), 5 U.S.C. 601 et seq., as amended
by the Small Business Regulatory
Enforcement Fairness Act of 1996,
Public Law 104–121 (Mar. 29, 1996),
hereafter jointly referred to as the RFA,
requires agencies to prepare an initial
regulatory flexibility analysis (IRFA)
when proposing, and a final regulatory
flexibility analysis when issuing,
regulations that will have a significant
economic impact on a substantial
number of small entities.
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The Department believes that this
proposed rule would have a significant
economic impact on a substantial
number of small entities and is therefore
publishing this IRFA as required. It
should be noted, however, that
participation in registered
apprenticeship programs and registered
CTE apprenticeship programs is
voluntary; therefore, only small entities
that choose to continue participate
would experience an economic
impact—significant or otherwise. The
Department anticipates that small
businesses would continue to
participate only if they believe the
benefits will outweigh the costs.
Because participation is voluntary, the
increased burdens associated with this
proposed rule may result in certain
entities choosing to discontinue
participation in the National
Apprenticeship System. On the whole,
however, the Department expects this
rulemaking to facilitate the expansion
and growth of registered apprenticeship.
1. Why the Action by the Agency Is
Being Considered
The NAA has not been changed since
the New Deal. There is need for a
renewed commitment to registered
apprenticeship and a modern system. In
addition, there is need for a registered
pathway for CTE apprenticeship. It has
been decades since there has been a
serious overhaul and update of
registered apprenticeship regulations to
address labor standards in a rapidly
changing economy. This proposed rule
would enhance labor standards to affirm
guarantees and results for workers,
create a consistent navigable system to
support expansion across industries,
and create equitable pathways to
registered apprenticeship for
underserved communities and youth. In
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addition, it would extend the highquality requirements associated with
registered apprenticeship to the newly
created registered CTE apprenticeship
model.
2. Objectives and Legal Basis for the
Proposed Rule
The NAA (29 U.S.C. 50) authorizes
the Secretary of Labor to formulate and
promote the furtherance of labor
standards necessary to safeguard the
welfare of apprentices, to extend the
application of such standards by
encouraging their inclusion in contracts
of apprenticeship, to cooperate with
States to formulate and promote such
standards, and to bring together
employers and labor for the formulation
of programs of apprenticeship. Pursuant
to this authority, the Department has
established regulations governing the
registration of apprenticeship programs
and apprentices at 29 CFR part 29 that
prescribe minimum quality and content
requirements with respect to a
program’s standards of apprenticeship
and its apprenticeship agreements;
establish procedures concerning the
registration, cancellation, and
deregistration of apprenticeship
programs; and set forth a mechanism for
the recognition of SAA as Registration
Agencies. The steady expansion of the
registered apprenticeship model has
revealed the need to revise and
modernize the policies and procedures
contained in the current version of 29
CFR part 29 in order to promote dual
goals of fostering innovation while
preserving and enhancing the quality
and effectiveness of the registered
apprenticeship model.
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3. Description and Estimate of the Small
Entities Affected by the Proposed Rule
The proposed rule would primarily
affect program sponsors and
participating employers in registered
apprenticeship. Registered
apprenticeship program sponsors may
be employers, employer associations,
industry associations, or labor
management organizations and, thus,
may represent businesses, small
businesses, and not-for-profit
organizations. The proposed rule would
also affect program sponsors and
participating employers in registered
CTE apprenticeship. Registered CTE
apprenticeship program sponsors may
be secondary schools and postsecondary
institutions. This analysis focuses on
the participating employers and
sponsors that participate in registered
apprenticeship programs or registered
CTE apprenticeship programs and
would incur costs from the proposed
3249
rule. As explained in the E.O. 12866
section above, the Department used
historical program data for registered
apprenticeship, and the Department’s
best estimates of CTE participation, to
estimate the number of participating
employers and sponsors that are
projected to participate in registered
apprenticeship programs and registered
CTE apprenticeship programs. Exhibit
17 below summarizes the projections
over the 10-year analysis period.
EXHIBIT 17—PROJECTED NUMBER OF SPONSORS AND PARTICIPATING EMPLOYERS
Year
lotter on DSK11XQN23PROD with PROPOSALS2
1 .................................................................................................
2 .................................................................................................
3 .................................................................................................
4 .................................................................................................
5 .................................................................................................
6 .................................................................................................
7 .................................................................................................
8 .................................................................................................
9 .................................................................................................
10 ...............................................................................................
The Department lacks data on the size
of these sponsors and participating
employers. Therefore, the Department
assumes that registered apprenticeship
program sponsors will have the same
size distribution as the firms in each of
the 19 major industry sectors
represented in registered
apprenticeship. In addition to the 19
major industry sectors, the Department
assumes that the Educational Services
sector (NAICS 61) would have a similar
representation in size distribution for
registered CTE apprenticeship program
sponsor. This assumption allows the
Department to conduct a robust analysis
using data from the Census Bureau’s
Statistics of U.S. Businesses,232 which
include the number of firms, number of
employees, and annual revenue by
industry and firm size. Using these data
allows the Department to estimate the
per-program costs of the proposed rule
as a percent of revenue by industry and
firm size. The Department also lacks
data on the size of participating
employers in either registered
apprenticeship or registered CTE
apprenticeship, but as discussed below,
is able to conclude that there would not
be a significant economic impact on any
232 See U.S. Census Bureau, ‘‘Statistics of U.S.
Businesses,’’ https://www.census.gov/programssurveys/susb/data.html (last updated May 10,
2022).
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Total
registered
apprenticeship
program
participating
employers
Total
registered
apprenticeship
program sponsors
26,492
27,434
28,376
29,318
30,260
31,202
32,144
33,086
34,028
34,970
participating employers that are not
sponsors.
4. Compliance Requirements of the
Proposed Rule
The E.O. 12866 analysis above
quantifies several types of labor costs
that would be borne by registered
apprenticeship program sponsors: (1)
rule familiarization; (2) on-the-job
training documentation; (3) wage
analysis and career development; (4)
data collection and reporting; (5)
program registration; (6) program
standards and adoption agreement; (7)
end-point assessments; and (8) program
reviews. Since some sponsors can also
be participating employers, the
Department adds costs of recordkeeping
that are imposed on participating
employers to all sponsors.
As explained in the E.O. 12866
section above, the Department estimates
the following first-year costs to
sponsors; each sponsor would incur a
subset of these nine costs:
• rule familiarization: $412 per
sponsor
• on-the-job training documentation:
$1,031 per sponsor with program with
less than 2,000 hours on-the-job training
• wage analysis and career
development profile: $206 per sponsor
submitting a new or revised occupation
determination
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Fmt 4701
Sfmt 4702
Total
registered CTE
apprenticeship
program sponsors
40,533
41,974
43,415
44,857
46,298
47,739
49,180
50,622
52,063
53,504
137
549
960
1,372
1,783
2,195
2,606
3,018
3,429
3,841
Total CTE
participating
employers
210
839
1,469
2,099
2,728
3,358
3,988
4,617
5,247
5,876
• data collection and reporting: $111
per sponsor
• program registration: $103 per
sponsor with a new program
• program standards adoption
agreement: $103 per sponsor with new
non-collectively bargained program
standards
• end-point assessments: $103 per
sponsor per apprentice
• program reviews: $842 per
noncompliant sponsor
• recordkeeping: $138 per employer
Additional costs that may be incurred
but could not be quantified due to a lack
of data include new requirements for
off-the-job training and prohibition of
non-disclosure and non-compete
provisions. In addition, the proposed
rule would result in transfer payments
from participating employers to
apprentices in the form of
compensation, but the Department lacks
data on the extent of entities that would
be impacted as well as the magnitude of
transfers as discussed in the
nonquantifiable transfer payments
section of the E.O. 12866 analysis.
The costs associated with the
increased requirements for registered
apprenticeship present the possibility
that some sponsors and employers may
leave the registered apprenticeship
system altogether. However, in other
countries with quality labor standards,
such as Germany, apprenticeship
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
participation remains high. In Germany,
about 54.5 percent of graduates from
general education 233 enter the labor
force through an apprenticeship training
program.234 German apprenticeship
programs include numerous costly
requirements, including contractual
agreements between apprentices and
employers, national apprenticeship
standards for each occupation, and
examinations to ensure apprentices
meet the standards of excellence at the
end of their program.235 Despite these
program requirements, apprenticeship
participation in Germany has remained
high. The Department does not expect
the proposed rule to result in an exodus
from registered apprenticeship as a
result of increased requirements.
Participation in apprenticeship
programs is greater in Germany than in
the United States, indicating that quality
labor standards would unlikely decrease
apprenticeship participation in the
United States and could potentially
make apprenticeship more attractive.236
The E.O. 12866 analysis above
quantifies several types of labor costs
that would be borne by registered CTE
apprenticeship program sponsors: (1)
rule familiarization; (2) program
registration application requirements;
(3) selection of a diverse and inclusive
cross-section of students; (4) sponsor
oversight; (5) apprenticeship
agreements; (6) program reviews; (7)
request for reconsideration of program
registration status; and (8) data and
quality metrics.
As explained in the E.O. 12866
section above, the Department estimates
the following first-year costs to
registered CTE apprenticeship program
sponsors; each sponsor would incur a
subset of these eight costs:
• rule familiarization: $412 per
sponsor
• program registration application
requirements: $1,031 per sponsor
• selection of a diverse and inclusive
cross-section of students: $74 per
sponsor
• sponsor oversight: $913 per sponsor
• apprenticeship agreements: $17 per
sponsor per apprentice
• program reviews: $842 per
noncompliant sponsor
• request for reconsideration of
program registration status: $619 per
sponsor
• data and quality metrics: $495 per
sponsor
Additional costs that may be incurred
but could not be quantified due to a lack
of data include new requirements for
off-the-job training and prohibition of
non-disclosure and non-compete
provisions. In addition, the proposed
rule would result in transfer payments
from participating employers to
apprentices in the form of
compensation, but the Department lacks
data on the extent of entities that would
be impacted as well as the magnitude of
transfers as discussed in the
nonquantifiable transfer payments
section of the E.O. 12866 analysis.
To quantify the costs to small entities,
the Department uses the same cost
estimates for sponsors and participating
employers described in the subject-bysubject analysis of the E.O. 12866
analysis for registered apprenticeship
programs and registered CTE
apprenticeship programs, respectively.
Note that ‘‘firm’’ refers to ‘‘sponsor’’ in
this IRFA. Sponsors are frequently
employers, so the Department combined
the costs for sponsors and employers to
obtain an upper-bound estimate of the
cost for ‘‘firms.’’ Hence, the cost
estimates are the maximum amount that
would be borne by a small entity that
chooses to participate. The E.O. 12866
analysis above quantifies two types of
labor costs that would be borne by
participating employers in registered
apprenticeship: (1) rule familiarization;
and (2) recordkeeping. These two
requirements combined would impose
$343.69 237 in costs on each
participating employer. For
participating employers in CTE, the
Department estimates costs of $206.19
for rule familiarization. These costs are
combined with the costs for sponsors to
estimate the costs for firms.
Exhibit 18 shows the estimated cost
per registered apprenticeship program
sponsor for each year of the analysis
period. The first-year cost per sponsor is
estimated at $3,420 at a discount rate of
7 percent. The annualized cost per
sponsor is estimated at $3,238 at a
discount rate of 7 percent. These
estimates are average costs, meaning
that some registered apprenticeship
program sponsors would have higher
costs while other sponsors would have
lower costs, regardless of firm size. The
Department seeks public comment on
these estimates with the goal of
providing refined estimates in the final
rule.
EXHIBIT 18—ESTIMATED COST TO REGISTERED APPRENTICESHIP PROGRAM SPONSORS
[$ thousands unless otherwise noted]
Year
lotter on DSK11XQN23PROD with PROPOSALS2
1
2
3
4
5
6
7
8
9
..........
..........
..........
..........
..........
..........
..........
..........
..........
Rule
familiarization
$10,925
1,170
1,200
1,230
1,261
1,291
1,321
1,351
1,382
On-the-job
training
documentation
Wage
analysis
and career
development
profile
$6,400
0
0
0
0
0
0
0
0
$48
48
48
48
48
48
48
48
48
Data
collection
and
reporting
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$285
292
300
308
315
323
330
338
345
$218
218
218
218
218
218
218
218
218
$2,944
3,073
3,202
3,331
3,460
3,589
3,718
3,847
3,976
233 Graduating from general education in
Germany is comparable to graduating from high
school in the United States.
234 Diana Elliott and Miriam Farnbauer, ‘‘Bridging
German and US Apprenticeship Models,’’ Aug.
2021, https://www.urban.org/sites/default/files/
publication/104677/bridging-german-and-usapprenticeship-models.pdf.
235 Ibid.
VerDate Sep<11>2014
Program
registration
Program
standards
adoption
agreement
End-point
assessments
$69,647
72,999
76,351
79,703
83,055
86,406
89,758
93,110
96,462
Recordkeeping
Program
reviews
$5,573
5,772
5,970
6,168
6,366
6,564
6,762
6,961
7,159
$893
924
956
988
1,020
1,051
1,083
1,115
1,146
236 Rates of participation, measured in number of
apprentices per 1,000 workers, are found to be
much higher in Germany than in the United States.
See Maia Chankseliani et al., ‘‘People and Policy:
A comparative study of apprenticeship across eight
national contexts,’’ Oct. 2017, https://ora.ox.ac.uk/
objects/uuid:56a3d0c9-3221-43d9-9da4e1883e5a7a00.
237 The cost of $343.69 on each participating
employer is derived from the sum of costs per
employer associated with rule familiarization
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Total
cost
$96,933
84,496
88,245
91,994
95,742
99,491
103,239
106,988
110,736
Number of
registered
apprenticeship
program
sponsors
26,492
27,434
28,376
29,318
30,260
31,202
32,144
33,086
34,028
Cost per
sponsors
($)
$3,659
3,080
3,110
3,138
3,164
3,189
3,212
3,234
3,254
($206.19) and recordkeeping ($137.50). The cost of
$206.19 comes from the multiplication of the time
for existing entities to read and review the new rule
by the Training and Development Manager loaded
private wage rate by 0.5 to determine the cost per
employer. The cost of $137.50 comes from the
multiplication of the time required to record and
maintain additional information by the Office and
Administrative Support Occupation hourly wage
rate.
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 18—ESTIMATED COST TO REGISTERED APPRENTICESHIP PROGRAM SPONSORS—Continued
[$ thousands unless otherwise noted]
Year
Rule
familiarization
10 ........
1,412
On-the-job
training
documentation
Wage
analysis
and career
development
profile
0
48
Data
collection
and
reporting
Program
registration
Program
standards
adoption
agreement
353
218
4,105
End-point
assessments
Recordkeeping
Program
reviews
7,357
1,178
99,814
Total
cost
Number of
registered
apprenticeship
program
sponsors
34,970
3,274
First-year cost ($), 7% discount rate ............................................................................................................................................................................................
Annualized cost ($), 7% discount rate, 10 years ..........................................................................................................................................................................
3,420
3,238
annualized cost per sponsor is estimated
at $2,398 at a discount rate of 7 percent.
These estimates are average costs,
meaning that some registered CTE
apprenticeship program sponsors would
have higher costs while other sponsors
Exhibit 19 shows the estimated cost
per registered CTE apprenticeship
program sponsor for each year of the
analysis period. The first-year cost per
sponsor is estimated at $3,476 at a
discount rate of 7 percent. The
114,485
Cost per
sponsors
($)
would have lower costs, regardless of
entity size. The Department seeks public
comment on these estimates with the
goal of providing refined estimates in
the final rule.
EXHIBIT 19—ESTIMATED COST TO REGISTERED CTE APPRENTICESHIP PROGRAM SPONSORS
[$ thousands unless otherwise noted]
Year
Rule
familiarization
1 ............
2 ............
3 ............
4 ............
5 ............
6 ............
7 ............
8 ............
9 ............
10 ..........
Program
registration
application
requirements
$57
170
170
170
170
170
170
170
170
170
Selection
of diverse
and
inclusive
crosssection of
students
$141
424
424
424
424
424
424
424
424
424
$10
40
71
101
131
161
192
222
252
282
Program
reviews
$55
166
221
332
387
497
553
663
718
829
$5
18
32
46
60
74
88
102
116
129
3,476
2,398
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a. Registered Apprenticeship Program
Sponsors
The Department used the following
steps to estimate the cost of the
proposed rule per registered
apprenticeship program sponsor as a
percentage of annual receipts. First, the
Department used the Small Business
Administration’s Table of Small
Business Size Standards to determine
the size thresholds for small entities
within each major industry.241 Next the
Department obtained data on the
number of firms, number of employees,
and annual revenue by industry and
firm size category from the Census
241 U.S. Small Business Administration, ‘‘Table of
Small Business Size Standards,’’ Mar. 17, 2023,
https://www.sba.gov/document/support-table-sizestandards. The size standards, which are expressed
in either average annual receipts or number of
employees, indicate the maximum allowed for a
business in each subsector to be considered small.
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$68
271
475
679
882
1,086
1,289
1,493
1,696
1,900
$482
1,655
2,333
3,067
3,746
4,480
5,159
5,892
6,571
7,305
Cost per
sponsors
($)
First-year cost ($), 7% discount rate ............................................................................................................................................................................................
Annualized cost ($), 7% discount rate, 10 years ..........................................................................................................................................................................
majority of costs on entities that could
be small are on sponsors and are
described below.
$21
64
64
64
64
64
64
64
64
64
Total
cost
Number of
registered
CTE
apprenticeship
program
sponsors
$3,516
3,016
2,430
2,236
2,101
2,041
1,979
1,953
1,916
1,902
238 $11,400 is the value at which 3% of revenue
impacted would be larger than 3% (= $343.69/0.03).
239 $6,800 is the value at which 3% of revenue
impacted would be larger than 3% (= $206.19/0.03).
240 The Management of Companies and
Enterprises Industry, for enterprises with receipts
below $100,000, has average receipts per firm of
$34,371 (see Exhibit 32), which is the smallest of
the industries analyzed.
$125
501
877
1,252
1,628
2,004
2,380
2,755
3,131
3,507
Apprenticeship
agreements
Data
and
quality
metrics
137
549
960
1,372
1,783
2,195
2,606
3,018
3,429
3,841
5. Estimated Impact of the Proposed
Rule on Small Entities
Based on the estimated costs to
participating employers, presented
above, to have a significant economic
impact on a participating employer in
registered apprenticeship, the
participating employer would need
revenue less than $11,400.238 For
participating employers in registered
CTE apprenticeship, the participating
employer would need revenue less than
$6,800.239 Based on the Department’s
analysis of participating employers that
is presented below, there are no
industries that have entities in the
smallest size categories where average
revenue is below $34,000.240 The
lotter on DSK11XQN23PROD with PROPOSALS2
Sponsor
oversight
Request for
reconsideration
of program
registration
status
Bureau’s Statistics of U.S. Businesses.242
The Department used the Gross
Domestic Product deflator to convert
revenue data from 2017 dollars to 2022
dollars.243 Then, the Department
divided the estimated first-year cost and
the annualized cost per registered
apprenticeship program sponsor
(discounted at a 7-percent rate) by the
average annual receipts per firm to
determine whether the proposed rule
would have a significant economic
impact on sponsors in each size
category.244 Finally, the Department
242 U.S. Census Bureau, ‘‘Statistics of U.S.
Businesses,’’ https://www.census.gov/programssurveys/susb/data.html (last updated May 10,
2022).
243 U.S. Bureau of Economic Analysis, ‘‘Table
1.1.9. Implicit Price Deflators for Gross Domestic
Product,’’ https://apps.bea.gov/iTable/
?reqid=19&step=2&isuri=1&categories=survey (last
visited May 30, 2023).
244 For purposes of this analysis, the Department
used a 3-percent threshold for ‘‘significant
economic impact.’’ The Department has used a 3percent threshold in prior rulemakings. See, e.g., 79
E:\FR\FM\17JAP2.SGM
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
divided the number of firms in each size
category by the total number of small
firms in the industry to determine
whether the proposed rule would have
a significant economic impact on a
substantial number of small entities.245
The results for registered
apprenticeship are presented in the
following 19 tables, one for each major
industry sector. The tables are in
numeric order by their North American
Industry Classification System (NAICS)
code—from NAICS 11 (Agriculture,
Forestry, Fishing and Hunting) to
NAICS 81 (Other Services). Currently,
apprentices are concentrated in the
construction industry (33 percent),
public administration industry (22
percent), and educational services
industry (12 percent),246 yet the
Department has included tables for all
19 major sectors because the
Department anticipates that this
proposed rule would facilitate the
expansion of registered apprenticeship.
The variety of industries and
occupations that would benefit from
registered apprenticeship keeps growing
as the Department identifies strategies
and opportunities to expand the system.
Since this proposed rule is expected to
affect small entities across all sectors of
the economy, our analysis shows how
entities of different sizes within all 19
major industries could be impacted. In
short, the first-year cost or annualized
cost per registered apprenticeship
program sponsor would have a
significant economic impact on a
substantial number of small entities in
12 out of 19 industries. It should be
noted, however, that participation in
registered apprenticeship programs is
voluntary; therefore, only small entities
that choose to continue to participate
would experience an economic
impact—significant or otherwise.
As shown in Exhibit 20, the first-year
and annualized costs for registered
apprenticeship program sponsors in the
agriculture, forestry, fishing, and
hunting industry are estimated to have
a significant economic impact (3 percent
or more) on small entities with receipts
under $100,000, and those firms
constitute a substantial number of small
entities in the agriculture, forestry,
fishing, and hunting industry (18.0
percent). The first-year costs are
estimated to be 5.7 percent of the
average receipts per firm and the
annualized costs are estimated to be 5.4
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 20—AGRICULTURE, FORESTRY, FISHING, AND HUNTING INDUSTRY
Small Business Size Standard: $2.25 million–$34.0 million
Number
of
firms 1
Enterprises with receipts
below $100,000 .............
Enterprises with receipts of
$100,000 to $499,999 ...
Enterprises with receipts of
500,000 to 999,999 .......
Enterprises with receipts of
1,000,000 to 2,499,999
Enterprises with receipts of
2,500,000 to 4,999,999
Enterprises with receipts of
5,000,000 to 7,499,999
Enterprises with receipts of
7,500,000 to 9,999,999
Enterprises with receipts of
10,000,000 to
14,999,999 .....................
Enterprises with receipts of
15,000,000 to
19,999,999 .....................
Enterprises with receipts of
20,000,000 to
24,999,999 .....................
Enterprises with receipts of
25,000,000 to
29,999,999 .....................
Enterprises with receipts of
30,000,000 to
34,999,999 .....................
Number
of firms
as
percent
of small
firms in
industry 2
Total
number of
employees 3
Annual
receipts
($ million) 4
Average
receipts
per firm
($) 5
Firstyear
cost per
firm
with 7%
discounting
Firstyear
cost per
firm as
percent
of receipts 6
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts 7
4,042
18.0
4,495
$242
$59,803
$3,420
5.7
$3,238
5.4
8,582
38.3
16,607
2,592
302,003
3,420
1.1
3,238
1.1
3,703
16.5
14,450
3,127
844,419
3,420
0.4
3,238
0.4
3,686
16.5
28,333
6,781
1,839,700
3,420
0.2
3,283
0.2
1,370
6.1
21,333
5,634
4,112,289
3,420
0.1
3,238
0.1
455
2.0
11,328
3,153
6,929,380
3,420
0.0
3,238
0.0
208
0.9
7,019
2,101
10,101,550
3,420
0.0
3,238
0.0
193
0.9
9,143
2,545
13,188,869
3,420
0.0
3,238
0.0
79
0.4
4,324
1,520
19,242,856
3,420
0.0
3,238
0.0
60
0.3
4,297
1,357
22,619,811
3,420
0.0
3,238
0.0
28
0.1
3,068
710
25,343,408
3,420
0.0
3,238
0.0
17
0.1
1,623
475
27,948,978
3,420
0.0
3,238
0.0
1 Source:
U.S. Census Bureau, Statistics of U.S. Businesses. Note that ‘‘firm’’ refers to ‘‘sponsor’’ in this analysis.
of firms ÷ Small firms in industry.
U.S. Census Bureau, Statistics of U.S. Businesses.
4 Source: U.S. Census Bureau, Statistics of U.S. Businesses.
5 Annual receipts ÷ Number of firms.
6 First-year cost per firm with 7% discounting ÷ Average receipts per firm.
7 Annualized cost per firm with 7% discounting ÷ Average receipts per firm.
2 Number
lotter on DSK11XQN23PROD with PROPOSALS2
3 Source:
FR 60633 (Oct. 7, 2014) (establishing a minimum
wage for contractors).
245 For purposes of this analysis, the Department
used a 15-percent threshold for ‘‘substantial number
VerDate Sep<11>2014
19:54 Jan 16, 2024
Jkt 262001
of small entities.’’ The Department has used a 15percent threshold in prior rulemakings. Ibid.
246 OA, ‘‘Apprentice Population by State Analysis
(11–09–2023),’’ https://public.tableau.com/app/
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Sfmt 4702
profile/dol.apprenticeship/viz/
ApprenticePopulationbyStateAnalysis11-09-2023_
16995503558600/ApprDemoApprLocation (last
visited Nov. 20, 2023).
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As shown in Exhibit 21, the first-year
and annualized costs for sponsors in the
mining industry are not expected to
have a significant economic impact (3
percent or more) on small entities of any
size.
EXHIBIT 21—MINING, QUARRYING, AND OIL AND GAS INDUSTRY
Small Business Size Standard: 500–1,500 employees
Number
of
firms
Enterprises with 0–4 employees .......................................
Enterprises with 5–9 employees .......................................
Enterprises with 10–19 employees ................................
Enterprises with 20–99 employees ................................
Enterprises with 100–499 employees ................................
Enterprises with 500–749 employees ................................
Enterprises with 750–999 employees ................................
Enterprises with 1,000–1,499
employees ...........................
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
10,808
57.2
16,788
$7,142
$660,839
$3,420
0.5
$3,238
0.5
2,909
15.4
19,066
6,524
2,242,749
3,420
0.2
3,238
0.1
2,091
11.1
28,171
10,099
4,829,914
3,420
0.1
3,238
0.1
2,276
12.0
86,829
40,628
17,850,734
3,420
0.0
3,238
0.0
636
3.4
93,513
62,788
98,723,345
3,420
0.0
3,238
0.0
80
0.4
26,343
28,174
352,168,820
3,420
0.0
3,238
0.0
46
0.2
19,861
23,285
506,201,362
3,420
0.0
3,238
0.0
46
0.2
28,800
25,639
557,359,001
3,420
0.0
3,238
0.0
As shown in Exhibit 22, the first-year
and annualized costs for sponsors in the
utilities industry are not expected to
have a significant economic impact (3
percent or more) on small entities of any
size.
EXHIBIT 22—UTILITIES INDUSTRY
Small Business Size Standard: 250–1,500 employees
Number
of
firms
Enterprises with 0–4 employees .......................................
Enterprises with 5–9 employees .......................................
Enterprises with 10–19 employees ................................
Enterprises with 20–99 employees ................................
Enterprises with 100–499 employees ................................
Enterprises with 500–749 employees ................................
Enterprises with 750–999 employees ................................
Number
of firms
as percent
of small
firms in
industry
lotter on DSK11XQN23PROD with PROPOSALS2
19:54 Jan 16, 2024
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
3,028
52.1
5,752
$3,386
$1,118,256
$3,420
0.3
$3,238
0.3
983
16.9
6,300
1,771
1,802,011
3,420
0.2
3,238
0.2
524
9.0
7,065
4,836
9,229,631
3,420
0.0
3,238
0.0
892
15.3
40,089
40,076
44,927,999
3,420
0.0
3,238
0.0
325
5.6
52,541
71,683
220,563,226
3,420
0.0
3,238
0.0
45
0.8
20,302
34,430
765,120,600
3,420
0.0
3,238
0.0
16
0.3
4,734
5,385
336,536,358
3,420
0.0
3,238
0.0
As shown in Exhibit 23, the first-year
and annualized costs for sponsors in the
construction industry are estimated to
have a significant economic impact (3
percent or more) on small entities with
VerDate Sep<11>2014
Total
number of
employees
Jkt 262001
receipts under $100,000, and those
firms constitute a substantial number of
small entities in the construction
industry (24.1 percent). The first-year
costs are estimated to be 5.6 percent of
PO 00000
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the average receipts per firm and the
annualized costs are estimated to be 5.3
percent of the average receipts per firm
for firms with revenue below $100,000.
E:\FR\FM\17JAP2.SGM
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 23—CONSTRUCTION INDUSTRY
Small Business Size Standard: $19.0 million–$45.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
167,522
24.1
156,090
$10,303
$61,501
$3,420
5.6
$3,238
5.3
247,074
35.5
544,141
70,010
283,356
3,420
1.2
3,238
1.1
89,351
12.9
444,318
75,937
849,870
3,420
0.4
3,238
0.4
95,739
13.8
828,261
178,934
1,868,977
3,420
0.2
3,238
0.2
45,814
6.6
707,745
189,624
4,138,994
3,420
0.1
3,238
0.1
17,860
2.6
416,512
127,936
7,163,277
3,420
0.0
3,238
0.0
9,233
1.3
283,971
93,588
10,136,274
3,420
0.0
3,238
0.0
9,925
1.4
401,418
141,445
14,251,410
3,420
0.0
3,238
0.0
5,029
0.7
270,176
101,235
20,130,283
3,420
0.0
3,238
0.0
3,089
0.4
200,568
79,474
25,728,192
3,420
0.0
3,238
0.0
2,011
0.3
150,472
63,084
31,369,492
3,420
0.0
3,238
0.0
1,396
0.2
119,403
51,560
36,934,449
3,420
0.0
3,238
0.0
1,056
0.2
99,968
44,799
42,423,297
3,420
0.0
3,238
0.0
1,466
0.2
166,727
74,924
51,107,775
3,420
0.0
3,238
0.0
As shown in Exhibit 24, the first-year
and annualized costs for sponsors in the
manufacturing industry are not
expected to have a significant economic
impact (3 percent or more) on small
entities of any size.
EXHIBIT 24—MANUFACTURING INDUSTRY
Small Business Size Standard: 500–1,500 employees
Number
of
firms
lotter on DSK11XQN23PROD with PROPOSALS2
Enterprises with 0–4 employees .......................................
Enterprises with 5–9 employees .......................................
Enterprises with 10–19 employees ................................
Enterprises with 20–99 employees ................................
Enterprises with 100–499 employees ................................
Enterprises with 500–749 employees ................................
Enterprises with 750–999 employees ................................
Enterprises with 1,000–1,499
employees ...........................
Number
of firms
as percent
of small
firms in
industry
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
102,242
41.5
188,002
$49,168
$480,898
$3,420
0.7
$3,238
0.7
45,821
18.6
306,025
64,082
1,398,532
3,420
0.2
3,238
0.2
37,549
15.2
511,380
115,096
3,065,227
3,420
0.1
3,238
0.1
46,089
18.7
1,872,005
513,594
11,143,518
3,420
0.0
3,238
0.0
12,397
5.0
2,162,360
807,852
65,165,144
3,420
0.0
3,238
0.0
1,127
0.5
526,397
251,406
223,075,773
3,420
0.0
3,238
0.0
608
0.2
370,263
171,676
282,361,226
3,420
0.0
3,238
0.0
578
0.2
487,897
272,079
470,724,074
3,420
0.0
3,238
0.0
As shown in Exhibit 25, the first-year
and annualized costs for sponsors in the
VerDate Sep<11>2014
Total
number of
employees
19:54 Jan 16, 2024
Jkt 262001
wholesale trade industry are not
expected to have a significant economic
PO 00000
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impact (3 percent or more) on small
entities of any size.
E:\FR\FM\17JAP2.SGM
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 25—WHOLESALE TRADE INDUSTRY
Small Business Size Standard: 100–250 employees
Number
of
firms
Enterprises with 0–4 employees .......................................
Enterprises with 5–9 employees .......................................
Enterprises with 10–19 employees ................................
Enterprises with 20–99 employees ................................
Enterprises with 100–499 employees ................................
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
170,879
57.9
282,713
$338,168
$1,978,989
$3,420
0.2
$3,238
0.2
48,559
16.5
320,741
317,555
6,539,573
3,420
0.1
3,238
0.0
34,020
11.5
453,838
422,050
12,405,945
3,420
0.0
3,238
0.0
33,409
11.3
1,246,435
1,202,036
35,979,399
3,420
0.0
3,238
0.0
8,042
2.7
1,109,430
1,214,818
151,059,248
3,420
0.0
3,238
0.0
As shown in Exhibit 26, the first-year
and annualized costs for sponsors in the
retail trade industry are estimated to
have a significant economic impact (3
percent or more) on small entities with
receipts under $100,000, but those firms
do not constitute a substantial number
of small entities in the retail trade
industry (10.9 percent). The first-year
costs are estimated to be 5.6 percent of
the average receipts per firm and the
annualized costs are estimated to be 5.3
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 26—RETAIL TRADE INDUSTRY
Small Business Size Standard: 500–1,500 employees
Number
of
firms
lotter on DSK11XQN23PROD with PROPOSALS2
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
500,000 to 999,999 .............
Enterprises with receipts of
1,000,000 to 2,499,999 .......
Enterprises with receipts of
2,500,000 to 4,999,999 .......
Enterprises with receipts of
5,000,000 to 7,499,999 .......
Enterprises with receipts of
7,500,000 to 9,999,999 .......
Enterprises with receipts of
10,000,000 to 14,999,999 ...
Enterprises with receipts of
15,000,000 to 19,999,999 ...
Enterprises with receipts of
20,000,000 to 24,999,999 ...
Enterprises with receipts of
25,000,000 to 29,999,999 ...
Enterprises with receipts of
30,000,000 to 34,999,999 ...
Enterprises with receipts of
35,000,000 to 39,999,999 ...
Enterprises with receipts of
40,000,000 to 49,999,999 ...
Number
of firms
as percent
of small
firms in
industry
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
69,679
10.9
83,278
$4,273
$61,325
$3,420
5.6
$3,238
5.3
212,200
33.2
532,330
68,606
323,308
3,420
1.1
3,238
1.0
118,943
18.6
528,280
100,873
848,081
3,420
0.4
3,238
0.4
126,105
19.8
914,575
235,819
1,870,018
3,420
0.2
3,238
0.2
57,394
9.0
700,081
234,541
4,086,499
3,420
0.1
3,238
0.1
19,586
3.1
372,573
137,951
7,043,341
3,420
0.0
3,238
0.0
9,435
1.5
244,343
93,510
9,910,941
3,420
0.0
3,238
0.0
9,308
1.5
317,070
128,366
13,790,901
3,420
0.0
3,238
0.0
4,846
0.8
215,896
92,769
19,143,425
3,420
0.0
3,238
0.0
3,166
0.5
167,389
78,331
24,741,263
3,420
0.0
3,238
0.0
2,307
0.4
139,998
69,819
30,263,799
3,420
0.0
3,238
0.0
1,785
0.3
118,314
62,954
35,268,411
3,420
0.0
3,238
0.0
1,510
0.2
110,947
61,983
41,048,054
3,420
0.0
3,238
0.0
2,120
0.3
179,497
102,501
48,349,525
3,420
0.0
3,238
0.0
As shown in Exhibit 27, the first-year
and annualized costs for sponsors in the
transportation and warehousing
industry are estimated to have a
significant economic impact (3 percent
or more) on small entities with receipts
VerDate Sep<11>2014
Total
number of
employees
19:54 Jan 16, 2024
Jkt 262001
under $100,000, and those firms
constitute a substantial number of small
entities in the transportation and
warehousing industry (18.0 percent).
The first-year costs are estimated to be
5.8 percent of the average receipts per
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firm and the annualized costs are
estimated to be 5.5 percent of the
average receipts per firm for firms with
revenue below $100,000.
E:\FR\FM\17JAP2.SGM
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 27—TRANSPORTATION AND WAREHOUSING INDUSTRY
Small Business Size Standard: $9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
32,704
18.0
34,795
$1,940
$59,315
$3,420
5.8
$3,238
5.5
72,673
40.1
152,029
20,835
286,688
3,420
1.2
3,238
1.1
26,780
14.8
148,113
22,433
837,693
3,420
0.4
3,238
0.4
25,365
14.0
269,241
46,486
1,832,678
3,420
0.2
3,238
0.2
11,101
6.1
223,441
44,874
4,042,296
3,420
0.1
3,238
0.1
4,406
2.4
137,503
30,296
6,876,163
3,420
0.0
3,238
0.0
2,207
1.2
91,077
21,057
9,540,834
3,420
0.0
3,238
0.0
2,322
1.3
129,477
29,881
12,868,860
3,420
0.0
3,238
0.0
1,288
0.7
97,798
21,948
17,040,160
3,420
0.0
3,238
0.0
772
0.4
78,172
16,800
21,761,486
3,420
0.0
3,238
0.0
538
0.3
58,986
13,069
24,290,896
3,420
0.0
3,238
0.0
440
0.2
55,986
12,195
27,715,884
3,420
0.0
3,238
0.0
333
0.2
37,644
9,427
28,309,025
3,420
0.0
3,238
0.0
416
0.2
62,522
14,692
35,317,590
3,420
0.0
3,238
0.0
As shown in Exhibit 28, the first-year
and annualized costs for sponsors in the
information industry are estimated to
have a significant economic impact (3
percent or more) on small entities with
receipts under $100,000, and those
firms constitute a substantial number of
small entities in the information
industry (20.0 percent). The first-year
costs are estimated to be 5.9 percent of
the average receipts per firm and the
annualized costs are estimated to be 5.6
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 28—INFORMATION INDUSTRY
Small Business Size Standard: $11.0 million–$47.0 million
lotter on DSK11XQN23PROD with PROPOSALS2
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
VerDate Sep<11>2014
19:54 Jan 16, 2024
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
15,481
20.0
16,482
892
$57,602
$3,420
5.9
$3,238
5.6
28,404
36.7
68,508
8,391
295,425
3,420
1.2
3,238
1.1
10,545
13.6
57,480
8,811
835,598
3,420
0.4
3,238
0.4
10,590
13.7
109,948
19,795
1,869,207
3,420
0.2
3,238
0.2
5,196
6.7
99,937
21,171
4,074,388
3,420
0.1
3,238
0.1
2,180
2.8
65,492
15,155
6,952,024
3,420
0.0
3,238
0.0
1,173
1.5
48,149
11,398
9,716,735
3,420
0.0
3,238
0.0
1,325
1.7
73,550
18,201
13,736,535
3,420
0.0
3,238
0.0
783
1.0
59,471
14,948
19,090,309
3,420
0.0
3,238
0.0
497
0.6
42,068
11,733
23,607,138
3,420
0.0
3,238
0.0
372
0.5
39,211
10,737
28,863,621
3,420
0.0
3,238
0.0
271
0.4
32,396
9,252
34,138,424
3,420
0.0
3,238
0.0
221
0.3
31,989
8,464
38,297,393
3,420
0.0
3,238
0.0
Jkt 262001
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Frm 00140
Fmt 4701
Sfmt 4702
E:\FR\FM\17JAP2.SGM
17JAP2
3257
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 28—INFORMATION INDUSTRY—Continued
Small Business Size Standard: $11.0 million–$47.0 million
Number
of
firms
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
317
Total
number of
employees
0.4
As shown in Exhibit 29, the first-year
and annualized costs for sponsors in the
finance and insurance industry are
estimated to have a significant economic
impact (3 percent or more) on small
43,836
Annual
receipts
($ million)
14,133
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
44,582,414
First-year
cost per
firm as
percent
of receipts
3,420
entities with receipts under $100,000,
and those firms constitute a substantial
number of small entities in the finance
and insurance industry (18.7 percent).
The first-year costs are estimated to be
0.0
Annualized
cost per
firm with
7%
discounting
3,238
Annualized
cost per
firm as
percent of
receipts
0.0
5.8 percent of the average receipts per
firm and the annualized costs are
estimated to be 5.5 percent of the
average receipts per firm for firms with
revenue below $100,000.
EXHIBIT 29—FINANCE AND INSURANCE INDUSTRY
Small Business Size Standard: $15.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
43,946
18.7
48,037
$2,597
$59,098
$3,420
5.8
$3,238
5.5
109,042
46.5
244,100
33,314
305,519
3,420
1.1
3,238
1.1
35,651
15.2
158,385
29,334
822,802
3,420
0.4
3,238
0.4
23,382
10.0
184,397
42,220
1,805,650
3,420
0.2
3,238
0.2
9,135
3.9
146,376
37,457
4,100,430
3,420
0.1
3,238
0.1
3,926
1.7
101,333
27,564
7,020,937
3,420
0.0
3,238
0.0
2,158
0.9
76,995
21,387
9,910,531
3,420
0.0
3,238
0.0
2,545
1.1
122,949
35,425
13,919,423
3,420
0.0
3,238
0.0
1,494
0.6
98,142
29,155
19,514,918
3,420
0.0
3,238
0.0
977
0.4
75,763
24,489
25,065,036
3,420
0.0
3,238
0.0
642
0.3
61,866
19,483
30,347,565
3,420
0.0
3,238
0.0
537
0.2
56,634
19,541
36,389,004
3,420
0.0
3,238
0.0
438
0.2
50,652
17,860
40,776,274
3,420
0.0
3,238
0.0
567
0.2
79,713
27,717
48,883,444
3,420
0.0
3,238
0.0
under $100,000, and those firms
constitute a substantial number of small
entities in the real estate and rental and
leasing industry (22.3 percent). The
first-year costs are estimated to be 5.5
percent of the average receipts per firm
As shown in Exhibit 30, the first-year
and annualized costs for sponsors in the
real estate and rental and leasing
industry are estimated to have a
significant economic impact (3 percent
or more) on small entities with receipts
and the annualized costs are estimated
to be 5.3 percent of the average receipts
per firm for firms with revenue below
$100,000.
EXHIBIT 30—REAL ESTATE AND RENTAL AND LEASING INDUSTRY
lotter on DSK11XQN23PROD with PROPOSALS2
Small Business Size Standard: &9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
VerDate Sep<11>2014
19:54 Jan 16, 2024
Number
of firms
as percent
of small
firms in
industry
68,419
Jkt 262001
22.3
PO 00000
Total
number of
employees
66,469
Frm 00141
Annual
receipts
($ million)
Average
receipts
per firm
($)
$4,217
Fmt 4701
Sfmt 4702
$61,630
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
$3,420
E:\FR\FM\17JAP2.SGM
5.5
17JAP2
Annualized
cost per
firm with
7%
discounting
$3,238
Annualized
cost per
firm as
percent of
receipts
5.3
3258
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 30—REAL ESTATE AND RENTAL AND LEASING INDUSTRY—Continued
Small Business Size Standard: &9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
136,155
44.3
248,363
39,835
292,575
3,420
1.2
3,238
1.1
45,372
14.8
171,862
37,654
829,887
3,420
0.4
3,238
0.4
34,152
11.1
245,779
61,652
1,805,217
3,420
0.2
3,238
0.2
12,210
4.0
175,672
48,951
4,009,113
3,420
0.1
3,238
0.1
4,020
1.3
90,148
27,714
6,894,004
3,420
0.0
3,238
0.0
2,025
0.7
63,474
19,313
9,537,201
3,420
0.0
3,238
0.0
1,869
0.6
79,396
24,481
13,098,206
3,420
0.0
3,238
0.0
1,003
0.3
52,698
17,642
17,589,281
3,420
0.0
3,238
0.0
617
0.2
42,433
13,469
21,829,242
3,420
0.0
3,238
0.0
446
0.1
33,126
11,579
25,961,260
3,420
0.0
3,238
0.0
318
0.1
29,216
9,810
30,849,146
3,420
0.0
3,238
0.0
224
0.1
20,018
7,096
31,680,293
3,420
0.0
3,238
0.0
327
0.1
37,186
12,327
37,696,094
3,420
0.0
3,238
0.0
under $100,000, and those firms
constitute a substantial number of small
entities in the professional, scientific
and technical services industry (23.4
percent). The first-year costs are
estimated to be 5.9 percent of the
As shown in Exhibit 31, the first-year
and annualized costs for sponsors in the
professional, scientific and technical
services industry are estimated to have
a significant economic impact (3 percent
or more) on small entities with receipts
average receipts per firm and the
annualized costs are estimated to be 5.5
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 31—PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES INDUSTRY
Small Business Size Standard: $90 million–$47.0 million
lotter on DSK11XQN23PROD with PROPOSALS2
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
VerDate Sep<11>2014
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
188,173
23.4
186,477
$10,990
$58,404
$3,420
5.9
$3,238
5.5
351,252
43.6
699,310
101,497
288,958
3,420
1.2
3,238
1.1
109,203
13.6
522,342
91,230
835,416
3,420
0.4
3,238
0.4
89,925
11.2
852,984
164,634
1,830,797
3,420
0.2
3,238
0.2
33,619
4.2
622,519
136,728
4,066,997
3,420
0.1
3,238
0.1
11,965
1.5
366,420
84,405
7,054,313
3,420
0.0
3,238
0.0
6,097
0.8
256,793
60,418
9,909,398
3,420
0.0
3,238
0.0
6,150
0.8
348,201
84,884
13,802,321
3,420
0.0
3,238
0.0
3,200
0.4
251,912
60,785
18,995,362
3,420
0.0
3,238
0.0
1,894
0.2
177,413
45,631
24,092,221
3,420
0.0
3,238
0.0
1,339
0.2
151,640
38,655
28,868,541
3,420
0.0
3,238
0.0
930
0.1
123,198
31,108
33,449,165
3,420
0.0
3,238
0.0
707
0.1
100,554
26,979
38,160,528
3,420
0.0
3,238
0.0
19:54 Jan 16, 2024
Jkt 262001
PO 00000
Frm 00142
Fmt 4701
Sfmt 4702
E:\FR\FM\17JAP2.SGM
17JAP2
3259
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 31—PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES INDUSTRY—Continued
Small Business Size Standard: $90 million–$47.0 million
Number
of
firms
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
964
Total
number of
employees
0.1
161,031
Annual
receipts
($ million)
42,285
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
43,864,307
3,420
receipts under $100,000, but those firms
do not constitute a substantial number
of small entities in the management of
companies and enterprises industry (6.2
percent). The first-year costs are
estimated to be 9.9 percent of the
As shown in Exhibit 32, the first-year
and annualized costs for sponsors in the
management of companies and
enterprises industry are estimated to
have a significant economic impact (3
percent or more) on small entities with
First-year
cost per
firm as
percent
of receipts
0.0
Annualized
cost per
firm with
7%
discounting
3,238
Annualized
cost per
firm as
percent of
receipts
0.0
average receipts per firm and the
annualized costs are estimated to be 9.4
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 32—MANAGEMENT OF COMPANIES AND ENTERPRISES INDUSTRY
Small Business Size Standard: $38.5 million–$45.5 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
1,043
6.2
11,909
$36
$34,371
$3,420
9.9
$3,238
9.4
1,228
7.3
3,920
303
246,410
3,420
1.4
3,238
1.3
760
4.5
4,442
361
475,175
3,420
0.7
3,238
0.7
1,684
10.0
16,525
1,052
624,520
3,420
0.5
3,238
0.5
1,985
11.8
28,340
1,554
782,756
3,420
0.4
3,238
0.4
1,518
9.0
25,723
1,715
1,129,906
3,420
0.3
3,238
0.3
1,183
7.0
26,067
1,642
1,388,403
3,420
0.2
3,238
0.2
1,912
11.3
44,624
3,345
1,749,307
3,420
0.2
3,238
0.2
1,380
8.2
40,956
3,206
2,323,136
3,420
0.1
3,238
0.1
1,047
6.2
34,086
2,481
2,369,790
3,420
0.1
3,238
0.1
859
5.1
34,479
2,911
3,388,883
3,420
0.1
3,238
0.1
732
4.3
25,244
2,153
2,940,632
3,420
0.1
3,238
0.1
651
3.9
26,284
2,258
3,468,771
3,420
0.1
3,238
0.1
905
5.4
42,674
3,667
4,051,611
3,420
0.1
3,238
0.1
As shown in Exhibit 33, the first-year
and annualized costs for sponsors in the
educational services industry are
estimated to have a significant economic
impact (3 percent or more) on small
entities with receipts under $100,000,
and those firms constitute a substantial
number of small entities in the
educational services industry (24.3
percent). The first-year costs are
estimated to be 6.1 percent of the
average receipts per firm and the
annualized costs are estimated to be 5.7
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 33—EDUCATIONAL SERVICES INDUSTRY
lotter on DSK11XQN23PROD with PROPOSALS2
Small Business Size Standard: $9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
VerDate Sep<11>2014
19:54 Jan 16, 2024
Number
of firms
as percent
of small
firms in
industry
22,439
Jkt 262001
24.3
PO 00000
Total
number of
employees
42,944
Frm 00143
Annual
receipts
($ million)
Average
receipts
per firm
($)
$1,267
Fmt 4701
Sfmt 4702
$56,457
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
$3,420
E:\FR\FM\17JAP2.SGM
6.1
17JAP2
Annualized
cost per
firm with
7%
discounting
$3,238
Annualized
cost per
firm as
percent of
receipts
5.7
3260
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 33—EDUCATIONAL SERVICES INDUSTRY—Continued
Small Business Size Standard: $9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
37,156
40.3
197,950
10,926
294,070
3,420
1.2
3,238
1.1
11,425
12.4
139,745
9,464
828,359
3,420
0.4
3,238
0.4
9,837
10.7
237,256
18,178
1,847,893
3,420
0.2
3,238
0.2
4,948
5.4
227,231
20,288
4,100,203
3,420
0.1
3,238
0.1
2,051
2.2
142,147
14,300
6,972,405
3,420
0.0
3,238
0.0
1,085
1.2
99,135
10,572
9,743,335
3,420
0.0
3,238
0.0
1,217
1.3
149,025
16,368
13,449,575
3,420
0.0
3,238
0.0
788
0.9
130,304
14,960
18,984,389
3,420
0.0
3,238
0.0
405
0.4
83,052
9,610
23,727,832
3,420
0.0
3,238
0.0
266
0.3
72,713
7,656
28,783,311
3,420
0.0
3,238
0.0
193
0.2
53,118
6,371
33,011,190
3,420
0.0
3,238
0.0
157
0.2
49,519
5,840
37,197,306
3,420
0.0
3,238
0.0
230
0.2
84,073
10,197
44,336,758
3,420
0.0
3,238
0.0
or more) on small entities with receipts
under $100,000, and those firms
constitute a substantial number of small
entities in the administrative and
support and waste management and
remediation services industry (25.0
As shown in Exhibit 34, the first-year
and annualized costs for sponsors in the
administrative and support and waste
management and remediation services
industry are estimated to have a
significant economic impact (3 percent
percent). The first-year costs are
estimated to be 6.1 percent of the
average receipts per firm and the
annualized costs are estimated to be 5.7
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 34—ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES INDUSTRY
Small Business Size Standard: $8.5 million–$47.0 million
lotter on DSK11XQN23PROD with PROPOSALS2
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
VerDate Sep<11>2014
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
85,880
25.0
107,151
$4,839
$56,346
$3,420
6.1
$3,238
5.7
140,272
40.8
443,046
41,086
292,902
$3,420
1.2
3,238
1.1
47,560
13.8
386,597
39,517
830,890
3,420
0.4
3,238
0.4
38,169
11.1
676,072
69,641
1,824,533
3,420
0.2
3,238
0.2
15,414
4.5
605,633
62,122
4,030,215
3,420
0.1
3,238
0.1
5,678
1.7
384,948
38,991
6,867,032
3,420
0.0
3,238
0.0
2,981
0.9
297,553
28,484
9,555,055
3,420
0.0
3,238
0.0
3,105
0.9
424,995
39,926
12,858,530
3,420
0.0
3,238
0.0
1,631
0.5
293,567
28,445
17,440,217
3,420
0.0
3,238
0.0
1,054
0.3
231,213
22,606
21,448,275
3,420
0.0
3,238
0.0
707
0.2
207,995
18,415
26,046,902
3,420
0.0
3,238
0.0
542
0.2
174,505
15,781
29,116,928
3,420
0.0
3,238
0.0
438
0.1
163,589
14,122
32,242,332
3,420
0.0
3,238
0.0
19:54 Jan 16, 2024
Jkt 262001
PO 00000
Frm 00144
Fmt 4701
Sfmt 4702
E:\FR\FM\17JAP2.SGM
17JAP2
3261
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 34—ADMINISTRATIVE AND SUPPORT AND WASTE MANAGEMENT AND REMEDIATION SERVICES INDUSTRY—
Continued
Small Business Size Standard: $8.5 million–$47.0 million
Number
of
firms
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
611
Total
number of
employees
0.2
262,706
Annual
receipts
($ million)
23,392
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
38,285,580
3,420
under $100,000, and those firms
constitute a substantial number of small
entities in the health care and social
assistance industry (16.3 percent). The
first-year costs are estimated to be 5.9
percent of the average receipts per firm
As shown in Exhibit 35, the first-year
and annualized costs for sponsors in the
health care and social assistance
industry are estimated to have a
significant economic impact (3 percent
or more) on small entities with receipts
First-year
cost per
firm as
percent
of receipts
0.0
Annualized
cost per
firm with
7%
discounting
3,238
Annualized
cost per
firm as
percent of
receipts
0.0
and the annualized costs are estimated
to be 5.6 percent of the average receipts
per firm for firms with revenue below
$100,000.
EXHIBIT 35—HEALTH CARE AND SOCIAL ASSISTANCE INDUSTRY
Small Business Size Standard: $9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
lotter on DSK11XQN23PROD with PROPOSALS2
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
105,782
16.3%
144,258
$6,090
$57,567
$3,420
5.9%
$3,238
5.6%
247,273
38.0
919,768
78,811
318,721
3,420
1.1
3,238
1.0
130,435
20.0
1,066,795
109,442
839,054
3,420
0.4
3,238
0.4
102,005
15.7
1,733,292
183,696
1,800,855
3,420
.2
3,238
0.2
32,793
5.0
1,269,403
133,245
4,063,217
3,420
0.1
3,238
0.1
11,292
1.7
768,478
80,149
7,097,889
3,420
0.0
3,238
0.0
6,073
0.9
587,923
60,599
9,978,460
3,420
0.0
3,238
0.0
6,282
1.0
843,098
87,833
13,981,751
3,420
0.0
3,238
0.0
3,193
0.5
582,465
62,505
19,575,723
3,420
0.0
3,238
0.0
1,945
0.3
432,978
48,856
25,118,522
3,420
0.0
3,238
0.0
1,297
0.2
333,840
39,440
30,408,549
3,420
0.0
3,238
0.0
939
0.1
287,523
33,961
36,166,881
3,420
0.0
3,238
0.0
672
0.1
251,011
27,909
41,531,881
3,420
0.0
3,238
0.0
903
0.1%=
357,594
44,398
49,167,765
3,420
0.0
3,238
0.0
As shown in Exhibit 36, the first-year
and annualized costs for sponsors in the
arts, entertainment, and recreation
industry are estimated to have a
significant economic impact (3 percent
or more) on small entities with receipts
VerDate Sep<11>2014
Total
number of
employees
19:54 Jan 16, 2024
Jkt 262001
under $100,000, and those firms
constitute a substantial number of small
entities in the arts, entertainment, and
recreation industry (23.2 percent). The
first-year costs are estimated to be 6.0
percent of the average receipts per firm
PO 00000
Frm 00145
Fmt 4701
Sfmt 4702
and the annualized costs are estimated
to be 5.7 percent of the average receipts
per firm for firms with revenue below
$100,000.
E:\FR\FM\17JAP2.SGM
17JAP2
3262
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 36—ARTS, ENTERTAINMENT, AND RECREATION INDUSTRY
Small Business Size Standard: $9.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
29,950
23.2
38,970
$1,710
$57,104
$3,420
6.0
$3,238
5.7%
54,053
41.8
191,639
15,997
295,945
3,420
1.2
3,238
1.1
18,957
14.7
170,222
15,699
828,112
3,420
0.4
3,238
0.4
15,336
11.9
289,189
27,685
1,805,199
3,420
0.2
3,238
0.2
5,663
4.4
216,533
22,802
4,026,410
3,420
0.1
3,238
0.1
1,969
1.5
125,098
13,719
6,967,317
3,420
0.0%
3,238
0.0
1,046
0.8%
91,555
$10,126
$9,680,550
$3,420
0.0%
$3,238
0.0%
933
0.7%
107,964
12,372
13,260,079
3,420
0.0
3,238
0.0%
475
0.4
74,342
8,606
18,118,161
3,420
0.0
3,238
0.0
241
0.2
44,304
5,431
22,537,025
3,420
0.0
3,238
0.0
204
0.2
53,147
5,416
26,546,971
3,420
0.0
3,238
0.0
145
0.1
32,692
4,323
29,810,687
3,420
0.0
3,238
0.0
100
0.1
27,043
3,904
39,044,753
3,420
0.0
3,238
0.0
152
0.1
50,619
6,146
40,431,359
3,420
0.0
3,238
0.0
under $100,000, but those firms do not
constitute a substantial number of small
entities in the accommodation and food
services industry (12.3 percent). The
first-year costs are estimated to be 5.7
percent of the average receipts per firm
As shown in Exhibit 37, the first-year
and annualized costs for sponsors in the
accommodation and food services
industry are estimated to have a
significant economic impact (3 percent
or more) on small entities with receipts
and the annualized costs are estimated
to be 5.4 percent of the average receipts
per firm for firms with revenue below
$100,000.
EXHIBIT 37—ACCOMMODATION AND FOOD SERVICES INDUSTRY
Small Business Size Standard: $9.0 million–$47.0 million
lotter on DSK11XQN23PROD with PROPOSALS2
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
VerDate Sep<11>2014
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Annual
receipts
($ million)
Average
receipts
per firm
($)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
66,229
12.3
115,964
$3,963
$59,844
$3,420
5.7
$3,238
5.4
217,687
40.5
1,118,632
70,085
321,951
3,420
1.1
3,238
1.0
114,796
21.3
1,443,882
96,296
838,842
3,420
0.4
3,238
0.4
98,061
18.2
2,532,598
175,384
1,788,516
3,420
0.2
3,238
0.2
26,006
4.8
1,340,484
102,232
3,931,078
3,420
0.1
3,238
0.1
6,495
1.2
562,320
44,428
6,840,405
3,420
0.0
3,238
0.0
2,683
0.5
320,216
25,941
9,668,815
3,420
0.0
3,238
0.0
2,640
0.5
437,032
35,100
13,295,412
3,420
0.0
3,238
0.0
1,288
0.2
316,081
23,908
18,562,454
3,420
0.0
3,238
0.0
720
0.1
218,303
16,968
23,566,876
3,420
0.0
3,238
0.0
485
0.1
174,495
13,587
28,015,312
3,420
0.0
3,238
0.0
335
0.1
142,671
11,147
33,273,680
3,420
0.0
3,238
0.0
19:54 Jan 16, 2024
Jkt 262001
PO 00000
Frm 00146
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E:\FR\FM\17JAP2.SGM
17JAP2
3263
Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
EXHIBIT 37—ACCOMMODATION AND FOOD SERVICES INDUSTRY—Continued
Small Business Size Standard: $9.0 million–$47.0 million
Number
of firms
as percent
of small
firms in
industry
Number
of
firms
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Total
number of
employees
Average
receipts
per firm
($)
Annual
receipts
($ million)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
279
0.1
136,491
10,468
37,521,086
3,420
0.0
3,238
0.0
372
0.1
216,049
16,974
45,628,797
3,420
0.0
3,238
0.0
As shown in Exhibit 38, the first-year
and annualized costs for sponsors in the
other services industry are estimated to
have a significant economic impact (3
percent or more) on small entities with
receipts under $100,000, and those
firms constitute a substantial number of
small entities in the other services
industry (24.6 percent). The first-year
costs are estimated to be 5.7 percent of
the average receipts per firm and the
annualized costs are estimated to be 5.4
percent of the average receipts per firm
for firms with revenue below $100,000.
EXHIBIT 38—OTHER SERVICES INDUSTRY
Small Business Size Standard: $8.0 million—$47.0 million
Number
of firms
Enterprises with receipts below
$100,000 ......................................
Enterprises with receipts of
$100,000 to $499,999 .................
Enterprises with receipts of
$500,000 to $999,999 .................
Enterprises with receipts of
$1,000,000 to $2,499,999 ...........
Enterprises with receipts of
$2,500,000 to $4,999,999 ...........
Enterprises with receipts of
$5,000,000 to $7,499,999 ...........
Enterprises with receipts of
$7,500,000 to $9,999,999 ...........
Enterprises with receipts of
$10,000,000 to $14,999,999 .......
Enterprises with receipts of
$15,000,000 to $19,999,999 .......
Enterprises with receipts of
$20,000,000 to $24,999,999 .......
Enterprises with receipts of
$25,000,000 to $29,999,999 .......
Enterprises with receipts of
$30,000,000 to $34,999,999 .......
Enterprises with receipts of
$35,000,000 to $39,999,999 .......
Enterprises with receipts of
$40,000,000 to $49,999,999 .......
Number
of firms
as
percent
of small
firms in
industry
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Average
receipts
per firm
($)
First-year
cost per
firm with 7%
discounting
First-year
cost per
firm as
percent of
receipts
Annualized
cost per
firm with 7%
discounting
Annualized
cost per
firm as
percent of
receipts
24.6
255,297
$10,216
$59,834
$3,420
5.7
$3,238
5.4
317,048
45.7
1,077,568
93,232
294,062
3,420
1.2
3,238
1.1
102,517
14.8
754,571
84,777
826,958
3,420
0.4
3,238
0.4
68,210
9.8
955,461
121,839
1,786,227
3,420
0.2
3,238
0.2
20,419
2.9
564,101
81,799
4,006,027
3,420
0.1
3,238
0.1
6,414
0.9
280,574
44,403
6,922,817
3,420
0.0
3,238
0.0
2,783
0.4
161,164
27,025
9,710,570
3,420
0.0
3,238
0.0
2,571
0.4
195,893
34,100
13,263,323
3,420
0.0
3,238
0.0
1,264
0.2
119,626
22,846
18,074,474
3,420
0.0
3,238
0.0
692
0.1
72,568
15,534
22,448,389
3,420
0.0
3,238
0.0
506
0.1
63,532
13,471
26,622,602
3,420
0.0
3,238
0.0
325
0.0
42,921
9,987
30,729,615
3,420
0.0
3,238
0.0
292
0.0
37,383
10,032
34,357,693
3,420
0.0
3,238
0.0
326
0.0
49,042
12,512
38,381,273
3,420
0.0
3,238
0.0
The Department used the same steps
as in the analysis of registered
apprenticeship programs to estimate the
cost of the proposed rule per registered
CTE apprenticeship program sponsor as
a percentage of annual receipts. The
Department divided the estimated firstyear cost and the annualized cost per
registered CTE apprenticeship program
sponsors (discounted at a 7-percent rate)
by the average annual receipts per firm
in the educational services industry
20:53 Jan 16, 2024
Annual
receipts
($ million)
170,736
b. Registered CTE Apprenticeship
Program Sponsors
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Total
number of
employees
Jkt 262001
(NAICS 61) to determine whether the
proposed rule would have a significant
economic impact on registered CTE
apprenticeship program sponsors in
each size category.247 Then, the
Department divided the number of firms
in each size category by the total
number of small firms in the
educational services industry to
determine whether the proposed rule
would have a significant economic
impact on a substantial number of small
entities.248 For registered CTE
apprenticeship program sponsors, the
first-year cost or annualized cost per
sponsor would have a significant
economic impact on a substantial
number of small entities. As shown in
Exhibit 39, the first-year and annualized
costs for sponsors in the educational
247 For purposes of this analysis, the Department
used a 3-percent threshold for ‘‘significant
economic impact.’’ The Department has used a 3percent threshold in prior rulemakings. Ibid.
248 For purposes of this analysis, the Department
used a 15-percent threshold for ‘‘substantial number
of small entities.’’ The Department has used a 15percent threshold in prior rulemakings. Ibid.
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Federal Register / Vol. 89, No. 11 / Wednesday, January 17, 2024 / Proposed Rules
industry (24.3 percent). The first-year
costs are estimated to be 6.2 percent of
the average receipts per firm and the
annualized costs are estimated to be 4.2
percent of the average receipts per firm
for firms with revenue below $100,000.
services industry are estimated to have
a significant economic impact (3 percent
or more) on small entities with receipts
under $100,000, and those firms
constitute a substantial number of small
entities in the educational services
It should be noted, however, that
participation in CTE is voluntary;
therefore, only small entities that choose
to continue to participate would
experience an economic impact—
significant or otherwise.
EXHIBIT 39—EDUCATIONAL SERVICES INDUSTRY
Small Business Size Standard: $8.0 million–$47.0 million
Number
of
firms
Enterprises with receipts
below $100,000 ...................
Enterprises with receipts of
$100,000 to $499,999 .........
Enterprises with receipts of
$500,000 to $999,999 .........
Enterprises with receipts of
$1,000,000 to $2,499,999 ...
Enterprises with receipts of
$2,500,000 to $4,999,999 ...
Enterprises with receipts of
$5,000,000 to $7,499,999 ...
Enterprises with receipts of
$7,500,000 to $9,999,999 ...
Enterprises with receipts of
$10,000,000 to $14,999,999
Enterprises with receipts of
$15,000,000 to $19,999,999
Enterprises with receipts of
$20,000,000 to $24,999,999
Enterprises with receipts of
$25,000,000 to $29,999,999
Enterprises with receipts of
$30,000,000 to $34,999,999
Enterprises with receipts of
$35,000,000 to $39,999,999
Enterprises with receipts of
$40,000,000 to $49,999,999
Number
of firms
as percent
of small
firms in
industry
Total
number of
employees
Average
receipts
per firm
($)
Annual
receipts
($ million)
First-year
cost per
firm
with 7%
discounting
First-year
cost per
firm as
percent
of receipts
Annualized
cost per
firm with
7%
discounting
Annualized
cost per
firm as
percent of
receipts
22,439
24.3
42,944
$1,267
$56,457
$3,476
6.2
$2,398
4.2
37,156
40.3
197,950
10,926
294,070
3,476
1.2
2,398
0.8
11,425
12.4
139,745
9,464
828,359
3,476
0.4
2,398
0.3
9,837
10.7
237,256
18,178
1,847,893
3,476
0.2
2,398
0.1
4,948
5.4
227,231
20,288
4,100,203
3,476
0.1
2,398
0.1
2,051
2.2
142,147
14,300
6,972,405
3,476
0.0
2,398
0.0
1,085
1.2
99,135
10,572
9,743,335
3,476
0.0
2,398
0.0
1,217
1.3
149,025
16,368
13,449,575
3,476
0.0
2,398
0.0
788
0.9
130,304
14,960
18,984,389
3,476
0.0
2,398
0.0
405
0.4
83,052
9,610
23,727,832
3,476
0.0
2,398
0.0
266
0.3
72,713
7,656
28,783,311
3,476
0.0
2,398
0.0
193
0.2
53,118
6,371
33,011,190
3,476
0.0
2,398
0.0
157
0.2
49,519
5,840
37,197,306
3,476
0.0
2,398
0.0
230
0.2
84,073
10,197
44,336,758
3,476
0.0
2,398
0.0
6. Relevant Federal Rules Duplicating,
Overlapping, or Conflicting With the
Proposed Rule
The Department is not aware of any
relevant Federal rules that may
duplicate, overlap, or conflict with the
proposed rule.
7. Alternatives to the Proposed Rule
The RFA directs agencies to assess the
impacts that various regulatory
alternatives would have on small
entities and to consider ways to
minimize those impacts. Accordingly,
the Department considered two
regulatory alternatives. Under the first
alternative, end-point assessments
(proposed § 29.16) would not be
required under the proposed rule.
Under the second alternative, program
reviews (proposed § 29.19) would only
be conducted for cause.
For the first alternative the
Department considered removing the
requirement for end-point assessments
from the proposed rule. To estimate the
reduction in costs under this alternative,
the Department subtracted the estimated
costs of end-point assessments from the
total costs estimated of the proposed
rule. Exhibit 40 shows the estimated
cost per sponsor for each year of the
analysis period. The first-year cost per
sponsor is estimated at $737 at a
discount rate of 7 percent. The
annualized cost per sponsor is estimated
at $468 at a discount rate of 7 percent.
The Department decided not to
pursue this alternative because endpoint assessments are a key method for
sponsors to assess the skills and
knowledge acquired by the apprentice
and to ensure the quality of registered
apprenticeship programs.
EXHIBIT 40—ALTERNATIVE 1—ESTIMATED COST PER REGISTERED APPRENTICESHIP PROGRAM SPONSORS
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[$ Millions unless otherwise noted]
Year
1
2
3
4
5
........................
........................
........................
........................
........................
VerDate Sep<11>2014
Rule
familiarization
On-thejob training documentation
Wage
analysis
and career development profile
Data collection
and reporting
$0.00
0.00
0.00
0.00
0.00
$0.05
0.05
0.05
0.05
0.05
$2.94
3.07
3.20
3.33
3.46
$0.28
0.29
0.30
0.31
0.32
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$10.92
1.17
1.20
1.23
1.26
19:54 Jan 16, 2024
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PO 00000
Program
registration
Program
standards
adoption
agreement
End-point
assessments
$0.22
0.22
0.22
0.22
0.22
$0.00
0.00
0.00
0.00
0.00
Sfmt 4702
Recordkeeping
$5.57
5.77
5.97
6.17
6.37
E:\FR\FM\17JAP2.SGM
Program
reviews
$0.89
0.92
0.96
0.99
1.02
17JAP2
Total cost
Number
of registered
apprenticeship
program
sponsors
Cost per
sponsors
($)
$20.89
11.50
11.89
12.29
12.69
26,492
27,434
28,376
29,318
30,260
$788
419
419
419
419
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EXHIBIT 40—ALTERNATIVE 1—ESTIMATED COST PER REGISTERED APPRENTICESHIP PROGRAM SPONSORS—Continued
[$ Millions unless otherwise noted]
Total cost
Number
of registered
apprenticeship
program
sponsors
Cost per
sponsors
($)
13.08
13.48
13.88
14.27
14.67
31,202
32,144
33,086
34,028
34,970
419
419
419
419
420
First-year cost ($), 7% discount rate ............................................................................................................................................................................................
Annualized cost ($), 7% discount rate, 10 years ..........................................................................................................................................................................
737
468
Year
6 ........................
7 ........................
8 ........................
9 ........................
10 ......................
Rule
familiarization
On-thejob training documentation
Wage
analysis
and career development profile
Data collection
and reporting
0.00
0.00
0.00
0.00
0.00
0.05
0.05
0.05
0.05
0.05
3.59
3.72
3.85
3.98
4.10
1.29
1.32
1.35
1.38
1.41
For the second alternative, the
Department considered conducting
program reviews only for cause, rather
than for all sponsors every 5 years. To
estimate the reduction in costs under
this alternative, the Department
adjusted the calculations described in
the subject-by-subject analysis for
program reviews (proposed § 29.19).
The Department estimated that instead
of all sponsors undergoing a program
review every 5 years, only 320 sponsors
would receive program reviews in each
year. The Department maintained the
assumption that 20 percent of those
program reviews would find
noncompliance and require a
subsequent compliance action plan. The
Department maintained the cost
Program
registration
Program
standards
adoption
agreement
End-point
assessments
0.22
0.22
0.22
0.22
0.22
0.00
0.00
0.00
0.00
0.00
0.32
0.33
0.34
0.35
0.35
Recordkeeping
6.56
6.76
6.96
7.16
7.36
estimates for all other provisions.
Exhibit 41 shows the estimated cost per
sponsor for each year of the analysis
period. The first-year cost per sponsor is
estimated at $3,164 at a discount rate of
7 percent. The annualized cost per
sponsor is estimated at $3,174 at a
discount rate of 7 percent.
The Department decided not to
pursue this alternative because
conducting program reviews only for
cause would miss a large number of
programs that may need reviews. The
Department seeks public comment on
recommendations for additional lower
cost alternatives that would still allow
the Department to meet the goals of the
proposed rule. To ensure high-quality
registered apprenticeship programs, and
Program
reviews
1.05
1.08
1.11
1.15
1.18
that all programs abide by the regulatory
requirements of registered
apprenticeship, the Department believes
that all registered apprenticeship
programs should be reviewed over a 5year period as specified in the proposed
rule. This 5-year period ensures that the
Department has the resources available
to conduct reviews and that the review
is not overly burdensome on programs
undergoing the review. The Department
seeks public comment on other
alternatives to the proposed rule that
would mitigate impacts on small
businesses while maintaining the goals
of the revisions to registered
apprenticeship requirements and
creation of registered CTE
apprenticeship.
EXHIBIT 41—ALTERNATIVE 2—ESTIMATED COST PER REGISTERED APPRENTICESHIP PROGRAM SPONSORS
[$ Millions unless otherwise noted]
Total cost
Number
of registered
apprenticeship
program
sponsors
Cost per
sponsors
($)
$89.69
83.63
87.34
91.06
94.78
98.49
102.21
105.93
109.64
113.36
26,492
27,434
28,376
29,318
30,260
31,202
32,144
33,086
34,028
34,970
$3,386
3,048
3,078
3,106
3,132
3,157
3,180
3,202
3,222
3,242
First-year cost ($), 7% discount rate ............................................................................................................................................................................................
Annualized cost ($), 7% discount rate, 10 years ..........................................................................................................................................................................
3,164
3,174
Year
1 ........................
2 ........................
3 ........................
4 ........................
5 ........................
6 ........................
7 ........................
8 ........................
9 ........................
10 ......................
Rule
familiarization
On-thejob training documentation
Wage
analysis
and career development profile
Data collection
and reporting
$0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
$2.94
3.07
3.20
3.33
3.46
3.59
3.72
3.85
3.98
4.10
$10.92
1.17
1.20
1.23
1.26
1.29
1.32
1.35
1.38
1.41
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C. Paperwork Reduction Act
The purposes of the Paperwork
Reduction Act (PRA), 44 U.S.C. 3501 et
seq., includes minimizing the
paperwork burden on affected entities.
The PRA requires certain actions before
an agency can adopt or revise a
collection of information, including
publishing for public comment a
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19:54 Jan 16, 2024
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Program
registration
Program
standards
adoption
agreement
End-point
assessments
$0.22
0.22
0.22
0.22
0.22
0.22
0.22
0.22
0.22
0.22
$69.65
73.00
76.35
79.70
83.05
86.41
89.76
93.11
96.46
99.81
$0.28
0.29
0.30
0.31
0.32
0.32
0.33
0.34
0.35
0.35
summary of the collection of
information and a brief description of
the need for and proposed use of the
information.
As part of its continuing effort to
reduce paperwork and respondent
burden, the Department conducts a
preclearance consultation program to
provide the general public and Federal
agencies with an opportunity to
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Recordkeeping
$5.57
5.77
5.97
6.17
6.37
6.56
6.76
6.96
7.16
7.36
Program
reviews
$0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
comment on proposed and continuing
collections of information in accordance
with the PRA. See 44 U.S.C.
3506(C)(2)(A). Furthermore, the PRA
requires all Federal agencies to analyze
proposed regulations for potential time
burdens on the regulated community
created by provisions in the proposed
regulations that require any party to
obtain, maintain, retain, report, or
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17JAP2
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disclose information. The ICRs also
must be submitted to OMB for approval.
Such submissions often accompany a
proposed rulemaking that seeks to
modify an existing IC, introduce new
ICs, or both.
A Federal agency may not conduct or
sponsor a collection of information
unless it is approved by OMB under the
PRA and displays a currently valid
OMB control number. The public also is
not required to respond to a collection
of information unless it displays a
currently valid OMB control number. In
addition, notwithstanding any other
provisions of law, no person will be
subject to penalty for failing to comply
with a collection of information if the
collection of information does not
display a currently valid OMB control
number. See 44 U.S.C. 3512.
In this NPRM, the Department is
proposing several new ICs that will
impact existing, and potentially new,
registered apprenticeship stakeholders,
including those stakeholders involved
in program registration (i.e., program
sponsors, participating employers,
Registration Agencies, and apprentices),
the occupational suitability process
(e.g., potential program sponsors,
industry groups, and trade associations),
National Apprenticeship System
governance (e.g., SAAs and State
employees), and the proposed CTE
apprenticeship model (potential
registered CTE apprenticeship program
sponsors and apprentices, State and
Local Educational Agencies, institutions
of higher education, and other
education and workforce development
representatives). Concurrent with the
publication of this proposed rule, the
Department has submitted ICRs to OMB
to request approval for the ICs related to
this proposal—one for revisions to the
existing, approved ICR for OA’s current
activities overseeing the National
Apprenticeship System (current OMB
1205–0223, form 671), and three new
ICRs to reflect the new IC elements in
this proposed rule. These ICRs align
with the four areas below:
(1) Labor Standards and Equal
Employment Opportunity for Registered
Apprenticeship Programs Registration
and Reporting Requirements—Revisions
and additions to current Form 671
(2) Information Collection on
Suitability of Occupations for Registered
Apprenticeship Programs and National
Occupational Standard—New
(3) SAA Governance (State
Apprenticeship Plan)—New
(4) CTE Apprenticeship—New
Desired Focus of Comments
The Department is soliciting
comments concerning the proposed IC
VerDate Sep<11>2014
19:54 Jan 16, 2024
Jkt 262001
related to the below ICRs. The
Department is particularly interested in
comments that:
• Evaluate whether the collection of
information is necessary for the proper
performance of the functions of the
Agency, including whether the
information has practical utility;
• Evaluate the accuracy of the
Department’s estimate of the burden
related to the IC, including the validity
of the methodology and assumptions
used in the estimate;
• Suggest methods to enhance the
quality, utility, and clarity of the
information to be collected; and
• Minimize the burden of the IC on
those who are to respond, including
through the use of appropriate
automated, electronic, mechanical, or
other technological collection
techniques or other forms of IT (e.g.,
permitting electronic submission of
responses).
Please see additional information
regarding each ICR for context on
comments.
The ICs associated with this proposal
are summarized as follows:
1. Labor Standards and Equal
Employment Opportunity for Registered
Apprenticeship Programs—Registration
and Reporting Requirements
Agency: DOL–ETA.
Title of Collection: Labor Standards
and Equal Employment Opportunity for
Registered Apprenticeship Programs—
Registration and Reporting
Requirements.
Type of Review: New.
OMB Control Number: 1205–0NEW.
Description: The Department is taking
this opportunity to make changes to the
forms in OMB Control Number 1205–
1223 (current form 671) used in the
registration and reporting process for
registered apprenticeship programs and
other activities related to the
Department’s oversight of the National
Apprenticeship System. This collection
will eventually be included in OMB
Control Number 1205–1223 and
reflected in a new, updated form 671;
however, the Department is not
submitting this ICR under that control
number because the reginfo.gov
database (OMB’s system for processing
requests) allows only one ICR per
control number to be pending at OMB
during any given period. Because the
Department’s current ICR for form 671
(current OMB Control Number 1205–
0223) is set to expire in June 2024, and
will require a request for renewal, the
Department is requesting approval for a
new ICR to avoid having two pending
ICRs at OMB related to the same IC.
Once all outstanding actions are
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complete, the Department intends to
submit a nonmaterial change request to
merge the collections so that all the new
requirements related to this proposal are
added to OMB Control Number 1205–
0223.
The proposed changes are intended to
increase the quality and uniformity of
data related to apprenticeship that are
ultimately reported to OA, provide
clearer and more usable tools for
registered apprenticeship program
sponsors, and cover the new or updated
apprenticeship labor standards in this
proposal that are designed on the basis
of protecting and safeguarding the
welfare of apprentices. This ICR
encompasses the information required
from program sponsors to meet the
program registration, operation,
recordkeeping, and reporting
requirements for registered
apprenticeship programs. The ICR also
covers the information apprentices
provide to sponsors (which in turn
provide apprentice information to OA
via the RAPIDS system, which is
populated in part by the data from
current form 671 that sponsors submit,
either by paper or electronically). The
Department proposes to further update
ETA form 671, part I by adding part IA
to incorporate the newly proposed
Group Program Participating Employer
Tear-off, a Program Standards Adoption
Agreement, a Registered Apprenticeship
Individual Record Layout schema to
operate a case management system and
for SAAs to accurately report data to the
Department, additional proposed
elements for the complaints process.
The Department is also incorporating
the IC elements related to National
Program Standards for Apprenticeship
and National Guidelines for
Apprenticeship Standards, tools that
were first introduced via DOL Circulars
issued by OA (2022–01 249 for National
Program Standards for Apprenticeship,
2022–02 250 for National Guidelines for
Apprenticeship Standards) and are now
proposed for incorporation into the part
29 regulations for registered
apprenticeship.
Affected Public: State, Local, and
Tribal Governments; Private Sector;
Individuals or Households.
Obligation to Respond: Required to
Obtain or Retain Benefits.
249 DOL, Circular 2022–01, ‘‘Updated Guidance—
Minimum National Program Standards for
Registered Apprenticeship Programs,’’ 2022,
https://www.apprenticeship.gov/sites/default/files/
bulletins/Circular-2022-01.pdf.
250 DOL, Circular 2022–02, ‘‘Guidance—National
Guidelines for Apprenticeship Standards,’’ Feb. 16,
2022, https://www.apprenticeship.gov/sites/default/
files/bulletins/Circular-2022-02.pdf.
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Estimated Total Annual Respondents:
1,508,012 (reflecting FY 2022 data in the
supporting statement for sponsors,
employers, apprentices, and SAAs).
Estimated Total Annual Responses:
1,893,367 (reflecting FY 2022 data in the
supporting statement for sponsors,
employers, apprentices, and SAAs).
Estimated Total Annual Burden
Hours: 1,313,437.
Estimated Total Annual Burden Costs:
$44,755,449.
Estimated Total Annual Other Burden
Costs: N/A.
Regulations Sections: §§ 29.2, 29.8
through 29.11, 29.13 through 29.16,
29.17, 29.18, 29.19, 29.23, 29.25, 29.28,
30.3 through 30.10, 30.12, 30.14.
The Department invites the public to
provide comments on this proposed
update to the existing form 671 and the
additional elements related to registered
apprenticeship program registration and
operation. In particular, the Department
is interested in comments about the
current form 671, its clarity and ease of
use, and the existing registration and
reporting requirements for registered
apprenticeship programs, and whether
the proposed updates to this form are
necessary, whether the new IC elements
will have practical utility for the
Department’s oversight of the National
Apprenticeship System, and any other
feedback or suggestions related to form
671 and the registration and reporting
requirements for registered
apprenticeship programs. The
Department is also interested in its
proposed introduction of the RAIR
Layout, which would provide a
schematic for the development of a case
management system, such as RAPIDS to
collect the information required in the
proposed rule, as well as a schema for
SAAs that do not utilize RAPIDS to use
when updating their case management
systems to align with the NPRM. In
addition, the Department is interested in
comments about the accuracy of its
burden estimates related to this
proposal, and whether any potentially
impacted stakeholders would be unduly
burdened by the proposed changes to
form 671 and registration and reporting
requirements for registered
apprenticeship programs.
2. Occupational Suitability and National
Occupational Standards
Agency: DOL–ETA.
Title of Collection: Occupational
Suitability.
Type of Review: New.
OMB Control Number: 1205–0NEW.
Description: This IC is new and
encompasses the information exchange
related to applications regarding an
occupation’s suitability for registered
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apprenticeship training under the newly
proposed process in § 29.7. This IC also
encompasses the exchange of
information related to the development
and National Occupational Standards
for Apprenticeship (including
establishing and updating such
Standards) under the proposed process
at § 29.13. The Department expects that
both of these processes will involve the
exchange of information between
industry stakeholders (including
industry groups, leaders, and
representatives, trade associations, and
labor organizations) and the
Administrator (the Department official
responsible for making determinations
on occupational suitability and
overseeing the process of establishing
National Occupational Standards for
Apprenticeship).
Information exchanged under this
collection is necessary to determine if
an occupation meets the criteria for
occupational suitability at proposed
§ 29.7, including the critical element of
industry-vetting that underpins
occupational suitability for registered
apprenticeship. In addition, it is
necessary to collect information from
industry and the public related to the
development of a set of nationally
applicable standards of apprenticeship
for an occupation (National
Occupational Standards for
Apprenticeship) to ensure these
standards are applicable and usable for
quality registered apprenticeship
programs on a nationwide basis. The
information under this collection is also
necessary to give other stakeholders and
the public the opportunity to provide
feedback on a sponsor’s submission for
either occupational suitability or a set of
National Occupational Standards for
Apprenticeship.
Affected Public: Private Sector;
Individuals or Households.
Obligation to Respond: Required to
Obtain or Retain Benefits.
Estimated Total Annual Respondents:
45 (reflective of respondents submitting
suitability requests and submitting
responses on a estimated average of 15
new occupations per year and 220
revised occupations per year, including
National Occupational Standards).
Estimated Total Annual Responses:
2,365 (based on an estimated 10
responses per occupation or National
Occupational Standard).
Estimated Total Annual Burden
Hours: 2,646.
Estimated Total Annual Burden Costs:
$79,854.
Estimated Total Annual Other Burden
Costs: N/A.
Regulations Sections: §§ 29.7, 29.13.
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The Department is interested in
comments from the public on all
elements of the ICs related to the
proposed processes for making
determinations regarding occupational
suitability for registered apprenticeship
training and for National Occupational
Standards for Apprenticeship
development. In particular, the
Department is interested in hearing from
existing stakeholders regarding the
existing process for making
occupational suitability determinations,
whether the responsibility to make such
determinations should rest with the
Administrator or should remain the
purview of both OA and SAAs, and
what types of information would best
inform the suitability determination
process. In addition, the Department is
interested in comments from industry
representatives, particularly those from
industries new to registered
apprenticeship that may have a vested
interest in the development of National
Occupational Standards for
Apprenticeship for their industry,
regarding the process for developing
National Occupational Standards, what
types of information would best inform
such development, and other feedback
or suggestions on how to accelerate
registered apprenticeship expansion
into new industries through
frameworks, tools, and other resources.
3. State Apprenticeship Agency
Governance and Planning
Agency: DOL–ETA.
Title of Collection: State
Apprenticeship Agency Governance and
Planning.
Type of Review: New.
OMB Control Number: 1205–0NEW.
Description: This new IC reflects the
Department’s proposal to update and
refine the process for recognizing SAAs,
and the information contained in the
collection is required for any State
seeking initial or continued recognition
as an SAA State. The Department’s
proposal includes a requirement for
State Apprenticeship Plans that SAAs
must develop, and submit to OA for
approval, in order to obtain or maintain
recognition as an SAA, and this IC
contains all the required information
and documentation needed for a
satisfactory State Apprenticeship Plan.
The IC also reflects the subsequent
documentation required if an SAA’s
State Apprenticeship Plan needs
revisions (i.e., the corrective action plan
introduced in the section-by-section
discussion of this NPRM), as well as any
documentation related to the
withdrawal or derecognition of an SAA.
Of the 57 States as defined in proposed
29 CFR 29.2, there are currently 31
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States with SAAs recognized to
registered programs for Federal
purposes. These jurisdictions, should
they seek to continue recognition for
Federal purposes, will submit an initial
plan during 2026 (first year that plans
are required). After which, States are
required to submit a renewal every 4
years. SAAs may submit updates should
they need to modify their plan under
proposed 29 CFR 29.27. No other
submissions are required unless a State
without a recognized SAA seeks
recognition for Federal purposes.
The information requested in this IC
is required to facilitate the Department’s
examination of a State agency’s fitness
to serve in the role of an SAA, including
meeting the requirements and
responsibilities outlined in proposed
§ 29.26 and the other SAA-related
requirements found in proposed
§§ 29.27 and 29.29, as applicable. The
Department has determined that its
proposal for revamping the SAA
Governance framework will increase its
ability to monitor and verify States’
operational and strategic capacity to
serve in the important role of an SAA
within the National Apprenticeship
System, including assessing whether
State laws conform to the minimum
standards in the parts 29 and 30
regulations, and whether States have a
detailed, actionable plan for advancing
DEIA and EEO outcomes for the
registered apprenticeship programs in
their State. The information will be
collected via an online form and by
email, and the Department is committed
to providing substantial technical
assistance to any SAAs recognized at
the time of this proposed rule’s effective
date, if finalized, as well as any new
States seeking recognition from the
Federal government as an SAA State.
Affected Public: State, Local, and
Tribal Governments.
Obligation to Respond: Required to
Obtain or Retain Benefits.
Estimated Total Respondents in 2026:
31 SAAs.
Estimated Total Responses in 2026:
31 SAAs.
Estimated Total Burden Hours in
2026: 86 hours.
Estimated Total Burden Costs in 2026:
$197,948.
Estimated Total Annual Other Burden
Costs: N/A.
The Department invites comments
from the public, including State or SAA
representatives, State and local elected
officials, and sponsors and apprentices
in SAA States, regarding the proposed
updates to the SAA Governance
framework and the Department’s IC
plans related to such framework. In
particular, the Department is interested
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in comments or feedback regarding the
increased burden, if any, this revamped
approach to SAA Governance may
introduce, and whether the benefits of
the proposal (as articulated above in the
section-by-section discussion) justify
any increased burden. The Department
is also interested in receiving comments
on the practical and strategic benefits of
the State planning process (such as that
used for the WIOA model) and whether
this is appropriate or useful for the
National Apprenticeship System.
4. Registered Career and Technical
Education Apprenticeship
Agency: DOL–ETA.
Title of Collection: Career and
Technical Education Apprenticeship.
Type of Review: New.
OMB Control Number: 1205–0NEW.
Description: This IC is new and
encompasses the information exchange
related to registered CTE apprenticeship
program sponsors—primarily LEAs,
institutions of higher education, or their
designated intermediaries—and CTE
apprentice information under the
Department’s proposed registered CTE
apprenticeship model at proposed 29
CFR part 29, subpart B (proposed
§ 29.24). This IC also encompasses the
exchange of information related to the
development of industry skills
frameworks (including establishing and
updating such Frameworks) under
proposed § 29.24, wherein the
Department would work with the public
and industry representatives to develop
nationally applicable frameworks to
guide the on-the-job training and CTE
apprenticeship-related instruction of
CTE apprentices in subject industry for
proposed registered CTE
apprenticeships.
This ICR will cover sponsors’
submission of information for registered
CTE apprenticeship program
registration, operation, recordkeeping,
and reporting requirements (as proposed
in § 29.24), including CTE program
standards, a CTE apprenticeship
agreement, an employer adoption
agreement (where applicable under
proposed § 29.24), a complaints form,
and a voluntary attestation of disability.
The ICR also covers the information
CTE apprentices provide to sponsors, as
populated through a CTE
apprenticeship agreement, and
sponsors’ subsequent provision of
apprentice information, to the extent
feasible, to a Registration Agency via the
RAPIDS or State sponsored case
management system (in accordance with
FERPA and relevant State laws for
sharing information on students in
secondary education). This ICR is
similar to the current IC practices under
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subpart A but tailored to meet the
requirements under subpart B. OA does
not currently collect this information,
and doing so will require the
development of an applicable form. The
ICR will also involve the exchange of
information between industry
stakeholders (including industry groups,
leaders, and representatives, trade
associations, labor organizations, and
local advisory councils) and the
Administrator (the Department official
responsible for overseeing the process of
developing and establishing industry
skills frameworks). Information
exchanged under this collection is
necessary to collect information from
industry and the public related to the
development of nationally applicable
and locally tailored industry skills
frameworks that provide the basis for
the paid on-the-job component of a
registered CTE apprenticeship.
Affected Public: State, Local, and
Tribal Governments; Private Sector;
Individuals or Households.
Obligation to Respond: Required to
Obtain or Retain Benefits.
Estimated Total Annual Respondents:
4,451 (all 2025 registered CTE
apprenticeship program sponsors [137],
participating employers [210], CTE
apprentices [3210], and SAAs [1]) 8
industry leaders for ISF).
Estimated Total Annual Responses:
4,451 (all 2025 registered CTE
apprenticeship program sponsors [137],
participating employers [210], CTE
apprentices [3210], and SAAs [1]) 8
industry skills framework submissions,
80 industry skills framework responses
by industry leaders).
Estimated Total Annual Burden
Hours: 5,141.
Estimated Total Annual Burden Costs:
$225,031.
Estimated Total Annual Other Burden
Costs: N/A.
Regulations Sections: § 29.24.
The Department invites the public to
provide comments on this proposed IC
for registered CTE apprenticeship
program registration and industry skills
frameworks. In particular, the
Department is interested in comments
about the ability for registered CTE
apprenticeship program sponsors or
their designated intermediaries to
provide valid and timely information to
meet applicable reporting requirements,
such as the submission of standards for
program registration. The Department is
interested in comments about the
potential barriers to reporting CTE
apprentice information to a Registration
Agency and the types of mechanisms
that can facilitate sponsors’ or States’
ability to report CTE apprentice
information. In addition, the
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Department is interested in comments
about the accuracy of its burden
estimates related to this proposal, and
whether any potentially impacted
stakeholders would be unduly burdened
by the new registration and reporting
requirements for registered CTE
apprenticeship programs. In addition,
the Department is interested in
comments from industry
representatives, particularly those from
industries that can provide a broad base
of skills and competencies in the
development of industry skills
frameworks for their industry, regarding
the process for developing industry
skills frameworks and what types of
information would best inform such
development. The Department is also
interested in hearing from the CTE
stakeholder community on the
applicability and alignment of industry
skills frameworks with CTE programs
within State-identified Career Clusters.
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D. Executive Order 13132 (Federalism)
The Department has reviewed this
proposed rule in accordance with E.O.
13132 and found that, if finalized as
proposed, it will have federalism
implications because it will have
substantial direct effects on States, their
registration of programs for Federal
purposes, and the relationship between
the Federal Government and the States.
Due to the nature of OA’s role
overseeing the National Apprenticeship
System per its statutory mandate to
protect the welfare of apprentices
nationwide, OA’s enforcement of the
parts 29 and 30 regulations, as well as
OA’s development and promulgation of
updates to such regulations, may have
such federalism implications if States
are required to make any changes or
adjustments to apprenticeship policy,
State apprenticeship laws, or any
procedures related to their respective
roles in this Federally administered
apprenticeship system. OA regularly
consults and collaborates with State
partners and organizations, including
when developing and promulgating
proposed updates to part 29 or part 30
impacting the National Apprenticeship
System (as described below). The
Department and OA will continue
consulting and collaborating with State
partners, which the Department views
as central to OA’s role in promoting and
maintaining quality registered
apprenticeship programs. The
Department invites comments from the
public on the federalism implications of
this proposed rule and is interested in
comments from State partners regarding
the quality and effectiveness of the
Department’s ongoing consultations and
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collaborations and any
recommendations for improvement.
In particular, the proposed rule, if
finalized, may affect internal State
organizational structures and processes
with regard to new and ongoing SAA
recognition, strategic planning for the
expansion of registered apprenticeship,
determining occupations’ suitability for
registered apprenticeship training, and
developing processes for reciprocal
approval of programs registered in other
States. The Department is proposing
updates to the part 29 regulations
concerning National Apprenticeship
System governance (with the most
significant changes to the relationship
between the Federal government and
the States contained within proposed
subpart C) based on analysis of the
functioning and efficacy of the current
system, consultations with State
partners including representatives from
SAAs and State partners from OA States
(i.e., States without an SAA recognized
by the Department), and
recommendations from existing
registered apprenticeship stakeholders,
advisory bodies (such as the ACA), and
other workforce development and
education system partners.
Stakeholders, including State and
local officials and other National
Apprenticeship System partners, have
been a vital source of both feedback
regarding the efficacy of the current
system and suggestions and advice
(based on their experiences and regional
perspectives registering, overseeing,
participating, or analyzing registered
apprenticeship programs) regarding
ways to improve the system, including
recommended adjustments to its
governing regulations. In the past 2
years, as an essential part of its planning
for the development and promulgation
of this NPRM, the Department has been
engaged with stakeholders more
specifically on the topic of updating the
regulatory framework (including
whether updates were necessary, and
what issues should be prioritized in
updating the regulations) and has
participated in or organized several
forums for soliciting feedback and
advice from State partners and other
apprenticeship stakeholders on this
topic. For example, the Department
solicited and considered advice from
the most recent term of the ACA,251 and
held listening sessions and otherwise
consulted with State partners
specifically related to systemwide
governance and the relationship
251 ACA, ‘‘Interim Report to the Secretary of
Labor,’’ May 16, 2022, https://
www.apprenticeship.gov/sites/default/files/acainterim-report-may-2022.pdf.
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between OA and the States (including
officials from the National Association
of State and Territorial Apprenticeship
Directors (NASTAD), the organization
representing apprenticeship officials
from the District of Columbia, 28 States
operating SAAs, and two Territories).
The ACA, which includes
representation from NASTAD, offered
specific suggestions on matters relating
to SAA governance and the role of
States in the expansion and
modernization of registered
apprenticeship that are relevant to this
Federalism analysis. These suggestions
included aligning registered
apprenticeship policies and procedures
among SAA and OA States to promote
cohesiveness and uniformity within the
National Apprenticeship System,
standardizing the process for making
determinations on occupations’
suitability for registered apprenticeship
training, and enhancing data collection
and reporting requirements to develop a
national repository of high-quality
apprenticeship data. The Department
agrees with many of the ACA’s
observations and recommendations and
has incorporated these
recommendations throughout the
proposed rule.
In addition to consulting during with
the ACA during its most recent term, the
Department organized forums to
intentionally engage with State partners,
such as SAAs and NASTAD, on the
effectiveness of the National
Apprenticeship System and its existing
regulations, the Department’s plans to
pursue updates to the regulations, and
State partners’ concerns, issues, or
recommendations related to system
governance. In March and May 2023,
OA held listening sessions to discuss
and obtain feedback from these
important State partners. To guide the
discussions and generate feedback on
topics related to the Department’s
developing plans for updating the part
29 regulations, the Department
circulated guiding questions to
stakeholders invited to participate in the
listening sessions. These questions
asked about ways to modernize the
National Apprenticeship System, the
characteristics of high-quality registered
apprenticeship programs, and strategies
to improve equitable access to registered
apprenticeship programs and promote
the expansion of registered
apprenticeship into new and emerging
industries.
During the listening sessions with
State partners, several issues emerged
related to the relationship between the
Federal Government (for registered
apprenticeship, OA) and the States
(SAAs and other State partners). For
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example, State partners brought a
meaningful perspective on the
forthcoming Federal funding for
registered apprenticeship programs and
the need to safeguard quality throughout
all registered apprenticeship programs
with new potential stakeholders coming
into the system. Some State partners
stressed the need to maintain quality as
registered apprenticeship expands and
new industries and occupations enter
the system, including through strong
quality standards. Other State partners
discussed ways that some existing
registered apprenticeship programs fall
short of quality standards, including
through consistently low completion
rates, lack of adequate representation of
the diverse populations in the
community, and the failure to provide
tools or training necessary for
apprentices’ success in an occupation
upon completing a program. In the
Department’s view, this proposed rule is
responsive to the discussion on
maintaining quality as the National
Apprenticeship System expands. This
proposal strengthens the labor standards
for registered apprenticeship programs
at proposed § 29.8, including through
proposed provisions to improve
assessment of an apprentices’ progress
toward proficiency in an occupation. In
response to stakeholders’ (including
State partners) concerns about
promoting equitable access to registered
apprenticeship programs and addressing
barriers to entry, the Department’s
strengthened labor standards include a
new proposed requirement that
apprentices must not be charged any
unreasonable or unnecessary costs,
expenses, or fees to participate in a
program, and that apprentices must be
made aware of all costs, expenses, or
fees related to participation in a
program. In the Department’s view,
these and other strengthened labor
standards will promote and maintain
program quality as the National
Apprenticeship System expands and
incorporates new stakeholders,
occupations, and industries.
The proposal would also expand the
collection of apprenticeship data (at
proposed § 29.25) to include elements
like interim, secondary, or
postsecondary credentials provided in
registered apprenticeship programs,
additional information regarding
apprentices’ progress through a
program, and information about
employers, workforce systems, and
other partners associated with a
program and its ability to place
apprentices on a pathway to quality,
sustainable careers. The proposal’s
enhanced data collection measures also
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align with feedback from State partners,
which discussed the importance of
measuring more than just apprentices’
entry into and exit from a registered
apprenticeship program for assessing
program quality.
Many State partners and
apprenticeship stakeholders discussed
the importance of standardization and
uniformity throughout the National
Apprenticeship System. In the listening
sessions, State partners also discussed
the value and effectiveness of existing
tools to clarify and facilitate
administrative responsibilities (e.g.,
recordkeeping, data reporting, and the
RAPIDS system) and the potential value
of robust tools to inform, facilitate, and
accelerate the development of new
registered apprenticeship programs (e.g.,
Standard Builder, National Program
Standards for Apprenticeship, and
National Guidelines for Apprenticeship
Standards). The Department considered
this input in developing the proposed
rule, and the NPRM includes several
provisions intended to promote
uniformity and standardization
throughout the National Apprenticeship
System. For example, the NPRM would
formalize the processes for development
and intended uses of National
Occupational Standards for
Apprenticeship, National Program
Standards for Apprenticeship, and
National Guidelines for Apprenticeship
Standards. The Department will
continue working with industry to
refine and develop these templates for
new occupations and industries, and
expects that new programs will use such
tools to more easily develop new
registered apprenticeship programs in
in-demand occupations.
The Department’s proposal would
also increase standardization
throughout the system with respect to
program registration, recordkeeping and
reporting requirements, and SAA
recognition processes to promote
consistent performance accountability
among registered apprenticeship
programs operating in all States. A key
reform in this proposal is the
clarification of SAA roles and
responsibilities at proposed § 29.26 and
the State Apprenticeship Plan process
outlined at proposed § 29.27. The
Department expects that its proposed
reforms to the SAA governance
framework, including establishing
clearer roles for SAAs and consultative
bodies such as State Apprenticeship
Councils, aligning State policies via the
required submission and approval of a
State Apprenticeship Plan, and
standardizing data collection processes,
will promote uniformity and
standardization throughout the National
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Apprenticeship System to the benefit of
existing programs and any new
stakeholders entering the system going
forward. The updated SAA recognition
and reporting requirements represent
the most direct Federalism implication
within this proposal, and the
Department invites comments from all
registered apprenticeship stakeholders
and State partners regarding the
benefits, feasibility, potential
challenges, and any undue burdens that
may arise related to the Department’s
proposal to reform SAA recognition and
systemwide governance.
Some State partners suggested that the
Department should avoid adding to or
changing the regulations at all because
some existing or potential stakeholders
have expressed that the current
regulation, the part 30 regulations and
associated EEO responsibilities for
States and programs, and overall
administrative requirements within the
system were too long, complicated, or
burdensome. Other State partners
specifically pointed to EEO
requirements, or efforts to improve
DEIA outcomes throughout the system,
as a source of discomfort among some
stakeholders. The Department did not
ultimately accept these
recommendations in this proposed
update to the part 29 regulations
because, in the Department’s view, the
existing regulations need to be
strengthened and modernized to reflect
the realities and needs of stakeholders
in the modern National Apprenticeship
System. Further, in the Department’s
view, the EEO requirements and
intentional DEIA focus of the part 30
regulations are important aspects of its
goal to improve inclusivity and equity
in the National Apprenticeship System.
In addition to soliciting and
considering recommendations from the
ACA and the facilitation of formal
listening sessions, OA has maintained
(and will continue to maintain) an open
line of communication with SAA
leadership that has created a consistent
feedback loop on matters related to
registered apprenticeship. OA staff at
the national and regional levels
regularly consult with SAAs, and as
stated earlier, OA views the provision of
technical assistance as central to its
responsibility to oversee the National
Apprenticeship System. OA will
continue to provide such technical
assistance and plans to develop robust
tools to assist SAAs and all National
Apprenticeship System stakeholders
with understanding and complying with
this proposed rule, including assistance
related to the development of a State
Apprenticeship Plan, continuous
improvement of the labor standards
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tools and templates for both existing
and new programs’ compliance with the
strengthened labor standards in this
proposed rule, and resources to support
States’ and programs’ responsibilities
and goals related to improved DEIA
outcomes and equitable access for
apprentices.
opportunity, Reporting and
recordkeeping requirements, Training.
For the reasons stated in the
preamble, the Employment and Training
Administration proposes to amend 29
CFR parts 29 and 30 as follows:1. Revise
part 29 to read as follows:
E. Unfunded Mandates Reform Act of
1995
PART 29—LABOR STANDARDS FOR
THE REGISTRATION OF
APPRENTICESHIP PROGRAMS
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 rule that may result in $100
million or more in expenditures
(adjusted annually for inflation) in any
1 year by State, local, and Tribal
governments, in the aggregate, or by the
private sector.
This proposed rule, if finalized, does
not exceed the $100-million
expenditure in any 1 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.
G. Internet Address of NPRM Summary
(5 U.S.C. 553(b)(4))
The Department has developed a
summary of the proposed rule in plain
language in accordance with 5 U.S.C.
553(b)(4) and it is publicly available at
https://www.regulations.gov.
List of Subjects
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29 CFR Part 29
Apprenticeship agreements and
complaints, Apprenticeship programs,
Program standards, Registration and
deregistration, Sponsor eligibility, State
Apprenticeship Agency recognition and
derecognition, Suitability for registered
apprenticeship criteria.
29 CFR Part 30
Administrative practice and
procedure, Apprenticeship,
Employment, Equal employment
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Sec.
29.1
29.2
29.3
29.4
29.5
29.6
Purpose and scope.
Definitions.
Office of Apprenticeship.
Relation to other laws and agreements.
Severability.
Transition provisions.
Subpart A—Standards for Registered
Apprenticeship Programs
Sec.
29.7 Occupations suitable for registered
apprenticeship programs.
29.8 Standards of apprenticeship.
29.9 Apprenticeship agreements.
29.10 Program registration.
29.11 Program standards adoption
agreement.
29.12 Qualifications of apprentice trainers
and providers of related instruction.
29.13 Development of National
Occupational Standards for
Apprenticeship.
29.14 National Program Standards for
Apprenticeship.
29.15 National Guidelines for
Apprenticeship Standards.
29.16 End-point assessment and Certificate
of Completion.
29.17 Complaints.
29.18 Recordkeeping by registered
programs.
29.19 Program reviews.
29.20 Deregistration of a registered
program.
29.21 Hearings on deregistration.
29.22 Reinstatement of program
registration.
29.23 Exemptions.
Subpart B—Career and Technical Education
Apprenticeship
Sec.
29.24 Registration of career and technical
education apprenticeship programs.
Subpart C—Administration and
Coordination of the National Apprenticeship
System
Sec.
29.25 Collection of data and quality metrics
concerning apprenticeship.
29.26 Roles and responsibilities of State
Apprenticeship Agencies.
29.27 Recognition of State Apprenticeship
Agencies.
29.28 Reporting requirements for State
Apprenticeship Agencies.
29.29 Denial of a State Apprenticeship Plan
for recognition as a State Apprenticeship
Agency and derecognition of existing
State Apprenticeship Agencies.
29.30 Apprenticeship requirements in other
laws.
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Authority: 29 U.S.C. 50; 40 U.S.C. 3145;
5 U.S.C. 301; 5 U.S.C. App. P. 534.
§ 29.1
Purpose and scope.
The purpose of this part is to set forth
labor standards to safeguard the welfare
of apprentices, promote the formulation
of quality registered apprenticeship
programs across a wide range of
industries, bring employers, labor,
education partners, and other
intermediaries together for the
formulation of such programs, ensuring
equitable apprenticeship opportunities
for underserved communities, and to
extend the application of Federal
standards of apprenticeship by
prescribing policies and procedures
concerning the registration, for Federal
purposes, of registered apprenticeship
programs with the U.S. Department of
Labor, Employment and Training
Administration, Office of
Apprenticeship (OA). These labor
standards, policies, and procedures
cover the registration, cancellation, and
deregistration of registered
apprenticeship programs and of
apprenticeship agreements; the
registration of career and technical
education (CTE) apprenticeship
programs; the collection of
apprenticeship-related data from
programs; the recognition of a State
government agency as an authorized
agency for registering apprenticeship
programs for certain Federal purposes;
the oversight and accountability of
registered apprenticeship programs; and
matters relating thereto.
§ 29.2
Definitions.
For purposes of this part and part 30
of this title:
Administrator means the
Administrator of OA, or any person
specifically designated by the
Administrator or serving in the capacity
of the Administrator.
Annual completion rate means the
percentage of apprentices during a fiscal
year who received a Certificate of
Completion divided by the total number
of exiters during the fiscal year.
Apprentice means a worker at least 16
years of age, except where a higher
minimum age standard is otherwise
fixed by law, who is participating in a
registered apprenticeship program
under subpart A of this part covered by
the requirements of this part and part 30
of this title.
Apprenticeship agreement means a
written agreement executed between an
apprentice and either a program sponsor
or participating employer at the
beginning of the apprenticeship that
satisfies the requirements herein at
§ 29.9, and that describes the terms and
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conditions of the employment and
training of the apprentice, as well as any
subsequent contractual provisions or
agreements executed between the
apprentice and either a program sponsor
or a participating employer during the
remainder of the apprenticeship term.
Apprenticeship committee
(committee) means those persons
designated by the sponsor to administer
the program. A committee may be either
joint or non-joint, as follows:
(1) A joint committee is composed of
an equal number of representatives of
the employer(s) and of the employees
represented by a bona fide collective
bargaining agent(s).
(2) A non-joint committee, which may
also be known as a unilateral committee
or group non-joint committee (which
may include employees), has employer
representatives but does not have a bona
fide collective bargaining agent as a
participant.
Cancellation means the termination of
the apprenticeship agreement by either
the apprentice or sponsor.
Career and technical education (CTE)
means, as defined in sec. 3(5) of the Carl
D. Perkins Career and Technical
Education Act of 2006, as amended by
the Strengthening Career and Technical
Education for the 21st Century Act (20
U.S.C. 2302(5)) (Perkins), organized
educational activities that—
(1) Offer a sequence of courses that—
(i) Provide individuals with rigorous
academic content and relevant technical
knowledge and skills needed to prepare
for further education and careers in
current or emerging professions, which
may include high-skill, high-wage, or
in-demand industry sectors or
occupations, which shall be, at the
secondary level, aligned with the
challenging State academic standards
adopted by a State under sec. 1111(b)(1)
of the Elementary and Secondary
Education Act of 1965;
(ii) Provide technical skill proficiency
or a recognized postsecondary
credential, which may include an
industry-recognized credential, a
certificate, or an associate degree; and
(iii) May include prerequisite courses
(other than a remedial course) that meet
the requirements of this paragraph;
(2) Include competency-based, workbased, or other applied learning that
support the development of academic
knowledge, higher order reasoning and
problem-solving skills, work attitudes,
employability skills, technical skills,
and occupation-specific skills, and
knowledge of all aspects of an industry,
including entrepreneurship, of an
individual;
(3) To the extent practicable,
coordinate between secondary and
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postsecondary education programs
through CTE programs, which may
include coordination through
articulation agreements, early college
high school programs, dual or
concurrent enrollment program
opportunities, or other credit transfer
agreements that provide postsecondary
credit or advanced standing; and
(4) May include career exploration at
the high school level or as early as the
middle grades (as such term is defined
in sec. 8101 of the Elementary and
Secondary Education Act of 1965).
Career pathway means a combination
of rigorous and high-quality education,
training, and other services that:
(1) Aligns with the skill needs of
industries in the economy of the State
or regional economy involved;
(2) Prepares an individual to be
successful in any of a full range of
secondary or postsecondary education
options, including apprenticeship
programs registered under subpart A of
this part;
(3) Includes counseling to support an
individual in achieving the individual’s
education and career goals;
(4) Includes, as appropriate, education
offered concurrently with and in the
same context as workforce preparation
activities and training for a specific
occupation or occupational cluster;
(5) Organizes education, training, and
other services to meet the particular
needs of an individual in a manner that
accelerates the educational and career
advancement of the individual to the
extent practicable;
(6) Enables an individual to attain a
secondary school diploma or its
recognized equivalent, and at least one
recognized postsecondary credential;
and
(7) Helps an individual enter or
advance within a specific occupation or
occupational cluster.
Certificate of Completion means
documentation that a Registration
Agency has determined that an
individual has successfully completed a
registered apprenticeship program. Such
documentation may be in a secure
digital format, in addition to or instead
of a physical format.
Certificate of completion of registered
CTE apprenticeship means
documentation that a Registration
Agency has determined that an
individual has successfully completed a
registered CTE apprenticeship program.
Such documentation may be in a secure
digital format, in addition to or instead
of a physical format.
Certificate of Participation means
documentation that an apprentice has
participated or is participating in a
registered apprenticeship program. Such
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documentation may be in a secure
digital format, in addition to or instead
of a physical format.
Certificate of Recognition means
documentation that the Administrator
has recognized National Guidelines for
Apprenticeship Standards for adoption
or adaptation by a sponsor and the
standards are eligible for local
registration by a Registration Agency.
Such documentation may be in a secure
digital format, in addition to or instead
of a physical format.
Certificate of Registration means
documentation that a Registration
Agency has registered an apprenticeship
program. Such documentation may be
in a secure digital format, in addition to
or instead of a physical format.
Cohort completion rate means the
percentage of an apprenticeship cohort
who receive a Certificate of Completion
within 1 year of the projected
completion date. An apprenticeship
cohort is the group of individual
apprentices registered to a specific
program during a given fiscal year. In
calculating a registered apprenticeship
program’s cohort completion rate, a
Registration Agency must disregard any
cancellations of apprenticeship
agreements by either the apprentice or
the program sponsor that occurred
during the probationary period for
apprentices established in the program’s
standards of apprenticeship.
Collective bargaining agreement
means a written agreement negotiated
between an employer (or a group of
employers) and the bargaining
representative(s) of a labor union to
which employees of the employer(s)
belong that addresses such topics as
wages, hours, workplace health and
safety, employee benefits, and other
terms and conditions of employment.
Competency means the attainment of
knowledge, skills, abilities, and
techniques, as specified in a work
process schedule approved under § 29.7
and demonstrated by an appropriate onthe-job, industry-based proficiency
measurement.
Corrective action plan is a plan
developed by a State Apprenticeship
Agency (SAA) in consultation with OA
that identifies actionable steps that a
State must take to address unresolved
findings of noncompliance with this
part or part 30 of this title. A corrective
action plan must list specific milestones
for key corrective actions and detail
subsequent action to be taken by the
Department in the event of inaction by
the State.
Credential rate means the percentage
of an apprenticeship cohort who receive
an interim credential, as defined in this
section, prior to their completion of a
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registered apprenticeship program. In
calculating a registered apprenticeship
program’s credential rate, a Registration
Agency must disregard any
cancellations of apprenticeship
agreements by either the apprentice or
the program sponsor that occurred
during the probationary period for
apprentices established in the program’s
standards of apprenticeship.
CTE apprentice means a participant at
least 16 years of age, except where a
higher minimum age standard is
otherwise required by Federal, State, or
local law, in a registered CTE
apprenticeship program covered by the
requirements of subpart B of this part
and part 30 of this title. A CTE
apprentice is not an apprentice for
purposes of §§ 4.6(p), 5.2, 5.5(a)(4), and
570.50(b) of this title.
CTE apprenticeship agreement means
a written agreement that complies with
the requirements in § 29.24, and that
contains the terms and conditions of the
employment and training of the CTE
apprentice.
CTE apprenticeship-related
instruction means an organized and
systematic form of instruction designed
to provide the CTE apprentice with the
knowledge of the theoretical and
technical subjects related to the industry
skills framework. CTE apprenticeshiprelated instruction must involve the
curriculum that is approved as part of
a State-approved CTE program and may
include any additional coursework
prescribed by the sponsor. Such
instruction may be given in a classroom,
through electronic media, or through
other forms of study approved by the
State CTE Agency and Registration
Agency.
Day means a calendar day.
Department means the U.S.
Department of Labor.
Direct threat means a significant risk
of substantial harm to the health or
safety of the individual or others that
cannot be eliminated or reduced by
reasonable accommodation. The
determination that an individual poses
a ‘‘direct threat’’ must be based on an
individualized assessment of the
individual’s present ability to safely
perform the essential functions of the
job. This assessment must be based on
a reasonable medical judgment that
relies on the most current medical
knowledge, the best available objective
evidence, or both. In determining
whether an individual would pose a
direct threat, the factors to be
considered include:
(1) The duration of the risk;
(2) The nature and severity of the
potential harm;
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(3) The likelihood that the potential
harm will occur; and
(4) The imminence of the potential
harm.
Disability means, with respect to an
individual:
(1) A physical or mental impairment
that substantially limits one or more
major life activities of such individual;
(2) A record of such an impairment;
or
(3) Being regarded as having such an
impairment.
EEO means equal employment
opportunity.
Electronic media means media that
utilize electronics or electromechanical
energy for the end user (audience) to
access the content.
Employer means any person or
organization that employs workers, and,
when used in reference to employing
apprentices under subparts A, B, and C
of this part, means any person or
organization that employs an apprentice
during the on-the-job training
component of an apprenticeship
program pursuant to a program
sponsor’s approved set of standards of
apprenticeship and the apprenticeship
agreement.
Ethnicity, for purposes of
recordkeeping and affirmative action,
has the same meaning as under the
Office of Management and Budget’s
Standards for the Classification of
Federal Data on Race and Ethnicity, or
any successor standards. Ethnicity thus
refers to the following designations:
(1) Hispanic or Latino—A person of
Cuban, Mexican, Puerto Rican, Cuban,
South or Central American, or other
Spanish culture or origin, regardless of
race.
(2) Not Hispanic or Latino.
Exit is when an apprentice has ended
their participation in a registered
apprenticeship program based on a
completion, transfer, or cancellation.
Federal purposes includes any
Federal contract, grant, agreement, or
arrangement dealing with registered
apprenticeship; and any Federal
financial or other assistance, benefit,
privilege, contribution, allowance,
exemption, preference, or right
pertaining to registered apprenticeship.
Fiscal year means the accounting
period of OA. It begins on October 1 and
ends on September 30 of the next
calendar year.
Genetic information means:
(1) Information about—
(i) An individual’s genetic tests;
(ii) The genetic tests of that
individual’s family members;
(iii) The manifestation of disease or
disorder in family members of the
individual (family medical history);
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(iv) An individual’s request for, or
receipt of, genetic services, or the
participation in clinical research that
includes genetic services by the
individual or a family member of the
individual; or
(v) The genetic information of a fetus
carried by an individual or by a
pregnant woman who is a family
member of the individual and the
genetic information of any embryo
legally held by the individual or family
member using an assisted reproductive
technology.
(2) Genetic information does not
include information about the sex or age
of the individual, the sex or age of
family members, or information about
the race or ethnicity of the individual or
family members that is not derived from
a genetic test.
Group program means an
apprenticeship program established and
registered by a sponsoring organization
in which one or more employers have
agreed to participate, usually pursuant
to a collective bargaining agreement or
a program standards adoption
agreement.
Industry skills framework means an
on-the-job training outline of nationally
applicable, high-quality standards of
registered CTE apprenticeship validated
by industry and detailing the required
skills and competencies to be attained
through a CTE apprentice’s
participation in a registered CTE
apprenticeship program.
Institution of higher education (IHE)
has the meaning given the term in sec.
101(a) of the Higher Education Act of
1965.
Interim credential means a recognized
postsecondary credential issued in
connection with participation in a
registered apprenticeship program. The
interim credential may signify that an
apprentice has successfully attained
competency milestones within an
occupation deemed suitable for
registered apprenticeship training,
usually as a part of a career pathway,
sequence, or progression towards the
attainment of more advanced
competencies and credentials in that
occupation.
Intermediary means an entity that
assists in the provision, coordination, or
support of a registered apprenticeship
program.
Journeyworker means an experienced
worker who has attained proficiency in
the skills and competencies required in
an industry or occupation.
Local educational agency (LEA) has
the meaning given the term in section
8101 of the Elementary and Secondary
Education Act of 1965.
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Local registration means registration
of an apprenticeship program for
Federal purposes by a Registration
Agency within a particular State.
Major life activities include, but are
not limited to: Caring for oneself,
performing manual tasks, seeing,
hearing, eating, sleeping, walking,
standing, sitting, reaching, lifting,
bending, speaking, breathing, learning,
reading, concentrating, thinking,
communicating, interacting with others,
and working. A major life activity also
includes the operation of a major bodily
function, including but not limited to:
functions of the immune system, special
sense organs and skin; normal cell
growth; and digestive, genitourinary,
bowel, bladder, neurological, brain,
respiratory, circulatory, cardiovascular,
endocrine, hemic, lymphatic,
musculoskeletal, and reproductive
functions. The operation of a major
bodily function includes the operation
of an individual organ within a body
system.
National Apprenticeship System
means the coordinated efforts of OA, of
SAAs recognized by OA, of registered
apprenticeship programs and registered
CTE apprenticeship programs that have
been approved by Registration Agencies,
and of employers, labor unions,
business organizations, trade and
industry groups, educational
institutions, intermediaries, preapprenticeship programs, and other
stakeholders across the United States in
implementing the minimum labor
standards and EEO requirements for
apprenticeship of this part and part 30
of this title.
National Guidelines for
Apprenticeship Standards means a
template of apprenticeship program
standards developed by a labor union,
trade or industry association, or other
organization with national scope and
industry expertise that are recognized
by OA for the purposes of being adapted
by affiliated sponsors for local or
national registration.
National Occupational Standards for
Apprenticeship means a universally
available template of nationally
applicable, high-quality standards of
apprenticeship (and related work
process schedules) developed by
industry stakeholders convened by OA
and approved by the Administrator for
occupations considered suitable for
registered apprenticeship training.
National Program Standards for
Apprenticeship means a set of standards
of apprenticeship developed and
adopted by a program sponsor that are
registered on a nationwide basis by OA
and are entitled to reciprocity of
registration.
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Non-compete provision means a term
in the apprenticeship agreement or
other agreement between an employer
or sponsor and an apprentice that
prohibits the apprentice from seeking or
accepting employment with another
employer during the registered
apprenticeship program or registered
CTE apprenticeship program.
Office of Apprenticeship (OA) means
the office within the Department’s
Employment and Training
Administration that has been designated
by the Secretary to administer the
National Apprenticeship System or its
successor organization.
On-the-job training means an
organized and systematic form of
training conducted at a workplace or job
site that is designed to provide the
apprentice with the hands-on
knowledge, skills, techniques, and
competencies that are necessary to
achieve proficiency in an occupation.
Participating employer means an
employer that employs at least one
apprentice and that either:
(1) Participates in a registered
apprenticeship program sponsored by a
joint labor-management apprenticeship
and training program established
pursuant to a collective bargaining
agreement, and under which the
employer has adopted the sponsor’s
standards of apprenticeship and serves
as the employer of record for at least one
apprentice enrolled in the sponsor’s
program; or
(2) Is a party to a written program
standards adoption agreement with a
registered apprenticeship program
sponsor that is concluded outside of a
collective bargaining process, and under
which the employer has adopted the
sponsor’s standards of apprenticeship
and serves as the employer of record for
apprentices enrolled in the sponsor’s
program.
Physical or mental impairment
means:
(1) Any physiological disorder or
condition, cosmetic disfigurement, or
anatomical loss affecting one or more
body systems, such as neurological,
musculoskeletal, special sense organs,
respiratory (including speech organs),
cardiovascular, reproductive, digestive,
genitourinary, immune, circulatory,
hemic, lymphatic, skin, and endocrine;
or
(2) Any mental or psychological
disorder, such as intellectual disability
(formerly termed ‘‘mental retardation’’),
organic brain syndrome, emotional or
mental illness, and specific learning
disabilities.
Pre-apprenticeship program means a
structured education and workplace
training program that maintains a
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documented partnership with at least
one registered apprenticeship program,
is designed to support access and
equitable participation in
apprenticeship programs by providing
individuals who do not currently
possess the minimum qualifications for
admission into a registered
apprenticeship program or registered
CTE apprenticeship with the
foundational knowledge and skills
needed to gain acceptance into, and
succeed in, a registered program, and
provides participants with a hands-on
introduction to the competencies and
techniques used in one or more
occupations that are suitable for
registered apprenticeship training, with
access to educational and career
counseling and other supportive
services, and may include opportunities
to earn industry-recognized credentials.
Proficiency means, for purposes of
subpart A of this part, the demonstrated,
measurable attainment by an apprentice
of each of the relevant job skills and
competencies that are necessary to
perform successfully at the
journeyworker level in a given
occupation.
Program review means an
administrative review of a registered
apprenticeship program that is
conducted by a Registration Agency to
assess the program’s compliance with
the requirements of this part and of part
30 of this title.
Program standards adoption
agreement means a written agreement
executed outside of a collective
bargaining process in which a
participating employer agrees to adopt
and utilize a set of apprenticeship
program standards for the employment
and training of apprentices that were
developed by a program sponsor and
registered by a Registration Agency.
Provisional registration means the
initial provisional approval of programs
that meet the required standards for
program registration, after which the
program approval may be made
permanent, continued as provisional, or
deregistered following a program review
by the Registration Agency, as provided
for in this part.
Qualified applicant or qualified
apprentice, for purposes of part 30, is an
individual who, with or without
reasonable accommodation, can perform
the essential functions of the registered
apprenticeship program for which the
individual applied or is enrolled.
Race, for purposes of recordkeeping
and affirmative action, has the same
meaning as under the Office of
Management and Budget’s Standards for
the Classification of Federal Data on
Race and Ethnicity, or any successor
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standards. Race thus refers to the
following designations:
(1) White—A person having origins in
any of the original peoples of Europe,
the Middle East, or North Africa.
(2) Black or African American—A
person having origins in any of the
black racial groups of Africa.
(3) Native Hawaiian or Other Pacific
Islander—A person having origins in
any of the peoples of Hawaii, Guam,
Samoa, or other Pacific Islands.
(4) Asian—A person having origins in
any of the original peoples of the Far
East, Southeast Asia, or the Indian
Subcontinent including, for example,
Cambodia, China, India, Japan, Korea,
Malaysia, Pakistan, the Philippine
Islands, Thailand, and Vietnam.
(5) American Indian or Alaska
Native—A person having origins in any
of the original peoples of North and
South America (including Central
America), and who maintains Tribal
affiliation or community attachment.
Reasonable accommodation—(1) The
term reasonable accommodation means:
(i) Modifications or adjustments to a
job application process that enable a
qualified applicant with a disability to
be considered for the position such
qualified applicant desires;
(ii) Modifications or adjustments to
the work environment, or to the manner
or circumstances under which the
position held or desired is customarily
performed, that enable a qualified
individual with a disability to perform
the essential functions of that position;
or
(iii) Modifications or adjustments that
enable a sponsor’s apprentice with a
disability to enjoy equal benefits and
privileges of apprenticeship as are
enjoyed by the sponsor’s other similarly
situated apprentices without
disabilities.
(2) Reasonable accommodation may
include but is not limited to:
(i) Making existing facilities used by
apprentices readily accessible to and
usable by individuals with disabilities;
and
(ii) Job restructuring; part-time or
modified work schedules; reassignment
to a vacant position; acquisition or
modifications of equipment or devices;
appropriate adjustment or modifications
of examinations, training materials, or
policies; the provision of qualified
readers or interpreters; and other similar
accommodations for individuals with
disabilities.
(3) To determine the appropriate
reasonable accommodation, it may be
necessary for the sponsor to initiate an
informal, interactive process with the
qualified individual in need of the
accommodation. This process should
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identify the precise limitations resulting
from the disability and potential
reasonable accommodations that could
overcome those limitations.
Reciprocity of registration means the
provision of local registration status by
an SAA in that State for an
apprenticeship program registered by
another Registration Agency.
Recognized postsecondary credential
means a credential consisting of an
industry-recognized certificate or
certification, a license recognized by the
State involved or Federal Government,
or an associate or baccalaureate degree.
Registered apprenticeship program
means a structured apprenticeship
program registered by a Registration
Agency under subpart A of this part that
comprises a paid, supervised on-the-job
training component and a related
instruction component conveying
relevant theoretical and technical
knowledge, and may include a program
that is eligible for student assistance
under title IV of the Higher Education
Act of 1965, as amended.
Registered CTE apprenticeship
program means a structured, integrated
educational and career training program
that admits students who have signed a
CTE apprenticeship agreement (or that a
student’s parent or guardian has signed
if the student is a minor) that is
approved by the Registration Agency
under subpart B of this part. Such a
program integrates paid, on-the-job
training in an industry or occupation
suitable for registered CTE
apprenticeship training with CTE
apprenticeship-related instruction in
subjects offered by an education
institution that is a Perkins-eligible
recipient, and also provides successful
program completers with a certificate of
completion of registered CTE
apprenticeship, credit hours towards a
postsecondary degree program, and as
applicable a high school diploma or
equivalency, and advanced standing in
a registered apprenticeship program
under subpart A.
Registration Agency means a
governmental agency, which may be
either OA or an SAA recognized by OA,
that has responsibility for registering
and overseeing apprenticeship programs
and apprentices; providing technical
assistance; and conducting program
reviews for compliance with this part
and part 30 of this title.
Related instruction means 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
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industrial courses, or by correspondence
courses of equivalent value, electronic
media, or other forms of self-study
approved by the Registration Agency.
Secretary means the U.S. Secretary of
Labor or any official of the Department
designated by the Secretary.
Selection procedure means any
measure, combination of measures, or
procedure used as a basis for any
decision in apprenticeship. Selection
procedures include the full range of
assessment techniques, including:
traditional paper and pencil tests;
performance tests; training programs;
probationary periods; physical,
educational, and work experience
requirements; informal or casual
interviews; and unscored application
forms.
Sponsor means any person, employer,
association, committee, intermediary, or
organization that operates and
administers an apprenticeship program
in whose name that program is
registered by a Registration Agency.
Standards of apprenticeship means an
organized, written plan embodying the
terms and conditions of employment,
training, and supervision of one or more
apprentices in a registered
apprenticeship program.
State means any of the 50 States of the
United States, the District of Columbia,
the Commonwealth of Puerto Rico, or
outlying area of the United States as
defined in the Workforce Innovation
and Opportunity Act (WIOA), Pub. L.
113–128, 128 Stat. 1425 (2014), sec. 3.
State Apprenticeship Agency (SAA)
means an agency of a State government
that has responsibility and
accountability for registered
apprenticeship programs within the
State. Only a State government agency
may seek recognition by OA as an
agency that has been properly
constituted under an applicable State
legal authority and is authorized by OA
to register and oversee apprenticeship
programs and agreements for Federal
purposes.
State Apprenticeship Council is an
entity established to assist the SAA. A
State Apprenticeship Council is
ineligible for recognition as the State’s
Registration Agency and may only
operate in an advisory capacity. The
State Apprenticeship Council provides
nonbinding advice and guidance to the
SAA on the operation of the State’s
system of registered apprenticeship.
State Apprenticeship Plan means a
strategic and operational plan that is a
State’s application for recognition as an
SAA and 4-year strategy for the State’s
system of registered apprenticeship.
State CTE Agency means a State board
designated or created consistent with
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State law as the sole State government
agency responsible for the
administration of CTE in the State or for
the supervision of the administration of
CTE in the State pursuant to 20 U.S.C.
2302(18), or another State government
agency delegated the authority by such
State board to administer Perkins.
Supportive services means services
such as transportation, childcare,
dependent care, housing, and needsrelated payments that are necessary to
enable an individual to participate and
succeed in registered apprenticeship
and CTE apprenticeship.
Technical assistance means guidance
and support provided by Registration
Agency staff in the development,
revision, amendment, or processing of a
potential or current program sponsor’s
standards of apprenticeship or
apprenticeship agreements, or advice or
consultation with a program sponsor to
further compliance with this part or
with guidance from OA to an SAA on
how to satisfy the requirements of this
part and part 30 of this title.
Transfer means a shift of
apprenticeship registration from one
program to another or from one
employer within a program to another
employer within that same program,
where there is agreement between the
apprentice and the affected
apprenticeship committee or program
sponsors.
Underserved communities means
persons from historically marginalized
communities or populations, including
geographic communities, that have been
adversely affected by persistent
discrimination, inequality, or poverty,
including but not limited to: women;
persons of color (including Black,
Latino, Indigenous and Native American
persons, and Asian Americans, Native
Hawaiians, and Pacific Islanders);
individuals with disabilities; persons
adhering to particular religious beliefs
or practices; veterans and military
spouses; lesbian, gay, bisexual,
transgender, queer, gender
nonconforming, and nonbinary persons;
and individuals with barriers to
employment, as defined in WIOA sec.
3(24).
Undue hardship—(1) In general.
Undue hardship means, with respect to
the provision of an accommodation,
significant difficulty or expense
incurred by a sponsor, when considered
in light of the factors set forth in
paragraph (2) of this definition.
(2) Factors to be considered. In
determining whether an accommodation
would impose an undue hardship on a
sponsor, factors to be considered
include:
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(i) The nature and net cost of the
accommodation needed under this part,
taking into consideration the availability
of tax credits and deductions, outside
funding, or both;
(ii) The overall financial resources of
the facility or facilities involved in the
provision of the reasonable
accommodation, the number of persons
employed at such facility, and the effect
on expenses and resources;
(iii) The overall financial resources of
the sponsor, the overall size of the
registered apprenticeship program with
respect to the number of apprentices,
and the number, type, and location of its
facilities;
(iv) The type of operation or
operations of the sponsor, including the
composition, structure, and functions of
the workforce of such entity, and the
geographic separateness and
administrative or fiscal relationship of
the facility or facilities in question to
the sponsor; and
(v) The impact of the accommodation
upon the operation of the facility,
including the impact on the ability of
other apprentices to perform their duties
and the impact on the facility’s ability
to conduct business.
Work process schedule means a
training plan for the on-the-job
component of a registered
apprenticeship program that outlines a
sequence of measurable competency
benchmarks for the job-related skills
whose cumulative acquisition by an
apprentice over the course of the
apprenticeship term leads to the
attainment of occupational proficiency.
§ 29.3
Office of Apprenticeship.
The Secretary will establish and
maintain an Office of Apprenticeship
(or any successor office or agency so
designated by the Secretary) within the
Department to facilitate the
administration and coordination of the
National Apprenticeship System,
including:
(a) Formulate and update regulations,
subregulatory guidance, policies, and
procedures in connection with the
implementation of the National
Apprenticeship Act of 1937 (29 U.S.C.
50);
(b) Register and provide oversight of
apprenticeship programs and standards
that satisfy the requirements of this part
and of part 30 of this title;
(c) Promote the development of
industry-validated standards, including
the determination of occupations
suitable for registered apprenticeship,
the development and adoption of
National Occupational Standards for
Apprenticeship, as well as industry
skills frameworks;
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(d) Recognize and oversee SAAs
established under applicable State laws
and regulations that satisfy the
requirements of this part and of part 30
of this title;
(e) Maintain, utilize, and make
publicly available National
Apprenticeship System data pertaining
to apprentices and apprenticeship
programs that are registered by either
OA or by SAAs and satisfy the
requirements of this part and of part 30
of this title;
(f) Promote diversity, equity,
inclusion, and accessibility in
apprenticeship, including for those from
underserved communities, and,
consistent with part 30 of this title,
enforce equal opportunity standards for
apprentices and applicants;
(g) Provide technical assistance to
apprenticeship program sponsors,
SAAs, and other key stakeholders in the
development of apprenticeship program
standards and the operation of
apprenticeship programs to satisfy the
requirements of this part and of part 30
of this title;
(h) Engage in discussions with
stakeholders, including multilateral
institutions, businesses, and
nongovernmental organizations in order
to promote and facilitate the
development and expansion of
apprenticeships in the United States;
and develop partnerships with
apprenticeship stakeholders that can
facilitate and accelerate the expansion
of quality apprenticeship programs
across the National Apprenticeship
System in accordance with the
requirements of this part and of part 30
of this title; and
(i) Conduct other activities that
support the National Apprenticeship
System.
§ 29.4 Relation to other laws and
agreements.
(a) Relation to other laws. No
provision in this part will supersede or
invalidate any other Federal, State, or
local law establishing minimum labor
standards of apprenticeship that are
higher or more protective of apprentices
than those established in this part.
(b) Relation to other agreements. No
provision in this part or in any
apprenticeship agreement will
invalidate any apprenticeship provision
in any collective bargaining agreement
between employers and employees
establishing minimum labor standards
applicable to a registered apprenticeship
program that are higher or more
protective of apprentices than those
established in this part.
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§ 29.5
Severability.
Should a court of competent
jurisdiction hold any portion of any
provision(s) of this part to be invalid,
the provision will be construed so as to
continue to give the maximum effect to
the provision permitted by law, unless
such holding is one of total invalidity or
unenforceability, in which event the
provision or subprovision will be
severable from this part and will not
affect the remainder thereof.
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§ 29.6
Transition provisions.
(a) With respect to suitability of
occupations for registered
apprenticeship:
(1) Section 29.7 is in effect for
occupations not previously determined
suitable for registered apprenticeship by
the Administrator 90 days following the
effective date of this rule.
(2) Section 29.7 is in effect for
occupations not previously determined
suitable for registered apprenticeship by
an SAA upon the effective date of this
rule.
(3) Occupations recognized by OA as
apprenticeable under former § 29.4
(Criteria for apprenticeable occupations)
as of the day before the effective date of
this rule will be subject to the 5-year
review of all occupations pursuant to
§ 29.7(h).
(b) Programs not previously registered
by OA as of the day before the effective
date of this rule must seek registration
based on the requirements of subpart A
of this part when an electronic
submission process is available to
sponsors. Programs registered prior to
the development of an electronic
submission process must meet all new
requirements before converting to
permanent registration status.
(c) Programs registered by OA prior to
the effective date of this rule must
comply with the requirements of
subpart A of this part no later than 2
years after the effective date of this rule.
(d) SAAs recognized by the
Administrator as of the effective date of
this rule will continue to be recognized
until December 31, 2026.
(1) SAAs must ensure any programs
registered prior to the approval of the
State Apprenticeship Plan are registered
consistent with the approved State
Apprenticeship Plan, within 2 years of
the approval date of the State
Apprenticeship Plan. Programs
registered after the effective date of this
rule should be registered provisionally
and remain in provisional status until
the State Apprenticeship Plan is
approved and the program is compliant
with its requirements.
(2) SAA-specific occupations must be
determined suitable for registered
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apprenticeship by the Administrator
under § 29.7 within 4 years of the
effective date of this rule in order for
registered apprenticeship programs
registered by the SAA to continue being
registered for Federal purposes.
(e) SAAs not previously recognized by
the Administrator as of the effective
date of this rule must seek recognition
under the procedures of § 29.27 upon
the effective date of this rule.
Subpart A—Standards for Registered
Apprenticeship Programs
§ 29.7 Occupations suitable for registered
apprenticeship.
(a) Only the Administrator can
determine whether an occupation is
suitable for registered apprenticeship.
Occupations determined suitable for
registered apprenticeship will be
eligible for local registration for Federal
purposes by a Registration Agency.
(b) The following minimum
requirements must be met for the
Administrator to determine that an
occupation is suitable:
(1) The occupation under
consideration is commonly recognized
or accepted throughout a particular
industry or sector as a standalone,
distinct occupation;
(2) The occupation leads to a
sustainable career;
(3) A structured on-the-job
apprenticeship training program will
enable an apprentice to be able to
acquire the knowledge, skills,
techniques, and competencies necessary
to become proficient in the occupation;
and
(4) The completion of at least 2,000
hours of on-the-job training and not less
than a minimum average of 144 hours
of off-the-job related instruction for
every 2,000 hours of on-the-job training
in order to obtain proficiency in the
occupation.
(c) A current or potential program
sponsor, SAA, or other entity seeking a
new determination from the
Administrator as to whether an
occupation is suitable for registered
apprenticeship must submit
electronically the following information
to the Administrator:
(1) Documentation sufficient to show
that each of the requirements at
paragraphs (b)(1) through (4) of this
section are met;
(2) A work process schedule and an
explanation of how the skills,
techniques, and competencies detailed
in the work process schedule will lead
to proficiency in the occupation through
a structured on-the-job apprenticeship
training program;
(3) Documentation of the industry
standard for the minimum number of
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hours of on-the-job training needed in
order to obtain proficiency in the
occupation under consideration. The
minimum number of hours must
involve the completion of at least 2,000
hours of on-the-job training;
(4) A related instruction outline and
an explanation based on industry
standards describing the proposed
curriculum and the number of hours of
such instruction, which cannot be less
than an average of 144 hours in duration
for every 2,000 hours of on-the-job
training provided; and
(5) Documentation of any interim
credentials, recognized postsecondary
credentials, or occupational licenses
related to the occupation and whether
they are optional or may be required to
be obtained during an apprenticeship
program in the occupation.
(d) The Administrator will solicit
public comment to assess whether the
submission described in paragraph (c) of
this section constitutes an occupation
suitable for registered apprenticeship.
Such solicitations will be made
available for public comment for at least
30 days. A determination regarding the
occupation will be made within 90 days
after a complete application is received,
though the Administrator may extend
this period by providing notice to the
applicant. The Administrator may also
consider data or request additional
information from the applicant, at the
Administrator’s discretion. The
Administrator will maintain an up-todate publicly available list of all
suitability determinations.
(e) An occupation will not be
approved as suitable for registered
apprenticeship training in instances
where the Administrator determines
that:
(1) The application is incomplete;
(2) Any of the requirements set forth
at paragraphs (b)(1) through (4) of this
section are not met;
(3) The proposed scope of the
apprenticeship training is confined to a
narrowly specialized subset of skills and
competencies within an existing
occupation that are not readily
transferable between employers in the
sector; or
(4) The occupation includes or
replicates a significant proportion of the
work processes that are covered by
another occupation that OA previously
approved as suitable for registered
apprenticeship training, but does not
lead to a more advanced occupation.
(f) In instances where the
Administrator determines, pursuant to
paragraph (c) of this section, that the
occupation under consideration is not
one that is suitable for registered
apprenticeship training, the
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Administrator will provide to the
applicant a written explanation for the
unfavorable decision.
(g) A current sponsor or potential
sponsor, SAA, or other entity must
submit proposed adjustments to the
existing scope, minimum duration, or
work processes of an occupation
previously deemed suitable for
registered apprenticeship training by the
Administrator. Such adjustments may
be accepted by the Administrator
provided that they satisfy the
requirements established in this section.
(h) The Administrator will, consistent
with the process described in paragraph
(d) of this section, periodically review
the continued suitability, relevance, and
applicability of the work process
schedule and related instruction outline
associated with an occupation
previously approved as suitable for
registered apprenticeship training.
Based on its review the Administrator
will determine whether the occupation
remains suitable for registered
apprenticeship or requires adjustments
to the previously approved work
process schedule and related instruction
outline. Such a review will occur at
least every 5 years. If revisions to work
process schedules or related instruction
outlines are made during this process,
existing programs must update their
work process schedules or related
instruction outlines to align with the
changes before the start of the next
training cycle.
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§ 29.8
Standards of apprenticeship.
(a) Each registered apprenticeship
program must have a written set of
standards of apprenticeship that will
govern the conduct and operation of
that program; such standards must
include the following provisions:
(1) The minimum eligibility
requirements for entry into the
registered apprenticeship program,
including a minimum starting age for an
apprentice of not less than 16 years
except where a higher minimum age
requirement is otherwise required by
Federal, State, or local law;
(2) The sponsor’s procedures for the
selection of apprentices, which must
comply with the requirements for the
selection of apprentices set forth in part
30 of this title;
(3) The sponsor’s relevant recruitment
area for the selection of apprentices;
(4) The term of the apprenticeship
program, which must be sufficient for
an apprentice to attain proficiency in all
of the knowledge, skills, techniques,
and competencies that are relevant to
the covered occupation(s). The sponsor
must include:
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(i) A term of paid on-the-job training
that reflects the customary industry
standard for acquiring technical
proficiency in the occupation, which in
no instance can be less than 2,000 hours
in duration; and
(ii) A number of hours of related
instruction that reflects the customary
industry standard, but is not less than
a minimum average of 144 hours of
related instruction for every 2,000 hours
of on-the-job training.
(5) The registered apprenticeship
program’s covered occupation(s), work
process schedule(s), and related
instruction outline(s);
(6) The related instruction provider(s)
and the instructional methods used to
deliver the related instruction;
(7) Documentation that the
qualifications and experience of the
trainers and instructors that provide onthe-job training and related instruction
to apprentices satisfy the requirements
described in § 29.12;
(8) A description of:
(i) Any interim credential issued to an
apprentice by the program during the
term of the apprenticeship;
(ii) Any industry-portable
occupational qualification, license,
degree, or certification that the
apprentice will receive, or will be
eligible to receive, upon the successful
completion of the registered
apprenticeship program; and
(iii) Any postsecondary credit that an
apprentice may receive, or may be
eligible to receive, upon their successful
completion of the related instruction
and on-the-job training components of
the registered apprenticeship program.
(9) A statement as to whether time the
apprentice spends in the related
instruction component of the
apprenticeship training will be counted
as hours worked, and if so, what the
wage rate and fringe benefits will be for
those hours;
(10) The process for regularly
assessing and providing feedback to the
apprentice regarding the apprentice’s
acquisition of job-related knowledge,
skills, and competencies during the onthe-job training component of the
registered apprenticeship program. In
those instances where an apprentice
attains such occupational skills and
competencies at an accelerated pace, the
program may grant advanced standing
to such an individual pursuant to
paragraph (a)(20) of this section;
(11) The end-point assessment
process for certifying the apprentice’s
successful attainment of all of the
knowledge, skills, and competencies
necessary for proficiency in the
occupation at the conclusion of the term
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of the registered apprenticeship
program;
(12) A probationary period that is
reasonable in relation to the program’s
full apprenticeship term and that must
be credited toward the completion of
the registered apprenticeship program.
However, in no event will the duration
of the probationary period exceed 25
percent of the total length of the
program, or 1 year, whichever is shorter;
(13) A statement that the registered
apprenticeship program will be
conducted in accordance with all
applicable Federal, State, or local laws;
(14) A statement acknowledging that
apprentices will be entitled to the same
worker allowances, rights, and
protections that are afforded by
applicable Federal, State, or local laws
to similarly situated, non-apprentice
employees, including but not limited to:
family and medical leave, workers’
compensation, and health and
retirement plan benefits;
(15) An attestation by the sponsor,
supported by any available
documentation, that the program will
provide adequate, safe, and accessible
facilities and equipment for the training
and supervision of apprentices that are
compliant with all applicable Federal,
State, and local disability, occupational
safety, and occupational health laws;
(16) An attestation by the sponsor that
the program will provide adequate,
industry-recognized safety training for
apprentices in both their on-the-job
training and related instruction;
(17) The wage(s) and fringe benefits
that the apprentice will receive from the
employer sponsoring or participating in
the registered apprenticeship program,
which must meet the following
requirements:
(i) The entry wage is not less than the
minimum wage prescribed by the Fair
Labor Standards Act, where applicable,
unless a higher wage is required by
other applicable Federal law, State or
local law, or by the terms of an
applicable collective bargaining
agreement;
(ii) A graduated schedule of
increasing wages, from the entry wage to
the journeyworker wage, that:
(A) Reflects the progressive and
measurable acquisition of relevant
occupational skills and competencies by
the apprentice, except where a different
graduated schedule of increasing wages
is required by other applicable Federal,
State, or local laws (including those
governing the payment of prevailing
wages), or by the terms of an applicable
collective bargaining agreement;
(B) Includes at least one incremental
wage step increase during the first 2,000
hours of the registered apprenticeship
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program, with additional wage step
increments scheduled at reasonable
intervals for program terms of longer
duration designed to support
apprentices’ progression and success
throughout their apprenticeship, except
where a different schedule of
incremental wage step increases is
required by the terms of an applicable
collective bargaining agreement; and
(C) The final wage in the program
must be at least 75 percent of the
journeyworker wage paid by the
employer for that occupation, except
where the graduated schedule of
increasing wages is required by other
applicable Federal, State, or local laws
or by the terms of an applicable
collective bargaining agreement.
(18) The approximate amount of any
unreimbursed costs, expenses, or fees
that the apprentice may incur during the
registered apprenticeship program. Any
such costs, expenses, or fees charged by
the sponsor:
(i) Must be necessary and reasonable;
(ii) Must not impose substantial or
inequitable financial barriers to program
enrollment or to completion of the
program; and
(iii) Must comply with all applicable
Federal, State, and local wage laws and
regulations, including but not limited to
the Fair Labor Standards Act, the DavisBacon and related Acts, and the
McNamara-O’Hara Service Contract Act,
and the implementing regulations for
such laws.
(19) The program’s specific numeric
ratio of apprentices to journeyworkers.
(i) The ratio must be consistent with
the proper safety, health, supervision,
and training of the apprentice.
(ii) A sponsor must use a ratio that is:
(A) Consistent with the provisions of
any applicable collective bargaining
agreements, as well as any applicable
Federal and State laws governing such
ratios; and
(B) Specific and clearly described as
to its application to a particular
workforce, workplace, worksite, job site,
department, or plant.
(20) The process by which the
sponsor will reduce the usual term of
on-the-job training or related instruction
as a result of an apprentice’s prior
learning, training, or acquired
experience, or as a result of accelerated
progress in the attainment of
occupational competencies that is made
by an apprentice during their
participation in the registered
apprenticeship program. Such process
must:
(i) Involve a fair, transparent, and
equitable process for objectively
identifying, assessing, and documenting
an apprentice’s prior learning, training,
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or acquired experience, as well as for
measuring any accelerated progress in
the attainment of occupational
competencies in the sponsor’s registered
apprenticeship program; and
(ii) Result in advanced standing or
credit and an increased wage for an
apprentice that is commensurate with
any progression granted by the sponsor.
(21) If applicable, a provision for the
transfer of apprentices between
registered apprenticeship programs
involving the same occupation. The
transfer must be agreed to by the
apprentice and the affected program
sponsors or apprenticeship committees,
and must meet the following
requirements:
(i) Both the transferring apprentice
and the program to which the
apprentice is transferring must be
provided a documentation of the
apprentice’s accrued related instruction
and on-the-job training from the
originating program sponsor or
committee;
(ii) The transfer must be to the same
occupation; and
(iii) A new apprenticeship agreement
between the apprentice and the
incoming program sponsor or committee
must be executed after the transfer is
executed.
(22) A requirement that the program
sponsor and any participating
employers create and maintain all
records concerning apprenticeship that
are detailed at section § 29.18;
(23) The sponsor’s Equal Opportunity
Pledge, pursuant to § 30.3(c) of this title,
as well as an attestation that the
program will be operated in accordance
with the provisions of part 30 of this
title and, where applicable, an approved
State EEO plan;
(24) An attestation that the program
sponsor (as well as any participating
employers in the sponsor’s program)
will implement effective measures to
promote and maintain a safe and
inclusive workplace environment that is
free from all forms of violence,
harassment, intimidation, and
retaliation against apprentices;
(25) For apprenticeship programs that
were registered on or after September
22, 2020, an attestation that the program
sponsor will provide each of the written
assurances required under section
2(b)(1) of the Support for Veterans in
Effective Apprenticeships Act of 2019
(Pub. L. 116–134, 134 Stat. 277, 29
U.S.C. 50c); and
(26) Contact information (name,
address, telephone number, and email
address) for the appropriate individual
with authority under the program to
receive, process, and make disposition
of complaints.
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(b) In instances where a registered
apprenticeship program provides
training to apprentices who are
employed by participating employers in
a group program (pursuant to a
collective bargaining agreement, or to a
program standards adoption agreement
described in § 29.11), the sponsor will
be responsible for:
(1) Obtaining an attestation that the
participating employer agrees to abide
by the requirements contained in this
part and in part 30 of this title prior to
the admission of the participating
employer to the program;
(2) Obtaining a disclosure in writing
of all instances where a Federal, State,
or local government agency has issued
a final agency determination that the
participating employer (or any of its
officers or employees) has violated any
applicable laws pertaining to
occupational safety and health, labor
standards (including wage and hour
requirements), financial
mismanagement or abuse, EEO,
protections for employees against
harassment or assault, or other
applicable laws governing workplace
practices or conduct, prior to the
admission of the participating employer
to the program; such disclosure must
include a description of the violation, as
well as the actions taken by the
employer to remedy the violation; and
(3) Actively monitoring each
participating employer after their
admission to the group program to
assess whether such an employer is
adhering to both the minimum
standards of apprenticeship outlined in
this section and the applicable
regulatory requirements for registered
apprenticeship programs set forth in
this part and in part 30 of this title.
§ 29.9
Apprenticeship agreements.
(a) All apprenticeship programs
registered by a Registration Agency
must develop and establish a written
apprenticeship agreement that contains
the terms and conditions of the
employment and training of the
apprentice. Such agreement must be
signed prior to the start of an
apprenticeship term by:
(1) The apprentice;
(2) The apprentice’s parent or legal
guardian, if the apprentice is under 18
years of age;
(3) The program sponsor; and
(4) Any participating employers in the
program that have adopted the sponsor’s
standards of apprenticeship through a
program standards adoption agreement.
(b) Prior to signing the apprenticeship
agreement, an apprentice who has been
admitted to the apprenticeship program
must be furnished by the program
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sponsor with a copy of both the
proposed apprenticeship agreement and
the program’s standards of
apprenticeship, and must also be
provided with a reasonable opportunity
to inspect and review the content of
those documents. After the
apprenticeship agreement has been
signed by the apprentice, the sponsor,
and any other relevant parties, the
sponsor must transmit or deliver to the
apprentice a copy of the executed
apprenticeship agreement and the
program’s standards of apprenticeship
not later than the starting date of the
apprenticeship.
(c) At a minimum, the apprenticeship
agreement must contain the following:
(1) Contact information and
identifying information for the
apprentice, including the apprentice’s
date of birth and, on a voluntary basis,
their Social Security number;
(2) Contact information for the
Registration Agency, program sponsor,
and participating employer(s);
(3) An identification of the occupation
in which the apprentice is to be trained,
as well as copies of the associated work
process schedule and related instruction
outline;
(4) The incorporation, either directly
or by reference, of the program’s
standards of apprenticeship;
(5) A description of the respective
roles, duties, and responsibilities of the
apprentice, the program sponsor, and
the participating employer, if
applicable, during the registered
apprenticeship program. With respect to
sponsors and participating employers,
these responsibilities must include
providing information to apprentices
regarding their rights and protections
under Federal, State, and local laws,
including their right to file complaints
with the applicable Registration Agency
and the process for doing so;
(6) The term of the registered
apprenticeship program, including the
beginning date and expected duration of
the registered apprenticeship program,
the beginning date of the on-the-job
training, and the duration of the
probationary period for the
apprenticeship program;
(7) A detailed statement of the entry
wage, subsequent graduated scale of
increasing wages to be paid to the
apprentice over the term of the
apprenticeship, the journeyworker
wage, and any fringe benefits;
(8) A disclosure of the expected
minimum number of hours that are
allocated by the program to the on-thejob training component during the
apprenticeship term, and to the related
instruction component of the
apprenticeship during that term;
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(9) A description of the methods used
during the course of the apprenticeship
to measure progress on competency
attainment and the program’s end-point
assessment;
(10) A description of any supportive
services that may be available to the
apprentice including childcare,
transportation, equipment, tools, or any
other supportive service provided by the
sponsor or a partnering organization to
address potential barriers to
participation or completion;
(11) The nature and amount of any
unreimbursed costs, expenses, or fees
that the apprentice may incur during
their participation in the registered
apprenticeship program;
(12) A description of any recognized
postsecondary credits, credentials, and
occupational qualifications that the
apprentice will receive or be eligible to
receive upon successful program
completion, as well as a description of
any additional conditions or
requirements that the apprentice must
fulfill to satisfy any applicable Federal,
State, or local qualification and
licensure requirements to engage in the
occupation;
(13) A statement by the parties to the
agreement that they will adhere to the
applicable requirements of part 30 of
this title and, where applicable, an
approved State EEO plan;
(14) A statement addressing:
(i) Whether the apprentice is paid
wages and fringe benefits during the
related instruction component of the
program;
(ii) If wages are paid for related
instruction, what the wage rate is; and
(iii) Whether the related instruction is
provided during work hours.
(15) Contact information (name,
address, phone, and email if
appropriate) of the appropriate authority
designated under the program to
receive, process, and make disposition
of controversies or disputes arising out
of the apprenticeship agreement when
the controversies or disputes cannot be
addressed locally or resolved in
accordance with the established
procedure or applicable collective
bargaining provisions; and
(16) A description of the processes
and procedures for granting advanced
standing or credit consistent with the
requirements of § 29.8(a)(20).
(d) A registered apprenticeship
program sponsor, or a participating
employer in the sponsor’s program,
cannot include in the apprenticeship
agreement or otherwise impose on
apprentices a non-compete provision or
other provision restricting the
apprentice’s ability to compete directly
with the program sponsor or
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participating employer or to seek or
accept employment with another
employer prior to the completion of the
registered apprenticeship program.
(e) A registered apprenticeship
program sponsor, or a participating
employer in the sponsor’s program,
cannot include in the apprenticeship
agreement or otherwise impose on
apprentices a non-disclosure provision
that prevents the worker from working
in the same field after the conclusion of
the worker’s employment with the
employer, or that restricts an
apprentice’s ability to file a complaint
with a Registration Agency or other
governmental body concerning possible
violations of this part or of part 30 of
this title. Subject to these restrictions, a
sponsor or participating employer may
include a non-disclosure provision that
relates to the protection of the sponsor’s
or participating employer’s confidential
business information or trade secrets.
(f) The program sponsor must submit
a completed copy of the executed
apprenticeship agreement for each
apprentice registered, to the program’s
Registration Agency within 30 days of
execution.
(g) The apprenticeship agreement may
be cancelled during the probationary
period specified in the agreement by
either party without cause.
(h) After the probationary period of
the apprenticeship concludes, the
apprenticeship agreement:
(1) May be cancelled at the request of
the apprentice at any time; or
(2) May be suspended or cancelled by
the program sponsor only for good
cause. When cancelling an agreement,
the sponsor must provide written notice
to the apprentice explaining the cause
for the cancellation and must provide
written notice to the Registration
Agency of the cancellation.
§ 29.10
Program registration.
(a) To apply for registration, a
prospective program sponsor must
submit electronically to a Registration
Agency an application that includes:
(1) A work process schedule and
related instruction outline that is
consistent with an occupation deemed
suitable for registered apprenticeship by
the Administrator;
(2) Standards of apprenticeship for
the proposed program;
(3) The apprenticeship agreement for
the apprenticeship program;
(4) A written plan for the equitable
recruitment and retention of
apprentices, including those from
underserved communities;
(5) Information showing that the
prospective program sponsor possesses
and can maintain the financial capacity
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and other resources necessary to operate
the proposed program;
(6) A disclosure in writing of all
instances where a Federal, State, or
local government agency has issued a
final agency determination that the
prospective sponsor (or any of its
officers or employees) has violated any
applicable laws pertaining to
occupational safety and health, labor
standards (including wage and hour
requirements), financial
mismanagement or abuse, EEO,
protections for employees against
harassment or assault, or other
applicable laws governing workplace
practices or conduct. Such disclosure
must include a description of the
violation, as well as the actions taken by
the prospective sponsor to remedy the
violation;
(7) Union participation provisions, if
applicable:
(i) In instances where an
apprenticeship program is proposed for
registration by a sponsor, employer, or
employers’ association and the
standards of apprenticeship, collective
bargaining agreement, or other
instrument provides for participation by
a labor union in any manner in the
operation of the substantive matters of
the apprenticeship program (and where
such participation is exercised), written
acknowledgement of union agreement
or lack of objection to the registration is
required.
(ii) Where no such participation is
evidenced and practiced, the sponsor,
employer, or employers’ association
must simultaneously furnish to an
existing union, which is the collective
bargaining agent of the employees to be
trained, a copy of its application for
registration and of the apprenticeship
program. The Registration Agency must
provide for receipt of union comments,
if any, within 45 days before final action
on the application for registration or
approval.
(8) A description of how the sponsor
will implement, upon registration, the
affirmative steps to provide EEO in
apprenticeship required by § 30.3(b) of
this title. This description must, at a
minimum:
(i) Identify the individual or
individuals who will be responsible and
accountable for overseeing the sponsor’s
commitment to equal opportunity in
registered apprenticeship;
(ii) Identify the publications or other
documents where the sponsor’s EEO
pledge will be published and the
physical or digital locations where the
sponsor’s EEO pledge will be posted;
(iii) Describe the planned schedule for
orientation and information sessions for
individuals connected with the
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administration or operation of the
apprenticeship program, including all
apprentices and journeyworkers who
regularly work with apprentices, to
inform and remind such individuals of
the sponsor’s EEO policy with regard to
apprenticeship;
(iv) Provide a list of current
recruitment sources that will generate
referrals from all demographic groups
within the relevant recruitment area,
including the identity of a contact
person, mailing address, telephone
number, and email address for each
recruitment source;
(v) Describe the sponsor’s procedures
to ensure that its apprentices are not
harassed or otherwise subjected to
discrimination because of their race,
color, religion, national origin, sex,
sexual orientation, age (40 or older),
genetic information, or disability and to
ensure that its apprenticeship program
is free from intimidation and retaliation.
This description must specifically
include:
(A) The planned schedule and content
source for the required anti-harassment
training to all individuals connected
with the administration or operation of
the apprenticeship program; and
(B) The sponsor’s procedures for
handling and resolving complaints
about harassment and intimidation.
(b) A complete electronic application
for registration that includes all of the
requirements of paragraph (a) of this
section will be reviewed within 90
calendar days by the Registration
Agency, which will approve the
application if:
(1) The occupation covered by the
proposed program has been determined
by the Administrator to be suitable for
registered apprenticeship training
pursuant to § 29.7. The Administrator
may, in their sole discretion, determine
that a work process schedule and
related instruction outline submitted for
registration substantially differs from
those previously approved as suitable
for registered apprenticeship such that
the application for registration must first
undergo a suitability determination
pursuant to § 29.7;
(2) The work process schedule
proposed for that occupation has been
determined to provide training in the
specific skills and competencies
associated with the approved
occupation;
(3) The applicant’s work process
schedule and related instruction outline
would provide an apprentice with a
portable set of occupational skills and
competencies that are readily
transferable between employers within
the same industry or sector;
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(4) The standards of apprenticeship
submitted are consistent with § 29.8;
(5) The apprenticeship agreement
adheres to the requirements of § 29.9;
(6) The sponsor possesses the
financial capacity and other resources
necessary to operate the proposed
program;
(7) The Registration Agency finds that
any types of misconduct or violations of
law acknowledged by the applicant for
registration pursuant to paragraph (a)(6)
of this section have been satisfactorily
addressed and cured by the applicant,
and therefore would not pose a
significant ongoing risk to the welfare of
apprentices who elect to enroll in the
program;
(8) If applicable, the union
participation requirements of paragraph
(a)(7) of this section are satisfied; and
(9) The sponsor’s submission is found
by the Registration Agency to be
satisfactory under paragraphs (a)(4) and
(8) of this section.
(c) Applications for new programs
that the Registration Agency determines
meet the required standards for program
registration will be given a Certificate of
Registration and provided provisional
registration. In instances where a
Registration Agency declines to register
a program, the Registration Agency will
provide a written explanation of the
reasons why it determined the
application does not meet the
requirements of this subpart, and how
any deficiencies could be cured, to the
applicant. Applicants denied approval
may resubmit consistent with the
requirements of this subpart.
(d) The Registration Agency must
review all provisionally registered
programs for compliance with the
requirements of this part and of part 30
of this title within 2 years of the
program’s registration date or at the end
of the first training cycle, whichever is
sooner. At that time:
(1) A program that is in compliance
with the requirements of this part and
part 30 of this title:
(i) Will be made permanent if the
program’s first full training cycle has
been completed; or
(ii) Will, if the program’s first full
training cycle has not been completed,
continue to be provisionally registered
through the program’s first full training
cycle, upon which they will receive a
subsequent program review.
(2) A program that is not in
compliance with this part and part 30 of
this title during the provisional
registration period will be subject to the
deregistration procedures at § 29.20.
(3) After a program receives
permanent registration, subsequent
program reviews are conducted by the
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Registration Agency as provided in
§ 29.19.
(e) If a registered apprenticeship
program does not have at least one
apprentice enrolled and participating in
the apprenticeship program, and
registered with the Registration Agency,
the Registration Agency may initiate
deregistration proceedings as described
in § 29.20. This does not apply during
the following periods of time, which
may not exceed 1 year:
(1) Between the date when a program
is registered and the date of registration
for its first apprentice(s); or
(2) Between the date that a program
graduates an apprentice and the date of
registration for the next apprentice(s) in
the program.
(f) Any sponsor proposals for
modification(s) or change(s) to
standards of apprenticeship or certified
National Guidelines for Apprenticeship
Standards for a registered program must
be submitted to the Registration Agency.
The Registration Agency must make a
determination on whether such
submissions are consistent with the
requirements of this part and part 30 of
this title and, if so, will approve such
submissions within 90 calendar days
from the date of receipt of a complete
submission. If approved, the
modification(s) or change(s) will be
recorded and acknowledged within
calendar 90 days of approval as an
amendment to such program. If not
approved, the sponsor must be notified
of the disapproval and the reasons
therefore and provided the appropriate
technical assistance.
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§ 29.11 Program standards adoption
agreement.
(a) Program standards adoption
agreements between sponsors and
participating employers. The terms and
conditions of a program standards
adoption agreement must include a
provision that the participating
employer will:
(1) Adopt and comply with the
sponsor’s registered standards of
apprenticeship;
(2) Comply with all other applicable
requirements in this part; and
(3) Cooperate with, and provide
assistance to, the program sponsor to
meet the program sponsor’s obligations
under this part and part 30 of this title,
including by providing any
apprenticeship-related data and records
necessary to assess compliance with
these regulatory provisions.
(b) Transmission of the adoption
agreement to the Registration Agency.
Each executed program standards
adoption agreement must be transmitted
to the Registration Agency by the
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program sponsor within 30 days of the
execution of the agreement.
(c) Suspension or cancellation of
adoption agreement. A program
standards adoption agreement:
(1) May be cancelled by the
participating employer upon providing
30 days’ written notice to the sponsor;
or
(2) Must be suspended or cancelled by
the program sponsor if the program
sponsor determines that the
participating employer failed to satisfy
the program standards adoption
agreement’s provisions of this section.
(i) The program sponsor must provide
written notice of any suspension or
cancellation to the participating
employer, all apprentices affected by the
suspension or cancellation, and to the
applicable Registration Agency. The
notice must explain the reason for the
suspension or cancellation.
(ii) If the suspension or cancellation
results in an interruption or cessation of
training for apprentices, the program
sponsor must make reasonable efforts to
place such individuals with another of
the sponsor’s participating employers or
a different registered apprenticeship
program in the same occupation.
(iii) In instances where a program
sponsor fails to suspend or cancel a
program standards adoption agreement
as required by paragraph (c)(2) of this
section, the Registration Agency may
initiate deregistration proceedings
against the sponsor pursuant to § 29.20.
§ 29.12 Qualifications of apprentice
trainers and providers of related
instruction.
(a) Registered apprenticeship program
sponsors and participating employers
must ensure that any journeyworkers
providing on-the-job training to
apprentices possess, at a minimum, the
following qualifications:
(1) A mastery of the relevant skills,
techniques, and competencies of the
occupation;
(2) Up-to-date knowledge of the latest
advances in technical knowledge and
skills necessary to maintain proficiency
and expertise in the occupation;
(3) Ability to effectively communicate
and demonstrate the range of
specialized practical knowledge, work
processes, skills, and techniques
necessary to acquire full proficiency in
the occupation;
(4) Ability to apply industryrecognized methods for objectively and
fairly evaluating and monitoring the
progress of the apprentice during the
apprenticeship term, including the
ability to assess the attainment of
competencies of apprentices acquired
during their on-the-job training;
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(5) Ability to relate the conceptual
and theoretical knowledge acquired by
apprentices in their related instruction
to the successful performance of jobrelated tasks that are ordinarily
performed by workers in the covered
occupation; and
(b) Registered apprenticeship program
sponsors and participating employers
must further ensure that the trainer
establishes a safe and inclusive training
environment that promotes the effective
development of apprentices from all
backgrounds; in addition, the trainer
must also have completed all of the
required anti-harassment training
required under part 30 of this title and
must not have a record of substantiated
noncompliance with EEO requirements.
(c) Registered apprenticeship program
sponsors must ensure that providers of
related instruction possess, at a
minimum, the following qualifications:
(1) Serve as a faculty member or
instructor at an accredited
postsecondary institution, or meet the
State’s certification requirements for a
vocational-technical instructor in the
State in which the apprenticeship
program is registered; or be a subjectmatter expert, which is an individual,
such as a journeyworker, who is
recognized within an industry as having
expertise in a specific occupation; and
(2) Have received previous training in
teaching techniques and adaptable
learning styles.
§ 29.13 Development of National
Occupational Standards for Apprenticeship.
(a) In general. To facilitate the growth
of high-quality registered
apprenticeship programs, the
Administrator will oversee the
development of and updates to
industry-validated, portable, and
rigorous National Occupational
Standards for Apprenticeship suitable
for adoption by program sponsors.
(b) Development and approval. Each
set of new or updated National
Occupational Standards for
Apprenticeship and related work
process schedules will be reviewed and
approved by the Administrator to
ensure that each of the proposed
National Occupational Standards
satisfies the following criteria:
(1) The associated occupation has
been determined suitable for registered
apprenticeship training by the
Administrator pursuant to § 29.7;
(2) The proposed work process
schedule framework associated with the
occupation under consideration has
been documented as nationally
applicable;
(3) The proposed standards include a
nationally applicable curriculum
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framework for the provision of related
instruction; and
(4) The proposed standards describe
the nationally applicable methods for
conducting ongoing evaluations of
apprentices to assess the successful
attainment of the skills and
competencies required under the
framework, including the development
of nationally applicable end-point
assessments.
(c) Approval. The Administrator will
solicit public comment to assist in
evaluating that the National Occupation
Standards for Apprenticeship satisfy the
criteria in paragraph (b) of this section.
Such solicitations will be made
available for public comment for at least
30 days. A determination regarding the
National Occupations Standards for
Apprenticeship will be made within 90
days of its submission for public
comment, though the Administrator
may extend this period. The
Administrator may also consider data
and other relevant information to assist
in evaluating whether the requirements
in § 29.13(b) are satisfied. The
Administrator will maintain an up-todate publicly available list of all
National Occupational Standards for
Apprenticeship determinations.
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§ 29.14 National Program Standards for
Apprenticeship.
(a) In general. National Program
Standards for Apprenticeship must:
(1) Train apprentices for an
occupation that is not ordinarily subject
to Federal, State, or local licensing
requirements;
(2) Be national or multistate in their
design, suitability, and scope; and
(3) Satisfy the applicable
requirements of this part and part 30 of
this title.
(b) Scope of registration. National
Program Standards for Apprenticeship
that meet the requirements in paragraph
(a) of this section will be approved and
registered on a nationwide basis for
Federal purposes by the Administrator.
In instances where the Administrator
declines to register a proposed set of
National Program Standards for
Apprenticeship, the Administrator will
provide a written explanation of the
reasons for the unfavorable
determination.
(c) Reciprocity of registration. SAAs
must accord reciprocal approval and
registration to National Program
Standards for Apprenticeship approved
under this section.
(d) Alignment with National
Occupational Standards for
Apprenticeship. For those occupations
where National Occupational Standards
for Apprenticeship currently exist, a
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program sponsor seeking registration of
its National Program Standards for
Apprenticeship must use such National
Occupational Standards. Sponsors are
allowed to modify the National
Occupational Standards for
Apprenticeship to meet their needs
provided that the Administrator
determines that the submission
substantially aligns with the National
Occupational Standards.
§ 29.15 National Guidelines for
Apprenticeship Standards.
(a) In general. National Guidelines for
Apprenticeship Standards must:
(1) Be national in their applicability
and scope with respect to the covered
occupation;
(2) Be suitable for either adoption or
adaptation by State or local affiliates of
the program sponsor, and
(3) Satisfy the applicable
requirements of this part and of part 30
of this title.
(b) Recognition of National Guidelines
for Apprenticeship Standards. National
Guidelines for Apprenticeship
Standards that meet the requirements in
paragraph (a) of this section will be
recognized by the Administrator, which
will issue a Certificate of Recognition to
the submitting organization. If the
Administrator determines the National
Guidelines for Apprenticeship
Standards do not satisfy the
requirements in paragraph (a) of this
section, the Administrator will provide
a written explanation of the reasons for
the unfavorable determination.
(c) Local registration required.
National Guidelines for Apprenticeship
Standards recognized under this section
may be used as the basis for standards
of apprenticeship submitted by a State
or local affiliate of the organization
receiving recognition to the applicable
State Registration Agency for approval
and registration of the individual
program in a given State.
(d) Resubmission of National
Guidelines for Apprenticeship
Standards. National Guidelines for
Apprenticeship Standards recognized
by the Administrator must be
resubmitted for approval by the
Administrator:
(1) When the standards have been
amended consistent with § 29.8(b); and
(2) Every 5 years, beginning on the
date of the most recent approval by the
Administrator.
(e) Alignment with National
Occupational Standards for
Apprenticeship. For those occupations
where National Occupational Standards
for Apprenticeship currently exist, a
program sponsor seeking certification of
its National Guidelines for
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Apprenticeship Standards must use
such National Occupational Standards.
Sponsors are allowed to modify the
National Occupational Standards for
Apprenticeship to meet their needs
provided that the Administrator
determines that the submission
substantially aligns with the National
Occupational Standards.
§ 29.16 End-point assessment and
Certificate of Completion.
(a) Prior to an apprentice’s completion
of the registered apprenticeship
program, the program sponsor must
arrange for an end-point assessment to
objectively measure the apprentice’s
acquisition of the relevant knowledge,
skills, and competencies necessary to
demonstrate proficiency in the
occupation covered by the program.
(b) An apprentice who is not
successful in completing the end-point
assessment must be offeredat least one
additional opportunity to complete the
assessment at the apprentice’s request.
(c) The sponsor must inform all
apprentices of their right to request a
reasonable accommodation prior to the
administration of the assessment.
(d) Each apprentice whom the
sponsor determines has successfully
met the on-the-job training and related
instruction requirements of a registered
apprenticeship program and completes
the end-point assessment will be
awarded a Certificate of Completion by
the appropriate Registration Agency.
§ 29.17
Complaints.
(a) This section is not applicable to
any complaint concerning
discrimination or other EEO matters; all
such complaints must be submitted,
processed, and resolved in accordance
with applicable provisions in part 30 of
this title, or applicable provisions of a
State EEO plan adopted pursuant to part
30 of this title and approved by the
Department.
(b) Except for matters described in
paragraph (a) of this section and matters
covered by a collective bargaining
agreement, a complainant or their
authorized representative may submit a
complaint regarding any dispute arising
under an apprenticeship agreement or
alleging a violation of this part to the
sponsor or to the Registration Agency
that registered the apprenticeship
program for review.
(c) A complaint must be filed with the
Registration Agency within 300
calendar days after the conclusion of the
events that gave rise to the dispute or
the alleged violation of this part.
However, for good cause shown, the
Registration Agency may extend the
filing time.
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(d) All complaints must be submitted
in writing by the complainant or their
authorized representative, and must
describe the dispute, including all
relevant facts and documents. Each
written complaint must contain the
following information:
(1) A means of contacting the
complainant or the authorized
representative;
(2) The identity of the individual or
entity that is alleged to be responsible
for the conduct giving rise to the
complaint; and
(3) A short description of the events,
facts, or circumstances giving rise to the
complaint, including a discussion of
when the events giving rise to the
complaint took place.
(e) Requirements of the Registration
Agency with respect to complaints are
as follows:
(1) The investigation of a complaint
filed under this part will be undertaken
by the Registration Agency and will
proceed as expeditiously as possible. In
conducting complaint investigations,
the Registration Agency must:
(i) Provide written notice to the
complainant and the authorized
representative, if any, acknowledging
receipt of the complaint;
(ii) Initiate an investigation upon
receiving a complete complaint;
(iii) Complete a thorough
investigation of the allegations of the
complaint and develop a complete case
record that must contain, but is not
limited to, the name, address, and
telephone number of each person
interviewed, the interview statements,
copies, transcripts, or summaries (where
appropriate) of pertinent documents,
and a narrative report of the
investigation with references to exhibits
and other evidence that relate to the
alleged violations; and
(iv) Provide written notification of the
Registration Agency’s findings to both
the respondent and the complainant.
(2) The Registration Agency will
protect the identity of the complainant
to the extent practicable.
(3) The Registration Agency will
review all complaints. Where a report of
findings from a complaint investigation
indicates a violation of the requirements
of this part or the apprenticeship
agreement, the Registration Agency will
attempt to resolve the violation as
expeditiously as possible.
(f) Nothing in this section precludes
an apprentice from pursuing any other
remedy authorized under another
Federal, State, or local law.
(g) An SAA may adopt a complaint
investigation procedure differing in
detail from that given in this section,
provided that such a procedure has
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previously been reviewed and
approved, pursuant to § 29.27, by the
Administrator.
(h) A participant in a registered
apprenticeship program may not be
intimidated, threatened, coerced,
retaliated against, or discriminated
against because the individual has:
(1) Filed a complaint alleging a
violation of this part or an
apprenticeship agreement;
(2) Opposed a practice prohibited by
the provisions of this part or an
apprenticeship agreement;
(3) Furnished information to, or
assisted or participated in any manner
in, any investigation, compliance
review, proceeding, or hearing under
this part; or
(4) Otherwise exercised any rights and
privileges under the provisions of this
part or an apprenticeship agreement.
(i) Any sponsor that permits such
retaliation under paragraph (h) of this
section in its registered apprenticeship
program, including by participating
employers, and fails to take appropriate
steps to remedy such activity will be
subject to deregistration under § 29.20(a)
and other appropriate remedies.
§ 29.18 Recordkeeping by registered
programs.
(a) General obligation. The program
sponsor, and any participating
employer, is responsible for maintaining
any records that the Registration Agency
considers necessary to determine
whether the sponsor has complied or is
complying with the requirements of this
part and any applicable Federal or State
laws. Such records include, but are not
limited to, records relating to:
(1) Employment decisions, such as the
hiring or placement, promotion,
demotion, transfer, layoff, termination,
right of return from layoff, and rehiring
of apprentices;
(2) Information related to the
operation of the registered
apprenticeship program, including but
not limited to:
(i) Information related to the
qualification, recruitment, employment,
and training of apprentices, such as the
apprenticeship program standards,
apprenticeship agreements, completion
records, cancellation and suspension
records, and compliance review files;
(ii) Records pertaining to each
apprentice’s performance and progress
in both the on-the-job training and
related instruction components of the
registered apprenticeship program, and
records related to the apprentice endpoint assessments;
(iii) If applicable, any records
pertaining to an apprentice’s attainment
of an interim credential, postsecondary
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academic credit, or any other interim
milestones attained during the course of
an apprentice’s participation in the
program;
(iv) For each apprentice, the number
of hours of on-the-job training, the
number of hours of related instruction,
the total number of hours worked, and
the wages and fringe benefits paid for all
hours;
(v) Any records, including personnel
records, applicable to non-EEO
complaints filed with the Registration
Agency pursuant to § 29.17;
(vi) All records related to the safety
record of the sponsor and all
participating employers in the sponsor’s
program, where applicable, including
records relating to any safety and health
training provided to apprentices,
incident logs required to be maintained
under applicable Federal or State
occupational safety and health laws, as
well as current worker’s compensation
documentation;
(vii) Any records required to be
maintained by a program sponsor under
part 30 of this title;
(viii) Any records required to be
maintained under title 38, United States
Code, in order for veterans and other
individuals eligible for educational
assistance under such title to use such
assistance for enrollment in registered
apprenticeship programs; and
(ix) Any records demonstrating
program compliance with registered
apprenticeship requirements to meet
Federal purposes as defined in this part.
(b) Maintenance of records.The
records required by this part and any
other information relevant to
compliance with these regulations by a
program sponsor (and any participating
employer) must be maintained for 5
years from the date of the making of the
record or the personnel action involved,
whichever occurs later. Failure to
preserve complete and accurate records
as required by paragraph (a) of this
section constitutes noncompliance with
this part.
(c) Access to records.The program
sponsor (and any participating
employer)must allow the Registration
Agency access to the records described
in paragraph (a) of this section upon
request for the purpose of conducting
program reviews and investigating
complaints arising under this part; such
program reviews and investigations may
involve the inspecting and copying of
books, accounts, records (including
electronic records), and any other
material the Registration Agency deems
relevant to the review or investigation
and pertinent to compliance with this
part. Upon request, the program sponsor
(and any participating employer) must
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provide the Registration
Agencyinformation about all format(s),
including specific electronic formats, in
which its records and other information
are available. Information obtained in
this manner will be used only in
connection with the administration of
this part or other applicablelaws.
(d) Format of records and other
information. Forms, records, and any
other documents used and maintained
by the program sponsor (and any
participating employer) in the
administration of this part may exist in
paper or electronic form or a
combination thereof. Regardless of the
medium, these records must be
available and accessible as required
under paragraph (c) of this section for
oversight and compliance purposes.
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§ 29.19
Program reviews.
(a) After an apprenticeship program
has received permanent registration
status as described in § 29.10, the
Registration Agency must conduct
periodic reviews of the apprenticeship
program (which may include any
participating employers in the sponsor’s
program) not less frequently than every
5 years, except as described in
paragraph (b) of this section.
(b) The Registration Agency must
conduct reviews of a program in
instances where the Registration Agency
receives credible information or
allegations that the program is not being
operated in accordance with either its
program standards or the requirements
set forth in this part or in part 30 of this
title, or at the request of the
Administrator.
(c) In conducting program reviews,
Registration Agencies may consider all
information and data that is relevant to
any actual or potential areas of
noncompliance. As part of a review of
data, the Registration Agency must
review the program’s performance
under § 29.25(b).
(d) Sponsors and participating
employers are required to cooperate
with requests for interviews or
documentation from the Registration
Agency. Sponsors and participating
employers must not impede a
Registration Agency’s ability to
interview prospective, current, or
former apprentices.
(e) Upon completion of a program
review, the Registration Agency must
present a written Notice of Program
Review Findings to the sponsor using
the contact information listed in the
registered standards. If the program
review indicates a failure to comply
with this part or with part 30 of this
title, the required notice will include:
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(1) The deficiency or deficiencies
identified;
(2) How to cure or remedy the
deficiency or deficiencies;
(3) A requirement that the sponsor
must develop and submit a compliance
action plan pursuant to paragraph (f) of
this section; and
(4) A statement that the
administrative actions described in
§ 29.20 may be undertaken if
compliance is not achieved within the
required timeframe.
(f)(1) When a sponsor receives a
Notice of Program Review Findings that
indicates a failure to comply with this
part, the sponsor must, within 45
calendar days of notification, either
develop and submit for approval by the
Registration Agency a compliance
action plan that meets the requirements
of paragraph (f)(2) of this section or
submit a written rebuttal to the
Findings. Registration Agencies may
extend this deadline one time by up to
45 calendar days for good cause upon
request of the sponsor.
(2) If the Registration Agency upholds
the findings after considering the
sponsor’s rebuttal, the Registration
Agency must provide the sponsor
written notice of its determination,
including the reasons for the
determination. Upon receipt, the
sponsor must develop, and submit to
the Registration Agency for approval, a
compliance action plan within 45
calendar days of receiving the final
notice. The compliance action plan
must include, at a minimum, the
following provisions:
(i) A specific commitment, in writing,
to correct or remediate identified
deficiency(ies) and area(s) of
noncompliance;
(ii) The precise actions to be taken for
each deficiency identified;
(iii) The time period within which
each cited deficiency will be remedied
and any corrective program changes
implemented; and
(iv) The name of the individual(s)
responsible for correcting each
deficiency identified.
(g) The Registration Agency will
evaluate the sponsor’s compliance
action plan. The Registration Agency
will elect one of the following of three
responses to the compliance action plan
and will notify the sponsor in writing
accordingly.
(1) The Registration Agency may
approve the compliance action plan,
determine that the Program is now in
compliance, and terminate the program
review process.
(2) The Registration Agency may
approve the compliance action plan but
continue the program review process
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until the compliance action plan is
appropriately implemented.
(3) The Registration Agency may
reject the compliance action plan and
either work with the sponsor to revise
the compliance action plan or initiate
deregistration under § 29.20.
§ 29.20 Deregistration of a registered
program.
(a) In general. Where the Registration
Agency, as a result of a program review
or complaint investigation, or on any
other basis, determines that the sponsor,
or any participating employer in the
sponsor’s program, is not operating the
registered apprenticeship program in
accordance with this part, the
Registration Agency must notify the
program sponsor in writing of the
specific violation(s) identified and may
proceed with any or a combination of
the following:
(1) Offer the sponsor or participating
employer technical assistance to
promote compliance with this part;
(2) Require the sponsor to submit a
compliance action plan pursuant to
§ 29.19(f);
(3) Suspend the sponsor’s right to
register new apprentices for a specified
time period; or
(4) Deregister the program pursuant to
paragraph (b) of this section.
(b) Deregistration by the Registration
Agency for cause. The Registration
Agency may deregister an
apprenticeship program when the
apprenticeship program is not being
operated in accordance with the
requirements of this part or of part 30
of this title, and the program either has
failed to correct specific violations
identified by the Registration Agency or
has failed to submit or implement an
approved compliance action plan
within the timeframes established in
this part. The Registration Agency will
send a Notice of Deregistration to the
sponsor that includes the reasons for
deregistration and the right to request a
hearing before the Office of
Administrative Law Judges (OALJ) or
request review by the Administrator in
accordance with this section.
(c) Voluntary deregistration at the
request of the sponsor. The Registration
Agency will deregister an
apprenticeship program, and provide
written confirmation to the sponsor of
such deregistration, after the
Registration Agency has received a
written request for deregistration from
the program sponsor that includes:
(1) The effective date of the requested
deregistration; and
(2) A statement that within 15
calendar days of the date of the written
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request the sponsor will notify all
apprentices:
(i) That sponsor has requested that
their program be deregistered and the
effective date;
(ii) That deregistration automatically
deprives the apprentice of individual
registration;
(iii) That the deregistration of the
program removes the apprentice from
coverage for Federal purposes; and
(iv) That the apprentice will be
referred to the Registration Agency for
information about potential transfer to
other registered apprenticeship
programs.
(d) Review of deregistration by the
Administrator, Office of Apprenticeship.
(1) If a former sponsor wishes to
request review by the Administrator, the
former sponsor must do so by
submitting an electronic request for
review in writing within 30 calendar
days from the date of the Notice of
Deregistration. The request for review
must include any additional relevant
facts or documents that exist as of the
date of the request. Statements
concerning interviews, meetings, and
conferences must include the time, date,
place, and persons present.
(2) If the Registration Agency that
issued the Notice of Deregistration is an
SAA, the former sponsor must
simultaneously furnish a copy of the
request for review and all supporting
facts and documentation to the
Administrator. The SAA must transmit
to the Administrator within 15 calendar
days of receiving the request for review
copies of records containing all
pertinent facts concerning the
deficiencies identified, including the
Notice of Deregistration, and copies of
all relevant documents and records that
were before the SAA at the time of its
decision. The Administrator may
request additional information from the
former sponsor, the SAA, or both.
(3) If the Registration Agency that
issued the Notice of Deregistration is
OA, OA will compile from within its
own files records of all pertinent facts
concerning the deficiencies identified,
including the Notice of Deregistration
and any new information provided by
the former sponsor. The Administrator
may request additional information
from the sponsor.
(4) After reviewing a request for
review, the Administrator will issue a
final decision that includes the reasons
for the decision as quickly as practicable
after receipt of all information.
(5) Except as provided in paragraph
(d)(6) of this section, the sponsor may
request a hearing before the
Department’s OALJ within 15 calendar
days of receipt of the Administrator’s
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final decision. If a hearing is not
requested within 15 calendar days, the
Administrator’s decision is the final
determination of the Department and no
appeal to OALJ will be considered.
(6) Where the basis for deregistration
is a failure to respond to multiple
attempts by the Registration Agency to
contact the sponsor or failure to register
at least one apprentice, the
Administrator’s decision is the final
determination of the Department and
the sponsor cannot request a hearing
with OALJ.
(e) Requests for hearings.
(1) A request for a hearing must be
sent to OALJ within 15 calendar days of
receiving a Notice of Deregistration from
OA or receiving the Administrator’s
final decision. Where an SAA is the
Registration Agency, a sponsor must
request Review of Deregistration by the
Administrator and receive the
Administrator’s final decision before
requesting a hearing with OALJ.
(2) A copy of the request for a hearing
must be simultaneously sent to the
Administrator and the Associate
Solicitor for Employment and Training
Legal Services, Office of the Solicitor,
U.S. Department of Labor. The
Administrator will promptly provide
the OALJ with the administrative file
containing all documents relied on by
the Administrator.
(3) Hearings requested under
paragraph (e)(1) of this section must be
conducted as set forth in § 29.21.
§ 29.21
Hearings on deregistration.
(a) The procedures contained in part
18 of this title will apply to the
disposition of the request for hearing
except that:
(1) The Administrative Law Judge will
receive, and make part of the record,
documentary evidence offered by any
party and accepted at the hearing.
Copies thereof will be made available by
the party submitting the documentary
evidence to any party to the hearing
upon request.
(2) Technical rules of evidence will
not apply to hearings conducted
pursuant to this part, but rules or
principles designed to assure
production of the most credible
evidence available and to subject
testimony to test by cross-examination
will be applied, where reasonably
necessary, by the Administrative Law
Judge conducting the hearing. The
Administrative Law Judge may exclude
irrelevant, immaterial, or unduly
repetitious evidence.
(3) The request for a hearing will not
be considered to be a complaint to
which an answer is required.
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(4) The Administrative Law Judge
may authorize discovery and the filing
of pre-hearing motions, and so limit
them to the types and quantities that in
the Administrative Law Judge’s
discretion will contribute to a fair
hearing without unduly burdening the
parties.
(b) The Administrative Law Judge
must issue a written decision within 90
calendar days of the close of the hearing
record. The Administrative Law Judge
must uphold the Administrator’s
decision unless it is shown by the
sponsor to be arbitrary, capricious, an
abuse of discretion, or otherwise not in
accordance with the law. The
Administrative Law Judge’s decision
constitutes final agency action unless,
within 15 calendar days from receipt of
the decision, a party dissatisfied with
the decision files a petition for review
with the Administrative Review Board
(ARB) in accordance with part 26 of this
title, specifically identifying the
procedure, fact, law, or policy to which
exception is taken. Any exception not
specifically urged is deemed to have
been waived. A copy of the petition for
review must be served on the opposing
party at the same time in accordance
with part 26 of this title. Thereafter, the
decision of the Administrative Law
Judge remains final agency action unless
the ARB, within 30 calendar days of the
filing of the petition for review, notifies
the parties that it has accepted the case
for review. The ARB may set a briefing
schedule or decide the matter on the
record. The ARB must issue a decision
in any case it accepts for review within
180 calendar days of the close of the
record. If a decision is not so issued, the
Administrative Law Judge’s decision
constitutes final agency action.
§ 29.22 Reinstatement of program
registration.
Any apprenticeship program
deregistered under § 29.20 may be
reinstated at any time upon presentation
of adequate evidence to the Registration
Agency that the apprenticeship program
is operating in accordance with this part
and part 30 of this title.
§ 29.23
Exemptions.
Requests for exemption from any
provision of this subpart must be made
in writing to the Administrator and
must contain a statement of reasons
supporting the request. The
Administrator may only grant
exemptions for good cause and may not
grant exemptions with respect to
requirements set forth outside of this
subpart, including requirements set
forth in other applicable Federal, State,
or local laws.
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Subpart B—Career and Technical
Education Apprenticeship
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§ 29.24 Registration of career and
technical education apprenticeship
programs.
(a) Required coordination.
(1) Coordination activities. The
Registration Agency and the State CTE
Agency must coordinate on the overall
administration of registered CTE
apprenticeship programs in each State,
including the process of program
approvals, program reviews, data
collection, technical assistance, and
compliance activities to ensure that both
parties work cooperatively to support
LEAs, IHEs, and their intermediaries in
the coordination of registered CTE
apprenticeship programs while ensuring
that programs meet the requirements of
this part. Nothing in this subpart alters
the existing authorities of the State CTE
Agency for implementation and
oversight of Perkins, which is not
governed by these regulations, and the
Registration Agency for oversight of any
registered apprenticeship program.
(2) Written agreement. The State CTE
Agency and Registration Agency must
enter into a written agreement for the
Statewide coordination and operation of
registered CTE apprenticeship programs
in the State. The written agreement
must describe the roles and
responsibilities of each agency. In order
for an SAA to establish registered CTE
apprenticeship programs in its State, it
must include such a written agreement
as part of the State Apprenticeship Plan
it submits to OA for approval.
(b) Approval of industry skills
frameworks.
(1) To facilitate the design and
implementation of registered CTE
apprenticeship programs, the
Administrator will oversee the
development of and updates to
industry-validated, portable, and
rigorous industry skills frameworks,
which will be used by States and
sponsors. Each set of new or updated
industry skills frameworks must be
reviewed by the Administrator, and will
be approved as suitable for use in
registered CTE apprenticeship programs
if the industry skills framework:
(i) Provides a structure for developing
the professional behaviors, workplace
competencies, and theoretical
knowledge required by an industry;
(ii) Describes skills and competencies
that have been validated by the industry
under consideration as nationally
applicable and widely recognized across
the industry;
(iii) Describes skills and competencies
that are specified in an on-the-job
training outline and obtained through
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the attainment of at least 900 hours of
on-the-job training;
(iv) Aligns with a CTE program as
approved by a State CTE Agency; and
(v) Details industry-validated methods
for ongoing evaluations to assess the
attainment of competency benchmarks
by a CTE apprentice.
(2) The Administrator will solicit
public comment to assist in evaluating
an industry skills framework’s
suitability for registered CTE
apprenticeship in paragraph (b)(1) of
this section. Such solicitations will be
made available for public comment for
at least 30 days. A determination
regarding the industry skills framework
will be made within 90 days of its
submission for public comment, though
the Administrator may extend this
period. The Administrator may also
consider data and other relevant
information to assist in evaluating an
industry skills framework’s suitability
for registered CTE apprenticeship. The
Administrator will maintain an up-todate public list of all industry skills
frameworks and decisions.
(c) Standards of registered CTE
apprenticeship. Each registered CTE
apprenticeship program must have a
written set of standards of registered
CTE apprenticeship that will govern the
conduct and operation of that program;
such standards must include the
following provisions:
(1) An on-the-job training outline that
aligns with an approved industry skills
framework;
(2) A description of the CTE
apprenticeship-related instruction
provided, including the approved CTE
program associated with the registered
CTE apprenticeship program. This
description must include a statement as
to whether time the apprentice spends
in the CTE apprenticeship-related
instruction component of the
apprenticeship training will be counted
as hours worked, and if so, what the
wage rate and fringe benefits will be for
those hours. The CTE apprenticeshiprelated instruction must also:
(i) Be a minimum of 540 hours in
duration;
(ii) Result in the awarding of at least
12 postsecondary credit hours; and
(iii) Lead to proficiency in the skills
and competencies described in the
industry skills framework.
(3) A description of recognized
postsecondary credit hours and
credentials that are awarded, including
any associate or baccalaureate degree
associated with the program, and the
name of the entity(ies) issuing the
credential(s) or certificate(s);
(4) A description of how completion
of the program will result in CTE
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apprentices’ selection into an
apprenticeship program registered
under subpart A of this part (including
any advanced standing granted),
enrollment in a postsecondary
educational program, or employment;
(5) A description of the employment
in which CTE apprentices will be
employed in on-the-job training. The
on-the-job training must:
(i) Be a minimum of 900 hours in
duration; and
(ii) Lead to proficiency in the skills
and competencies described in the
industry skills framework;
(6) The wage(s) that the CTE
apprentice will receive from the
employer participating in the registered
CTE apprenticeship program, which
must meet the following requirements:
(i) The CTE apprentice is paid a
progressively increasing schedule of
wages that is consistent with the
industry skills and competencies
required; and
(ii) The entry wage is not less than the
minimum wage prescribed by the Fair
Labor Standards Act, where applicable,
unless a higher wage is required by
other applicable Federal law, State or
local law, or respective regulations, or
by the terms of an applicable collective
bargaining agreement.
(7) The program’s specific numeric
ratio of CTE apprentices to
journeyworkers.
(i) The ratio must be consistent with
the proper safety, health, supervision,
and training of the CTE apprentice.
(ii) A sponsor must use a ratio that is:
(A) Consistent with the provisions of
any applicable collective bargaining
agreements, as well as any applicable
Federal and State laws governing such
ratios; and
(B) Specific and clearly described as
to its application to a particular
workforce, workplace, worksite, job site,
department, or plant.
(8) A probationary period that may
not exceed 30 days;
(9) An attestation by the sponsor,
supported by any available
documentation, that the program will
provide adequate, safe, and accessible
facilities and equipment for the training
and supervision of CTE apprentices that
are compliant with all applicable
Federal, State, and local disability,
occupational safety, and occupational
health laws;
(10) An attestation by the sponsor that
the program will provide adequate,
industry-recognized safety training for
CTE apprentices on the job and in CTE
apprenticeship-related instruction;
(11) The minimum qualifications, if
any, required by a sponsor and its
participating employers for persons
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entering the registered CTE
apprenticeship program;
(12) The sponsor’s procedures for the
selection of CTE apprentices, which
must comply with the requirements for
the selection of apprentices set forth in
part 30 of this title;
(13) A list of supportive services that
may be available to the CTE apprentice
during their registered CTE
apprenticeship program, including
whether the services are provided by the
sponsor or partner organization;
(14) The process by which the
sponsor will reduce the usual term of
on-the-job training or CTE
apprenticeship-related instruction as a
result of a registered CTE apprentice’s
prior learning, training, or acquired
experience, or as a result of accelerated
progress in the attainment of
occupational competencies that is made
by an apprentice during their
participation in the registered CTE
apprenticeship program. Such process
must:
(i) Involve a fair, transparent, and
equitable process for objectively
identifying, assessing, and documenting
a registered CTE apprentice’s prior
learning, training, or acquired
experience, as well as for measuring any
accelerated progress in the attainment of
occupational competencies in the
sponsor’s registered CTE apprenticeship
program; and
(ii) Result in advanced standing or
credit and an increased wage for a CTE
apprentice that is commensurate with
any progression granted by the sponsor.
(15) Documentation that the
qualifications and experience of the
trainers and instructors that provide onthe-job training and CTE
apprenticeship-related instruction to
CTE apprentices satisfy the
requirements of § 29.12;
(16) The identity of the Registration
Agency and the State CTE Agency;
(17) The sponsor’s equal opportunity
pledge, pursuant to § 30.3(c) of this title,
as well as an attestation that the
program will be operated in accordance
with the provisions of part 30 of this
title, and, where applicable, an
approved State EEO plan; and
(18) Contact information (name,
address, telephone number, and email
address) for the appropriate individual
with authority under the program to
receive, process, and make disposition
of complaints.
(d) Registered CTE apprenticeship
program sponsors.
(1) Eligible registered CTE
apprenticeship program sponsors. The
following organizations and entities are
eligible to serve as a sponsor of a
registered CTE apprenticeship program:
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(i) An LEA that is an eligible recipient
as defined under Perkins;
(ii) An institution of higher education
that is an eligible institution as defined
under Perkins;
(iii) A State CTE Agency or other State
government agency that shares
responsibility for CTE in the State; and
(iv) An intermediary organization
designated by the State CTE Agency,
State Educational Agency, LEA, or IHE,
pursuant to an agreement, that has
expertise in organizing and coordinating
registered CTE apprenticeship programs
or registered apprenticeship programs,
including:
(A) The local affiliate of a labor
organization (such as a joint
apprenticeship and training committee);
(B) An employer;
(C) The local affiliate of a trade or
industry organization;
(D) A local workforce development
board;
(E) An IHE;
(F) An LEA; and
(H) Any other public, private, or notfor-profit entity that has experience
coordinating Perkins funding.
(2) Sponsor program registration. To
apply for registration, a prospective
program sponsor must submit
electronically to a Registration Agency
an application that includes:
(i) An on-the-job training outline that
aligns with an associated industry skills
framework;
(ii) A CTE apprenticeship-related
instruction outline;
(iii) Standards of registered CTE
apprenticeship for the proposed
program;
(iv) The CTE apprenticeship
agreement for the registered CTE
apprenticeship program;
(v) A written plan that includes the
following:
(A) A description of how the program
will ensure the students who are
selected to participate in the registered
CTE apprenticeship program reflect a
diverse and inclusive cross-section of
the current student body enrollment of
the participating secondary or
postsecondary school(s) consistent with
the requirements of part 30 of this title;
(B) A description of how the CTE
program’s training and curriculum align
with an approved industry skills
framework;
(C) A description of the secondary
credits or recognized postsecondary
credit hours and credentials the
program may provide, including how
the program confers such credits and
credentials, and its usefulness for CTE
apprentices’ entry into employment, a
registered apprenticeship program
under subpart A, or a postsecondary
educational program;
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(D) A description from the sponsor of
how they will ensure each employer has
an established record of maintaining a
safe and inclusive workplace that is free
from discrimination, violence,
harassment, intimidation, and
retaliation against employees;
(E) A description of how the CTE
apprentices participating in the program
will have access to a broad range of
career services and supportive services
that enable participation in, and
successful completion of, the registered
CTE apprenticeship program;
(F) A description of the routine
monitoring and oversight conducted by
the sponsor of all aspects of the
registered CTE apprenticeship program;
and
(G) A description of how the sponsor
will implement, upon registration, the
affirmative steps to provide EEO in
apprenticeship required by § 30.3(b) of
this title. This description must at a
minimum:
(1) Identify the individual or
individuals who will be responsible and
accountable for overseeing the sponsor’s
commitment to equal opportunity in
registered CTE apprenticeship;
(2) Identify the publications or other
documents where the sponsor’s equal
opportunity pledge will be published
and the physical or digital locations
where the sponsor’s equal opportunity
pledge will be posted;
(3) Describe the planned schedule for
orientation and information sessions for
individuals connected with the
administration or operation of the
registered CTE apprenticeship program,
including all CTE apprentices and
journeyworkers who regularly work
with CTE apprentices, to inform and
remind such individuals of the
sponsor’s EEO policy with regard to
registered CTE apprenticeship;
(4) Provide a list of current
recruitment sources that will generate
referrals from all demographic groups
within the relevant recruitment area,
including the identity of a contact
person, mailing address, telephone
number, and email address for each
recruitment source; and
(5) Describe the sponsor’s procedures
to ensure that its CTE apprentices are
not harassed or otherwise subjected to
discrimination because of their race,
color, religion, national origin, sex,
sexual orientation, age (40 or older),
genetic information, or disability and to
ensure that its apprenticeship program
is free from intimidation and retaliation.
This description must specifically
include:
(i) The planned schedule and content
source for the required anti-harassment
training to all individuals connected
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with the administration or operation of
the registered CTE apprenticeship
program; and
(ii) The sponsor’s procedures for
handling and resolving complaints
about harassment and intimidation.
(vi) An assurance that the specific
commitments, roles, and responsibilities
assumed by employers, secondary
schools, LEAs, postsecondary
educational institutions, intermediaries,
and others with respect to the operation
of the registered CTE apprenticeship
program are formalized through
memoranda of understanding or other
written agreements; and
(vii) An assurance that, consistent
with § 29.18, the sponsor will maintain
any required records that the
Registration Agency considers necessary
to determine whether the sponsor has
complied or is complying with the
requirements of this part and any
applicable Federal or State laws.
(3) Additional responsibilities for
intermediaries serving as a sponsor. If
an intermediary is the sponsor pursuant
to an agreement with the State CTE
Agency, State Educational Agency, LEA,
or IHE, the intermediary must ensure
compliance with this subpart and
coordinate with the relevant LEAs,
secondary school(s), postsecondary
educational institutions, community
colleges, or CTE providers to ensure all
requirements above, as well as any
additional requirements established by
the State CTE Agency, State Educational
Agency, LEA or IHE, are met.
(4) Sponsor standards adoption
agreements.
(i) Terms and conditions of adoption
agreement. The registered CTE
apprenticeship program sponsor must
ensure that the terms and conditions of
a sponsor standards adoption agreement
include a provision that each
participating employer will:
(A) Adopt and comply with the
sponsor’s standards of registered CTE
apprenticeship;
(B) Comply with all other applicable
requirements of this part; and
(C) Cooperate with, and provide
assistance to, the program sponsor to
meet the sponsor’s obligations under
this part and part 30 of this title,
including by providing any
apprenticeship-related data and records
necessary to assess compliance with
these regulatory provisions.
(ii) Transmission of adoption
agreement to Registration Agency. Each
executed sponsor standards adoption
agreement must be transmitted to the
Registration Agency by the program
sponsor within 30 days of the execution
of the agreement.
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(iii) Suspension or cancellation of
adoption agreement.
(A) A sponsor standards adoption
agreement:
(1) May be canceled by the
participating employer upon providing
30 days’ written notice to the sponsor;
and
(2) Must be suspended or cancelled by
the program sponsor if the program
sponsor determines that the
participating employer failed to satisfy
the sponsor standards adoption
agreement’s provisions of this section.
(B) The program sponsor must
provide written notice of any
suspension or cancellation to the
participating employer, all CTE
apprentices affected by the suspension
or cancellation, and the applicable
Registration Agency. The notice must
explain the reason for the suspension or
cancellation.
(C) If the suspension or cancellation
results in an interruption or cessation of
training for CTE apprentices, the
program sponsor must make reasonable
efforts to place such individuals with
another of the sponsor’s participating
employers.
(D) In instances where a program
sponsor fails to suspend or cancel a
sponsor standards adoption agreement
as required by paragraph (d)(4)(iii)(A)(2)
of this section, the Registration Agency
may initiate deregistration proceedings
against the program pursuant to § 29.20.
(e) CTE apprenticeship agreement.
(1) All CTE apprenticeship programs
registered by a Registration Agency
must develop and establish a written
CTE apprenticeship agreement that
contains the terms and conditions of the
employment, education, and training of
the CTE apprentice. Such agreement
must be signed prior to the start of the
registered CTE apprenticeship term by:
(i) The CTE apprentice;
(ii) The CTE apprentice’s parent or
legal guardian, if the CTE apprentice is
under 18 years of age;
(iii) The program sponsor;
(iv) The secondary or postsecondary
institution in which the CTE apprentice
is enrolled as a student; and
(v) Any participating employers in the
program that have adopted the sponsor’s
standards adoption agreement.
(2) A copy of the signed CTE
apprenticeship agreement and the
program’s standards of registered CTE
apprenticeship must be given to the CTE
apprentice, and their parent or legal
guardian if applicable, prior to the start
date of the registered CTE
apprenticeship term.
(3) At a minimum, the CTE
apprenticeship agreement must contain
the following:
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(i) Contact information and
identifying information for the CTE
apprentice, including the apprentice’s
date of birth and, on a voluntary basis,
their Social Security number;
(ii) Contact information for the
Registration Agency, program sponsor,
and participating employer(s);
(iii) An identification of the job or
occupation the CTE apprentice will be
employed in, as well as copies of the
associated industry skills framework
and CTE apprenticeship-related
instruction outline;
(iv) The incorporation, either directly
or by reference, of the program’s
standards of CTE apprenticeship;
(v) A description of the respective
roles, duties, and responsibilities of the
CTE apprentice, the program sponsor,
and the participating employer, during
the registered CTE apprenticeship
program. With respect to sponsors and
participating employers, these
responsibilities must include providing
information to CTE apprentices
regarding their rights and protections
under Federal, State, and local laws,
including their right to file complaints
with the applicable Registration Agency
and the process for doing so;
(vi) The term of the registered CTE
apprenticeship, including the beginning
date and expected duration of the
registered CTE apprenticeship program,
the beginning date of the on-the-job
training, and a probationary period that
does not exceed 30 days;
(vii) A detailed statement of the entry
wage and the subsequent graduated
scale of increasing wages to be paid to
the CTE apprentice over the registered
CTE apprenticeship term;
(viii) A disclosure of the expected
minimum number of hours allocated by
the program to the on-the-job training
component during the registered CTE
apprenticeship term, and to the CTE
apprenticeship-related instruction
component of the registered CTE
apprenticeship program during that
term;
(ix) A description of the methods used
during the course of the registered CTE
apprenticeship program to measure
progress on competency attainment;
(x) A description of any supportive
services that may be available to the
CTE apprentice including, childcare,
transportation, equipment, tools, or any
other supportive service provided by the
sponsor or a partnering organization to
address potential barriers to
participation or completion;
(xi) The nature and amount of any
unreimbursed costs, expenses, or fees
that the CTE apprentice may incur
during their participation in the
program;
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(xii) A description of any secondary
or postsecondary credits or credentials
that the CTE apprentice will receive
upon successful program completion;
(xiii) A statement by the parties to the
agreement that they will adhere to the
requirements of part 30 of this title;
(xiv) A statement addressing:
(A) Whether the CTE apprentice is
paid wages and fringe benefits during
the CTE apprenticeship-related
instruction component of the program;
(B) If wages are paid for CTE
apprenticeship-related instruction, what
the wage rate is; and
(C) Whether the CTE apprenticeshiprelated instruction is provided during
work hours.
(xv) Contact information (name,
address, phone, and email if
appropriate) of the appropriate authority
designated under the program to
receive, process, and make disposition
of controversies or disputes arising out
of the CTE apprenticeship agreement
when the controversies or disputes
cannot be addressed locally or resolved
in accordance with the established
procedure or applicable collective
bargaining provisions; and
(xvi) The consent of the CTE
apprentice, or their parent or guardian,
if the CTE apprentice is under 18 and
not in attendance at a postsecondary
institution, permitting the secondary or
postsecondary institution in which the
CTE apprentice is enrolled as a student
to disclose individual apprentice level
information to the program sponsor, to
the entity designating any intermediary
organization as a sponsor, to
participating employers, to the
Registration Agency and the
Department, if OA is not the
Registration Agency, and to any other
institution involved in administering
the registered CTE apprenticeship
program, as required under subpart B of
this part.
(4) A registered CTE apprenticeship
program sponsor, or a participating
employer in the sponsor’s program,
cannot include in the CTE
apprenticeship agreement or otherwise
impose on CTE apprentices a noncompete provision or other provision
that restricts an apprentice’s labor
market mobility, including a provision
restricting the apprentice’s ability to
seek or accept employment with another
employer prior to the completion of the
registered CTE apprenticeship program.
(5) A registered CTE apprenticeship
program sponsor, or a participating
employer in the sponsor’s program,
cannot include in the CTE
apprenticeship agreement or otherwise
impose on CTE apprentices a nondisclosure provision that prevents the
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worker from working in the same field
after the conclusion of the worker’s
employment with the employer, or that
restricts an apprentice’s ability to file a
complaint with a Registration Agency or
other governmental body concerning
possible violations of this part or of part
30 of this title. Subject to these
restrictions, a sponsor or participating
employer may include a non-disclosure
provision that relates to the protection
of the sponsor’s or participating
employer’s confidential commercial
information or trade secrets.
(6) The program sponsor must submit
a completed copy of the executed CTE
apprenticeship agreement for each CTE
apprentice registered to the program’s
Registration Agency within 30 days of
execution.
(f) Certificate of completion of
registered CTE apprenticeship. CTE
apprentices who are enrolled in the
registered CTE apprenticeship program
and who are successful in meeting the
CTE apprenticeship-related instruction
and the on-the-job training outlined in
the industry skills framework will
receive a certificate of completion of
registered CTE apprenticeship from the
Registration Agency.
(g) Administrative requirements of the
Registration Agency.
(1) CTE apprenticeship program
registration. The Registration Agency
will evaluate the written application
submitted by a CTE apprenticeship
program sponsor.
(i) The Registration Agency must
review an application submitted by a
sponsor consistent with paragraph (d)(2)
of this section and provide a
determination on whether the program
is eligible for program registration
within 90 days of receipt of a complete
application.
(ii) The Registration Agency will
inform applicants in writing of all
decisions regarding program
registration.
(iii) If the Registration Agency denies
the application, it must explain in
writing the reasons for the denial.
(2) Technical assistance and other
support. The Registration Agency is
responsible for providing outreach,
technical assistance, and any other
services to potential sponsors,
participating employers, and other
potential partners to support the
adoption of registered CTE
apprenticeship as well as to ensure
compliance with the requirements of
this subpart.
(3) Complaints. The complaint
investigation and anti-retaliation
provisions in § 29.17 apply to this
subpart, except that a Registration
Agency may refer complaints under this
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subsection to the State CTE Agency as
appropriate.
(4) Program reviews.
(i) For program reviews under this
subpart, the process described in § 29.19
applies.
(ii) Program reviews should be done
in coordination with the relevant State
CTE Agency pursuant to the written
agreement described in paragraph (a)(2)
of this section.
(iii) The result of any program review
conducted under paragraph (g)(4) of this
section will not impact an entity’s
eligibility for funding under the Perkins
program.
(5) Deregistration of a CTE
apprenticeship program. The
deregistration process described in
§ 29.20 will apply to this subpart.
(6) Hearings on deregistration. The
hearing process described in § 29.21
will apply to this subpart.
(7) Reinstatement of program
registration. The reinstatement process
described in § 29.22 will apply to this
subpart.
(8) Recognition of Registration
Agencies for CTE apprenticeship.
(i) OA may serve as the Registration
Agency within States where the
Administrator has not recognized an
SAA to register CTE apprenticeship
programs, provided a written agreement
has been signed between OA and the
State’s respective State CTE Agency as
described in paragraph (a)(2) of this
section.
(ii) SAAs recognized or seeking
recognition as a Registration Agency
under subpart C of this part will be
recognized to register CTE
apprenticeship programs provided the
following criteria are met:
(A) The State’s proposed or current
apprenticeship laws for CTE
apprenticeship meet or exceed the
requirements for protecting the safety
and welfare of CTE apprentices set forth
in this subpart;
(B) A written agreement has been
signed between the SAA and the State
CTE Agency as described in paragraph
(a)(2) of this section;
(C) The State has submitted its
relevant apprenticeship laws and CTE
engagement strategies as described in its
State Apprenticeship Plan submission
or a modification as described in
subpart C of this part; and
(D) The Administrator has approved
the State Apprenticeship Plan for both
recognition as an SAA, and for
recognition to register CTE
apprenticeship programs.
(9) Collection of data and quality
metrics concerning CTE apprenticeship.
(i) CTE apprentice information.
(A) Within 30 calendar days of the
start of a CTE apprentice’s term, the
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program sponsor must submit to its
Registration Agency in a format
prescribed by the Administrator:
(1) Individual apprentice record level
information in accordance with any
applicable Federal laws, rules and
regulations (which includes sec. 444 of
the General Education Provisions Act,
as amended, commonly known as the
Family Educational Rights and Privacy
Act (FERPA)), including demographic
information, education level, and
veteran status;
(2) The industry skills framework and
occupation, if applicable, in which the
CTE apprentice is to be trained;
(3) The beginning date and term
(duration) of the registered CTE
apprenticeship program and the
graduated schedule of wages; and
(4) Any additional CTE apprenticerelated information that the
Administrator considers appropriate or
necessary for the efficient operation of
the National Apprenticeship System.
(B) At the end of each academic
semester, the program sponsor must
report a change in a CTE apprentice’s
status, including additional receipt of
services and attainment of outcomes, to
its Registration Agency in a manner
prescribed by the Administrator
regarding the following apprentice
outcomes and services:
(1) Change in registered CTE
apprenticeship status (completion or
cancellation);
(2) Credentials attained during
participation;
(3) Change in employment or
education status after participation;
(4) Wage progression during
participation;
(5) Supportive services provided; and
(6) Any additional outcomes or
services information that the
Administrator considers appropriate or
necessary for the efficient operation of
the National Apprenticeship System.
(ii) Program sponsor information and
quality metrics.
(A) Within 30 days of the change in
status and no less than on an annual
basis, for each registered CTE
apprenticeship program and industry
skills framework in which CTE
apprentices are being trained, a program
sponsor must report to the Registration
Agency, in a manner prescribed by the
Administrator, the following
information:
(1) Up-to-date contact information for
each employer participating in the
registered CTE apprenticeship program
and, if applicable, the collective
bargaining signatories;
(2) Up-to-date copies of any
agreements the sponsor has with each
employer participating in the registered
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CTE apprenticeship program and with
each CTE apprentice;
(3) Information about which
employers participating in the registered
CTE apprenticeship program have
canceled their participation in a
program;
(4) Up-to-date information about the
program’s coordination with
credentialing agencies;
(5) Up-to-date contact information for
those individual(s) designated and
authorized under the registered CTE
apprenticeship program to receive,
process, and make disposition of
complaints filed by CTE apprentices
under both this part and part 30 of this
title;
(6) All unreimbursed costs to the CTE
apprentice; and
(7) Any additional sponsor- or
program-level information that the
Administrator considers appropriate or
necessary for the efficient operation of
the National Apprenticeship System.
(B) On an annual basis, for each
registered CTE apprenticeship program
and industry skills framework, the
following quality metrics will be
calculated by the Registration Agency,
in a format prescribed by the
Administrator:
(1) The total number of new and
active CTE apprentices annually
training in the sponsor’s program under
a CTE apprenticeship agreement;
(2) The total number of CTE
apprentices who successfully completed
the sponsor’s program annually;
(3) The annual completion rate for
CTE apprentices;
(4) The cohort completion rate for
registered CTE apprentices, which must
be calculated by comparing the number
of apprentices in a designated
apprenticeship cohort who successfully
completed the sponsor’s requirements
and attained a certificate of completion
of registered CTE apprenticeship with
the number of apprentices in that cohort
who initially began training in the
program;
(5) The placement rate of exiters in
registered apprenticeship programs
under subpart A of this part,
postsecondary educational programs, or
employment, at the time of program
completion;
(6) The percentage of exiters that
receive at least one recognized
postsecondary credential at time of exit;
(7) Wage at exit; and
(8) Any additional sponsor- or
program-level information that the
Administrator considers appropriate or
necessary for the efficient operation of
the National Apprenticeship System.
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(iii) Information and reports to be
made publicly available by the
Registration Agency.
(A) The Administrator will make on
an annual basis general information
relating to registered CTE
apprenticeship programs along with the
information described in paragraph
(g)(9)(ii) of this section publicly
available. Upon request of the sponsor,
the Administrator may decide not to
make the information described in
paragraph (g)(9)(ii) of this section
publicly available for good cause.
(B) Unless otherwise prohibited by
Federal law, the Administrator will
make publicly available a national
summary report of CTE apprentices and
their outcomes, disaggregated by race,
ethnicity, sex, disability status, and
other categories determined by the
Administrator.
(C) In addition to the metrics in
paragraph (g)(9)(iii)(B) of this section,
the Registration Agency must use
supplemental sources, such as wage
records and surveys, to calculate at a
national or State level at least the
following additional metrics:
(1) The placement and retention rate
in postsecondary educational programs,
registered apprenticeship programs, or
employment, calculated 6 and 12
months after program completion;
(2) The annualized average and
median earnings of a registered CTE
apprenticeship program’s former
apprentices, calculated over the 6month period after registered
apprenticeship completion; and
(3) The percentage of all completers of
a registered CTE apprenticeship
program who, at 1 year after program
completion, are earning an income that
allows them to support themselves and
their families, or have been placed in a
postsecondary educational program or
career pathway program.
(D) The Administrator may also
conduct evaluations and longitudinal
studies to assess the impact and
improve the effectiveness of registered
CTE apprenticeship programs.
(E) The Registration Agency may
decide to withhold from publication
certain information contained in
paragraphs (g)(9)(iii)(A), (B), and (C) of
this section for good cause.
(iv) Reporting. Sponsors must report
the information described in paragraphs
(g)(9)(i) and (ii) of this section in a
manner prescribed by the Registration
Agency.
(v) Reporting requirements for State
Apprenticeship Agencies.
(A) SAAs with an approved State
Apprenticeship Plan to serve as a
Registration Agency for CTE
apprenticeship are required to collect
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the information from sponsors described
in paragraphs (g)(9)(i) and (ii) of this
section.
(B) No less frequently than on a
quarterly basis, SAAs must report the
information collected from sponsors
discussed in paragraphs (g)(9)(i) and
(ii)(A) of this section.
(C) On an annual basis, the SAA will
report the information collected under
paragraph (g)(9)(ii)(B) of this section to
the Administrator.
(D) The Administrator will make the
information collected from paragraph
(g)(9)(iii) of this section publicly
available.
(E) SAAs may meet these
requirements by either:
(1) Utilizing a Department-provided
case management system; or
(2) Maintaining a State system that is
capable of reporting individual
apprentice record level information to
OA in a manner prescribed by the
Administrator, and that meets minimum
security requirements as prescribed by
the Administrator.
(10) Exemptions. Requests for
exemption from any provision of this
subpart must be made in writing to the
Administrator and must contain a
statement of reasons.
Subpart C—Administration and
Coordination of the National
Apprenticeship System
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§ 29.25 Collection of data and quality
metrics concerning apprenticeship.
(a) Apprentice information.
(1) Within 30 calendar days of the
start of an apprentice’s participation in
a registered apprenticeship program, the
program sponsor must submit to its
Registration Agency, in a format
prescribed by the Administrator, the
following information:
(i) Individual apprentice level
information that includes demographic
information, education level, and
veteran status;
(ii) Receipt of pre-apprenticeship
services prior to participation in
apprenticeship, if applicable;
(iii) The occupation in which the
apprentice is to be trained;
(iv) The date the individual became
an apprentice;
(v) The beginning date and term
(duration) of the apprenticeship, the
date of the beginning of on-the-job
training, the full graduated schedule of
wages including the journeyworker
wage, and the approximate time to be
spent in each work process in the
occupation; and
(vi) Any additional apprentice-related
information required by the
Administrator.
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(2) Within 30 calendar days of a
change in an apprentice’s status, the
program sponsor must submit the
following information to its Registration
Agency:
(i) Change in apprenticeship status
(completion, transfer, suspension, or
cancellation);
(ii) Interim credentials attained;
(iii) Employment status;
(iv) Wage progression;
(v) Supportive services provided; and
(vi) Any additional apprentice
outcomes or services information
required by the Administrator.
(b) Program sponsor information and
quality metrics.
(1) Within 30 days of the change in
status, for each registered
apprenticeship program and occupation,
a program sponsor must report to the
Registration Agency, in a manner
prescribed by the Administrator, the
following information:
(i) Up-to-date contact information for
the program sponsor (including
headquarters);
(ii) Up-to-date contact information for
each participating employer in the
program and, if applicable, the
collective bargaining signatories;
(iii) An up-to-date copy of the
program standards adoption agreement
with the sponsor for each participating
employer;
(iv) Information about which
participating employers have canceled
their participation in a program;
(v) Up-to-date information about the
program’s coordination with
credentialing agencies;
(vi) Up-to-date contact information for
those individual(s) designated and
authorized under the registered
apprenticeship program to receive,
process, and make disposition of
complaints filed by apprentices under
both this part and part 30 of this title;
(vii) All unreimbursed costs to the
apprentice; and
(viii) Any additional sponsor or
program level information required by
the Administrator.
(2) On an annual basis, for each
registered apprenticeship program and
occupation, in a format prescribed by
the Administrator, the following quality
metrics will be calculated:
(i) The total number of apprentices
served annually in the sponsor’s
program under an apprenticeship
agreement;
(ii) The total number of apprentices
who successfully completed the
sponsor’s program annually;
(iii) The annual completion rate for
apprentices.
(iv) The cohort completion rate for
apprentices, which must be calculated
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by comparing the number of apprentices
in a designated apprenticeship cohort
who successfully completed the
sponsor’s requirements and attained a
Certificate of Completion with the
number of apprentices in that cohort
who initially began training in the
program;
(v) The median length of time for
program completion;
(vi) The employment retention rate at
the time of exit;
(vii) The percentage of exiters that
receive at least one interim credential at
time of exit;
(viii) The percentage of exiters that
enter postsecondary education or a
career pathway program at time of exit;
(ix) Apprentice wage at time of exit;
(x) Information and data relating to
any pre-apprenticeship programs with
which the sponsor has established a
documented partnership; and
(xi) Any additional sponsor or
program level information required by
the Administrator.
(c) Information and reports to be
made publicly available by the
Registration Agency.
(1) The Registration Agency will make
publicly available on an annual basis
general information relating to
registered apprenticeship programs
along with the information described in
paragraph (b)(2) of this section.
(2) The Registration Agency will make
publicly available an annual State or
national summary report of apprentices
and their outcomes, disaggregated by
race, ethnicity, sex, disability status,
and other categories determined by the
Administrator.
(3) In addition to the metrics in
paragraph (c)(2) of this section, the
Registration Agency must use
supplemental sources, such as wage
records and surveys, to calculate at a
national or State level, at least the
following additional metrics:
(i) The post-apprenticeship
employment retention rate, calculated 6
and 12 months after program exit;
(ii) The annualized average and
median earnings of a registered
apprenticeship program’s former
apprentices, calculated over the 6month period after program completion;
(iii) The percentage of all completers
of a registered apprenticeship program
who, at 1 year after program completion,
are earning an income that allows them
to support themselves and their
families, have been placed in a
postsecondary educational program, or a
career pathway program; and
(iv) Registration Agency metrics
including median time for registration,
number of programs approved and
denied registration, and post-
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registration customer satisfaction ratings
of sponsors for technical assistance and
other services provided in relation to
registration activities from the
Registration Agency.
(4) The Administrator may also
conduct evaluations and longitudinal
studies to assess the impact and
improve the effectiveness of registered
apprenticeship programs.
(5) The Registration Agency may
decide to withhold from publication
certain information contained in
paragraphs (c)(1), (2), and (3) of this
section for good cause.
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§ 29.26 Roles and responsibilities of State
Apprenticeship Agencies.
(a) In general. An SAA, recognized by
the Administrator pursuant to
§ 29.27(c), is authorized to undertake,
for Federal purposes, the following
actions regarding registered
apprenticeship programs within that
State:
(1) Implementing apprenticeshiprelated laws and policies, provided that
the Administrator has previously
approved such laws pursuant to
§ 29.27(c)(1) or § 29.27(c)(2);
(2) Reviewing, approving,
disapproving, and amending standards
of apprenticeship submitted by
potential or existing program sponsors,
and registering apprenticeship programs
within 90 days of a complete
submission for Federal purposes in that
State;
(3) Prescribing the content of
apprenticeship agreements, and
registering apprentices who have signed
valid apprenticeship agreements with
registered apprenticeship program
sponsors and participating employers;
(4) Providing technical assistance to
registered apprenticeship program
sponsors, participating employers,
registered apprentices, intermediaries,
and other apprenticeship stakeholders;
(5) Collecting and reporting to OA any
apprenticeship-related data from
program sponsors, participating
employers, and individual apprentices
described in §§ 29.25 and 29.28;
(6) Conducting program reviews of
approved registered apprenticeship
programs;
(7) Establishing policies and
procedures to promote EEO for
apprentices and applicants for
apprenticeship in registered
apprenticeship programs consistent
with the requirements in part 30 of this
title;
(8) Establishing the basic standards,
criteria, and requirements for program
registration, and providing for the
suspension or deregistration of
programs;
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(9) Establishing a process for the
registration, suspension, or cancellation
of apprenticeship agreements;
(10) Investigating complaints filed
under this part or part 30 of this title;
and
(11) Functioning as a Registration
Agency for registered CTE
apprenticeship programs pursuant to
§ 29.24.
(b) Nondelegable duties of State
Apprenticeship Agencies. In order for a
State to be eligible to obtain or maintain
full or provisional recognition status as
described in § 29.27(c), a State cannot
delegate, assign, devolve, or relinquish
any of the functions that are the
responsibility of the SAA under
paragraph (a) of this section, including
any matters relating to the intake,
evaluation, approval, registration,
monitoring, oversight, suspension, or
deregistration of apprenticeship
programs and standards of
apprenticeship within that State, to any
external third-party entity, including a
State Apprenticeship Council
established pursuant to paragraph (c) of
this section.
(c) Requirement to establish State
Apprenticeship Councils. An SAA is
required under this rule to establish and
maintain a State Apprenticeship
Council, which must operate under the
direction of the SAA. The State
Apprenticeship Council may provide
the SAA with written, nonbinding
advice, recommendations, research, and
reports concerning apprenticeshiprelated matters, and on the submission
of the State Apprenticeship Plan.
(1) Composition. Members of the State
Apprenticeship Council must be
individuals who are familiar with
occupations suitable for registered
apprenticeship, apprenticeship
programs, and opportunities across a
wide range of industries and sectors. A
State Apprenticeship Council must be
fairly balanced and inclusive of
underserved communities, with an
equal number of—
(i) Employers or representatives of
employer organizations, including from
sectors and occupations where
apprenticeship is not currently
widespread;
(ii) Representatives of labor
organizations or joint labor-management
organizations, including from nontraditional apprenticeship industries or
occupations; and
(iii) Other members representing the
general public, which must at least
include:
(A) One representative who represents
the State’s workforce development
system; and
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(B) One representative of a secondary
or postsecondary education system who
is familiar with registered
apprenticeship.
(2) Limitations on State
Apprenticeship Councils. A State
Apprenticeship Council is ineligible for
recognition as an SAA under this part
and is prohibited under this part from
assuming or discharging the functions
described in paragraph (a) of this
section.
(d) Reciprocity of registration. An
SAA must establish a process for
providing approval to apprentices,
apprenticeship programs, and standards
of apprenticeship that are registered in
other States by OA or by an SAA for
Federal purposes. Such a process must
provide a timely response to a request
for reciprocity no later than 45 days
after receipt of a program sponsor’s
application for reciprocity. The
reciprocity process established by an
SAA must:
(1) Ensure that the program sponsor
meets the statutory and regulatory wage
and hour requirements and apprenticeto-journeyworker ratios of the State in
which reciprocal approval is sought;
(2) Ensure that the program and
individual apprentices who will work in
the State are properly registered with
the SAA; and
(3) Ensure that the program sponsor
develop standards that prepare
apprentices to meet or exceed the
minimum requirements of State or local
occupation licensure, if applicable.
§ 29.27 Recognition of State
Apprenticeship Agencies.
(a) Application for recognition as a
State Apprenticeship Agency. To obtain
recognition or seek renewal of
recognition as an SAA for Federal
purposes, a State governmental entity
must submit a State Apprenticeship
Plan addressing the requirements
described in paragraph (b) of this
section.
(1) Timing. States seeking to obtain or
renew recognition as an SAA must
submit a State Apprenticeship Plan
beginning December 31, 2026.
Recognition, either full or provisional,
will be granted for a period of 4 years
from the date of the Administrator’s
approval.
(i) State Apprenticeship Plans must be
submitted to the Administrator at least
120 days prior to the date when an SAA
is seeking recognition.
(ii) State governmental entities
recognized by the Administrator as an
SAA prior to the effective date of this
rule must submit a State Apprenticeship
Plan described in paragraph (b) of this
section no later than September 1, 2026,
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to be considered for recognition after
December 31, 2026. The period of
recognition for this submission is for the
time period covering January 1, 2027,
through June 30, 2030.
(iii) Subsequent State Apprenticeship
Plan submissions are for 4-year periods
beginning July 1, 2030.
(iv) State Apprenticeship Plans
submitted and approved outside of the
time periods described in paragraphs
(a)(1)(ii) and (iii) of this section must
still submit a State Apprenticeship Plan
to the Administrator consistent with the
timing described in either paragraph
(a)(1)(ii) or (iii) of this section.
(2) Modifications to approved State
Apprenticeship Plans.
(i) An approved State Apprenticeship
Plan requires modification and
resubmission:
(A) When changes in Federal or State
law or policy substantially affect the
roles and responsibilities of the SAA
described in § 29.26;
(B) When proposed State laws may
affect an SAA’s compliance with the
requirements of paragraph (b) of this
section;
(C) When there are significant changes
in the strategies, goals, and priorities
upon which the State Apprenticeship
Plan is based; and
(D) When there are significant
changes in the statewide vision,
strategies, policies, operational
procedures, or organizational structure
of the SAA.
(ii) Modifications may be requested by
the SAA for any other reason at any
time during the 4-year period of the
plan, including:
(A) When the SAA is seeking to
change its plan status from provisional
to full approval;
(B) When the SAA seeks recognition
as a Registration Agency for the
purposes of subpart B of this part; or
(C) For any other reason at the
discretion of the SAA.
(iii) Modifications to an approved
State Apprenticeship Plan must be
submitted to the Administrator at least
120 days prior to the requested effective
date of the modification.
(iv) Modified State Apprenticeship
Plans remain approved until the end of
the original cycle of the Plan.
(b) State Apprenticeship Plan
contents. The State Apprenticeship Plan
described in paragraph (a) of this
section must include the following:
(1) Apprenticeship laws. The State’s
proposed or current apprenticeship
laws, which must include provisions
that:
(i) Allow registration for Federal
purposes for only those occupations that
have been determined suitable for
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registered apprenticeship pursuant to
§ 29.7;
(ii) Meet or exceed the requirements
for protecting the safety and welfare of
apprentices set forth at the following
regulatory provisions:
(A) The standards of apprenticeship
enumerated at section § 29.8;
(B) The apprenticeship agreement
elements identified in § 29.9;
(C) The program registration
requirements of § 29.10;
(D) The program standards adoption
agreement requirements of § 29.11;
(E) The qualifications of apprentice
trainers and providers of related
instruction requirements of § 29.12;
(F) The end-point assessment and
certification of program completion
requirements of § 29.16;
(G) The complaints requirements of
§ 29.17;
(H) The recordkeeping requirements
of § 29.18;
(I) The procedural requirements of
§§ 29.19 through 29.22;
(J) The SAA requirements of § 29.26;
(K) The reporting requirements for
SAAs of § 29.28; and
(L) The EEO requirements at part 30
of this title.
(2) Strategic planning elements:
(i) Goals for expansion. A narrative
summary of the State’s strategic vision
and strategy for expanding registered
apprenticeship programs, promoting
program quality, and for meeting the
skilled workforce needs of employers
through apprenticeship, including both
existing and emerging high-growth
industries and occupations as identified
by the State. The narrative must include
any goals or metrics the State will use
to achieve its vision.
(ii) Promoting registered
apprenticeship programs for
underserved communities. A narrative
description that addresses the State’s
strategic plan for increasing access to
and support within registered
apprenticeship for individuals from
underserved communities, which must
include:
(A) The current apprentice
participants in the State by race,
ethnicity, sex, disability status, and
veteran status;
(B) The goals and milestones the State
will utilize to track progress towards the
strategic plan.
(iii) Aligning education and workforce
development activities. The State must
provide a narrative of the strategic
alignment of workforce development
activities in the State with the SAA,
including—
(A) A description of any coordination
or leveraging of State planning and
registered apprenticeship programs
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under WIOA and any milestones the
State will use to track progress;
(B) A description of any efforts or
processes the SAA has developed with
the State Workforce Agency to enhance
or increase the leveraging of registered
apprenticeship programs on the State
list of eligible providers of training
services under section 122(d) of WIOA;
(C) An assessment of how registered
apprenticeship programs in the State
meet employers’ workforce needs as
identified by the State workforce
development board or State Workforce
Agency;
(D) A description of current activities
to coordinate with the State’s education
system, including institutions of higher
education, LEAs, State CTE and
Educational Agencies, and other
educational entities that support CTE
programs and career pathways;
(E) A description of current activities
and goals in coordinating with
economic development entities in the
State; and
(F) A description of the State’s
strategy for engaging and leveraging
intermediaries as defined in § 29.2.
(G) A description of any efforts to
align and leverage apprenticeshiprelated data with education system and
workforce development system data.
(3) Operational planning elements.
States must submit the following
information to OA:
(i) State EEO plan. In conformity with
part 30 of this title, provide a plan that
describes how the SAA will promote
EEO for apprentices and applicants for
apprenticeship in registered
apprenticeship programs.
(ii) Technical assistance. Describe the
State’s technical assistance strategies for
the period covered in the State
Apprenticeship Plan.
(iii) Data reporting. Describe the
process for meeting quarterly and
annual reporting requirements at
§§ 29.25 and 29.28, including a
description of how the SAA will collect
and report apprentice and sponsor
records to the Department.
(iv) Program reviews. Describe the
SAA’s plan for conducting program
reviews for the period covered in the
State Apprenticeship Plan.
(v) Registration standards. Describe
how the SAA plans to operationalize its
policy regarding: establishing the basic
standards, criteria, and requirements for
program registration; and providing for
the temporary suspension, cancellation,
or deregistration of programs.
(vi) Reciprocity. Describe how the
State will operationalize its policy for
providing reciprocity for registered
apprenticeship programs in accordance
with § 29.26(d).
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(vii) State Apprenticeship Council.
Describe how the State Apprenticeship
Council is structured consistent with
the requirement of § 29.26(b) and (c).
(4) Assurances. The State must
provide the following assurances and
any applicable statutory or regulatory
citations:
(i) That the State will provide a
process for local registration of National
Guidelines for Apprenticeship
Standards recognized by the
Administrator pursuant to § 29.15.
(ii) That the State has sufficient
resources to carry out the functions of
an SAA, including outreach and
education; registration of programs and
apprentices; provision of technical
assistance, and monitoring of programs
as required to fulfill the requirements of
this part.
(iii) That the State will make available
on a publicly available website a
description of any laws (including
regulations), policies, and operational
procedures relating to the process of
reviewing, registering, and assessing
registered apprenticeship programs
under the State’s apprenticeship system,
including those that impose
requirements in addition to this rule, as
well as any approved State
Apprenticeship Plans.
(iv) That the State requires a written
assurance from any sponsors registered
by the State that they are complying
with the requirements of the Support for
Veterans in Effective Apprenticeships
Act of 2019 (Pub. L. 116–134, 134 Stat.
277, 29 U.S.C. 50c).
(5) Optional recognition of an SAA for
registered CTE apprenticeship. An SAA
seeking recognition to serve as a
Registration Agency for registered CTE
apprenticeship must submit the
following elements:
(i) The State’s proposed or current
registered CTE apprenticeship laws as
described in § 29.24(g)(8).
(ii) A written agreement between the
State entity seeking recognition and the
State’s CTE Agency as described in
§ 29.24(a)(2).
(iii) A narrative summary of the
State’s strategic vision and strategy for
expanding registered CTE
apprenticeship programs under subpart
B of this part.
(c) State apprenticeship recognition
designations. After review of the State
Apprenticeship Plan described in
paragraph (a) of this section, OA will
convey, in writing from the
Administrator, one of three designations
for Federal purposes:
(1) Full recognition if the
Administrator has determined:
(i) The State’s apprenticeship laws
meet or exceed the minimum standards
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as described in paragraph (b)(1) of this
section.
(ii) The State’s Plan includes all
strategic planning elements that are
complete and responsive to the
requirements in paragraph (b)(2) of this
section.
(iii) The State’s Plan includes all
operational elements that are complete
and responsive to the requirements in
paragraph (b)(3) of this section.
(iv) The State’s Plan includes all of
the assurances as required in paragraph
(b)(4) of this section.
(2) Provisional recognition if the
Administrator has determined that the
State’s apprenticeship laws meet or
exceed the minimum standards
described in paragraph (b)(1) of this
section and that the State’s Plan
includes all of the assurances described
in paragraph (b)(4) of this section, but
further determines that:
(i) The strategic planning elements
described in paragraph (b)(2) of this
section or the operational elements
described in paragraph (b)(3) of this
section are either incomplete or
nonresponsive; and
(ii) Any deficiencies identified in
paragraph (c)(2)(i) of this section are
resolvable with technical assistance
provided by OA and a corrective action
plan is submitted by the State and
approved by the Administrator. A State
may be provisionally recognized for no
more than one full planning cycle.
(3) Denial of recognition if the
Administrator determines:
(i) That the State’s apprenticeship
laws do not meet the minimum
standards described in paragraph (b)(1)
of this section; or
(ii) That the SAA is unable to be fully
approved within one full planning cycle
after having been provisionally
recognized, as described in paragraph
(c)(2) of this section.
(iii) The process and procedures for
such denial of recognition are described
in § 29.29.
(d) Retention of registration authority
of the Office of Apprenticeship.
Notwithstanding any approval of a State
Apprenticeship Plan providing
recognition to an SAA under this
section, the Administrator will retain
the authority to register apprenticeship
programs and apprentices on both a
local and nationwide basis for Federal
purposes in any State when the
Administrator determines that a sponsor
seeking registration has satisfied the
requirements for registration described
in this part and where such action
would further the interests of the
National Apprenticeship System.
(e) Periodic reviews. OA will monitor
and review the compliance of an SAA
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3295
to ensure that it is operating consistent
with its approved State Apprenticeship
Plan, in instances where the
Administrator determines that such a
review is warranted.
(f) Derecognition of State
Apprenticeship Agency’s full or
provisional recognition status. The
Administrator may derecognize an SAA
with full or provisional recognition
when the Administrator determines that
the SAA is not operating consistent with
its approved State Apprenticeship Plan.
The processes and procedures for such
derecognition are described in § 29.29.
(g) Suspension of provisionally
approved State Apprenticeship Agency.
The Administrator may suspend the
authority of a provisionally approved
SAA to register new apprenticeship
programs for failure to submit, and
receive OA’s approval of, a corrective
action plan as required in paragraph
(c)(2) of this section. The Administrator
will provide written notice to the
provisionally approved SAA of the
suspension, which will take effect 30
calendar days after the date of the
written notice. The suspension will end
upon the State’s submission of a
corrective action plan.
(h) Limitation of State activities
without recognition. If OA denies a State
Apprenticeship Plan pursuant to
paragraph (c)(3) of this section, or
derecognizes an SAA pursuant to
paragraph (f) of this section, the State
must not conduct the activities specified
in § 29.26(a) until OA conveys full
recognition, as described in paragraph
(c)(1) of this section, or provisional
recognition, as described in paragraph
(c)(2) of this section.
§ 29.28 Reporting requirements for State
Apprenticeship Agencies.
(a) SAAs are required to collect the
information from sponsors described in
§ 29.25(a) and (b).
(b) On at least a quarterly basis, SAAs
must report the information collected
from sponsors described in paragraphs
(a) and (b)(1) of § 29.25 to OA.
(c) On an annual basis, the SAA will
report the information collected
under§ 29.25(b)(2) to the Administrator.
(d) The Administrator will make the
information described in paragraph (c)
of this section publicly available.
(e) SAAs may meet the requirements
in paragraphs (a) through (c) of this
section by either:
(1) Utilizing a Department-provided
case management system; or
(2) Maintaining a State system that is
capable of reporting individual
apprentice record level information to
OA in a manner prescribed by the
Administrator, and that meets minimum
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§ 29.29 Denial of a State Apprenticeship
Plan for recognition as a State
Apprenticeship Agency and derecognition
of existing State Apprenticeship Agencies.
(a) Process and procedures.
(1) If the Administrator denies a State
Apprenticeship Plan pursuant to
§ 29.27(c)(3) or derecognizes an SAA
pursuant to § 29.27(f), the Administrator
will issue a written notice that includes:
(i) The reason(s) for the denial or
derecognition;
(ii) The needed remedial measure(s);
and
(iii) The timeframe for addressing
those measures, which will be no longer
than 12 months from the date of the
written notice.
(2) If the State has failed to take
adequate remedial measures in the
timeframe provided in the written
notice, the Administrator may issue a
final determination that will include the
reason(s) for the denial or derecognition
and state in the final determination that
the State may request a hearing with
OALJ within 30 calendar days of the
date of the final determination.
(3) Requests for a hearing must be sent
to OALJ within 30 calendar days from
the date of a final determination from
the Administrator. A copy of the request
for a hearing must be simultaneously
sent to the Administrator, who must
transmit it to the Associate Solicitor for
Employment and Training Legal
Services, Office of the Solicitor, U.S.
Department of Labor. The Administrator
will promptly provide OALJ with the
administrative file containing all
documents relied on by the
Administrator or designee to deregister
the program or to issue the
Administrator’s final determination.
(4) The procedures contained in part
18 of this title will apply to the
disposition of the request for review
except that:
(i) The Administrative Law Judge will
receive, and make part of the record,
documentary evidence offered by any
party and accepted at the hearing.
Copies thereof will be made available by
the party submitting the documentary
evidence to any party to the hearing
upon request.
(ii) Technical rules of evidence will
not apply to hearings conducted under
this part, but rules or principles
designed to assure the production of the
most credible evidence available and to
subject testimony to test by crossexamination will be applied, where
reasonably necessary, by the
Administrative Law Judge conducting
the hearing. The Administrative Law
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Judge may exclude irrelevant,
immaterial, or unduly repetitious
evidence.
(iii) The request for a hearing will not
be considered to be a complaint to
which an answer is required.
(iv) The Administrative Law Judge
may authorize discovery and the filing
of pre-hearing motions, and so limit
them to the types and quantities in the
Administrative Law Judge’s discretion
will contribute to a fair hearing without
unduly burdening the parties.
(5) The Administrative Law Judge
must issue a written decision within 90
calendar days of the close of the hearing
record. The Administrative Law Judge
must uphold the Administrator’s
decision unless it is shown by the
sponsor to be arbitrary, capricious, an
abuse of discretion, or otherwise not in
accordance with the law. The
Administrative Law Judge’s decision
constitutes final agency action of the
Department unless, within 15 calendar
days from receipt of the decision, a
party dissatisfied with the decision files
a petition for review with the ARB in
accordance with part 26 of this title,
specifically identifying the procedure,
fact, law, or policy to which exception
is taken. Any exception not specifically
urged is deemed to have been waived.
A copy of the petition for review must
be served on OA at the same time in
accordance with part 26 of this title.
Thereafter, the decision of the
Administrative Law Judge remains final
agency action unless the ARB, within 30
calendar days of the filing of the
petition for review, notifies the parties
that it has accepted the case for review.
The ARB may set a briefing schedule or
decide the matter on the record. The
ARB must issue a decision in any case
it accepts for review within 180
calendars of the close of the record. If
a decision is not so issued, the
Administrative Law Judge’s decision
constitutes final agency action.
(6) An SAA may request voluntary
withdrawal from its recognition status
for Federal purposes at any time. The
Administrator will derecognize the SAA
after the State sends a formal notice of
withdrawal to the Administrator.
(b) Administrator actions after
derecognition. When an existing SAA
has been denied recognition pursuant to
§ 29.27(c)(3), has been derecognized by
OA pursuant to § 29.27(f), or when an
SAA voluntary withdraws from
recognition as described in paragraph
(a)(6) of this section, the Administrator
must:
(1) Notify the sponsors in the State of
the derecognition and effect public
notice of such derecognition.
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(2) Notify the sponsors that, 45
calendar days after the date of the
determination to derecognize the SAA,
the Department will cease to recognize,
for Federal purposes, each
apprenticeship program previously
registered with the SAA, unless within
that time, the sponsor submits an
application for registration with OA,
pursuant to the following:
(i) Within 90 days of receiving the
application for registration, the Office of
the Apprenticeship will review the
application to determine if it meets the
requirements for registration described
in § 29.10(a).
(ii) OA will approve an application
for registration in accordance with the
procedures and requirements described
in § 29.10(b).
(iii) OA will deny an application for
registration if the application does not
meet the requirements in § 29.10(b). The
procedures described in § 29.10(c) apply
to any applications for registration that
are declined.
(c) State obligations after
derecognition. Where an existing SAA
has been denied recognition, has been
derecognized by OA, or has voluntarily
withdrawn from recognition, the State
must:
(1) Provide all apprenticeship
program standards, apprenticeship
agreements, completion records,
cancellation and suspension records,
EEO compliance review files, and any
other documents relating to the State’s
registered apprenticeship programs, to
the Department;
(2) Within 15 calendar days of
receiving a final determination, unless
the State requests a hearing as described
in paragraph (a)(3) of this section,
advise all sponsors that any benefits of
registration for Federal purposes are no
longer available to the apprentices in its
apprenticeship program as of 45
calendar days after the date of the
Administrator’s final determination.
The communication from the State must
direct that all apprentices are referred to
OA for information about potential
transfer to other registered
apprenticeship programs; and
(3) Cooperate fully with the
Administrator during a transition
period.
§ 29.30 Apprenticeship requirements in
other laws.
The Administrator or recognized SAA
may provide a Certificate of
Participation to employers and
government agencies to demonstrate a
program sponsor’s or participating
employer’s compliance with any
Federal purpose or State benefit
associated with a program’s or
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apprentice’s participation in a registered
apprenticeship program. Disclosure of
information in accordance with this
section must comply with applicable
Federal or State information and privacy
laws.
PART 30—EQUAL EMPLOYMENT
OPPORTUNITY IN APPRENTICESHIP
2. The authority citation for part 30
continues to read as follows:
■
Authority: Sec. 1, 50 Stat. 664, as amended
(29 U.S.C. 50; 40 U.S.C. 276c; 5 U.S.C. 301);
Reorganization Plan No. 14 of 1950, 64 Stat.
1267, 3 CFR 1949–53 Comp. p. 1007.
■
3. Revise § 30.2 to read as follows:
§ 30.2
Definitions.
The definitions in § 29.2 also apply to
this part.
■ 4. Amend § 30.3 by revising paragraph
(b)(2)(i) to read as follows:
§ 30.3 Equal opportunity standards
applicable to all sponsors.
*
*
*
*
*
(b) * * *
(2) * * *
(i) Publish its equal opportunity
pledge—set forth in paragraph (c) of this
section—in the standards of
apprenticeship required under part 29
of this title, and in appropriate
publications, such as apprentice and
employee handbooks, policy manuals,
newsletters, or other documents
disseminated by the sponsor or that
otherwise describe the nature of the
sponsorship;
*
*
*
*
*
■ 5. Amend § 30.5 by revising
paragraphs (b)(2) and (c)(6) to read as
follows:
§ 30.5 Utilization analysis for race, sex,
and ethnicity.
lotter on DSK11XQN23PROD with PROPOSALS2
*
*
*
*
*
(b) * * *
(2) Schedule of analyses. Each
sponsor is required to conduct an
apprenticeship program workforce
analysis at each program review, and
again if and when 3 years have passed
without a program review. This updated
workforce analysis should be compared
to the utilization goal established at the
sponsor’s most recent program review to
determine if the sponsor is
underutilized, according to the process
in paragraph (d) of this section.
*
*
*
*
*
(c) * * *
(6) Sponsors, working with the
Registration Agency, will conduct
availability analyses at each program
review.
*
*
*
*
*
■ 6. Amend § 30.7 by revising paragraph
(d)(2)(ii) to read as follows:
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§ 30.7 Utilization goals for individuals with
disabilities.
*
*
*
*
*
(d) * * *
(2) * * *
(ii) Schedule of evaluation. The
sponsor must conduct its apprentice
workforce analysis at each program
review, and again if and when 3 years
have passed without a program review.
This updated workforce analysis,
grouped according to major occupation
group, should then be compared to the
utilization goal established under
paragraph (a) of this section.
*
*
*
*
*
■ 7. Amend § 30.10 by revising
paragraph (a) to read as follows:
§ 30.10
Selection of apprentices.
(a) A sponsor’s procedures for
selection of apprentices must be
included in the written plan for
standards of apprenticeship submitted
to and approved by the Registration
Agency, as required under part 29 of
this title.
*
*
*
*
*
■ 8. Amend § 30.12 by revising
paragraphs (a)(3) and (f) to read as
follows:
§ 30.12
Recordkeeping.
(a) * * *
(3) Information relative to the
operation of the apprenticeship
program, including but not limited to
job assignments in all components of
the occupation as required under part
29 of this title, promotion, demotion,
transfer, layoff, termination, rates of
pay, other forms of compensation,
conditions of work, hours of work,
hours of training provided, and any
other personnel records relevant to EEO
complaints filed with the Registration
Agency under § 30.14 or with other
enforcement agencies;
*
*
*
*
*
(f) Access to records. Each sponsor
must permit access during normal
business hours to its places of business
for the purpose of conducting on-site
program reviews and complaint
investigations and inspecting and
copying such books, accounts, and
records, including electronic records,
and any other material the Registration
Agency deems relevant to the matter
under investigation and pertinent to
compliance with this part. The sponsor
must also provide the Registration
Agency access to these materials,
including electronic records, off site for
purposes of conducting program
reviews and complaint investigations.
Upon request, the sponsor must provide
the Registration Agency information
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Fmt 4701
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3297
about all format(s), including specific
electronic formats, in which its records
and other information are available.
Information obtained in this manner
will be used only in connection with the
administration of this part or other
applicable EEO laws.
■ 9. Amend § 30.13 by revising the
section heading, paragraph (a), the
introductory text of paragraph (b) and
paragraph (c) to read as follows:
§ 30.13
Program reviews.
(a) Conduct of program reviews. The
Registration Agency will regularly
conduct program reviews to determine
if the sponsor maintains compliance
with the EEO requirements contained in
this part, and will also conduct such
reviews when circumstances so warrant.
A program review under this part may
consist of, but is not limited to,
comprehensive analyses and
evaluations of each aspect of the
apprenticeship program through off-site
reviews, such as desk audits of records
submitted to the Registration Agency,
and on-site reviews conducted at the
sponsor’s establishment that may
involve examination of records required
under this part; inspection and copying
of documents related to recordkeeping
requirements of this part; and
interviews with employees, apprentices,
journeyworkers, supervisors, managers,
and hiring officials.
(b) Notification of program review
findings. Within 45 days of completing
a program review, the Registration
Agency must present a written Notice of
Program Review Findings to the
sponsor’s contact person through
registered or certified mail, with return
receipt requested. If the program review
indicates a failure to comply with this
part, the Registration Agency will so
inform the sponsor in the Notice and
will set forth in the Notice the
following:
*
*
*
*
*
(c) Compliance. (1) When a sponsor
receives a Notice of Program Review
Findings that indicates a failure to
comply with this part, the sponsor must,
within 45 days of notification, either
implement a compliance action plan
and notify the Registration Agency of
that plan or submit a written rebuttal to
the Findings.
*
*
*
*
*
■ 10. Amend § 30.14 by revising
paragraphs (c)(1)(iv) and (v) and adding
paragraph (vi) to read as follows:
§ 30.14
*
Complaints.
*
*
(c) * * *
(1) * * *
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*
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(iv) Complete a thorough investigation
of the allegations of the complaint and
develop a complete case record that
must contain, but is not limited to, the
name, address, and telephone number of
each person interviewed, the interview
statements, copies, transcripts, or
summaries (where appropriate) of
pertinent documents, and a narrative
report of the investigation with
references to exhibits and other
evidence that relate to the alleged
violations;
(v) Provide written notification of the
Registration Agency’s findings to both
the respondent and the complainant;
and
(vi) Protect the identity of the
complainant to the extent practicable.
*
*
*
*
*
■ 11. Amend § 30.15 by revising the
introductory text and paragraph (b) to
read as follows:
§ 30.15
Enforcement actions.
lotter on DSK11XQN23PROD with PROPOSALS2
Where the Registration Agency, as a
result of a program review, complaint
investigation, or other reason,
determines that the sponsor is not
operating its apprenticeship program in
accordance with this part, the
Registration Agency must notify the
sponsor in writing of the specific
violation(s) identified and may:
*
*
*
*
*
(b) Suspend the sponsor’s right to
register new apprentices if the sponsor
fails to implement a compliance action
plan to correct the specific violation(s)
identified within 45 days from the date
the sponsor is so notified of the
violation(s), or, if the sponsor submits a
written response to the findings of
noncompliance, fails to implement a
compliance action plan within 45 days
of receiving the Registration Agency’s
notice upholding its initial
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19:54 Jan 16, 2024
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noncompliance findings. If the sponsor
has not implemented a compliance
action plan within 45 days of
notification of suspension, the
Registration Agency may institute
proceedings to deregister the program in
accordance with the deregistration
proceedings set forth in part 29 of this
title.
*
*
*
*
*
■ 12. Amend § 30.17 by revising
paragraph (a)(3) to read as follows:
§ 30.17 Intimidation and retaliation
prohibited.
(a) * * *
(3) Furnished information to, or
assisted or participated in any manner,
in any investigation, program review,
proceeding, or hearing under this part or
any Federal or State equal opportunity
law; or
*
*
*
*
*
■ 13. Amend § 30.18 by revising
paragraphs (a)(1), (3), and (4), (b), (c)(1)
and (3), and (d) to read as follows:
§ 30.18
State Apprenticeship Agencies.
(a) State EEO plan. (1) Within 1 year
of January 18, 2017, unless an extension
for good cause is sought and granted by
the Administrator, an SAA that seeks to
obtain or maintain recognition under
part 29 of this title must submit to OA
a State EEO plan that:
*
*
*
*
*
(3) If the State does not submit a
revised State EEO plan that addresses
identified nonconformities within 90
days from the date that OA provides the
SAA with written notification of the
areas of nonconformity, OA will begin
the process set forth in part 29 of this
title to rescind recognition of the SAA.
(4) An SAA that seeks to obtain or
maintain recognition must obtain the
Administrator’s written concurrence in
any proposed State EEO plan, as well as
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Frm 00182
Fmt 4701
Sfmt 9990
any subsequent modification to that
plan, as provided in part 29 of this title.
(b) Recordkeeping requirements. A
recognized SAA must keep all records
pertaining to program reviews,
complaint investigations, and any other
records pertinent to a determination of
compliance with this part. These
records must be maintained for 5 years
from the date of their creation.
(c) Retention of authority. As
provided in part 29 of this title, OA
retains the full authority to:
(1) Conduct program reviews of all
registered apprenticeship programs;
*
*
*
*
*
(3) Deregister for Federal purposes an
apprenticeship program registered with
a recognized SAA as provided in part 29
of this title; and
*
*
*
*
*
(d) Derecognition. A recognized SAA
that fails to comply with the
requirements of this section will be
subject to derecognition proceedings, as
provided in part 29 of this title.
■ 14. Add § 30.20 to read as follows:
§ 30.20
Severability.
Should a court of competent
jurisdiction hold any portion of any
provision(s) of this part to be invalid,
the provision will be construed so as to
continue to give the maximum effect to
the provision permitted by law, unless
such holding is one of total invalidity or
unenforceability, in which event the
provision or subprovision will be
severable from this part and will not
affect the remainder thereof.
Brent Parton,
Principal Deputy Assistant Secretary for
Employment and Training, Labor.
[FR Doc. 2023–27851 Filed 1–16–24; 8:45 am]
BILLING CODE 4510–FR–P
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]]>Agencies
[Federal Register Volume 89, Number 11 (Wednesday, January 17, 2024)]
[Proposed Rules]
[Pages 3118-3298]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27851]
[[Page 3117]]
Vol. 89
Wednesday,
No. 11
January 17, 2024
Part III
Department of Labor
-----------------------------------------------------------------------
Employment and Training Administration
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29 CFR Parts 29 and 30
National Apprenticeship System Enhancements; Proposed Rule
Federal Register / Vol. 89 , No. 11 / Wednesday, January 17, 2024 /
Proposed Rules
[[Page 3118]]
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DEPARTMENT OF LABOR
Employment and Training Administration
29 CFR Parts 29 and 30
[Docket No. ETA-2023-0004]
RIN 1205-AC13
National Apprenticeship System Enhancements
AGENCY: Employment and Training Administration, Labor.
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Department of Labor (DOL or the Department) is proposing
issuing this notice of proposed rulemaking (NPRM or proposed rule) to
revise the regulations for registered apprenticeship by enhancing
worker protections and equity, improving the quality of registered
apprenticeship programs, revising the State governance provisions, and
more clearly establishing critical pipelines to registered
apprenticeship programs, such as registered career and technical
education (CTE) apprenticeships. The proposed rule would improve the
capacity of the National Apprenticeship System to respond to evolving
employer needs, provide workers equitable pathways to good jobs, and
increase the system's long-term resilience.
DATES: Interested persons are invited to submit written comments on the
proposed rule on or before March 18, 2024.
ADDRESSES: You may send comments, identified by Docket No. ETA-2023-
0004 and Regulatory Identification Number (RIN) 1205-AC13, by any of
the following methods:
Federal eRulemaking Portal: https://www.regulations.gov.
Search for the above-referenced RIN, open the proposed rule, and follow
the on-screen instructions for submitting comments.
Instructions: All submissions received must include the
agency name and docket number for this rulemaking or ``RIN 1205-AC13.''
Please be advised that the Department will post all comments
received that relate to this NPRM without changes to https://www.regulations.gov, including any personal information provided. 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 (either about themselves or others) 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.
Docket: For access to the docket to read background documents or
comments received, go to https://www.regulations.gov (search using RIN
1205-AC13 or Docket No. ETA-2023-0004). The Department also will make
all the comments it receives available for public inspection by
appointment during normal business hours at the Office of Policy
Development and Research, U.S. Department of Labor, Employment and
Training Administration, 200 Constitution Avenue NW, Room N-5641,
Washington, DC 20210. If you need assistance to review the comments,
the Department will provide appropriate aids such as readers or print
magnifiers. The Department will make copies of this NPRM available,
upon request, in large print and electronic file. To schedule an
appointment to review the comments or obtain the NPRM in an alternative
format or both, contact the Office of Policy Development and Research
at 202-693-3700 (this is not a toll-free number). You may also contact
this office at the address listed above.
Comments under the Paperwork Reduction Act (PRA): In addition to
filing comments on any aspect of this proposed rule with the
Department, interested parties may submit comments that concern the
information collection (IC) aspects of this NPRM to: Office of
Information and Regulatory Affairs, Attn: OMB Desk Officer for DOL-ETA,
Office of Management and Budget, 725 17th Street NW, Washington, DC
20503, Fax: 202-395-6881 (this is not a toll-free number), Email:
[email protected].
Docket: Go to the Federal eRulemaking Portal at: https://www.regulations.gov/document/ETA-2023-0004-0001 for access to the
rulemaking docket, including any background documents and the plain-
language summary of the proposed rule of not more than 100 words in
length required by the Providing Accountability Through Transparency
Act of 2023.
FOR FURTHER INFORMATION CONTACT: Michelle Paczynski, Administrator,
Office of Policy Development and Research, U.S. Department of Labor,
Employment and Training Administration, 200 Constitution Avenue NW,
Room N-5641, Washington, DC 20210, Telephone: 202-693-3700 (voice)
(this is not a toll-free number). For persons with a hearing or speech
disability who need assistance to use the telephone system, please dial
711 to access telecommunications relay services.
SUPPLEMENTARY INFORMATION:
Preamble Table of Contents
I. Acronyms and Abbreviations
II. Executive Summary
III. Background
A. Introduction to Registered Apprenticeship
B. Statutory and Regulatory History of Registered Apprenticeship
C. Need for the Proposed Rulemaking
D. Stakeholder Outreach
E. Vision and Goals of This Rulemaking
IV. Section-by-Section Discussion of the Proposed Changes
A. Introduction to the Regulations for the National
Apprenticeship System Under the National Apprenticeship Act of 1937
B. Subpart A--Standards for Registered Apprenticeship Programs
C. Subpart B--Career and Technical Education Apprenticeship
D. Subpart C--Administration and Coordination of the National
Apprenticeship System
E. Part 30 Revisions
V. Regulatory Analysis and Review
A. Executive Orders 12866 (Regulatory Planning and Review),
14094 (Modernizing Regulatory Review), and 13563 (Improving
Regulation and Regulatory Review)
B. Regulatory Flexibility Act, Small Business Regulatory
Enforcement Fairness Act of 1996, and Executive Order 13272 (Proper
Consideration of Small Entities in Agency Rulemaking)
C. Paperwork Reduction Act
D. Executive Order 13132 (Federalism)
E. Unfunded Mandates Reform Act of 1995
F. Executive Order 13175 (Indian Tribal Governments)
G. Internet Address of NPRM Summary (5 U.S.C. 553(b)(4))
I. Acronyms and Abbreviations
AAI American Apprenticeship Initiative
ACA Advisory Committee on Apprenticeship
ARB Administrative Review Board
BLS U.S. Bureau of Labor Statistics
CHIPS Act Creating Helpful Incentives to Produce Semiconductors Act
of 2022
COVID-19 coronavirus disease of 2019
CTE career and technical education
DEIA diversity, equity, inclusion, and accessibility
DOL or the Department U.S. Department of Labor
E.O. Executive Order
ED Department of Education
EDP Energy Document Portal
EEO equal employment opportunity
ERISA Employee Retirement Income Security Act
ETA Employment and Training Administration
ETP Eligible Training Providers
FTC Federal Trade Commission
[[Page 3119]]
FY fiscal year
HR human resources
IC information collection
ICR information collection request
ILO International Labour Organization
IRA Inflation Reduction Act of 2022
IRFA initial regulatory flexibility analysis
IT information technology
LEA local educational agency
NAA National Apprenticeship Act of 1937
NASTAD National Association of State and Territorial Apprenticeship
Directors
NCES National Center for Education Statistics
NPRM or proposed rule notice of proposed rulemaking
O*NET Occupational Information Network
OA Office of Apprenticeship
OALJ Office of Administrative Law Judges
OIRA Office of Information and Regulatory Affairs
OMB Office of Management and Budget
Perkins Carl D. Perkins Career and Technical Education Act of 2006,
as amended by the Strengthening Career and Technical Education for
the 21st Century Act
PRA Paperwork Reduction Act of 1995
RAPIDS Registered Apprenticeship Partners Information Data System
RFA Regulatory Flexibility Act
RIA regulatory impact analysis
ROI return on investment
SAA State Apprenticeship Agency
TEGL Training and Employment Guidance Letter
TEN Training and Employment Notice
UMRA Unfunded Mandates Reform Act
VALOR Veterans Apprenticeship and Labor Opportunity Reform Act
WANTO Women in Apprenticeship and Nontraditional Occupations
WIOA Workforce Innovation and Opportunity Act
II. Executive Summary
The Department's current regulations at 29 CFR part 29 addressing
labor standards of apprenticeship and the governance of the National
Apprenticeship System were last updated in a final rule published on
October 29, 2008 (73 FR 64402). In this proposed rule, the Department
seeks to strengthen, expand, modernize, and diversify the National
Apprenticeship System by enhancing worker protections and equity,
improving the quality of registered apprenticeship programs, and
revising the State Apprenticeship Agency (SAA) governance provisions so
that the National Apprenticeship System is more navigable and
responsive to current worker and employer needs.
The proposed rule would enhance the ability of the Employment and
Training Administration's (ETA) Office of Apprenticeship (OA) to
implement and administer the National Apprenticeship Act of 1937 (NAA),
Act of Aug. 16, 1937, 75th Cong., ch. 663, 50 Stat. 664 (codified as
amended at 29 U.S.C. 50), including approving apprenticeship programs
and standards as a Registration Agency and recognizing SAAs, to protect
the safety and welfare of apprentices, and to meet the 21st century
skill needs of industry. Central to the expanded role is the ability to
promote the value of apprenticeship, advance the benefits of
apprenticeship as a diversity, equity, inclusion, and accessibility
(DEIA) strategy for program sponsors, maintain National Apprenticeship
System data for Registration Agencies, facilitate registered
apprenticeship across the United States, and develop partnerships with
stakeholders throughout the National Apprenticeship System.
Essential to strengthening, modernizing, expanding, and
diversifying the National Apprenticeship System is the advancement of
worker protections and equity. The Department's proposal would create
more safeguards for apprentices to ensure that they have healthy and
safe working and learning environments as well as just and equitable
opportunities throughout their participation in a registered
apprenticeship program. This emphasis on worker protections and equity
for apprentices is founded on the recognition that some populations,
such as women and people of color, have historically faced systemic
barriers to successfully access, participate in, and complete a
registered apprenticeship program. This proposed rule seeks to mitigate
barriers and facilitate equal access and greater success for
underserved communities, as defined in proposed Sec. 29.2.
Additionally, the proposed rule seeks to enhance opportunities for
younger workers to safely and equitably participate in registered
apprenticeship programs.
Through this proposed rule, the Department is proposing to
modernize and standardize the criteria and process for developing
quality labor standards for apprenticeship. To maintain the integrity
of registered apprenticeship as an industry-driven workforce
development model, the Department recognizes that all apprenticeship
programs must maintain labor standards that are objective, accountable,
flexible and efficient. The Department seeks to fulfill this
modernization effort by creating a framework for developing minimum
labor standards of apprenticeship that combines the key attributes of
the competency- and time-based approaches to on-the-job training into a
unitary, coherent training model across all programs. The Department
anticipates that modernizing and standardizing the labor standards for
all registered apprenticeship programs would support the expansion of
registered apprenticeships into new industries and occupations that do
not have an established history with registered apprenticeship:
programs in these industries new to apprenticeship would benefit from
increased avenues to contribute to the development of industry- and
occupation-specific training regimens, and from the increased clarity
established by the universal baseline standards the Department seeks to
apply across all registered programs. In addition, the Department is
institutionalizing National Program Standards for Apprenticeship and
National Guidelines for Apprenticeship Standards and aligning them with
National Occupational Standards for Apprenticeship, a product that
would further standardize industry-validated occupational standards for
apprenticeship.
The Department's proposal would also create a more objective,
proactive, and transparent process for the determination of occupations
suitable for registered apprenticeship that balances the flexibility
needed to accommodate programs in new and emerging industries while
establishing safeguards against adverse impacts to existing,
established registered apprenticeship programs. The Department's
proposed updates to the suitability process are designed to include
flexibilities that would support expansion of the registered
apprenticeship model to emergent occupations in non-traditional
apprenticeship industries while providing protections against the
splintering of existing programs covering occupations previously
established as suitable for apprenticeship training (which could have a
negative impact on workers' wages and job quality). The Department
seeks to reinforce that new occupations suitable for registered
apprenticeship meet industry-recognized criteria that support
apprentices' ability to access a lifelong career pathway and attain
economic mobility. Ensuring that registered apprenticeship programs
lead to quality careers and enhance apprentices' economic mobility is
one of the Department's guiding principles in overseeing the National
Apprenticeship System, grounded in its statutory responsibility to
protect the welfare of apprentices and the Administration's priority to
promote economic opportunity for underrepresented or underserved
populations. To help ensure that apprentices obtain the
[[Page 3120]]
requisite skills and competencies for proficiency in an occupation
suitable for registered apprenticeship, the Department has also
proposed a new requirement in their approved quality labor standards
for the assessment of apprentice progress by means of an end-point
assessment.
The Department is also proposing to revise the framework for
collecting program sponsor and apprentice data to ensure greater
accountability, transparency, and equity, and would utilize the
information collected to oversee program reviews, improve apprentice
demographic data, and establish new program- and system-level metrics
and indicators.
The Department has consulted, where appropriate, with the U.S.
Department of Education (ED) in the development of the proposed
registered CTE apprenticeship model, which seeks to align with
secondary and postsecondary State-approved CTE programs, namely those
funded by the Carl D. Perkins Career and Technical Education Act of
2006,\1\ as amended by the Strengthening Career and Technical Education
for the 21st Century Act \2\ (as codified at 20 U.S.C. 2301 et seq.)
(Perkins). This new model would establish specific standards of
apprenticeship for students enrolled in high school or in community and
technical colleges who seek to continue their education while
participating in the labor market, and would provide students
opportunities to attain a recognized postsecondary credential, complete
college coursework and a registered apprenticeship program, and
participate in paid on-the-job learning. This model is intended to
result in participating students' enrollment in a postsecondary
educational program, an apprenticeship program registered under subpart
A, placement into employment, or a combination thereof. The registered
CTE apprenticeship regulations as proposed would not govern or
otherwise impact the operation of ED's Perkins CTE program, but rather
the program would offer State-approved CTE programs as an additional
discretionary program, which could provide students the benefits of
participation in both CTE and an aligned registered CTE apprenticeship
program.
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\1\ Public Law 109-270, 120 Stat. 683 (2006).
\2\ Public Law 115-224, 132 Stat. 1563 (2018).
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Finally, the Department is proposing to revise State governance
requirements for States seeking to be recognized by OA as an SAA State,
and for renewing such status. The Department proposes revising the
governance process to promote greater uniformity and accountability,
including the establishment of a State planning requirement involving
the development of a strategic vision and goals to expand and diversify
registered apprenticeship, as well as robust data collection and
reporting to track the achievement of systemwide goals. Through this
proposed revision, the Department also sees an opportunity for States
to lead on innovation and partner with intermediaries to create an
interconnected ecosystem that can support existing and new industries
and career seekers in the National Apprenticeship System.
The Department also proposes to make technical and conforming
adjustments to the current text of 29 CFR part 30 (governing equal
employment opportunity (EEO) in apprenticeships) as appropriate.
III. Background
A. Introduction to Registered Apprenticeship
For nearly a century, registered apprenticeship has been an
effective and successful workforce development model that has helped
employers recruit, train, and retain highly proficient, diverse workers
in the skilled occupations employers need, and that has provided job
seekers with access to high-quality training and stable, well-paying
careers. Registered apprenticeship is a structured, industry-driven,
flexible workforce training model, and employers and industry
stakeholders have updated and customized the model over decades to meet
evolving workforce needs and address occupational skill needs that
arise as incoming workers seek to establish or enhance successful
careers. From the perspective of the apprentice, registered
apprenticeship represents an affordable pathway to a high-quality,
high-paying career. Apprentices obtain paid work experience and
training so that they can sustain themselves and their families while
training and preparing for success in their career of interest.
Apprentices entering into a registered apprenticeship program share
several common indicia: they enter into a paid job from the outset;
they receive progressive wage increases reflecting their progress
through a training regimen developed by industry stakeholders; they
participate in related instruction informing them of the theoretical or
academic concepts that underpin the work processes and competencies
critical to success in their chosen career; and they ultimately develop
a set of portable, in-demand job skills culminating with the awarding
of a nationally recognized certificate of completion of a registered
apprenticeship that benefit them throughout their careers.
As an earn-and-learn workforce development strategy, registered
apprenticeship combines on-the-job training with related (classroom)
instruction, blending the practical and theoretical aspects of training
for highly skilled occupations. On-the-job training and related
instruction are critical, definitional elements of registered
apprenticeship that provide practical benefits to both employers and
apprentices. Apprentices training in an occupation apply occupational
techniques and theoretical concepts throughout their training and,
later, throughout their careers, which helps them develop into the
productive, skilled, and safety-conscious workers whom employers need.
Registered apprenticeship is an effective tool for both providing the
training necessary for a worker's success in an occupation, and for
measuring an apprentice's developing proficiency in the occupation.
Because registered apprenticeship is primarily driven by industry
needs, and employers are able to specifically tailor their workforce
training regimen to such needs, registered apprenticeship provides
assurances to employers that their incoming workforce is prepared and
set up for success.
Registered apprenticeship programs are sponsored voluntarily by a
wide range of organizations, including individual small to large
employers, employer associations, joint labor-management organizations,
workforce intermediaries, and educational institutions. These and other
stakeholders comprise the National Apprenticeship System, a voluntary
system of registered apprenticeship programs and their sponsors, SAAs,
and the industry stakeholders that drive the formulation of
apprenticeship training regimens that best fit their industry.\3\ The
National Apprenticeship System is further supported by the experts in
workforce development policy that provide advice and counsel to the
Department on matters relating to registered apprenticeship. These
experts include the Advisory Committee on Apprenticeship (ACA); other
workforce development programs that connect job seekers and employers
(such as those programs funded through the Workforce Investment Act of
1998,\4\ as amended by the Workforce Innovation and
[[Page 3121]]
Opportunity Act \5\ (as codified at 29 U.S.C. ch. 32) (WIOA)); and
educational institutions that prepare students for quality careers.
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\3\ In registered apprenticeships, such training plans are
referred to as ``work process schedules.''
\4\ Public Law 105-220, 112 Stat. 936 (1998).
\5\ Public Law 113-128, 128 Stat. 1425 (2014).
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Apprenticeship is an international workforce development strategy
that provides high-quality training for desirable careers in many
countries.\6\ The Department engages in ongoing consultations and
discussions with other national governments, international labor
organizations, and other international stakeholders to further inform
oversight of the system of registered apprenticeship in the United
States. For example, the Department follows and contributes to the
deliberations of the International Labour Organization (ILO) and the
International Labour Conference that informs the ILO's recommendations
and statements on best practices in labor policy (including the
elements of quality apprenticeships). In addition, through joint
declarations of intent and memoranda of understanding with foreign
nations with sophisticated apprenticeship systems (such as with
Austria, Germany, and Switzerland), the Department continues to engage
with international partners to learn about the elements of successful
apprenticeships across the globe, and to explore strategies for
applying such lessons so as to improve the overall quality of training
provided within the National Apprenticeship System.
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\6\ For example, the ILO serves as an international repository
of workforce development expertise from around the globe. See ILO,
``Apprenticeships,'' https://www.ilo.org/global/topics/apprenticeships/lang-en/index.htm (last visited July 20, 2023).
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Apprentices who complete a registered apprenticeship program
receive an industry-recognized credential and a long-lasting economic
benefit. Registered apprenticeship provides high-quality on-the-job
training and related instruction, while conferring a nationally
recognized credential upon successful completion of the program.\7\ The
success of this workforce development model with respect to apprentice
outcomes is clearly validated by the data; for example, 90 percent of
apprentices who complete a registered apprenticeship program retain
employment with the employer connected to the program, and apprentices
who complete such programs earn an average annual salary of $77,000.\8\
One study of registered apprenticeship programs in ten States found
that the estimated lifetime career earnings of registered
apprenticeship participants in those States average $98,718 more than
similar individuals who did not participate in a registered
apprenticeship program. In the study, apprentices who completed the
program in those States on average have lifetime earnings $240,037
greater than similar individuals who did not participate in a
registered apprenticeship program.\9\ Everyone benefits from enhanced
systems to develop skilled workers in high-paying occupations,
including job seekers and their families, employers, and communities.
Education, industry, and government can work together to support
quality training programs, supporting a national economy that provides
opportunities for workers and businesses alike.
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\7\ The Certificate of Completion, conferred to apprentices who
complete a registered apprenticeship program, represents the
universal, nationally recognized credential available in all
registered apprenticeship programs. In addition, many registered
apprenticeship programs provide interim credentials upon the
successful completion of interim trainings related to the
development of occupation- or industry-critical job skills, or an
occupational credential recognized throughout an industry (i.e., a
portable credential).
\8\ OA, ``Explore Registered Apprenticeship,'' Aug. 2022,
https://www.apprenticeship.gov/sites/default/files/dol-industry-factsheet-apprenticeship101-v10.pdf.
\9\ 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.
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B. Statutory and Regulatory History of Registered Apprenticeship
The NAA (29 U.S.C. 50) authorizes the Secretary of the Department
of Labor (the Secretary) to ``formulate and promote the furtherance of
labor standards necessary to safeguard the welfare of apprentices, to
extend the application of such standards by encouraging the inclusion
thereof in contracts of apprenticeship, to bring together employers and
labor for the formulation of programs of apprenticeship, [and] to
cooperate with State agencies engaged in the formulation and promotion
of standards of apprenticeship.'' Under this authority, the Department
has established the registered apprenticeship program. The Department
has set forth labor standards designed to facilitate these statutory
directives through its implementing regulations at 29 CFR part 29.
Those regulations prescribe minimum quality and content requirements
with respect to a program's standards of apprenticeship and its
apprenticeship agreements; establish procedures concerning the
registration, cancellation, and deregistration of apprenticeship
programs; and set forth a mechanism for the recognition of SAAs as
Registration Agencies authorized to register and oversee registered
apprenticeship programs in a State. A companion regulation, at 29 CFR
part 30, also implements the NAA by setting forth minimum EEO
requirements that registered apprenticeship programs must follow in
order to obtain and maintain registration status. The first version of
the labor standards of apprenticeship regulation at 29 CFR part 29 was
issued by the Department in 1977 and was subsequently revised in 2008.
The part 30 regulations were last updated in a final rule published in
the Federal Register in December 2016.\10\
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\10\ 81 FR 92026 (Jan 18, 2017) (2016 EEO final rule).
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Within the Department, the responsibility for administering the
requirements of the NAA and its implementing regulations rests with OA.
OA oversees the National Apprenticeship System and currently serves as
the Registration Agency for registered apprenticeship programs
operating in 22 States and Puerto Rico.\11\ OA also provides
recognition, oversight, and technical assistance on the requirements of
29 CFR parts 29 and 30 to SAAs in the other States, and in the District
of Columbia, the Virgin Islands, and Guam. In these ``SAA States,'' the
SAA has requested and received recognition from the Department to serve
as the entity authorized to register and oversee State and local
apprenticeship programs for Federal purposes. In SAA States, SAAs must
work closely with OA to implement registered apprenticeship programs
consistent with the Federal regulations to maintain their recognition
status.
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\11\ For a list of States and Territories where OA serves as the
Registration Agency, see OA, ``About Us,'' https://www.apprenticeship.gov/about-us/apprenticeship-system (last visited
July 20, 2023).
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In the 15 years since the current version of 29 CFR part 29 was
published, the scope and visibility of registered apprenticeship in the
United States has expanded significantly. Since 2008, when the
registered apprenticeship regulations were last updated, significant
developments in technology, including its capabilities and centrality
to business' priorities and Americans' daily lives, have altered the
landscape for the primary stakeholders in the apprenticeship system.
Historically, registered apprenticeship has been a successful model for
the construction industry and for the skilled trades. For example,
Federal benefits are tied to the use of apprentices in registered
apprenticeship programs on construction projects under the Davis-Bacon
and related Acts. The Davis Bacon and Related Acts regulations allow
employers on certain construction
[[Page 3122]]
projects to pay apprentices participating in a registered
apprenticeship program at less than the prevailing wage.\12\ More
recently, because the registered apprenticeship model has shown
tangible benefits for both workers and employers in industries beyond
the traditional trades, both Federal and State laws are increasingly
promoting the utilization of registered apprenticeship for the training
and employment of workers.\13\ For example, at the Federal level, WIOA
promoted the benefits of registered apprenticeship to increase economic
opportunities for workers. Registered apprenticeship programs are
automatically eligible to be listed as Eligible Training Providers
(ETPs) within the Federally funded workforce development system under
WIOA,\14\ an important signal to job seekers, workforce policy
stakeholders, and employers that registered apprenticeship programs
offer quality occupational skills training intended to equip workers
with the skills local employers are looking for. Additionally, since
2016, the Department has been appropriated specific resources for the
purposes of expanding registered apprenticeship programs. Most
recently, the Inflation Reduction Act of 2022 (IRA) signed into law by
President Biden provided for the first Federal tax credit directly tied
to the utilization of apprentices in registered apprenticeship programs
on certain clean energy projects. In addition, several agencies funded
under the Bipartisan Infrastructure Law and CHIPS and Science Acts,
respectively, have prioritized applications that partner with
registered apprenticeship programs in certain funding
opportunities.\15\
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\12\ Wage and Hour Division, ``Fact Sheet #66: The Davis-Bacon
and Related Acts (DBRA),'' Mar. 2022, https://www.dol.gov/agencies/whd/fact-sheets/66-dbra.
\13\ For a list of States that offer tax credits and tuition
support for apprentices, see OA, ``State Tax Credits and Tuition
Support,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/state-tax-credits-and-tuition-support (last
visited July 20, 2023).
\14\ Abt. Associates and Urban Institute, ``Challenges and
Opportunities for Expanding Registered Apprenticeship with Workforce
Innovation and Opportunity Act (WIOA) Title I: Findings from the
American Apprenticeship Initiative Evaluation,'' Aug. 2022, https://wdr.doleta.gov/research/FullText_Documents/ETAOP2022-39_AAI_Brief-WIOA_Final_508_9-2022.pdf.
\15\ DOL, ``The Good Jobs Initiative Impact,'' https://www.dol.gov/general/good-jobs/gji-impact (last visited Oct. 2,
2023).
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C. Need for the Proposed Rulemaking
Registered apprenticeship is growing and diversifying. It has
maintained its status as the ``gold standard'' for workforce
development in the construction and skilled trades sectors where
registered apprenticeship has been prevalent and successful for
decades. In addition, it is increasingly seen as a viable option for
employers to develop the incoming workforce, and for job seekers to
identify and pursue quality career paths in a wide range of new and
emerging industries. In 2009, the year after the last update to the
part 29 regulations was finalized, there were 420,140 active
apprentices in the United States, participating in 26,622 active
programs (of which, 1,456 were new programs started within the previous
year).\16\ In 2022, there were 599,246 active apprentices participating
in 24,400 active programs (of which, 2,343 were new).\17\ Registered
apprenticeship has proven resilient as well--though the coronavirus
disease of 2019 (COVID-19) pandemic caused a 12-percent decrease in new
apprentices between fiscal years (FY) 2019 and 2020, the program
bounced back with a 9-percent increase in new apprentices in FY21.\18\
Still, despite its growth and resiliency, registered apprenticeship is
underutilized as a workforce development solution in the United States,
where apprentices have constituted a significantly smaller share of the
overall workforce than in other countries (such as Australia, Canada,
Germany, and the United Kingdom).\19\
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\16\ Apprenticeship data by fiscal year is accessible at OA,
``About Apprenticeship,'' https://www.dol.gov/agencies/eta/apprenticeship/about (last visited July 20, 2023).
\17\ Ibid.
\18\ Ibid.
\19\ See ``Apprenticeships and their potential in the U.S.,''
Keith Rolland, Federal Reserve Bank of Philadelphia, Winter 2015,
https://www.philadelphiafed.org/community-development/workforce-and-economic-development/apprenticeships-and-their-potential-in-the-us
(citing at footnote 14 a presentation by Professor Robert I. Lerman
of the Urban Institute, which noted that apprentices constituted
only 0.2% of the U.S. labor force, compared with 2.2% in Canada,
2.7% in Great Britain, and 3.7% in Australia and Germany). See also
Lerman, ``Proposal 7: Expand Apprenticeship Opportunities in the
United States,'' The Hamilton Project of the Brookings Institution,
2015, at p. 3, https://www.hamiltonproject.org/assets/legacy/files/downloads_and_links/expand_apprenticeship_opportunities_united_states_lerman.pdf.
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Working with stakeholders like the ACA,\20\ the Department
continues to identify strategies and opportunities to expand registered
apprenticeship into new sectors. The Department views registered
apprenticeship as an important piece of America's workforce development
system and Americans' economic well-being, and is committed to meeting
the moment by updating and modernizing the regulations in part 29.
Ultimately, the Department's goal in pursuing this rulemaking is to
facilitate the evolution of a National Apprenticeship System that
maintains the hallmarks of apprenticeship quality developed over the
past century, keeps pace with the evolving needs of a growing set of
industries, and incorporates flexibilities and system modernizations to
facilitate the expansion and growth of registered apprenticeship.
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\20\ Expansion into new and emerging industries was a
significant focus of the most recent term of the ACA. The ACA
organized a subcommittee entirely focused on such expansion efforts,
and workforce development experts from the employer, labor, and
public sectors came together to deliberate and deliver
recommendations on this topic in the ACA's 2023 Biennial Report.
ACA, ``Biennial Report to the Secretary of Labor,'' May 10, 2023,
https://www.apprenticeship.gov/sites/default/files/Final%20ACA%20Biennial%20Report%20-%20May%2010%202023.pdf.
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In this proposal to revise the part 29 regulations, the Department
seeks to advance several interrelated goals that shape the Department's
vision for an improved National Apprenticeship System. Foremost among
these goals is the preservation of quality throughout all registered
apprenticeship programs, both existing programs and new programs that
will enter the system in the coming years. Throughout the proposal, the
Department seeks to improve the quality of apprenticeship training and
the quality of working conditions for apprentices, and to further
promote DEIA principles and goals throughout the National
Apprenticeship System. In line with the Department's statutory
responsibility to safeguard the welfare of apprentices, the Department
is proposing quality improvements throughout the system to improve the
protection, safety, and welfare of apprentices, such as proposed
prohibitions on non-compete and non-disclosure provisions in
apprenticeship agreements between sponsors and apprentices and enhanced
protections against unreasonable participation costs for apprentices.
Relatedly, the Department has determined that establishing improved
accountability measures throughout the system is a necessary component
of maintaining the high level of quality that makes registered
apprenticeship such a useful tool for job seekers and employers in the
United States. Accordingly, the Department proposes several
accountability enhancements throughout this proposal, including a
clearer assignment of responsibilities for employers that participate
in a registered apprenticeship program (but do not serve as a program
sponsor). In line with its goals to maintain quality and improve
accountability throughout the National Apprenticeship System, the
Department is also proposing
[[Page 3123]]
reforms to the governance structure and the relationship between OA and
SAAs, including clarifying the respective roles and duties of SAAs and
State Apprenticeship Councils.
In addition to the foregoing proposed enhancements to the
registered apprenticeship model, the Department has determined that the
core concepts of earn and learn, quality labor standards, and skill
development can be expanded to benefit many additional groups,
including in-school youth and individuals from underserved communities
who have often faced barriers to the job market. The Department
proposes to establish regulations for an additional model of
apprenticeship that aligns State-approved CTE programs, in particular
those funded under the Perkins program, with foundational elements of
apprenticeship. This model, which the proposed rule defines as
registered CTE apprenticeship, would deliver the industry-specific
portions of the paid on-the-job training and related instruction
components of registered apprenticeship through a State-approved CTE
program. The Department envisions that registered CTE apprenticeship
programs would be most accessible and propitious for secondary and
postsecondary students, and would generally target individuals at the
earliest stages of their career development or who are transitioning
into a different career.
Accordingly, the Department's proposed baseline requirements for
registered CTE apprenticeship programs would account for this target
population and the increased alignment with educational institutions
(as compared to registered apprenticeship). The Department's vision for
the possible outcomes of registered CTE apprenticeship programs also
aligns with the unique considerations of those in the earliest stages
of career development--registered CTE apprenticeship programs would
place apprentices in employment, a postsecondary educational program,
or a registered apprenticeship program under subpart A, potentially
with advanced standing or credit to accelerate their progress through
the program. This new model would bridge the existing education and
workforce development systems to build a skilled talent pipeline.
Lastly, in the Department's view, the National Apprenticeship
System and its diverse stakeholders would be better served by a more
uniform and nationally applicable approach to system governance.
Employers whose operations extend nationwide, or throughout a
multistate region, face challenges when engaging with Registration
Agencies across the National Apprenticeship System wherein the
approach, parameters, and outcomes of such engagement may differ from
State to State. Throughout this proposal, the Department seeks to
establish a more uniform, national system, including by retaining the
ultimate authority and responsibility to make determinations regarding
an occupation's suitability for registered apprenticeship training and
through the introduction of a State planning process for SAAs to
establish transparency and alignment throughout the system. The
Department also views the improved collection and analysis of
apprenticeship data as a critically important goal of its proposal to
update the part 29 regulations. To maximize the benefits of improved
data collection for all stakeholders in the National Apprenticeship
System, including apprentices, program sponsors, and employers, the
Department seeks to establish a truly national and comprehensive
database of information about registered apprenticeship programs and
apprentices in order to accurately assess the performance and equity of
these important workforce development programs.
D. Stakeholder Outreach
The Department has been continuously engaged with apprenticeship
stakeholders to pursue improvements and growth throughout the system,
and such engagement has been particularly useful in the development of
this proposal. The Department has sought advice, recommendations, and
guidance from a number of external sources, research, and stakeholder
inputs, including:
The 2022 interim recommendations \21\ of the ACA and its
2023 Biennial Report,\22\ which incorporates the ACA's 2022 Interim
Report recommendations and includes additional guideposts for OA to
consider related to registered apprenticeship;
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\21\ ACA, ``Interim Report to the Secretary of Labor,'' May 16,
2022, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
\22\ ACA, ``Biennial Report to the Secretary of Labor,'' May 10,
2023, https://www.apprenticeship.gov/sites/default/files/Final%20ACA%20Biennial%20Report%20-%20May%2010%202023.pdf.
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Virtual Listening Sessions in 2021 coordinated by OA in
partnership with various partners and stakeholders to hear perspectives
on the current state of the National Apprenticeship System and to
gather ideas and suggestions on ways to modernize registered
apprenticeship programs; \23\
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\23\ OA, ``2021 Apprenticeship Listening Sessions,'' Dec. 2021,
https://www.apprenticeship.gov/sites/default/files/APPROVED%20Listening%20Session%20Report%20%2812-6-22%29%20%28002%29.pdf.
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National Online Dialogue in 2022, led by OA and launched
by ePolicyWorks (entitled ``Advancing the National Apprenticeship
System''), which asked participants, including various partners and
stakeholders, to describe what they believed to be the optimal
implementation of the registered apprenticeship model; \24\
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\24\ Entries in the Advancing the National Apprenticeship System
dialogue are available at Ideascale Feedback Software, ``Advancing
the National Apprenticeship System,'' https://advancingapprenticeships.ideascale.com/c (last visited June 26,
2023).
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Virtual Listening Sessions in 2023, coordinated by OA,
wherein partners and stakeholders were given the opportunity to share
perspectives on the current state of the National Apprenticeship System
and to share policy recommendations for ways to strengthen and
modernize the system. Questions for these sessions were developed, in
part, by reviewing the ACA's 2022 Interim Report;
The 2023 Quality Apprenticeships Recommendation (ILO
Recommendation No. 208), adopted by the 111th International Labour
Conference on June 16, 2023, which describes the fundamental attributes
of quality apprenticeships; \25\ and
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\25\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO
Recommendation No. 208), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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Regular stakeholder engagements related to the expansion
of the registered apprenticeship model, including with industry groups,
labor unions, worker advocates, State and local workforce partners,
education systems, and intermediaries.
Ongoing oversight of the National Apprenticeship System conducted
by OA's staff at the national and regional level, including technical
assistance and support provided to registered apprenticeship program
sponsors, potential sponsors interested in apprenticeship, and other
stakeholders, as well as formal reviews of individual programs,
internal processes, and apprenticeship's place in national workforce
development, has also been an important source of data that underpins
this proposal. Analyzing lessons learned from OA's outreach and support
provided to potential program sponsors has helped OA better
[[Page 3124]]
understand the misconceptions or barriers that employers perceive as
they inquire about or pursue setting up a registered apprenticeship
program. The Department considered these data in developing key
priorities for the proposed regulation and to advance the Department's
goal of expanding registered apprenticeship's footprint in new and
emerging industries. Key reforms in this proposal that the Department
expects will support this goal include system modernization and the
definition and dissemination of new tools and resources to ease the
program onboarding process.
OA's role providing oversight of the National Apprenticeship System
by conducting reviews of programs, working with Federal, State, and
local partners to resolve issues or disputes, and otherwise monitoring
stakeholder compliance with the existing regulations, has also been
informative and instrumental in developing the enhanced quality
elements in this proposed rule. Program and system oversight has
influenced OA's identification of the hallmarks of quality registered
apprenticeship programs, persistent issues that impact programs, and
gaps or weaknesses in the existing regulatory framework. Analyzing
these data has informed the development of key quality and
accountability aspects of this proposal, including the proposed
protections for apprentices against undue costs of participation and
restrictions on their labor market mobility and clarifications
regarding the appropriate roles and responsibilities of stakeholders
within the system (such as clearly articulating the roles and
responsibilities of participating employers and clarifications on the
appropriate role of State Apprenticeship Councils in system
governance).
E. Vision and Goals of This Rulemaking
Overall, outreach and engagement with the National Apprenticeship
System's many diverse stakeholders has been a central element of OA's
efforts to identify high-level priorities for this proposed update to
the part 29 regulations. These priorities reflect OA's consideration,
synthesis, and proposed approach to the implementation of the
recommendations and priorities arising from engagement with
stakeholders holding diverse perspectives based on their backgrounds
from different sectors of the economy and roles within the National
Apprenticeship System.\26\ The resulting NPRM reflects a balance of
priorities and perspectives that, in the Department's view, would
result in a National Apprenticeship System that is responsive to
industry needs, promote and maintain the hallmarks of high-quality
apprenticeships, and clearly define and facilitate the roles and
responsibilities of stakeholders. The following discusses this NPRM's
guiding priorities, including the issues that give rise to each and the
Department's proposed approach to addressing those issues.
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\26\ For example, the ACA comprises equal numbers of
representatives from the public, private, and labor sectors. Later
in this NPRM, the Department proposes a parallel requirement for the
makeup of State Apprenticeship Councils to ensure that these diverse
perspectives (and the natural tension thereof) are considered as
State Apprenticeship Councils deliberate and offer non-binding
advice to SAAs.
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Expansion With Quality
Stakeholders throughout the National Apprenticeship System, as well
as potential stakeholders representing new industries or expressing
interest in developing new opportunities for the system's growth, have
consistently advised the Department that systemwide modernization is
essential for advancing the Department's goal of expanding registered
apprenticeship. The current regulations were finalized during an era in
which the economy as a whole and the landscape for registered
apprenticeship in particular were very different. The Department
intends to modernize the regulations to reflect the contemporary era
and the expanded potential for registered apprenticeship. The proposed
rule would position registered apprenticeship as a mainstream, high-
quality postsecondary training strategy that offers a career path
across industries and sectors.
First, the scope of business sectors, industries, and occupations
that have benefitted and would benefit from registered apprenticeship
has expanded, including both the emergence of entirely new industries
and occupations (within the IT and education sectors, for example), as
well as evolutions within existing industries and occupations. Economic
and technological evolution have also greatly impacted the outlook for
existing and potential apprentices, including how they are made aware
of registered apprenticeship and other workforce training programs, how
they access such programs, their options for participation and
interaction with such programs, and the scope of careers and job skills
they can pursue.
Second, the advent of increased funding opportunities to support
the development of registered apprenticeship programs has further
expanded registered apprenticeship's potential scope. As Federal and
State resources are made available to support the expansion of
registered apprenticeship, this is a critical opportunity to strengthen
and reinforce the labor standards to affirm the core guarantees of
registered apprenticeship for workers and employers in an evolving
labor market. Beginning in 2015, the Department began announcing the
availability of funding for registered apprenticeship through several
different vehicles. This included approximately $175 million to expand
apprenticeship into sectors with few apprenticeships and to populations
traditionally underrepresented in apprenticeship through AAI,\27\
investments to support registered apprenticeship intermediaries focused
on specific industries or equity,\28\ and provide funding on an annual
basis to support States' efforts to expand capacity, increase the
number of registered apprentices, and modernize the National
Apprenticeship System.\29\ Grant funding appropriated for States
between 2016 and 2023 was $419,500,000. Over the years, the further
funding announced by the Department included over $10 million to
support women's participation in registered apprenticeship programs
through the Women in Apprenticeship and Nontraditional Occupations
(WANTO) grants since 2019,\30\ $20 million to support the execution of
a collaborative partnership with the American Association of Community
Colleges to support the Expanding Community College Apprenticeship
initiative in 2019, and $284 million to support expansion of
apprenticeships into non-traditional industries in 2019-2020.\31\
Competitive rounds of funding have also been awarded to reach other
types of organizations. In 2020, the Department announced $42.5 million
for Youth Apprenticeship Readiness Grants. In 2022, the Department
announced more than $171 million for the Apprenticeship Building
America
[[Page 3125]]
grants.\32\ The reauthorization of WIOA in 2014 and the reauthorization
of Perkins in 2018 (also known as Perkins V) brought additional
opportunities to align Federal education and workforce investments with
registered apprenticeship programs. Opportunities include State and
local workforce development board membership, State and local planning,
funding for pre-apprenticeship programs, and funding availability to
support WIOA participants' placement in registered apprenticeship
programs.\33\ The Department anticipates additional investments that
align with The Good Jobs Principles, a shared vision of job quality,
equity, and worker empowerment published in 2022 by the Department and
Department of Commerce.\34\ Additionally, the principles have been
reflected or referenced in funding opportunities implementing
infrastructure investments through the Bipartisan Infrastructure Law
and the IRA.
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\27\ See a list of past funding opportunities and awardees at
OA, ``Past Grants and Contracts,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/past-grants-and-contracts (last visited July 20, 2023).
\28\ See OA, ``National Industry and Equity Apprenticeship
Intermediaries: Advancing Registered Apprenticeship for Businesses
and Workers in the U.S.,'' Jan. 19, 2021, https://www.apprenticeship.gov/sites/default/files/Industry-and-Equity-Intermediary-Accomplishment-Fact-Sheet.pdf.
\29\ See OA, ``State Apprenticeship Expansion,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/state-apprenticeship-expansion#awardee_list (last visited July 20,
2023).
\30\ DOL, WANTO Grant Program, https://www.dol.gov/agencies/wb/grants/wanto (last visited Oct. 23, 2023).
\31\ See ``H-1B Skills Training Grants,'' https://www.dol.gov/agencies/eta/skills-grants/h1-b-skills-training (last visited July
20, 2023).
\32\ ETA, ``State Apprenticeship Expansion Formula,'' FOA-ETA-
23-09, Mar. 17, 2023, https://www.grants.gov/web/grants/view-opportunity.html?oppId=345785.
\33\ For information regarding how WIOA relates to
apprenticeship, see OA, ``Workforce Innovation and Opportunity
Act,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/workforce-innovation-and-opportunity-act (last
visited July 20, 2023).
\34\ See DOL, ``The Good Jobs Initiative,'' https://www.dol.gov/general/good-jobs/principles (last visited July 20, 2023).
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These historic investments in the National Apprenticeship System,
along with the new opportunities uncovered by an evolving economy and
national workforce model, have introduced a much broader range of
registered apprenticeship stakeholders (including existing, newly
established, and potential stakeholders) since the regulations were
last updated in 2008. Accordingly, the Department has determined that
the part 29 regulations must be modified and modernized in order to
accommodate the growing set of stakeholders, provide tools and
resources to ease their entry into the system, and maximize the impact
of the aforementioned investments. In the proposed regulation, the
Department introduces and defines the purpose of new products to
support the development of new registered apprenticeship programs.
These products--National Occupational Standards for Apprenticeship,
National Guidelines for Apprenticeship Standards, and National Program
Standards for Apprenticeship--would feature ample opportunities for
industry to provide input and feedback. They would also leverage the
Department's existing and emerging relationships to ensure efforts to
expand registered apprenticeship are responsive to the evolving and
distinct needs of all industries, including those targeted for
expansion.\35\
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\35\ In this proposal, the Department seeks to further clarify
the role of industry through the text, including by defining the
term ``intermediary'' (used commonly in practice by industries but
not defined in the current regulations at part 29) and establishing
clear roles for intermediaries in the process to develop National
Occupational Standards for Apprenticeship, National Guidelines for
Apprenticeship Standards, and National Program Standards for
Apprenticeship.
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The Department's vision for a modern system also includes an
acceleration of its ongoing efforts to leverage advancements in
technology to improve its internal systems and data analysis
capabilities; modernize and strengthen the reporting tools available to
registered apprenticeship program sponsors, SAAs, and other
stakeholders; and move the system's administrative functions fully
online. The Department anticipates that such improvements would
complement the proposed regulation's introduction of industry-driven
tools for onboarding new programs. Keeping pace with evolving
industries, technological developments, and emerging opportunities for
alignment among national workforce system programs is essential for
achieving the Department's goal of expanding registered apprenticeship.
It would also help the Department advance opportunities to access the
National Apprenticeship System, provide oversight and assistance to new
and existing stakeholders, and streamline administrative functions
throughout the system.
In line with the Department's prioritization of system
modernization in this proposed rule, the Department views the enhanced
capacity to collect and analyze data as a key advantage of keeping pace
with technological developments. As such, the Department is
prioritizing the ongoing development of a modernized and enhanced data
collection and analysis framework. Though much of this work occurs
outside of the regulatory space, the Department has identified a need
to update regulatory requirements around data collection to improve its
ability to make data-driven decisions about apprenticeship policy,
review and assess registered apprenticeship program performance, and
communicate the value of apprenticeship as a viable workforce training
model. The Department believes this is an opportunity to orient the
National Apprenticeship System around increased performance
accountability, transparency, and a focus on outcomes.
In the years since the registered apprenticeship regulations were
last updated, the Department has invested resources to improve its
processes for the collection of data pertaining to apprenticeship and
the secure storage of such data. Such resources were also distributed
among States to improve SAAs' data collection and reporting
capabilities.\36\ The Department has also collaborated with registered
apprenticeship programs, industry intermediaries, other government
agencies, and other interested stakeholders to better understand the
insights and performance benchmarks that can be drawn and applied
through targeted analyses of registered apprenticeship data. The
lessons learned from these ongoing, collaborative engagements were
echoed by the members of the ACA, who provided several recommendations
related to data for the Department's consideration. The ACA discussed
the value of developing a more national, comprehensive set of data
related to registered apprenticeship. Currently, data pertaining to
registered apprenticeship are collected in a disparate manner: data
collection practices are distinct for SAA States and OA States, and not
all States provide data to the Department's primary data repository,
Registered Apprenticeship Partners Information Data System
(RAPIDS).\37\ The ACA also recommended that OA update its data
collection and analysis capabilities to improve its ability to glean
data-driven insights and make informed policy or oversight decisions
based on such insights.\38\ To do this, the Department must take steps
towards developing a data collection framework that collects uniform
data elements on a nationwide basis in order to disaggregate such data
[[Page 3126]]
in key ways (such as by race and ethnicity, industry, occupation, from
a State or national perspective) and assess information that accurately
compares program outcomes.\39\ The Department is interested in
improving its ability to assess accurate, up-to-date registered
apprenticeship data related to equitable participation and program
outcomes for apprentices, the prevalence and usefulness of interim
credentials or other industry-recognized certifications provided to
apprentices, and wages earned by apprentices who complete registered
apprenticeship programs, among other measures that may offer useful
insights to registered apprenticeship program success and opportunities
for targeted improvements.
---------------------------------------------------------------------------
\36\ ETA, ``State Apprenticeship Expansion Formula,'' FOA-ETA-
23-09, Mar. 17, 2023, https://www.grants.gov/web/grants/view-opportunity.html?oppId=345785.
\37\ The ACA recommended that OA work with States to encourage
full participation in RAPIDS, with the goal of developing a more
national and comprehensive data set: ``Generally, encourage those
States that do not participate in the RAPIDS system, or participate
to a lesser degree than full participant States, to participate in
the collection and sharing of apprenticeship data for the benefit of
the national dataset (RAPIDS).'' ACA, ``Interim Report to the
Secretary of Labor,'' May 16, 2022, at 16, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
\38\ The ACA recommended that OA ``measure and track success
through Equity Indices showing the representation of new, active,
and completing apprentices from each underserved demographic group
in the context of local area, industry, education/skills, and wages/
promotions.'' Id. at II-10.
\39\ The ACA recommended that OA ``make apprentice demographic
data, disaggregated by race, ethnicity, and sex, and separately for
each State and for each standard occupation code, public on a
dashboard site.'' Ibid.
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Accordingly, the Department's proposed rule would update
requirements regarding the collection and maintenance of data for
program stakeholders. The proposed rule also presents new data elements
for collection to better understand the apprenticeship landscape and
enhance OA's and SAAs' ability to make data-driven decisions and
improvements throughout the National Apprenticeship System. Such new
data elements would include requiring program sponsors to provide data
on the interim credentials or other industry-recognized certifications
offered through their programs and requiring that applications for a
determination on an occupation's suitability for registered
apprenticeship training include information relating to the career wage
profile of the subject occupation. Additionally, the Department would
collect information from sponsors on pre-apprenticeship program
engagement and placement as part of this proposed rule. Proposed
reforms to the registered apprenticeship regulations would also
prioritize collecting information on both postsecondary academic credit
and industry-recognized credentials that apprentices acquire as part of
their participation in registered apprenticeship programs, in addition
to their acquisition of Certificates of Completion of registered
apprenticeship programs. These reforms would allow students, job
seekers, and workers to make better informed choices regarding their
career needs.
These data elements, along with proposed updates to the part 29
regulations intended to encourage a more uniform and consistent
approach to data collection and analysis,\40\ would greatly enhance the
Department's ability to derive accurate, timely, and consequential
insights about registered apprenticeship on a nationwide basis. This
would ultimately improve the Department's ability to provide guidance
and oversight to stakeholders throughout the National Apprenticeship
System.
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\40\ For example, see the Department's discussion of its
proposal to make SAA planning and data reporting more consistent
through the implementation of State Apprenticeship Plans in the
section-by-section analysis of this NPRM for proposed Sec. 29.27.
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Accurately assessing the quality of registered apprenticeship
programs, and actively pursuing opportunities to improve such quality
across all registered apprenticeship programs, remains one of the
Department's most important responsibilities related to its oversight
of the National Apprenticeship System. Establishing a baseline for
registered apprenticeship program quality is one of the most salient
and practical functions of the part 29 regulations. While the
Department believes that the current regulations have successfully
guided the development and expansion of quality registered
apprenticeship programs presently in existence, the Department has
identified potential improvements to the program quality framework that
it is pursuing in this proposed rule. The Department's identification
of these quality improvements stems from its ongoing collaborations
with industry partners and apprenticeship stakeholders, analysis of the
persistent issues that arise as the Department executes program
reviews, and feedback from apprentices, program sponsors, and employers
participating in registered apprenticeship programs (including both
success stories and efforts to review and address complaints related to
registered apprenticeship programs).
First, the Department relies on the part 29 regulation's standards
of apprenticeship to apply quality standards consistently across all
registered apprenticeship programs. Any program seeking registration by
the Department for Federal purposes must develop a set of program
standards that apply to the specific program and align with the minimum
quality standards contained within the part 29 regulations (currently
at 29 CFR 29.5). Accordingly, many of the program quality enhancements
the Department is pursuing in this proposed regulation would update the
proposed section for standards of apprenticeship (at proposed 29 CFR
29.8). Engagement with stakeholders, including the ACA, and review of
the Administration's priorities for the Department (such as the Good
Jobs Initiative driven by the Administration and led by the Department
\41\), has helped the Department identify several areas ripe for
improved quality standards for registered apprenticeship. These include
ensuring that all registered apprenticeship programs convey
competencies and lead to occupational proficiency for apprentices who
complete programs (see the Department's proposed consolidation of the
apprenticeship training models at proposed 29 CFR 29.8(a)(4)),
assurances that determinations on occupations' suitability for
registered apprenticeship training consider the career wage profile
related to the subject occupation (see the Department's proposed
inclusion of wage considerations in occupational suitability
determinations at proposed 29 CFR 29.7(b)(2)), and enhanced protections
for apprentices against unreasonable training costs and restrictions on
their labor market mobility (at proposed 29 CFR 29.9).
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\41\ See information about the Good Jobs Initiative and its
impact at DOL, ``The Good Jobs Initiative,'' https://www.dol.gov/general/good-jobs (last visited July 20, 2023).
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Embedding Equity at the Center of Registered Apprenticeship
Advancing equity in registered apprenticeship programs--applicable
to program recruitment, participation, treatment during the course of a
program, and program outcomes--remains a critical priority for the
Department as a whole. The Nation's implementation of an industrial
strategy through historic investments in infrastructure,\42\
technology,\43\ and clean energy \44\ together generate tremendous
opportunities for good jobs but also challenges for recruiting skilled
workers. Engaging workers from underserved communities can be a key
strategy for addressing these challenges. In addition, advancing equity
in registered apprenticeship is central to the Department's proposed
updates to the quality baselines contained in the part 29 regulations.
In particular, the Department has identified several opportunities to
align the part 29 regulations with the EEO in Apprenticeship
regulations at 29 CFR part 30, which were finalized in 2016. The
Department seeks to align the
[[Page 3127]]
proposed updates to 29 CFR part 29 with elements of the 2016 EEO final
rule to advance equity in registered apprenticeship programs by
requiring sponsors to identify and reduce barriers to enrollment in,
and completion of, such programs by individuals from all underserved
communities. In furtherance of this effort, the proposed regulation
would require all sponsors seeking registration of an apprenticeship
program to articulate an equitable, intentional, and achievable
strategy for advancing the program's recruitment, hiring, and retention
of individuals from underserved communities, including through
documented partnerships with pre-apprenticeship or registered CTE
apprenticeship programs. In addition, the proposal would continue to
require registered apprenticeship programs to adhere to all of the
applicable non-discrimination and EEO requirements contained in 29 CFR
part 30.
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\42\ Infrastructure Investment and Jobs Act, Public Law 117-58,
135 Stat. 429 (2021).
\43\ Creating Helpful Incentives to Produce Semiconductors Act
of 2022 (CHIPS Act), div. A of Public Law 117-167, 136 Stat. 1366
(2022).
\44\ IRA, Public Law 117-169, 136 Stat. 1818 (2022).
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In general, the Department is pursuing greater alignment between
the regulations at parts 29 and 30, which were finalized 8 years apart
and have not been updated since the EEO regulations were promulgated in
2016. The Department notes that it is not considering substantive
changes to 29 CFR part 30 in this proposal, and the proposed amendments
to 29 CFR part 30 are limited to the sections and changes necessary to
align with the proposed changes in 29 CFR part 29. As a result, the
Department is not accepting comments on the substantive content of the
regulations at 29 CFR part 30 (beyond the proposal to incorporate the
part 30 definitions into part 29 and any technical edits to part 30
necessary to align with proposed changes to part 29). However, the
Department encourages the public to submit comments on how to best
advance equity in registered apprenticeship as proposed in this NPRM.
The Department understands, based on several decades of oversight
of the National Apprenticeship System, that the quality standards and
other regulatory requirements are only as strong as the accountability
measures that establish roles, responsibilities, and expectations of
key stakeholders in the National Apprenticeship System. Where such
accountability is unclear or undefined in the part 29 regulations,
individuals' or entities' responsibility for preventing or addressing
issues, shortcomings, or problematic outcomes related to registered
apprenticeship programs can be questioned, contested, or avoided. This
leaves apprentices with an unclear path forward and, at times, stuck
with an unfavorable outcome. In order to fulfill its statutory
obligation to protect apprentices' welfare and well-being, the
Department has identified several areas where accountability within the
system can be strengthened or clarified. For example, this proposed
rule contains provisions intended to ensure that both registered
apprenticeship program sponsors and, critically, any employers that
have adopted the sponsor's standards of apprenticeship (referred to in
the proposed regulation as ``participating employers'') are responsible
for adhering to the minimum labor standards stipulated in 29 CFR part
29, as well as the EEO requirements contained in 29 CFR part 30. The
proposed rule would also require the sponsors of group programs to both
screen and actively monitor participating employers to ensure their
compliance with the foregoing regulatory provisions. Such enhanced
accountability mechanisms are intended to ensure that apprentices are
afforded all of the rights and protections required under the Federal
rules pertaining to apprenticeship.
The Department expects that these proposed updates to the part 29
regulation would advance quality, equity, and accountability throughout
the National Apprenticeship System. These proposed quality enhancements
would benefit both existing registered apprenticeship programs and any
new programs entering the system in the coming years. The Department
anticipates that apprentices entering the system, along with their
parents, guardians, dependent family members, and community members,
would benefit from increased confidence in the consistency of quality
throughout the system. The Department invites comments from the public
on the best ways to advance quality, equity, and accountability
throughout the National Apprenticeship System, including reactions to
the proposed updates to the part 29 regulations contained in this
proposal and any additional suggestions or recommendations for the
Department's consideration.
Building a More Consistent and Innovative National Apprenticeship
System
In addition to the recommendations to pursue systemwide
modernization, better leverage apprenticeship-related data, and promote
quality, equity, and accountability in the National Apprenticeship
System, stakeholders have consistently advised the Department to
consider additional pathways to participating in a registered
apprenticeship program and pursuing the apprenticeship model for career
preparation and development, particularly for younger students or job
seekers. The ACA advanced several recommendations related to career
pathways for youth (including those developed by the ACA's dedicated
subcommittee for this issue, the Pathways subcommittee). These included
recommendations to define what is meant by a ``pre-apprenticeship''
program,\45\ invest and encourage participation in workforce readiness
and pre-apprenticeship programs,\46\ and pursue opportunities for
collaboration with other sectors (such as education) to promote
awareness and uptake of pre-apprenticeships and registered
apprenticeships.\47\ The Department is energized by these discussions
of the evolving strategies to achieve growth throughout the National
Apprenticeship System by identifying and promoting opportunities for
younger students or job seekers to prepare for, and eventually enter
into, a registered apprenticeship program.
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\45\ See the ACA's recommendations, arising from multiple
subcommittees, that the Department ``Define `apprenticeship,' `pre-
apprenticeship,' and `youth apprenticeship''' to ensure programs
align with quality metrics. ACA, ``Interim Report to the Secretary
of Labor,'' May 16, 2022, at 13 and 33, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
\46\ See the ACA's recommendations that ``Federal and State
agencies should invest in quality workforce readiness and pre-
apprenticeship programs'' and that the Department encourage
employers and registered apprenticeship programs to uplift pre-
apprenticeship (e.g., provide conditional offers of registered
apprenticeship employment or interviews upon completion of pre-
apprenticeship). Id. at 36 and II-13.
\47\ See the ACA's recommendation to include (1) tools for
school counselors and teachers to integrate pre-apprenticeship into
curricula and offer students advice on career pathways; (2)
resources to connect employers, schools, students, and parents to
achieve greater buy-in; and (3) retooling of Apprenticeship.gov to
educate public and highlight opportunities. Id. at 36.
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The proposed regulations, in addition to the enhancements to the
registered apprenticeship model, would provide a more robust framework
for identifying and promoting a system of apprenticeship-related
pathways that can lead to sustainable careers. This would include
defining pre-apprenticeship models that the Department believes could
lead to diverse pathways to registered apprenticeship, with greater
assurance that registered apprenticeship would be accessible,
particularly for underserved communities. The proposal would also
provide career seekers looking to get into registered apprenticeship
programs entry points into programs, particularly if they do not
currently meet the entry-level requirements for registered
[[Page 3128]]
apprenticeship programs. Pre-apprenticeship programs are designed to
equip apprentices with the foundational skills required by registered
apprenticeship programs, in order to facilitate the placement of pre-
apprenticeship program participants. Therefore, instead of designing a
model of registering pre-apprenticeships, the Department believes
registered apprenticeship program sponsors would be best positioned to
determine the quality of pre-apprenticeship programs. The proposed rule
would provide more clarity in the system about the meaning of pre-
apprenticeship programs, enable data collection on these programs from
sponsors, and promote greater alignment with other Federal workforce
investments that may support pre-apprenticeship models.
Additionally, a key proposed reform in this rulemaking would be the
development of labor standards for a new model of registered
apprenticeship focused on registered CTE apprenticeships. This proposed
new model of registered apprenticeship would be consistent with
stakeholder recommendations \48\ and the Department's ongoing efforts
to expand employment and training opportunities for youth. Registered
CTE apprenticeship programs would create stronger and more seamless
linkages between educational institutions and workforce development
programs, and they would expand the registered apprenticeship model to
support youth and other individuals entering the workforce through
their enrollment in State CTE programs funded by ED's Perkins program.
Proposed subpart B is designed to strengthen the ties between
individuals in State-approved CTE programs and employment around a
quality framework of labor standards. The Department, in coordination
with ED, has identified an opportunity to increase job quality and
training for youth and other individuals enrolled in State-approved CTE
programs to benefit from structured and common basic labor standards.
The registered CTE apprenticeship model would build on the key tenets
of registered apprenticeship but would have some differences to account
for the unique needs of the population it is designed to serve and
individuals enrolled in State-approved CTE programs.
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\48\ For example, see the ACA's recommendation to support
promotion, awareness, and uptake of apprenticeship programs among
youth, including through tools to integrate pre-apprenticeship
elements into educational curricula. ACA, ``Interim Report to the
Secretary of Labor,'' May 16, 2022, at p. 36, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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National Apprenticeship System Governance and Planning
A key role in implementing the promises of the proposed rule is to
ensure the development of a system of governance for key partners and
leaders in the National Apprenticeship System, particularly SAAs that
have been provided OA's authority to serve as Registration Agencies in
their States. As mentioned previously, OA is responsible for
establishing a system of recognition and governance of SAAs, which
operate as key partners in the National Apprenticeship System. To that
end, the Department is seeking to build a more cohesive system and
structure that promotes greater consistency and minimum standards for
the roles and responsibilities of SAAs through a State planning
approach, as well as criteria around SAAs' approval of registered
apprenticeship programs for Federal purposes, while simultaneously
encouraging strategic planning and innovation in registered
apprenticeship models in the States.
With more than 30 States currently recognized or seeking
recognition as an SAA State, this proposed rulemaking seeks to
modernize and build a State planning framework for the recognition of
SAAs that both satisfies the need for procedural reform and encourages
innovative strategies and ideas for the expansion and modernization of
registered apprenticeship. Accordingly, the proposed rule includes
provisions that would carefully delineate the respective roles and
responsibilities of OA, SAAs, and State Apprenticeship Councils within
the National Apprenticeship System. The proposed rule would also
establish a planning process for SAAs to ensure coordination within the
National Apprenticeship System in pursuit of apprenticeship expansion
and quality, equity, and consistency in experience for sponsors. This
State planning process would also ensure that SAAs are maintaining
minimum standards of registered apprenticeship that safeguard the
safety and welfare of apprentices. Submission of State Apprenticeship
Plans would take place on a cyclical basis, thereby allowing OA to
ensure sufficient staffing capacity to review plans and provide
technical assistance as needed.
The Department anticipates that the National Apprenticeship System
under this proposed rule would provide both workers and businesses with
high-quality, inclusive, and adaptable training models to build a
skilled American workforce for the 21st century across numerous
industries. This proposed rule seeks to ensure the expansion of
apprenticeship models with high-quality standards to address the
evolving needs of the labor market. The Department is proposing
Sec. Sec. 29.1 through 29.6 as applicable to the entire part, while
also proposing three unique subparts for this proposed rulemaking.
Subpart A would address standards for registered apprenticeship
programs, which would update the current section of 29 CFR part 29
regarding the approval of occupations suitable for registered
apprenticeship, the registration standards of apprenticeship,
apprenticeship agreements, and other requirements related to the
development of quality labor standards. Subpart B would address the
proposed registered CTE apprenticeship model, including the
requirements associated with registering a program under that model.
Subpart C would address the Administration and Coordination of the
National Apprenticeship System, including the reporting requirements,
SAA recognition and planning provisions, and a provision about sharing
information to support the integration of registered apprenticeship
into other Federal and State laws. The Department welcomes comments
throughout this proposed rule, particularly those focused on ideas to
promote higher quality and to facilitate expansion to new industries
and occupations.
IV. Section-by-Section Discussion of the Proposed Changes
A. Introduction to the Regulations for the National Apprenticeship
System Under the National Apprenticeship Act of 1937
Section 29.1--Purpose and Scope
The ``Purpose and scope'' section in the current regulation
describes and cites to the Secretary's statutory authority to formulate
and promote labor standards for registered apprenticeship programs to
safeguard the welfare of apprentices participating in such programs.
The Department proposes to remove existing Sec. 29.1(a), which
describes and cites to the Department's authority under the NAA,
because it is unnecessary to repeat the statutory language in the text
of the regulation. The Department has determined that the ``Purpose and
scope'' section for 29 CFR part 29 should instead focus on the
Department's intent and objectives for the part 29 regulations and the
sub-issue areas that follow in the part 29 regulations, all of which
would be
[[Page 3129]]
consistent with the Department's statutory authority.
Proposed 29 CFR 29.1 would largely retain the regulatory text from
current 29 CFR 29.1(b), with a few additions to reflect updates to the
evolving system of registered apprenticeship programs and priorities to
address the expanded role education partners and intermediaries bring
in facilitating the connections between employers and labor as
described in the NAA. Other proposed additions would cover the
Department's role in promoting the expansion of quality registered
apprenticeship programs across a wide array of industries, the critical
role the Department and Registration Agencies have in ensuring
equitable and inclusive opportunities for all American workers, the
proposed new registered model for CTE apprenticeship, the collection of
data, and the oversight of registered apprenticeship programs.
Section 29.2--Definitions
In 2007, when the Department proposed an update to the part 29
registered apprenticeship regulations in an NPRM, the preamble noted
that the Department's proposed updates to the ``Definitions'' section
in 29 CFR 29.2 were intended to clarify and redesignate existing
definitions and establish new definitions used in the registration of
registered apprenticeship programs and in ``ongoing operations of the
National Apprenticeship System.'' \49\ Since 2008, there have been
numerous changes that have impacted the terminology related to the
registration of registered apprenticeship programs and the National
Apprenticeship System's ongoing operations, including revisions or
changes to reflect new understandings or uses of previously defined
terms, the introduction of new terminology to reflect the expansion of
registered apprenticeship concepts, stakeholders, and strategies, as
well as updates that have rendered existing definitions inaccurate,
irrelevant, or obsolete.
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\49\ 72 FR 71019 (Dec. 13, 2007) (NPRM and request for
comments).
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One important development was the revision to the regulations at 29
CFR part 30, which introduced a set of key defined terms that are
relevant and applicable to the regulations at 29 CFR part 29. Having
misaligned definitions, as well as two sets of definitions governing
OA's regulations, could cause unnecessary confusion and burden for the
regulated community and other stakeholders. Accordingly, the Department
proposes to set forth all applicable definitions governing 29 CFR parts
29 and 30 at 29 CFR 29.2. This would centralize the definitions
governing all aspects of the National Apprenticeship System, thereby
better aligning the operation of parts 29 and 30 and eliminating
unnecessary duplication and any inadvertent inconsistency. To
effectuate this change, the Department proposes to revise 29 CFR 30.2
to state that part 30 incorporates the definitions found at 29 CFR
29.2. The Department invites comment on this organizational change,
particularly on its efforts to ensure the regulated community has one
section for all of the definitions pertaining to the National
Apprenticeship System. The Department requests that any comments on the
substance of a proposed definition reference 29 CFR 29.2 rather than 29
CFR 30.2.
Proposed modifications to any definitions currently found at 29 CFR
30.2 as a result of this proposed rulemaking are explained below. The
terms currently found at 29 CFR 30.2 that are not identified below as
undergoing modification would remain unchanged and would simply be
recodified at 29 CFR 29.2. These terms are ``direct threat,''
``disability,'' ``EEO,'' ``ethnicity,'' ``genetic information,''
``major life activities,'' ``physical or mental impairment,''
``qualified applicant or apprentice,'' ``race,'' ``reasonable
accommodation,'' ``selection procedure,'' and ``undue hardship.'' The
Department is proposing that the definition of ``qualified applicant or
apprentice'' include the clarifying clause ``for purposes of part 30.''
This change is proposed to clarify that the definition of ``qualified
apprentice'' in this proposed rule would apply only to the part 30
regulations and would not conflict with the definition of ``qualified
apprentice'' under the IRA's registered apprenticeship
requirements.\50\ The term ``qualified apprentice'' would not appear in
the part 29 regulations other than in the ``Definitions'' section of
the proposed rule and therefore this clarifying clause would have no
impact on the requirements of part 29 or part 30. Moreover, the
Department views this clarifying clause as important to avoiding
potential confusion about the definition of ``qualified apprentice.''
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\50\ 26 U.S.C. 45(b)(8)(E)(ii); see Public Law 117-169 sec.
13101(f)(8)(E)(ii).
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The remainder of this discussion of proposed Sec. 29.2 discusses,
in alphabetical order, new, revised, or deleted definitions for part 29
and definitions from part 30 that the Department is proposing to
change. In addition to the definitions proposed for deletion and
replacement by another definition as described below, the Department
proposes deleting the definitions of ``registration of an
apprenticeship agreement,'' ``registration of an apprenticeship
program,'' and ``State Office'' from the part 29 regulations. While
these definitions are proposed for deletion, the concept for
``registration of an apprenticeship agreement'' would be addressed by
the proposed ``apprenticeship agreement'' definition and the
apprenticeship agreement section in proposed Sec. 29.9. Similarly,
while the definition of ``registration of an apprenticeship program''
is proposed for deletion, the concept would be addressed by the
proposed ``registered apprenticeship program'' definition and the
operative sections at proposed Sec. Sec. 29.8 and 29.10. Likewise, the
Department believes the definition of ``State Apprenticeship Agency''
includes the meaning that a State government agency assumes the roles
of an SAA and, therefore, the Department does not believe the term
``State Office'' would have utility under the proposed rule. The
Department believes these concepts would be addressed in the modified
definitions but welcomes comments as to whether there are reasons to
keep these definitions for the regulated community.
Proposed Sec. 29.2 would define terms applicable to all sections
of the NPRM unless otherwise stated.
Proposed Sec. 29.2 would retain the existing definition of
``Administrator'' from the existing registered apprenticeship
regulations. This term would still refer to the Administrator of OA or
any person specifically designated by the Administrator of OA.
Proposed Sec. 29.2 would add a new definition of ``annual
completion rate,'' which would be a new program quality measure a
Registration Agency would be able to calculate to assist in assessing
program quality. This measure would be calculated by identifying all
the apprentices who leave a program during a fiscal year as the
denominator and the number of those who complete the program as the
numerator. This new measure would assist Registration Agencies in
seeing if programs are exiting significant numbers of apprentices
without graduating them and enable them to use that information as a
basis for technical assistance. This measure, unlike the proposed
cohort completion rate, would not exclude exiters during the
probationary period of the program. This measure would also align with
the Department's ETP reporting under WIOA for program completion rates.
This measure would
[[Page 3130]]
be calculated as part of the data requirements of proposed Sec. 29.25
and be subject to program reviews under proposed Sec. 29.19. The
Department would consider this measure as being useful for considering
any impacts in program design that lead to apprentices not completing
their programs once they are apprentices. The Department is interested
in any comments on this approach, whether probationary period should be
a consideration, as well as any other measures proposed.
Proposed Sec. 29.2 would modify the definition of ``apprentice.''
The proposed modification clarifies that an apprentice, as the term is
used in parts 29 and 30, is an individual participating in a program
subject to the requirements of 29 CFR parts 29 and 30, rather than an
individual participating in any apprenticeship program. The Department
would retain language that an apprentice must be a worker at least 16
years of age, except where a higher minimum age standard is otherwise
fixed by law, to align with the Fair Labor Standards Act (29 U.S.C.
212) and its implementing regulations (29 CFR part 570), which
generally permit bona fide apprentices to perform otherwise prohibited
work in nonagricultural employment once they reach the age of 16.
Proposed Sec. 29.2 would modify the definition of ``apprenticeship
agreement.'' The proposed modification would stipulate that an
apprenticeship agreement must satisfy each of the applicable regulatory
requirements contained in proposed Sec. 29.9. The proposed definition
also stipulates that such agreements must describe the terms and
conditions of the employment and training of the apprentice, and it
further clarifies that an apprenticeship agreement may also include the
execution of any subsequent contractual provisions or agreements
between the apprentice and the program sponsor (or a participating
employer) during the remainder of the apprenticeship term.
Proposed Sec. 29.2 would retain the definition for
``apprenticeship committee (committee)'' from the existing regulations.
Proposed Sec. 29.2 would modify the definition of
``cancellation.'' The Department is proposing to modify this definition
to reflect that an apprenticeship agreement may be canceled by either
the apprentice or the sponsor as discussed in proposed Sec. 29.9.
Additionally, the Department is proposing to modify this definition to
remove the concept of cancellation of a program because this concept is
synonymous with voluntary deregistration of a program. The Department
does not see a difference between these two concepts, and so the
Department is proposing that cancellation be a term that applies only
to apprenticeship agreements, and that voluntary deregistration, as
described in proposed Sec. 29.20, to be the appropriate process for
programs seeking to end their registration status.
Proposed Sec. 29.2 would add the definition for ``career and
technical education (CTE),'' which would be utilized primarily in
subpart B, from the existing definition in sec. 3(5) of Perkins.\51\
The proposed registered CTE apprenticeship model intends to incorporate
Perkins' program elements. To provide consistency and clarity for the
regulated community, the Department is aligning the proposed definition
of CTE with the definition used in Perkins.
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\51\ Strengthening Career and Technical Education for the 21st
Century Act, Public Law 115-224, 132 Stat. 1563 (2018).
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Proposed Sec. 29.2 would add the existing definition of ``career
pathway'' from WIOA.\52\ The purpose of adding career pathway is to
intentionally connect the regulation to the concept of a career pathway
that is used in practice across the broader workforce development
system and enable the use of shared terminology for practitioners
developing opportunities for participants in education and workforce
development programs.
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\52\ 29 U.S.C. 3102(7); WIOA sec. 3(7).
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Proposed Sec. 29.2 would eliminate the existing definition of
``certification or certificate'' and establish definitions for the
different certificates described in part 29. The purpose of
establishing standalone definitions for certificates is to minimize
confusion and provide clarity for National Apprenticeship System
stakeholders on the functional types of documentary evidence that may
be provided or used for the purposes of proposed Sec. 29.18, proposed
Sec. 29.30, or any other applicable purpose.
Proposed Sec. 29.2 would add a definition for ``Certificate of
Completion'' and incorporate the existing language at 29 CFR 29.2 that
a Certificate of Completion is a document that establishes that a
Registration Agency has determined that an individual has successfully
completed a registered apprenticeship program as set forth at proposed
Sec. 29.16(d).
Proposed Sec. 29.2 would add a definition for the new term
``certificate of completion of registered CTE apprenticeship.'' A
certificate of completion of registered CTE apprenticeship would be a
document that establishes that a Registration Agency has determined
that an individual has successfully completed a registered CTE
apprenticeship program as documented under proposed paragraph (f). The
purpose of this new term is to differentiate between the certificate of
completion for registered apprenticeship under subpart A and a
certificate of completion of registered CTE apprenticeship discussed
for the new proposed model of registered CTE apprenticeship under
subpart B.
Proposed Sec. 29.2 would add a definition for ``Certificate of
Participation'' and define it for the first time as documentation that
an apprentice has participated or is participating in a registered
apprenticeship program. Examples of a Certificate of Participation
could include evidence necessary to document a construction
contractor's compliance with the Davis-Bacon and related Acts'
registered apprenticeship requirements regarding the payment of
prevailing wages to apprentices at 29 CFR part 5 or a verification of
an individual's status as an apprentice. Such a certificate would be
OA's official method of verifying an apprentice's participation in a
registered apprenticeship program.
Proposed Sec. 29.2 would add a definition for ``Certificate of
Recognition'' to describe the document provided to indicate that OA has
approved a sponsor's National Guidelines for Apprenticeship Standards
as described in proposed Sec. 29.15.
Proposed Sec. 29.2 would add a definition for ``Certificate of
Registration'' to describe the document provided to indicate that a
Registration Agency has registered an apprenticeship program under
proposed Sec. 29.10(c).
Proposed Sec. 29.2 would define ``cohort completion rate,'' and
this definition would modify the language from the current definition
of ``completion rate,'' which covers the percentage of an
apprenticeship cohort that receives a Certificate of Completion within
1 year of the projected completion date. The proposed definition of
``cohort completion rate'' describes an apprenticeship cohort as the
group of individual apprentices registered to a specific program during
a given fiscal year, which is a change from the current language in the
current definition of ``completion rate'' that describes it as the
group of individual apprentices registered to a specific program during
a 1-year timeframe. The term ``cohort completion rate'' is designed to
distinguish this concept from the proposed addition of ``annual
completion rate.'' This change would provide clarity on the existing
practice
[[Page 3131]]
of calculating the cohort completion rate on a fiscal year basis to
enable more consistent data reporting. This proposed definition
continues to explain, without change, when an apprentice will not be
included in the calculation.
Proposed Sec. 29.2 would add a definition for ``collective
bargaining agreement'' and define it for the first time in parts 29 or
30 as the written agreement between an employer (or a group of
employers) and the bargaining representative(s) of a labor union to
which employees of the employer(s) belong that addresses such topics as
wages, hours, workplace health and safety, employee benefits, and other
terms and conditions of employment. When applicable, collective
bargaining agreements inform the development of registered
apprenticeship program standards and, typically, govern an employer's
participation in a group program. This is a term used often in this
proposed rule and the 2008 final rule. The Department believes that it
is important for the regulated community to understand what the
Department means when it uses this term, particularly for industries
not familiar with registered apprenticeship. This proposed term was
first used by OA in Bulletin 2010-29.\53\ The Department proposes to
modify and elaborate upon that definition to more closely align it with
the common understanding of collective bargaining agreements. The
Department is seeking any comments or proposed modifications to the
proposed definition to increase clarification on this term.
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\53\ OA, Bulletin 2010-29, ``Amendment to the Revised National
Guidelines for Apprenticeship Standards Boilerplates--Individual
Non-Joint (INJ), Group Non-Joint (GNJ), Individual Joint (IJ), and
Group Joint (GJ) for Federal, State or Local Government Agency
Programs,'' Sept. 30, 2010, https://www.apprenticeship.gov/sites/default/files/bulletins/Bulletin_2010-29a_Amendment_Revised_Boilerplates-Federal_Programs.doc.
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Proposed Sec. 29.2 would modify the definition of ``competency''
to describe the attainment of knowledge, skills, and abilities
specified in a work process schedule. The Department is removing the
terms ``manual, mechanical or technical skills and knowledge'' from the
technical definition to be in greater alignment with the Department's
understanding of what the attainment of competency means based on
competency frameworks, such as the Occupational Information Network
(O*NET) system, DOL competency models,\54\ and competency-based
occupational frameworks,\55\ that are used as industry-recognized
reference tools in the development of a work process schedule, as
specified in proposed Sec. 29.7(b). In addition to knowledge, skills,
and abilities, the proposed definition includes the measurable
attainment of techniques as a qualifier for the types of hands-on
practices, such as the physical use of equipment and tools, associated
with on-the-job, industry-based proficiency.
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\54\ See Competency Model Clearinghouse, ``Overview of the
Competency Model Clearinghouse,'' https://www.careeronestop.org/CompetencyModel/GetStarted/overview-of-cmc.aspx (last visited July
20, 2023).
\55\ See Urban Institute, ``Competency-Based Occupational
Frameworks for Registered Apprenticeship,'' https://www.urban.org/policy-centers/center-labor-human-services-and-population/projects/competency-based-occupational-frameworks-registered-apprenticeships
(last visited July 20, 2023).
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Proposed Sec. 29.2 would add a definition for ``corrective action
plan'' to describe the product that must be produced when a State
Apprenticeship Plan is not granted full approval by the Department as
described in proposed Sec. 29.27 of this part. This plan is designed
to provide SAAs with clear actions needing to be taken to be eligible
for full approval of the State Apprenticeship Plan.
Proposed Sec. 29.2 would add a definition for ``credential rate''
to explain how to calculate the percentage of registered apprenticeship
program completers in a cohort that receive an interim credential, as
defined below. This new program performance measure is intended to
incentivize the leveraging of recognized postsecondary credentials,
including industry-recognized credentials, into a registered
apprenticeship program's design. While the Certificate of Completion
remains the premier credential obtained for participation in a
registered apprenticeship program, this measure would not include
Certificates of Completion. This measure would incentivize additional
credentials to be included and tracked and would drive greater
portability and national recognition for programs and credentials
obtained in programs. Programs are not required to offer interim
credentials as a requirement for registration; however, the Department
considers a measure that tracks this attainment as a key opportunity to
enhance data collection and understanding of programs for both
apprentices in programs and job seekers considering registered
apprenticeship programs. The Department acknowledges that not all
industries or sectors may issue interim credentials. For that reason,
the Department is not intending this proposed measure to be a sole
indicator of program quality. The metric would help OA to understand
which programs provide credentials while participating in a program,
ultimately leading to a Certificate of Completion. Lastly, similar to
the cohort completion rate measure, the Department is proposing to
exclude those apprentices whose participation in the program ends
during the program's probationary period because apprentices may decide
early in a program that they do not wish to pursue the chosen
occupation, and OA does not seek to disincentivize programs or add
barriers to programs seeking to recruit and accept participants.
Additionally, for this measure an apprentice would be unlikely to
attain a credential during that time. The Department is open to
comments on whether this measure should include those apprentices who
leave during the probationary period.
Proposed Sec. 29.2 would add the definition for the new term of
``CTE apprentice.'' CTE apprentices are participants at least 16 years
of age, except where a higher minimum age standard is otherwise fixed
by law, in a registered CTE apprenticeship program covered by the
requirements of subpart B and part 30. The Department is aligning the
definition with the definition of ``apprentice'' that is utilized for
the purpose of subpart A. As described in the ``apprentice'' definition
discussion, the Department is retaining language that an apprentice
must be a worker at least 16 years of age, to reflect the general 16-
year minimum age requirement for employment under the Fair Labor
Standards Act. See 29 U.S.C. 203(l). However, the proposed definition
explicitly states that the minimum age standard may be higher than 16
years if required by Federal, State, or local law. The Department is
generally seeking alignment as much as possible between the terms ``CTE
apprentice'' and ``apprentice.'' The primary purpose of this new term
is to differentiate the use of the term ``apprentice,'' which is used
throughout subpart A to refer to an individual participating in a
registered apprenticeship program registered under subpart A of this
part. This would help ensure clarity for the regulated community as to
which model apprentices are participating in going forward. The
proposed definition also provides that a CTE apprentice is not an
apprentice for purposes of 29 CFR 4.6(p), 5.2, 5.5(a)(4), and
570.50(b).
Proposed Sec. 29.2 would add a definition for the new term ``CTE
apprenticeship agreement.'' A CTE apprenticeship agreement would be a
written agreement that complies with the requirements in proposed Sec.
29.24 and that contains the terms and conditions for the employment and
[[Page 3132]]
training of the CTE apprentice. The purpose of this new term is to
differentiate between the apprenticeship agreement for registered
apprenticeship under subpart A and a CTE apprenticeship agreement
discussed for the new proposed model of registered CTE apprenticeship
under subpart B. As discussed below in the section-by-section analysis
for subpart B and the CTE apprenticeship agreement at proposed Sec.
29.24(e), the proposed requirements for the makeup of a CTE
apprenticeship agreement largely follow the proposed requirements for
apprenticeship agreements for registered apprenticeship at proposed
Sec. 29.9, with a few minor differences reflecting the differences
between registered apprenticeship and the newly proposed registered CTE
apprenticeship model (e.g., a shorter maximum duration for the length
of a probationary period under registered CTE apprenticeship).
Proposed Sec. 29.2 would add a definition for the new term ``CTE
apprenticeship-related instruction.'' CTE apprenticeship-related
instruction would be the organized and systematic form of instruction
that provides a CTE apprentice with knowledge of the theoretical and
technical subjects related to an approved industry skills framework.
CTE apprenticeship-related instruction would be required to be
delivered through a State-approved CTE program. A sponsor could
prescribe additional coursework, including coursework outside of the
program, as part of the CTE apprenticeship-related instruction.
Instruction could be given in a classroom, through electronic media, or
through other forms of study approved by the State CTE Agency and
Registration Agency. The purpose of this new term is to differentiate
it from the defined term ``related instruction'' used in subpart A,
which does not directly require a State-approved CTE program.
Proposed Sec. 29.2 would add a definition for ``day'' to provide
clarity to the regulated community that the usage of the word ``day''
throughout this proposed rule and 29 CFR part 30 means calendar day,
and not business day or workday. The Department considers this an
important term to include to remove ambiguity where this term is used.
When the word ``day'' is used throughout this proposed rule this
meaning (i.e., calendar day) is meant.
Proposed Sec. 29.2 would retain the existing definition of
``Department'' from the existing registered apprenticeship regulations.
This term would still refer to DOL and is used accordingly throughout
this NPRM.
Proposed Sec. 29.2 would add the existing definition of ``direct
threat'' in 29 CFR part 30.
Proposed Sec. 29.2 would add the existing definition of
``disability'' in 29 CFR part 30.
Proposed Sec. 29.2 would add the existing definition of ``EEO'' in
29 CFR part 30.
Proposed Sec. 29.2 would modify the definition of ``electronic
media'' to remove the examples from the regulatory text because any
examples too quickly become outdated due to the rapid pace of
technological development. Updated and contemporary examples of
electronic media as of the date of this proposal include but are not
limited to end-users utilizing a computer or mobile device to: access
and interact with an interactive map or database on an accessible web-
based platform; download, edit, and transmit digital files of PDFs,
images, or project-management tools; participate by using a chat
function or providing verbal or non-verbal visual cues in a meeting
through a video conferencing platform; and access digital written
documents through an enterprise-level document-sharing application.
Proposed Sec. 29.2 would revise the existing definition of
``employer'' to specify that, in relation to apprentices, the employer
is the entity that employs an apprentice during the on-the-job training
component of the apprenticeship program and provides the apprentice
training under an approved set of standards of apprenticeship and
apprenticeship agreement. This proposed definition also includes a
clarification that it applies to the employment of apprentices for
subparts A, B, and C of this part. This is meant to address the
employment of apprentices for both registered apprenticeship programs
under subpart A and the employment of CTE apprentices under subpart B.
For the purposes of subpart C, it would apply to the requirement of
reporting from sponsors on employers in the system described in that
subpart. The Department uses the term ``employer'' as a general term in
the proposed rule as well as a term specific to the employer of
apprentices; therefore, the Department proposes clarifying these two
uses of the word in the definition. The Department has determined that
the existing definition of ``employer,'' when used in reference to
employers of apprentices, does not sufficiently describe the employer/
apprentice relationship with regard to the provision of the on-the-job
training component of the registered apprenticeship program and is
required to be in accordance with the program's standards. This
proposed definition is meant to ensure that all entities employing an
apprentice during the apprentice's time in the registered
apprenticeship program understand their role as employers as
articulated in the standards of apprenticeship governing the program.
The Department thinks that this revision would provide clarity for the
regulated community and would assure apprentices that any entities
participating as employers in their registered apprenticeship program
would understand their role in the apprenticeship program and abide by
the on-the-job training requirements and program standards set forth in
their apprenticeship agreement.
Proposed Sec. 29.2 would add the existing definition of
``ethnicity'' in 29 CFR part 30.
Proposed Sec. 29.2 would add a definition for ``exit'' for the
purpose of calculating certain performance measures such as ``annual
completion rate,'' ``cohort completion rate,'' or ``credential rate''
described in proposed Sec. 29.25. Under the proposed definition, an
exit is when an apprentice has ended their participation in a
registered apprenticeship program. This would include apprentices who
have completed a registered apprenticeship program or who have canceled
or been canceled from a registered apprenticeship program. The
Department proposes including these groups together to ensure it can
accurately measure outcomes of all apprentices in a program after their
probationary period.
Proposed Sec. 29.2 would revise the definition of ``Federal
purposes'' by adding ``registered'' before the term ``apprenticeship''
to align with the changes throughout this proposed rule. This proposed
change would clarify that the use of apprenticeship means ``registered
apprenticeship'' unless otherwise stated in the proposed rule. The
Department notes that the use of the term ``Federal purposes''
throughout this proposed rule is used to characterize apprenticeship
registration in the National Apprenticeship System as overseen by OA.
Additionally, registration for Federal purposes may convey additional
benefits or obligations that arise under Federal laws such as the
Davis-Bacon and related Acts, the IRA, and WIOA, among others. This
term is meant to capture the authority the Department conveys when
registering apprenticeship programs or recognizing SAAs to perform this
function.
Proposed Sec. 29.2 would add a definition for the term ``fiscal
year.''
[[Page 3133]]
Fiscal years are the accounting period of the Federal Government, and
while these proposed regulations would not directly impact financial
reporting, the Department is proposing the inclusion of this term to be
used and commonly understood as a 1-year period covering October 1 of a
given calendar year through September 30 of the following calendar
year. The corresponding name of the fiscal year is always the calendar
year in which the covered period ends. For example, the time period
covering October 1, 2022, to September 30, 2023, is fiscal year 2023.
The Department is proposing the term be used to set parameters around
the ``annual completion rate'' and ``cohort completion rate'' measures
defined in this section.
Proposed Sec. 29.2 would add the existing definition of ``genetic
information'' in 29 CFR part 30.
Proposed Sec. 29.2 would add a definition for the term ``group
program.'' This term, which has been widely used on an informal basis
over the years, refers to a program that is sponsored and registered by
an organization that develops a set of registered apprenticeship
program standards that are adopted on a formal, contractual basis by
one or more participating employers (typically pursuant to a collective
bargaining agreement or a program standards adoption agreement) in
accordance with the program standards developed by the sponsor of the
group program.
Proposed Sec. 29.2 would add a definition for the new term
``industry skills framework.'' The purpose of this new term is to
establish the concept of an industry skills framework for utilization
in the development of an on-the-job training outline, which would be a
distinct component of the standards of a registered CTE apprenticeship
program under subpart B.
Proposed Sec. 29.2 would add the definition of ``institution of
higher education'' from an existing definition in the Higher Education
Act of 1965.\56\ Proposed Sec. 29.24 in subpart B identifies
institutions of higher education as eligible program sponsors of
registered CTE apprenticeships. To provide consistency and clarity for
the regulated community, the Department is aligning the definition of
institution of higher education with the definition used in the Higher
Education Act of 1965.
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\56\ 20 U.S.C. 1001 et seq.
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Proposed Sec. 29.2 would modify the definition of ``interim
credential'' to specify that an interim credential is a recognized
postsecondary credential (see proposed definition in Sec. 29.2) and to
acknowledge that it is documentation of the significance of an
apprentice attaining competency milestones within an occupation
suitable for registered apprenticeship training. An interim credential
is usually earned as a part of a career pathway, sequence, or
progression towards the attainment of more advanced competencies and
credentials in that occupation.
This proposed change would bring the definition into alignment with
ETA's definition of recognized postsecondary credentials by aligning it
with acceptable documentation for measuring credential attainment under
WIOA.\57\ While interim credentials may be used as documented
milestones in the progress toward completion, interim credentials under
the proposed definition would be standalone recognized postsecondary
credentials, and much like the concept of non-degree credentials, could
be bundled or stacked and portable across industries and
occupations.\58\ Existing Sec. 29.5(b)(16) provides for interim
credentials as credentials issued by the Registration Agency, upon
request of the appropriate sponsor, as certification of competency. The
Department is changing this definition to align with WIOA and focus on
the importance of attaining industry-recognized credentials in a
program, which the Department considers to be valuable. In this
proposed rule, interim credentials could be provided to apprentices by
a sponsor, in coordination with a related instruction provider,
employer, or industry intermediary, to recognize and document
completion of competency attainment, or another form of measurable
skill gain, that would be part of a work process schedule in an
approved occupation under proposed Sec. 29.8(a)(8).
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\57\ ETA, Training and Employment Guidance Letter (TEGL) No. 13-
16, ``Guidance on Registered Apprenticeship Provisions and
Opportunities in the Workforce Innovation and Opportunity Act
(WIOA),'' Jan 12, 2017, https://dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-13-16.
\58\ Rutgers Education and Employment Research Center, ``Non-
Degree Credential Quality: A Conceptual Framework to Guide
Measurement,'' July 2019, https://smlr.rutgers.edu/sites/default/files/Documents/Centers/EERC/rutgerseerc_ndcquality_framework_full_paper_final.pdf.
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Proposed Sec. 29.2 would add a new proposed definition for
``intermediary'' to recognize these important stakeholders within the
National Apprenticeship System and describe their role within the
system. Given intermediaries' current prevalence in apprenticeship and
role described in these proposed regulations, the Department wanted to
codify the definition to ensure a common understanding of the term. The
Department proposes to define ``intermediary'' as an entity that
assists in the provision or coordination of a registered apprenticeship
program or that otherwise provides support to a registered
apprenticeship program. Consistent with current practice within the
National Apprenticeship System, such support could include assistance
with the important industry-driven aspects of a registered
apprenticeship program, including industry vetting of training and
related instruction components necessary for proficiency in an
occupation; the establishment of networks and partnerships to support
registered apprenticeship program development and functionality; and
other types of support arising from the intermediary's familiarity with
and expertise within an industry. In adding this proposed definition to
the registered apprenticeship regulations, the Department also seeks to
clarify that intermediaries' appropriate role within the National
Apprenticeship System would not include any of the responsibilities
reserved for Registration Agencies (i.e., SAAs and OA), such as the
responsibility for making final determinations on an occupation's
suitability for registered apprenticeship training or final approval of
a program's standards. The Department has invested in industry
intermediaries \59\ to support the expansion of registered
apprenticeship programs into high-growth industries to date and to
improve equity in these programs, and their role has shown promise in
this regard.\60\ Such entities to date have included labor
organizations, trade organizations, industry experts, and other
organizations with experience in registered apprenticeship. The
Department is committed to providing a definition for these important
stakeholders in the National Apprenticeship System and welcomes
comments on this definition to accurately define their role in the
system.
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\59\ See OA, ``Industry Intermediaries to Expand Registered
Apprenticeship Programs,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/industry-intermediaries-expand-registered (last visited July 20, 2023).
\60\ See OA, ``National Industry and Equity Apprenticeship
Intermediaries: Advancing Registered Apprenticeship for Businesses
and Workers in the U.S.,'' https://www.apprenticeship.gov/sites/default/files/Industry-and-Equity-Intermediary-Accomplishment-Fact-Sheet.pdf (last visited July 20, 2023).
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Proposed Sec. 29.2 would revise the definition of
``journeyworker'' to simplify the definition and clarify that
[[Page 3134]]
such workers should be experienced in their industry or occupation and
proficient in the skills and competencies necessary to be successful in
an industry or occupation. Accordingly, the Department proposes to add
``experienced'' before ``worker'' in the existing definition and
proposes to replace existing language stating that journeyworkers must
have ``attained a level of skill, abilities and competencies recognized
within an industry as having mastered the skills and competencies
required for the occupation'' with language clarifying that
journeyworkers must be ``proficient'' in such skills and competencies.
The Department recognizes that the level of experience to gain
proficiency would differ among industries and occupations. The
Department has determined that the use of the term ``proficient'' is
appropriate and uses it throughout the registered apprenticeship
regulations because it is a clear and understandable term capturing the
extent of an individual's mastery or expertise with respect to critical
job skills and competencies necessary for such individuals to transfer
their mastery and expertise to apprentices training in a registered
apprenticeship program. The Department also acknowledges this term may
be used interchangeably in industries with the following terms: mentor,
experienced worker, technician, specialist, supervisor, or skilled
worker, among other similar terms. The Department is also proposing to
add language that a journeyworker may be proficient in an industry or
occupation. The Department recognizes that industry expertise may be
sufficient to obtain the proficiency necessary for someone to properly
oversee and train an apprentice. However, the Department is encouraging
commenters to identify if industry proficiency is sufficient for a
journeyworker or if occupational proficiency for a journeyworker must
be present.
The concept of ``proficiency,'' as defined in proposed at Sec.
29.2, is central to registered apprenticeship and apprentices' success
in the careers they are pursuing by enrolling in a registered
apprenticeship program. For a journeyworker to effectively provide the
on-site instruction, the Department considers it important that the
journeyworker has proficiency in the industry or occupation to
effectively train the apprentice on-the-job. Consider an electrician or
other trades worker who has been called to a residence to complete a
job. If the worker is proficient in the job skills and competencies
required for their profession, they will be able to complete the task
to the satisfaction of the customer and their employer and within a
period that allows their employer to make a profit, or otherwise gain a
meaningful economic benefit, for the services rendered. Often within
the trades, time to complete a task is set by the market, and
tradespeople must be able to complete the task within that period to
remain competitive. Employers may also need workers to complete
multiple tasks or orders within a given timeframe, and workers'
proficiency in completing each task or order directly correlates with
the employer's bottom line in employing the worker and advertising
their available services. Someone who does not possess the level of
proficiency to accomplish these tasks safely and efficiently is not
someone whom the Department thinks could or should be training and
supervising the work of an apprentice. Accordingly, the Department
proposes to include the term ``proficiency'' in the definition of
``journeyworker.''
Proposed Sec. 29.2 would add the definition of ``local educational
agency (LEA)'' from an existing definition in the Elementary and
Secondary Education Act of 1965.\61\ Proposed Sec. 29.24 in subpart B
identifies LEAs as eligible program sponsors of registered CTE
apprenticeships. To provide consistency and clarity for the regulated
community, the Department is aligning the definition of LEA with the
definition used in the Elementary and Secondary Education Act of 1965.
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\61\ 20 U.S.C. 8101 et seq.
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Proposed Sec. 29.2 would add the definition of ``local
registration'' and define it for the first time. The purpose of adding
this definition is to formally define a term and concept that is
currently used to describe the registration of an apprenticeship
program for Federal purposes by a Registration Agency within a
particular State. In accordance with proposed Sec. 29.7(a),
occupations determined suitable for registered apprenticeship would be
eligible for local registration for Federal purposes by a Registration
Agency, consistent with the approved work process schedule and related
instruction outline. This is designed to indicate the difference
between programs registered locally and programs registered nationally.
Both methods of registration convey the benefits of registered
apprenticeship to a program for Federal purposes; however, national
programs are defined separately with separate criteria as discussed in
proposed Sec. 29.14. Additionally, local registration pertains to the
registered apprenticeship program registration process of a local
affiliate that belongs to a national organization that has established
templates and program guidelines through National Guidelines for
Apprenticeship Standards under proposed Sec. 29.15(c).
Proposed Sec. 29.2 would add the existing definition of ``major
life activities'' in 29 CFR part 30.
Proposed Sec. 29.2 would add a definition of ``National
Apprenticeship System'' to describe the full scope of stakeholders
involved with maintaining and supporting registered apprenticeship in
the United States. In this proposed regulation, the Department seeks to
describe and regulate a national, comprehensive system to develop,
oversee, and promote registered apprenticeship across the country. In
addition to the relevant Registration Agencies within the system--the
Department's OA and SAAs recognized by OA--employers, labor unions,
business organizations, trade and industry groups, educational
institutions, intermediaries, and other stakeholders play critical
roles in the country's system of registered apprenticeship by
establishing robust connections between job seekers, workers, and
employers, and equipping the system with capable instructors, trainers,
and educators. Throughout this proposal, including the NPRM's preamble
and the proposed regulatory text, the Department makes use of the term
``National Apprenticeship System'' where appropriate to describe and
refer to the coordinated efforts of the Department and stakeholders in
the system of registered apprenticeship. The Department's proposed
definition of this term is intended to provide clarity to the regulated
community as to which entities are included as registered
apprenticeship stakeholders when the Department makes reference to the
national system.
Proposed Sec. 29.2 would add the definition of ``National
Guidelines for Apprenticeship Standards.'' While National Guidelines
for Apprenticeship Standards currently exist as an option, commonly
being used as a template of registered apprenticeship program
standards, developed by a labor union, trade or industry association,
or other organization with national scope, that is recognized by OA and
may be adapted for local registration, proposed Sec. 29.15 is new and
would establish criteria and a process for the recognition of National
Guidelines for Apprenticeship
[[Page 3135]]
Standards.\62\ The Department proposes to add this definition here in
conjunction with the proposed addition at Sec. 29.15.
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\62\ ETA, OA Circular No. 2022-02, ``Guidance--National
Guidelines for Apprenticeship Standards,'' Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-02.pdf.
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Proposed Sec. 29.2 would add a new definition for ``National
Occupational Standards for Apprenticeship'' as part of the Department's
effort to define the different products in the system it has made
available, or would make available, to support the development of
registered apprenticeship programs both in traditional industries and
occupations as well as new and emerging industries and occupations
where registered apprenticeship is not widespread. The Department's
definition of this term would help stakeholders understand the product
described at proposed Sec. 29.13 of this part. OA is committed to
updating and refining these tools, and the proposed definition for
``National Occupational Standards for Apprenticeship'' lays the
groundwork for OA's future development and refinement of this important
program onboarding resource.
The related National Guidelines for Apprenticeship Standards and
National Program Standards for Apprenticeship would also be nationally
applicable but represent different use profiles within the system. The
proposed definition for National Guidelines for Apprenticeship
Standards describes these as a template of registered apprenticeship
program standards that are developed by an entity with national scope
(such as a labor union or trade association), recognized by OA, and
later adapted for local registration of a registered apprenticeship
program. In contrast, the proposed definition for National Program
Standards for Apprenticeship states that these are developed by a
program sponsor for registration on a nationwide, reciprocal basis by
OA. Eventually, the Department envisions that any programs basing their
standards on National Guidelines for Apprenticeship Standards or
National Program Standards for Apprenticeship would adopt National
Occupational Standards for Apprenticeship that are tailored to the
specific occupation covered by a registered apprenticeship program. The
Department recognizes that the development of National Occupational
Standards for Apprenticeship requires a robust process to ensure that
they are relevant to industry stakeholders and would only require
program sponsors to adopt National Occupational Standards as they
become available.
Proposed Sec. 29.2 would add the definition of ``National Program
Standards for Apprenticeship'' and define it for the first time. While
National Program Standards for Apprenticeship have been in common
practice as a set of registered standards of apprenticeship developed
and adopted by a program sponsor that are registered on a nationwide,
reciprocal basis by OA,\63\ proposed Sec. 29.14 is new and would
establish criteria and a process for the registration of National
Program Standards for Apprenticeship. The Department proposes to add
this definition here in conjunction with the proposed addition at Sec.
29.14.
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\63\ ETA, OA Circular No. 2022-01, ``Updated Guidance--Minimum
National Program Standards for Registered Apprenticeship Programs,''
Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf.
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Proposed Sec. 29.2 would add the definition of ``non-compete
clause,'' which means a term in the apprenticeship agreement or other
agreement between an employer or sponsor and an apprentice that
prohibits the apprentice from seeking or accepting employment with
another employer during the registered apprenticeship program or
registered CTE apprenticeship program.
Proposed Sec. 29.2 would largely retain the existing definition of
``Office of Apprenticeship'' from the registered apprenticeship
regulations but would make minor changes to more accurately reflect the
designation of responsibility for National Apprenticeship System
oversight within DOL. In the proposed update to the definition of
``Office of Apprenticeship (OA),'' the Department proposes to add a
reference to the Secretary's designation of National Apprenticeship
System oversight to ETA and OA. The Department also proposes to
capitalize ``Apprenticeship'' in this updated definition to align with
OA's official title.
Proposed Sec. 29.2 would add the definition of ``on-the-job
training'' and define the term for the first time. This term is
referred to as ``on-the-job learning'' in the current rule. The
Department is both proposing a definition for this concept in
registered apprenticeship and updating it to ``training'' to align with
other workforce development programs, such as those authorized under
WIOA. Registered apprenticeship has two essential yet distinct
components: related instruction and on-the-job training. While learning
is involved in all aspects of apprenticeship, it is important to define
on-the-job training as distinct, to explain what programs are required
to provide and to mitigate compliance issues about the component of an
apprenticeship that requires an apprentice to be paid wages while they
are employed and learn an occupation suitable for registered
apprenticeship. On-the-job training is an organized and systematic form
of training conducted at a workplace or jobsite that is designed to
provide the apprentice with the hands-on knowledge, skills, techniques,
and competencies that are necessary to achieve proficiency in an
occupation determined suitable for registered apprenticeship training.
It is a requirement for apprentices in on-the-job training to be paid a
wage based on the wage progression schedule in approved program
standards or a collective bargaining agreement when apprentices are on
the worksite and contributing to an employer's productivity. In
contrast, related instruction is an organized and systematic form of
instruction designed to provide the apprentice with knowledge of the
theoretical and technical subjects related to the apprentice's
occupation. Such instruction, unlike on-the-job training, 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 with a
requirement of no less than an average of 144 hours per every 2,000
hours of on-the-job training under proposed Sec. 29.7(b)(4). In
contrast, the registered CTE apprenticeship model proposed under
subpart B will require a minimum of 540 hours of CTE apprenticeship-
related instruction, which encompasses not less than 12 postsecondary
credit hours as part of the program.
Proposed Sec. 29.2 would add a definition for the term
``participating employer.'' A participating employer would be an
employer that does not assume the role of a program sponsor under the
proposed rule, but that has agreed--pursuant to either a collective
bargaining agreement establishing a joint committee that sponsors a
registered apprenticeship program, or a program standards adoption
agreement (defined below) with a sponsor that is reached outside of a
collective bargaining process--to adopt the sponsor's standards of
apprenticeship and to serve as the employer of record for the
apprentices who are enrolled in the sponsor's program. Accordingly, a
participating employer would pay wages and provide closely supervised,
on-the-job training to the apprentices.
[[Page 3136]]
As discussed below, this arrangement is designed to ensure that
participating employers would be held accountable for meeting the
requirements contained in this part and in 29 CFR part 30.
Proposed Sec. 29.2 would add the existing definition of ``physical
or mental impairment'' from 29 CFR part 30.
Proposed Sec. 29.2 would add a definition of ``pre-apprenticeship
program'' to the text of 29 CFR part 29. While the EEO in
Apprenticeship regulations at 29 CFR 30.2 currently contains a
definition of pre-apprenticeship, there is no corresponding definition
of that term in the current version of the labor standards of
apprenticeship regulation at 29 CFR 29.2. This proposed definition
would apply to the usages of the term in both parts 29 and 30 to ensure
consistent use in the regulations governing the National Apprenticeship
System. The proposed definition retains many aspects of the 29 CFR part
30 definition regarding pre-apprenticeship, but some changes are
proposed to more closely align to the definitions of the same term that
appear in the WIOA regulations at 20 CFR 681.480 and in the 2023
Quality Apprenticeships Recommendation (ILO Recommendation No.
208).\64\ The proposed definition includes elements regarding access to
educational and career counseling, supportive services, and
opportunities to earn industry-recognized credentials as described in
the WIOA definition. The inclusion of this definition in a revised 29
CFR part 29 is relevant because the proposed rule (at 29 CFR 29.25)
would authorize the collection of information from registered
apprenticeship program sponsors about pre-apprenticeship programs, and
the apprentices they recruit from these programs, with which the
sponsor has established a written partnership. The Department notes
that an individual participating in a pre-apprenticeship program would
not be considered an ``apprentice'' covered by these regulations.
However, the role the Department has in promoting opportunities for
workers and in promoting labor standards includes these critical talent
pipelines to registered apprenticeship programs. Therefore, the
Department is defining the proposed term here and in doing so
recommending criteria that may be utilized by sponsors to accurately
report the efficacy of such activities under 29 CFR 29.25.
Additionally, it is important for registered apprenticeship programs to
partner and form agreements and partnerships with pre-apprenticeship
programs to establish a reliable pipeline of apprentices into the
program and ensure they are diversifying their recruitment methods to
meet EEO requirements in 29 CFR part 30. Pre-apprenticeship models
should have an equitable, intentional, and achievable strategy for
advancing the program's recruitment, hiring, and retention of
individuals from underserved communities, and use the non-
discrimination and EEO requirements contained in 29 CFR part 30 as the
basis for identifying and eliminating barriers to opportunity in the
program. As the Department has invested in pre-apprenticeship program
models over the years, it has identified the elements laid out in this
definition to be critical to laying a foundation in the broader
workforce development community of what elements must be in a pre-
apprenticeship program. The Department's experience further suggests
that it is necessary to collect more robust information on pre-
apprenticeship programs' effectiveness in placing participants as
apprentices, as well as to better ascertain a registered apprenticeship
program's efforts to meet their outreach and recruitment goals required
in 29 CFR part 30. This definition would be necessary for stakeholders
to understand how the term is used throughout the proposed regulation,
and it also would better align registered apprenticeship and WIOA, with
the Department's long-term goal being greater integration between pre-
apprenticeship programs and registered apprenticeship programs to
benefit career seekers, prospective apprentices, and employers.
---------------------------------------------------------------------------
\64\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO
Recommendation No. 208), Conclusion 1(c), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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Finally, the Department views pre-apprenticeship, registered CTE
apprenticeship, and registered apprenticeship collectively as a broader
apprenticeship pathways system with additional entry points for career
seekers, particularly those from underserved communities, leading to
registered apprenticeship. Pre-apprenticeship activities, including
other forms of work-based learning such as job shadowing, project-based
learning, and internships, may be utilized for CTE students,
particularly those younger than 16, to better prepare them for success
in registered CTE apprenticeship. Ultimately, in certain situations, an
individual could progress from pre-apprenticeship to registered CTE
apprenticeship, and then to registered apprenticeship.
Proposed Sec. 29.2 would add the definition of ``proficiency'' and
define it for the first time. Proficiency would mean, for purposes of
subpart A of this part, the demonstrated, measurable attainment by an
apprentice of each of the relevant job skills and competencies that are
necessary to perform successfully at the journeyworker level in a given
occupation. The purpose for adding the definition, among other things,
is to clarify that the attainment of each of the various competencies
associated with an occupation culminates in an apprentice's acquisition
of overall occupational proficiency in that field.
Proposed Sec. 29.2 would add a new definition for ``program
review'' to replace the definition of ``quality assurance assessment,''
which the Department proposes removing, and bring the registered
apprenticeship regulations in line with current administrative
practices related to OA's oversight of the National Apprenticeship
System. OA conducts program reviews to assess whether programs are in
full compliance with the registered apprenticeship regulations in parts
29 and 30. The Department has determined that it would benefit the
regulated community to include a definition for this important
administrative process in the proposed update to the registered
apprenticeship regulations so that stakeholders, in particular program
sponsors, fully understand what is meant by a program review as that
term is used below and as used in any communications or interactions
with the Department or SAA. As discussed below, a program review could
include technical assistance, which could be provided to a program
sponsor as needed to assist the program with achieving full compliance
with the regulations.
Proposed Sec. 29.2 would add a definition for the term ``program
standards adoption agreement.'' This term would apply to written
agreements reached outside of a collective bargaining process between a
sponsor that has developed a written set of registered standards of
apprenticeship and work processes, and a Participating Employer that
has agreed to utilize and adhere to the program sponsor's standards of
apprenticeship and work processes for the training of apprentices in
its employ.
Proposed Sec. 29.2 would largely retain the definition of
``provisional registration'' from the existing registered
apprenticeship regulations with a few minor proposed adjustments. The
[[Page 3137]]
proposed definition for ``provisional registration'' would replace
``rescinded'' with ``deregistered'' to align with current
administrative practices and the proposed language and process for
program registration at proposed Sec. 29.10 because, as discussed
below, the Department has determined that ``deregistered'' is a more
suitable term to describe the scenario wherein a program that has been
granted provisional approval is determined to be out of compliance with
the registered apprenticeship regulations following a review by the
Registration Agency. The Department is proposing to remove the term
``1-year'' to align with the procedural changes described in proposed
Sec. 29.10, which provides for a provisional period covering the first
full training cycle of a registered apprenticeship program. In addition
to the change described above, the Department proposes to change the
cross-reference at the end of the existing definition of ``provisional
registration'' to refer to ``this part'' (i.e., the registered
apprenticeship regulations at 29 CFR part 29). The Department has
determined that it would be beneficial to clarify to the regulated
community that provisional registration involves reviews for compliance
with the entirety of parts 29 and 30, and not just compliance with the
provisions cited in the existing definition (existing 29 CFR 29.3(g)
and (h)).
Proposed Sec. 29.2 would add the existing definition of
``qualified applicant or apprentice'' in 29 CFR part 30.
Proposed Sec. 29.2 would add the existing definition of ``race''
in 29 CFR part 30. This definition would have the same meaning as under
the Office of Management and Budget's (OMB) Standards for the
Classification of Federal Data on Race and Ethnicity, or any successor
standards.
Proposed Sec. 29.2 would add the existing definition of
``reasonable accommodation'' in 29 CFR part 30.
Proposed Sec. 29.2 would add the definition of ``reciprocity of
registration'' and define it for the first time. While the concept of
reciprocity is referenced in existing regulation at Sec. 29.13(b)(7)
as a requirement imposed on SAAs, the purpose of adding the definition
is to define the concept of reciprocity more clearly as the provision
of local registration status by an SAA in that State for a registered
apprenticeship program registered by another Registration Agency.
Proposed Sec. 29.2 would add the definition of ``recognized
postsecondary credential'' and define it for the first time. The
purpose of adding the definition of a recognized postsecondary
credential is to clarify what this type of credential is in the
National Apprenticeship System and to align with WIOA's definition of
this term so that there is a shared definition across programs to
assist program sponsors and workforce professionals operating and
administering WIOA programs. Recognized postsecondary credentials
awarded in a registered apprenticeship program should confer
recognition of an apprentice's attainment of measurable technical or
industry and occupational skills necessary to advance within an
industry and occupation. These technical or industry and occupational
skills generally are based on standards developed or endorsed by
employers or industry associations. Apprentices may attain more than
one recognized postsecondary credential during a program or upon
completion. Relatedly, the Department has proposed modifying its
definition for interim credential, discussed above, to be those
recognized postsecondary credentials obtained during an apprentice's
participation in a registered apprenticeship program. For the purposes
of registered apprenticeship, the proposed definition of a recognized
postsecondary credential includes: an industry-recognized certificate
or certification, a Certificate of Completion, which is a requirement
for all registered apprenticeship program sponsors, in coordination
with a Registration Agency, to administer and provide to an apprentice
upon completion of an approved program; a Federal, State, or local
license in an occupation suitable for registered apprenticeship where
such occupational licensure is required; or an associate or
baccalaureate degree. Defining the term for Federal purposes would
bring it into better alignment with usage and application as a
programmatic outcome under WIOA and Perkins, and it could be used for
assessing apprentices' rate of credential attainment for program and
system reporting purposes under proposed Sec. 29.25.\65\ The
Department is encouraging commenters to describe any increased
opportunities for alignment with WIOA's credential measure, any
comments where there may be challenges to alignment with this measure,
and if the Department should continue its role in providing interim
credentials strictly for competency attainment.
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\65\ ETA, Training and Employment Notice (TEN) No. 25-19,
``Understanding Postsecondary Credentials in the Public Workforce
System,'' June 8, 2020, https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-25-19.
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Proposed Sec. 29.2 would delete the definition of ``apprenticeship
program'' that appears in the current version of the labor standards of
apprenticeship regulation at 29 CFR 29.2 and replace it with a more
comprehensive definition of ``registered apprenticeship program.'' The
new definition would stipulate that such apprenticeship programs must
be of minimum duration and consist of both a paid on-the-job training
component and a related instruction component and be registered by a
Registration Agency.
Proposed Sec. 29.2 would add a definition for the new term
``registered CTE apprenticeship program.'' A registered CTE
apprenticeship program would be a program registered under subpart B
and refers to a model of registered apprenticeship that is a structured
integrated education and career training program embedded within a CTE
program and includes a paid, on-the-job training component. This
program would be distinct from registered apprenticeship programs in
subpart A. Such a program would admit students, as CTE apprentices, who
have signed a CTE apprenticeship agreement approved by a Registration
Agency. Registered CTE apprenticeship programs would be designed to
provide curriculum and on-the-job training for industrywide skills and
competencies that may be applicable for any number of occupations.
However, it should be noted that registered apprenticeship under
subpart A would have a requirement of no less than an average of 144
hours per every 2,000 hours of on-the-job training under proposed Sec.
29.7(b)(4). In contrast, the registered CTE apprenticeship model
proposed under subpart B would require a minimum of 540 hours of CTE
apprenticeship-related instruction, which encompasses not less than 12
postsecondary credit hours. Registered CTE apprenticeship programs
would not be a substitute for registered apprenticeship programs under
subpart A. Program sponsors of registered CTE apprenticeship would be
encouraged to develop standards for use in a registered apprenticeship
program under subpart A and meet the requirement of that part,
especially where there are programmatic opportunities and a workforce
need for alignment.
Proposed Sec. 29.2 would revise the existing definition for
``Registration Agency'' to align with proposed changes to the part 29
regulations. The proposed definition for ``Registration Agency''
largely retains the existing definition but capitalizes ``Agency'' and
adds
[[Page 3138]]
language clarifying that a Registration Agency must be a governmental
entity to clarify that these are official government entities with a
defined role and mission. The proposed definition also replaces the
existing definition's references to ``reviews for compliance'' and
``quality assurance assessments'' with a general reference to ``program
reviews'' that encompass assessments for compliance with both 29 CFR
parts 29 and 30. In this proposed regulation, the Department proposes
to refer to such compliance checks as ``program reviews,'' includes a
proposed new definition for the term ``program review,'' and proposes
to include a new section at Sec. 29.19 that describes program reviews
(see proposed Sec. 29.19).
Proposed Sec. 29.2 would retain the existing definition of
``related instruction.'' As discussed above, related instruction would
be distinct from ``on-the-job training'' in a registered apprenticeship
program.
Proposed Sec. 29.2 would make minor changes to the existing
definition for ``Secretary'' intended to clarify DOL's key role in
overseeing the National Apprenticeship System. The proposed definition
for ``Secretary'' would clarify that the referenced individual is the
U.S. Secretary of Labor and would further clarify that ``Secretary''
may also refer to any official of DOL designated by the Secretary to
clarify the scope individuals to whom the Secretary's authority may be
delegated.
Proposed Sec. 29.2 would add the existing definition for
``selection procedure'' from 29 CFR part 30.
Proposed Sec. 29.2 would modify the definition of ``sponsor'' by
expanding the illustrative list of entities that could be a sponsor to
include intermediaries, which aligns with current practice. The
proposed definition adds ``employer'' to more accurately describe the
parties that can be a sponsor. In addition, the proposed definition
retains association, committee, or organization that operates a
registered apprenticeship program in whose name that program is
registered. The proposed definition specifies that, in addition to
operating a program, a sponsor also administers a program. The proposed
definition also specifies that a Registration Agency is the
registration and approval entity.
Proposed Sec. 29.2 would add a new definition for ``Standards of
Apprenticeship'' to the list of defined terms in the part 29
regulations. ``Standards of Apprenticeship'' is an important term of
art in registered apprenticeship that refers to the organized, written
plan containing the terms and conditions of employment, training, and
supervision within a given registered apprenticeship program, the
requirements of which are discussed in proposed Sec. 29.8 below. The
Department's proposed definition for ``Standards of Apprenticeship''
clarifies that these apply to registered apprenticeship programs.
Proposed Sec. 29.2 would modify the definition of ``State'' to
align with WIOA. The definition of ``State'' under section (sec.) 3 of
WIOA includes the Commonwealth of Puerto Rico explicitly. The
Department's proposed definition also utilizes WIOA's definition of
``outlying area'' rather than the existing term ``Territory or
possession of the United States.'' Outlying area under WIOA includes
American Samoa, Guam, Commonwealth of the Northern Mariana Islands, the
Republic of Palau, and the United States Virgin Islands. This proposed
alignment is another area where the Department is attempting further
integration between apprenticeship and the broader workforce system by
recognizing that the outlying areas, which receive funding under title
I of WIOA, should be able to make greater use of the National
Apprenticeship System to develop a more comprehensive workforce
strategy.
Proposed Sec. 29.2 would retain the definition for ``State
Apprenticeship Agency'' from the existing regulations with minor
adjustments. The proposed definition provides more clarity that only a
State government agency or department may seek recognition as an SAA.
Proposed Sec. 29.2 would modify the definition of ``State
Apprenticeship Council.'' The previous definition was updated in the
2008 final rule and limited an earlier definition that granted
authority to promulgate apprenticeship laws in the event a State
Apprenticeship Council was established as a regulatory body. The
purpose of the proposed changes to Sec. 29.2 in this proposed rule is
to reflect the proposed changes in Sec. 29.26, which would require
that State Apprenticeship Councils act solely in an advisory capacity
and prohibit an SAA from delegating regulatory or oversight functions
to the State Apprenticeship Council.
Proposed Sec. 29.2 would add a definition for ``State
Apprenticeship Plan.'' This definition is being added due to its
inclusion in proposed Sec. 29.27 as a mandatory submission from a
State government agency seeking to obtain or maintain recognition as an
SAA. Establishing a definition of ``State Apprenticeship Plan'' is
necessary to provide clear differentiation from other required plans in
this part and 29 CFR part 30. This definition would also clarify that a
plan covers a State government agency's recognition for 4 years as an
SAA.
Proposed Sec. 29.2 would add a definition for the term of ``State
CTE Agency.'' A State CTE Agency would be a State board designated or
created consistent with State law as the sole State government agency
responsible for the administration of CTE in the State or for the
supervision of the administration of CTE in the State, or another State
government agency delegated the authority by such State board to
administer Perkins. Under subpart B, the State CTE Agency would have
the responsibility to coordinate with a Registration Agency for the
coordination of registered CTE apprenticeship programs if a State
chooses to register such programs.
Proposed Sec. 29.2 would add the definition of ``supportive
services'' and define it for the first time. The purpose of adding the
proposed definition is to recognize the types of services provided in
current practice by National Apprenticeship System stakeholders and
partners that are necessary to enable an individual to participate and
succeed in registered apprenticeship programs, as well as registered
CTE apprenticeship and pre-apprenticeship programs. The proposed
definition is aligned with the existing definition found under sec. 3
of WIOA. Under WIOA, the term ``supportive services'' means services
such as transportation, childcare, dependent care, housing, and needs-
related payments that are necessary to enable an individual to
participate in activities authorized under the Act. The holistic
provision of supportive services through cross-system coordination has
been found to be beneficial as a programmatic intervention that enables
program participants who may face barriers, such as affordable
childcare, housing assistance, and reliable transportation, to
participate in and complete a pre-apprenticeship or registered
apprenticeship program. Supportive services may include, but are not
limited to: assistance with transportation; assistance with childcare
and dependent care; linkages to community services; assistance with
housing; assistance with educational testing; referrals or coverage for
physical or mental health care services; assistance with uniforms or
other appropriate work attire and work-related tools, including such
items as eyeglasses and protective eye gear; assistance with books,
fees, school supplies, and other necessary items for students enrolled
in college or career readiness, secondary, and
[[Page 3139]]
postsecondary education classes; payments and fees for employment and
training-related applications, tests, and certifications; needs-related
payments; and legal aid services.\66\ Several types of National
Apprenticeship System stakeholders and partners, including
intermediaries and local workforce boards, provide supportive services.
Local workforce areas may provide supportive services, in coordination
with career or training services or both, consistent with WIOA sec.
134(d)(2) and State and local policies, to participants in a registered
apprenticeship program.\67\
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\66\ For more on the Department's approach to supportive
services, see 20 CFR 680.900 (``What are supportive services for
adults and dislocated workers?'') in the WIOA regulations and ETA,
TEN No. 12-21, ``Practitioners Guide to Supportive Services,'' Oct.
15, 2021, https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-12-21.
\67\ ETA, TEGL No. 19-16, ``Guidance on Services provided
through the Adult and Dislocated Worker Programs under the Workforce
Innovation and Opportunity Act (WIOA) and the Wagner-Peyser Act
Employment Service (ES),'' Mar. 1, 2017, https://www.dol.gov/agencies/eta/advisories/training-and-employment-guidance-letter-no-19-16.
---------------------------------------------------------------------------
Proposed Sec. 29.2 would largely retain the existing definition
for ``technical assistance,'' with a minor change to the final clause
describing what technical assistance is meant to accomplish. The
existing part 29 regulations define ``technical assistance'' as
guidance or assistance to further program compliance with the part 29
regulations or guidance provided to an SAA on how to ``remedy
nonconformity'' with the regulations. The Department has proposed to
replace that language to clarify that ``technical assistance'' refers
to any support provided to help an entity--a program sponsor or an
SAA--satisfy the requirements of parts 29 and 30. Technical assistance
does not only arise out of a problem, or in response to a finding of
noncompliance with the registered apprenticeship regulations. Technical
assistance is also a proactive activity or resource that can help
stakeholders understand and comply with requirements at the outset of
setting up a program, during the course of a program when a question
arises, or in response to new developments that affect a given
program's circumstances. To assist the regulated community with
understanding and complying with this proposed regulation, and in
accordance with the Department's historical practice, the Department
plans to engage in a proactive, comprehensive technical assistance
campaign that includes written resources and guides and increased
avenues for the provision of customer service, including additional
staffing to address individual issues and improved forums or portals
for requesting and receiving technical assistance.
Proposed Sec. 29.2 would retain the definition for ``transfer''
from the existing regulations.
Proposed Sec. 29.2 would add a definition of ``underserved
communities.'' One of the key goals of this proposed rule is to enhance
opportunities to support greater equity in the National Apprenticeship
System. The Department is adding this term, as it is used throughout
the proposed rule, to ensure SAAs, program sponsors, and other
stakeholders have an intentional strategy to recruit from and retain
individuals from these communities. The Department's proposed
definition is derived from several sources: the Good Jobs Principles;
the protected bases in 29 CFR part 30; and populations described in
WIOA as potentially needing more services for full access to training
and employment. The Department welcomes comments on this proposed
definition, as well as recommendations for how to embed strategies for
recruiting and retaining apprentices from these communities into the
National Apprenticeship System. The Department welcomes comments on
this proposed definition, as well as recommendations for how to embed
strategies for recruiting and retaining apprentices from these
communities into the National Apprenticeship System.
Proposed Sec. 29.2 would add the existing definition of ``undue
hardship'' from 29 CFR part 30.
Proposed Sec. 29.2 would add a definition of ``work process
schedule.'' The current version of 29 CFR 29.2 does not include a
definition of the term ``work process schedule,'' although this term is
referenced at current Sec. 29.5(b)(3), as well as in other provisions
of the current regulations. This omission would be rectified in
proposed Sec. 29.2 of the NPRM so that there is clear understanding of
what the regulations mean when they use the term work process schedule.
The new definition of the term would clarify that a work process
schedule is a training plan that establishes a series of measurable
competency benchmarks whose acquisition by the apprentice should lead
to occupational proficiency by the conclusion of the apprenticeship
term.
Section 29.3--Office of Apprenticeship
This proposed section ``Office of Apprenticeship'' is included to
describe the roles and responsibilities of the DOL's OA, which have
evolved over time, and is intended to provide clarity to the regulated
community on the activities OA performs. OA is the office established
in ETA to be the administrative and coordinating entity of the National
Apprenticeship System. The Department is adding this section to more
accurately describe the role and responsibilities of OA, particularly
in light of the changes that have occurred in apprenticeship and in the
broader economy that occurred since the publication of the current 29
CFR part 29 in 2008.
In a rapidly changing apprenticeship environment, OA continues to
have the responsibility to implement and administer the NAA, including
by safeguarding the welfare of apprentices through approving registered
apprenticeship programs and standards as a Registration Agency and
cooperating with State government agencies by recognizing SAAs. The
proposed section also recognizes and describes OA's role and
responsibility to lead and coordinate the National Apprenticeship
System on national policy efforts, manage any resources provided to
support apprenticeship, convene industry to promote the importance of
apprenticeship including the advantages of adopting standards of
apprenticeship, promote the value of apprenticeship, advocate EEO for
apprentices and the benefits of apprenticeship as a DEIA strategy for
sponsors, maintain National Apprenticeship System data for OA and SAAs,
and provide technical assistance to National Apprenticeship System
partners, including sponsors and SAAs. Finally, OA has the role and
responsibility to engage with a variety of entities and organizations
to develop and facilitate apprenticeship in the United States and
develop partnerships with stakeholders throughout the National
Apprenticeship System including sponsors, intermediaries, and States.
Proposed Sec. 29.3(a) through (d) describe the administrative
duties OA fulfills to formulate and update regulations, issue
subregulatory guidance, policies, and procedures in connection with the
implementation of the NAA (29 U.S.C. 50), and to register
apprenticeship programs and standards that satisfy the requirements of
29 CFR parts 29 and 30. Proposed Sec. 29.3(c) also maintains OA's
existing role for granting recognition to SAAs that are established
under State laws and regulations, and that also satisfy the
requirements that are outlined in proposed Sec. 29.26. These proposed
paragraphs also include OA's role in promoting the development of
industry-validated standards as part of the suitability determination
process
[[Page 3140]]
described in proposed Sec. 29.7, the development of National
Occupational Standards for Apprenticeship described in proposed Sec.
29.10, and industry skills frameworks described in subpart B of this
part.
Proposed Sec. 29.3(e) would require OA to maintain National
Apprenticeship System data pertaining to apprentices and apprenticeship
programs that are registered by either OA or SAAs. The purpose of this
provision is to support proposed Sec. Sec. 29.25 and 29.8 as a
modernization effort to facilitate data collection and reporting. OA's
operation and management of this data system would make the system more
transparent and accountable; promote equitable program outcomes for
apprentices; and build capacity to disaggregate demographic,
geographic, and industry data to evaluate and assess program quality.
Proposed Sec. 29.3(f) would establish the administrative role of
OA to promote DEIA in apprenticeship, including for those from
underserved communities. In addition, this provision would include OA's
role in enforcing equal opportunity for apprentices and applicants for
apprenticeship in registered apprenticeship programs consistent with
part 30.
Proposed Sec. 29.3(g) would establish the coordinating role for OA
to deliver technical assistance to registered apprenticeship program
sponsors, SAAs, companies, Federal agencies, and other key stakeholders
in the development of apprenticeship program standards and the
operation of apprenticeship programs. The Department also anticipates
that under this proposed rule it would provide significant technical
assistance to SAAs and sponsors on the data reporting requirements in
proposed Sec. Sec. 29.25 and 29.28, including promoting and training
on the practices for the collection and utilization of data. An example
of how this coordination role has been operationalized is through the
Department's investments in industry intermediaries that work across
both OA and SAA States to deliver timely technical assistance.
Technical assistance is a critical OA function that provides assistance
to employers, education providers, and other stakeholders in program
design and in compliance-related matters as well.
Proposed Sec. 29.3(h) would also establish a coordinating role for
OA to engage in discussions with relevant stakeholders, including
multilateral institutions, businesses, and non-governmental
organizations in order to facilitate the development and expansion of
apprenticeships in the United States. The purpose of this new provision
is to institutionalize longstanding relationships the Department has
created with apprenticeship stakeholders across the globe through
mechanisms such as the development of memoranda of understanding that
promote the exchange of ideas and best practices for expanding
registered apprenticeship programs, bolster U.S. efforts to establish
new apprenticeship programs, increase awareness of opportunities, and
create career pathways for apprentices. This paragraph would also
establish a coordinating role for OA to develop partnerships with
apprenticeship stakeholders that could facilitate and accelerate the
expansion of quality registered apprenticeship programs across the
National Apprenticeship System.
Proposed Sec. 29.3(i) would provide OA the flexibility to conduct
other activities that support the National Apprenticeship System. This
is to account for the wide array of activities that OA may conduct to
further the goals of the National Apprenticeship System. Such
activities have historically included overseeing registered
apprenticeship-related appropriations and investments, an annual
National Apprenticeship Week, recognition programs such as
Apprenticeship Ambassadors, and many others.
Section 29.4--Relation to Other Laws and Agreements
Proposed Sec. 29.4 would describe how the proposed regulation
would relate to other laws and agreements that could apply to the
entities covered by this proposed rule. To align with a similar
existing provision in part 30, proposed Sec. 29.4(a) makes clear that
the provisions set forth in the revised part 29 would not invalidate or
supersede any other Federal, State, or local law establishing more
protective or stringent minimum labor standards of apprenticeship than
those contained in part 29. Similarly, proposed Sec. 29.4(b)
stipulates that part 29 would not invalidate any provision in any
collective bargaining agreements applicable to a registered
apprenticeship program that establishes more protective or stringent
minimum labor standards of apprenticeship. The provisions of part 29
establish the minimum requirements or a floor for program standards,
and not a ceiling. The Department notes that there are many successful
programs that exceed these minimum standards and encourages all
programs to do so in support of developing high-quality training
programs for apprentices and employers. Where such higher standards are
established, this provision would make it clear that they, rather than
the requirements of this part, are controlling.
Section 29.5--Severability
The Department proposes to include a severability provision as part
of this proposed rule. To the extent that any provision, or any portion
of any provision, of 29 CFR part 29 that has been proposed or modified
in this proposed rule is declared invalid by a court of competent
jurisdiction, the Department intends for all other provisions of this
part that are capable of operating in the absence of the specific
provision, or portion of such provision, that has been invalidated to
remain in effect.
Section 29.6--Transition Provisions
The Department is proposing this section to establish reasonable
transition periods to allow for the orderly implementation of the
amended regulations. In developing these proposed transition periods,
the Department has made a concerted effort to account for the unique
needs, circumstances, and potential burdens different stakeholders and
regulated entities may face in transitioning their operations,
policies, or administrative procedures to come into compliance with the
updated regulation. These proposed transition periods balance a
reasonable timeline to accommodate current and potential system
stakeholders against the need to build a stronger National
Apprenticeship System with core quality elements.
The essential quality elements that the Department seeks to realize
within the National Apprenticeship System relate to approving
occupations with respect to their suitability for registered
apprenticeship training, registering apprenticeship programs, approving
work process schedules, enhancing worker protections in apprenticeship
agreements, and enhancing data and performance reporting and measuring.
The Department invites comments on each transition provision, including
whether a transition period is necessary, the length of time provided,
and whether additional transition provisions should be included. In
particular, the Department is interested in comments from the primary
parties that would have to come into compliance in the time allotted by
these proposed provisions--namely, applicants for suitability
determinations, existing and potential program sponsors, labor
organizations, Registration Agencies (SAAs), and any other
organizations or stakeholder groups that would be impacted (or whose
constituencies
[[Page 3141]]
would be impacted) by the proposed transition timelines. The Department
seeks their input on the reasonableness and feasibility of the proposed
transition provisions, their impact on the National Apprenticeship
System and efforts to expand registered apprenticeship, and any
additional considerations from their valuable perspectives.
Proposed paragraph (a) addresses the implementation of the proposed
rule as it pertains to proposed Sec. 29.7 and the updated process for
making determinations on occupations' suitability for registered
apprenticeship. The provisions at proposed Sec. 29.7 would ultimately
pertain to occupations not yet determined suitable prior to the
effective date of the proposed regulation (potential occupations),
occupations previously recognized as suitable for registered
apprenticeship training (formerly, ``apprenticeable'') by the
Administrator (OA) under the existing regulatory framework at Sec.
29.4 (existing suitable occupations), and occupations recognized as
suitable for registered apprenticeship training by an SAA prior to the
effective date of the proposed regulation (SAA-approved occupations).
The Department has organized the proposed transition provisions related
to proposed Sec. 29.7 around these three categories to promote
clarity. In short, if an occupation has not been previously determined
to be suitable for registered apprenticeship training prior to the
effective date of this proposed regulation, the provisions at proposed
Sec. 29.7 would apply within 90 days of the effective date of the
final rule. If an occupation has been previously determined to be
suitable for registered apprenticeship training prior to the effective
date of the regulation, the provisions at proposed Sec. 29.7 would
apply 4 years following the effective date of the final rule.
The following table summarizes the proposed transition provisions
relating to proposed Sec. 29.7, which would apply to applicants for
suitability determinations as described above (as well as sponsors of
existing programs utilizing occupations recognized as suitable for
registered apprenticeship training prior to the final rule's effective
date):
Proposed Transition Provisions for Sec. 29.7
[Occupations' suitability for registered apprenticeship]
------------------------------------------------------------------------
Scenarios Proposed transition timeline
------------------------------------------------------------------------
Potential occupations--occupations not 90 days following the
determined suitable for registered effective date of the final
apprenticeship training prior to the rule.
effective date of the final rule.
Existing suitable occupations--occupations 4 years following the
deemed suitable for registered effective date of the final
apprenticeship training by the rule.
Administrator prior to the effective date
of the final rule.
SAA-approved occupations--occupations 4 years following the
deemed suitable for registered effective date of the final
apprenticeship training by an SAA. rule.
------------------------------------------------------------------------
As described in the table above, the Department believes these are
the three different scenarios relevant to the proposed transition
provisions for proposed Sec. 29.7. Proposed paragraph (a)(1) is for
occupations that have not been determined suitable (formerly
``apprenticeable'') as of the effective date of this proposed rule. The
Department is proposing that applications for suitability
determinations for potential new occupations must reflect the updated
requirements in proposed Sec. 29.7 beginning 90 days after the
effective date of the final rule, and that during this transition
period, the requirements of the existing rule's Sec. 29.4 would remain
in effect. The Department seeks to implement the new proposed process
for making determinations on occupations' suitability for registered
apprenticeship training shortly after the effective date of the final
rule, but recognizes that it could be necessary to provide a transition
period to accommodate any applications that may have been in process,
update systems, develop and issue technical assistance documents, and
otherwise leave time for both the regulated community and the
Department to prepare for the changes to the updated process.
Proposed paragraph (a)(2) would implement the proposed requirement
of Sec. 29.7(a) that occupations may only be determined suitable by
the Administrator. Under this transition provision, SAAs that make
apprenticeability determinations under the current rule's Sec. Sec.
29.4 and 29.13 would not be able to make suitability determinations
under proposed Sec. 29.7 for Federal purposes upon the effective date
of this proposed rule.
Proposed paragraph (a)(3) addresses the transitioning of
occupations previously determined apprenticeable under the current
regulatory framework at Sec. 29.4. These occupations would be
considered suitable for registered apprenticeship by the Administrator
until OA reviews the occupation for continued suitability under
proposed Sec. 29.7(h), which provides for a 5-year review process of
suitable occupations, work process schedules, and related instruction
outlines. The Department recognizes the significant undertaking
required to review previously approved occupations under current Sec.
29.4 with the criteria under proposed Sec. 29.7, and thus it proposes
in Sec. 29.7(h) an ongoing 5-year review process for suitable
occupations to maintain their suitability status. The Department
intends to avoid and minimize any adverse impacts to established
programs associated with the implementation of this proposed rule, and
the provisions of proposed Sec. 29.7(h) provide programs with
sufficient notice about the timing regarding an update to existing
occupations. The Department also intends to develop and disseminate
comprehensive technical assistance resources around the updated
suitability process and continue to provide responsive, effective
customer service to existing and potential stakeholders at the
regional, State, and local levels. The Department has decided not to
permanently exempt existing occupations beyond the provisions described
in proposed Sec. 29.7(h) because the Department wants to ensure a
process where all occupations remain updated to the needs of industry
to ensure the training of apprentices remains at the highest quality
possible. The Department is interested in comments about the length of
this transition provision, impacts to current sponsors, and
alternatives such as permanently exempting those occupations versus the
goal of building a more cohesive National Apprenticeship System with
occupations that are approved under a consistent approach as envisioned
in this proposed regulation.
Proposed paragraphs (b) and (c) address the implementation of
proposed Sec. Sec. 29.8 through 29.23, which concern proposed
standards for registered
[[Page 3142]]
apprenticeship programs and other proposed regulatory requirements
pertaining to registered apprenticeship programs. For these sections of
the proposed regulation, program sponsors would ultimately be
responsible for their registered apprenticeship program's compliance
with the updated part 29 regulations, consistent with these transition
provisions. As with the proposed transition provisions for Sec. 29.7,
the Department envisions three different scenarios relevant to the
proposed transition provisions for the remainder of proposed subpart A.
First, the Department proposes that any new programs that were not
registered by the Administrator prior to the effective date of the
final rule (potential programs) would need to comply with the updated
requirements in subpart A after the effective date of this proposed
rule. The Department plans to make available to sponsors an electronic
submission process for the submission of registered apprenticeship
applications, at which time those sponsors would be expected to comply
with the updated submission process. The Department anticipates making
this process available as close to the effective date of the proposed
rule as possible and communicating the electronic process through
subregulatory guidance. Second, the Department proposes that programs
registered by the Administrator prior to the effective date of the
final rule (existing registered apprenticeship programs) would need to
comply with the updated requirements in subpart A within 2 years of the
effective date of the final rule.
The following table summarizes the proposed transition provisions
relating to the remainder of subpart A:
Proposed Transition Provisions for Subpart A
[Sec. Sec. 29.8 Through 29.23]
------------------------------------------------------------------------
Scenarios Proposed transition timeline
------------------------------------------------------------------------
Potential programs--new programs not Effective date of the final
previously registered by the rule or when OA makes
Administrator prior to the final available an electronic
rule's effective date. submission process to
potential sponsors.
Existing registered apprenticeship 2 years following the effective
programs--registered apprenticeship date of the final rule.
programs previously registered by the
Administrator prior to the effective
date of the final rule.
SAA-approved registered apprenticeship 2 years following the SAA
programs--registered apprenticeship coming into compliance with
programs previously registered by an the final rule; all programs
SAA prior to the effective date of the approved by SAAs after the
final rule. effective date of the final
rule must remain in
provisional status until the
SAA has determined them in
compliance with the
requirements of their approved
State Apprenticeship Plan.
------------------------------------------------------------------------
Proposed paragraph (b) provides an immediate effective date for
programs not previously registered by the effective date of the final
rule for registering programs under subpart A, when an electronic
submission process would be available to sponsors. The Department is
proposing this to allow OA to provide the necessary supports and
technical assistance to potential sponsors relating to the requirements
of this proposed rule through an electronic submission process. Such
technical assistance could include the development of boilerplate
standards of apprenticeship for use by sponsors, webinars on different
aspects and requirements of the proposed rule, electronic tools to
assist programs, and any other requirements. The Department is
interested in any comments on the sufficiency of this time period,
including whether this transition period is necessary, whether it is
sufficient to allow for OA to develop the necessary supports for
potential sponsors while also adhering to the goal of transitioning
this provision more quickly (which may impact OA's ability to provide
sufficient technical assistance to stakeholders).
Proposed paragraph (c) addresses the transition timeline for
programs previously registered by OA to comply with the requirements of
this proposed rule. The Department anticipates significant changes
would need to be made to program standards, apprenticeship agreements,
and other requirements proposed in subpart A. The Department recognizes
that established programs could need a longer transition period than
new, potential programs, and thus it proposes a 2-year timeline for
registered apprenticeship programs in the system prior to the effective
date of the final rule to comply with the updated regulation. For
example, an established program could need time to complete the
training cycle for a cohort of apprentices under its previous standards
before moving to update them or could need time to develop questions
pertaining to their program in response to subregulatory guidance
issued by the Department. The Department is interested in any comments
regarding the appropriate length of time to transition previously
approved programs to the enhanced quality requirements of this proposed
rule taking into account the burden of sponsors and the goals of
ensuring the enhancements made in this rulemaking are implemented
throughout the National Apprenticeship System.
The Department recognizes that occupations and registered
apprenticeship programs established within the National Apprenticeship
System prior to the effective date of the final rule would need to
consider two different compliance timelines: a longer, 4-year timeline
for ensuring their occupation meets the updated suitability
requirements at proposed Sec. 29.7, and a 2-year timeline for ensuring
their program standards and other program elements align with proposed
subpart A. For example, an existing registered apprenticeship program
would have to update its program standards within 2 years of the final
rule's effective date, and it could also need to gather and report data
to the Administrator regarding the subject occupation's typical wage
profile within 4 years of the final rule's effective date. The
Department anticipates that established programs could need significant
time, technical assistance, or other support to align with either the
updated standards or suitability requirements. In particular, a
competency-based program or a hybrid program (under the existing
training model framework) could need significant support in
transforming their program's work process schedule to meet the 2,000-
hour on-the-job training requirement. The Department plans to extend
opportunities to such programs to submit requests for extensions of the
transition timeline for good cause, which would also help the
Department identify types or trends of technical assistance issues
throughout the implementation process. The
[[Page 3143]]
Department invites comment, particularly from stakeholders of existing
programs, as to the feasibility and reasonableness of the proposed
transition timelines, opportunities for requesting extensions for good
cause, or any other potential questions or issues with respect to this
proposed rule and the proposed transition timelines in this section.
Paragraph (d) proposes transition provisions related to SAAs
recognized by the Administrator as of the effective date of the
proposed rule, the occupations they have approved as ``apprenticeable''
under the current rule, and the programs they have registered for
Federal purposes under the current rule. Proposed paragraph (d)
provides that SAAs recognized under the current rule would be
recognized until December 31, 2026. The Department anticipates this
would provide sufficient time for a State to make the needed changes to
transition. State government agencies seeking continued recognition for
Federal purposes would need to seek recognition as described in
proposed Sec. 29.27 within that timeframe or they would lose their
status as recognized SAAs. The Department is interested in comments
about the timing and other relevant factors impacting previously
recognized SAAs as they work towards complying with the requirements of
the proposed rule. The Department is aware that States may need to
change their apprenticeship-related laws to address the requirements in
this proposed rule and is interested in comments regarding whether the
proposed transition timeline provides sufficient time for those laws to
be updated and for the recognition requirements of proposed Sec. 29.27
to be fulfilled. The Department has an interest in building greater
alignment in the National Apprenticeship System through these proposed
regulations but is interested in comments that may address
implementation challenges and timing for those States.
Proposed paragraph (d)(1) concerns programs registered by SAAs
prior to the approval of a State's State Apprenticeship Plan (discussed
in detail in the section-by-section discussion at proposed Sec. 29.27
of this NPRM). Under proposed paragraph (d)(1), SAAs must ensure that
such programs' registration is consistent with the applicable elements
of an approved State Apprenticeship Plan within 2 years of the date the
State Apprenticeship Plan is approved. The Department recognizes that
this would be a longer time period for compliance in programs
registered by SAAs, because the Department acknowledges that SAAs would
need to make changes to their laws to meet the requirements of this
proposed rule and because they would be responsible for the
registration of programs it would not be fair to hold programs
accountable for registration in the State prior to the State making the
needed updates to their State laws. The 2 years from approval of the
State Apprenticeship Plan would be in alignment with the 2 years the
Department proposes providing for programs registered by OA from the
approval of this proposed rule. While the Department proposes providing
this longer period for programs in SAAs to be compliant with these
requirements, proposed paragraph (d)(1) also provides that any program
registered after the effective date of the final rule, but before the
State Apprenticeship Plan, would remain in provisional status until the
program is determined by the SAA to be in compliance with the
requirements of its State Apprenticeship Plan, which includes compliant
laws with the requirements of proposed Sec. Sec. 29.26 and 29.27.
Paragraph (d)(2) proposes a transition period for occupations that may
have been determined ``apprenticeable'' by an SAA, but not by the
Administrator. As described below in proposed Sec. 29.7, this proposed
rule reserves the role of making determinations regarding occupational
suitability for registered apprenticeship training (previously called
``apprenticeability'') role exclusively for the Administrator. The
Department is proposing a 4-year period by which those occupations
previously approved by SAAs must be approved by the Administrator under
proposed Sec. 29.7 in order to continue to be registered for Federal
purposes. These timelines, and the relevant members of the regulated
community for scenarios involving occupations or registered
apprenticeship programs previously deemed suitable, or registered, by
SAAs, are clarified in the tables above (see rows for ``SAA-approved
occupations'' and ``SAA-approved registered apprenticeship programs''
in the tables above). The Department is interested in comments
regarding this transition period, particularly those that weigh the
benefits of a more aligned and consistent system against the burden on
sponsors or SAAs to submit suitability requests under proposed Sec.
29.7 to continue their registration.
Paragraph (e) proposes that for State government agencies not
previously recognized as an SAA by the Administrator, they must seek
recognition under proposed Sec. 29.27 upon the effective date of the
final rule.
The following table summarizes the proposed transition periods
related to SAAs, the occupations they have previously determined
suitable for registered apprenticeship training, and the apprenticeship
programs they have previously registered.
Proposed Transition Provisions for SAAs, SAA-Approved Occupations, and
SAA-Registered Apprenticeship Programs
------------------------------------------------------------------------
Scenarios Proposed transition timeline
------------------------------------------------------------------------
Potential SAAs not previously The effective date of the final
recognized by the Administrator prior rule--new SAAs will need to
to the effective date of the final comply with the proposed
rule. requirements at Sec. 29.27
to receive recognition as an
SAA from the Administrator.
SAAs previously recognized by the Previously recognized SAAs must
Administrator prior to the effective come into full compliance with
date of the final rule. the updated regulations at
proposed Sec. 29.27 by
December 31, 2026.
SAA-approved registered apprenticeship 2 years following the SAA
programs--registered apprenticeship coming into compliance with
programs previously registered by an the final rule (2 years
SAA prior to the effective date of the following the approval of a
final rule. State Apprenticeship Plan).
SAA-approved occupations--occupations 4 years following the effective
deemed suitable for registered date of the final rule.
apprenticeship training by an SAA.
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[[Page 3144]]
B. Subpart A--Standards for Registered Apprenticeship Programs
Section 29.7--Occupations Suitable for Registered Apprenticeship
The National Apprenticeship System is built on registering
apprenticeship programs, and the first step to registering any program
is determining whether it involves an occupation that is suitable for
registered apprenticeship training. For this reason, determining
whether an occupation is suitable for registered apprenticeship
training--what OA used to describe as an ``apprenticeable occupation''
determination--is a critical responsibility within the National
Apprenticeship System. An occupation's suitability for registered
apprenticeship training is inextricably linked with the requirements
and purpose of apprenticeship itself. The primary purpose of a
registered apprenticeship program is to support industry's needs for
hiring and training a skilled and diverse workforce and preparing
apprentices for successful careers by producing individuals who are
fully proficient in their chosen occupation. The Department believes
the criteria established in this section are critical for achieving
these goals.
To have a successful career and achieve full proficiency requires a
degree of rigor that distinguishes apprenticeship from other forms of
training and work-based learning and goes beyond the acquisition of
short-term credentials. These consistent factors across a range of
industries and occupations also provides an indicator of quality and
results for all stakeholders. This is important for building a National
Apprenticeship System wherein apprentices receive training and
instruction to prepare them for successful, sustainable careers within
a quality career path and skills that are portable across an industry.
Determinations of an occupation's suitability for registered
apprenticeship training is also a central consideration in the
Department's efforts to expand registered apprenticeship to new
industries and sectors. The expansion of registered apprenticeship is
an ongoing, driving focus for the Department. However, expansion
efforts must balance flexibility and quality control to ensure that any
potential new programs have room within the regulatory framework to
adapt the model to their industry and occupation, while also ensuring
that potential apprentices seeking to enter into a program can expect
to receive quality training that is transferrable throughout an
industry and applicable and beneficial throughout their careers.
Under the current regulatory framework, an occupation is considered
suitable for registered apprenticeship training if it meets four
distinct criteria set forth at current 29 CFR 29.4. Occupations
suitable for registered apprenticeship training (``apprenticeable''
occupation) must: (1) involve job skills customarily acquired through
on-the-job training; (2) be ``clearly identifiable and recognizable''
in an industry; (3) involve the progressive acquisition of skills and
knowledge which would require at least 2,000 hours of on-the-job
training; and (4) require related instruction in addition to the on-
the-job training component.
The Department has determined, based on the successful functioning
of the National Apprenticeship System, consideration of national and
international apprenticeship practices,\68\ and input from industries
where registered apprenticeship has successfully led to the development
of a skilled workforce that meets industries' evolving needs, that a
quality registered apprenticeship program must involve at least 1 year
of full-time training or its equivalent in the subject occupation.
Accordingly, in this revision to the registered apprenticeship
regulations at proposed 29 CFR 29.7(b)(4), the Department proposes to
retain the existing requirement from 29 CFR 29.4(c) that states
``apprenticeable'' occupations must involve the progressive attainment
of skills and knowledge over the course of ``at least 2,000 hours'' of
on-the-job training. This time period equates to approximately 1 year
of full-time work,\69\ and the Department has determined that in order
for an occupation to be suitable for registered apprenticeship training
and eligible for registration within the National Apprenticeship
System, the training regimen for that occupation must meet this minimum
duration requirement. The Department views this minimum duration
requirement as an important hallmark of a quality registered
apprenticeship program that effectively imparts occupational
proficiency for apprentices.
---------------------------------------------------------------------------
\68\ Apprenticeships in Canada ordinarily are between 2 and 5
years in duration. See Government of Canada, ``How to become an
apprentice,'' https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/become-apprentice.html (last
updated Mar. 31, 2023). Apprenticeships in Australia are ordinarily
between 1 and 4 years in duration. See Fair Work Ombudsman of the
Australian Government, ``Guide to Starting an Apprenticeship,'' June
2023, at 2, https://www.fairwork.gov.au/sites/default/files/migration/712/guide-to-starting-an-apprenticeship.pdf.
Apprenticeships in England are ordinarily between 1 and 5 years in
duration and cannot be less than 1 year in duration. See Andrew
Powell, ``Apprenticeships Policy in England,'' House of Commons
Library, Jan. 20, 2023, at 10, https://researchbriefings.files.parliament.uk/documents/SN03052/SN03052.pdf,
as well as the information available at https://www.gov.uk/employing-an-apprentice (last visited July 20, 2023).
\69\ Based on a 40-hour workweek and 50 weeks of full-time work
in a year.
---------------------------------------------------------------------------
As discussed throughout, the Department recognizes the importance
of ensuring that apprentices who complete a registered apprenticeship
program are proficient in the subject occupation. The 2023 Quality
Apprenticeships Recommendation of the ILO advises Member States to
consider the scope of competencies required for an occupation, as well
as the duration of the apprenticeship term that would be required to
impart such competencies, in making determinations about an
occupation's suitability for registered apprenticeship training.\70\
Based on its experience and in its work with its international peers,
the Department views the 2,000-hour minimum duration requirement as an
important minimum quality assurance for employers that hire apprentices
who have completed registered apprenticeship programs. The Department
intends for the National Apprenticeship System to consistently produce
cohorts of workers employed in skilled careers that employers are eager
to hire, that are competent in the individual job tasks and skills that
constitute the full scope of work for an occupation, and that are fully
proficient in the covered occupation. Before assigning key aspects of
their business operations to new workers, employers must have
confidence that they can rely on such workers to perform tasks safely,
accurately, efficiently, and in a timely manner such that the work
rendered contributes to a profitable enterprise. The Department has
determined that the 2,000-hour minimum duration requirement is critical
for imparting the necessary safety training, competency development,
and strategies for the efficient completion of tasks to apprentices.
For example, programs registered for the electrician occupation
typically have a time-based requirement for an apprentice to achieve
occupational proficiency in no less than 8,000 hours, or approximately
4 years.
---------------------------------------------------------------------------
\70\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO
Recommendation No. 208), Conclusion 9(c), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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In order to become proficient in the subject occupation,
apprentices must learn the appropriate safety techniques
[[Page 3145]]
and technical procedures associated with an occupation and must
continuously apply such techniques and procedures in order to strike
the appropriate balance between safety, accuracy, and efficiency. This
learning and continuous application of safety measures, skills, and
techniques takes time and resources, and such an investment of time and
resources is critical to realizing the benefits of quality
apprenticeship training for both employers and workers.
Further, the Department views the 2,000-hour minimum duration
requirement as an important protection for apprentices, and in line
with the Department's statutory obligation to protect the welfare of
apprentices. Such a minimum duration requirement is important for the
protection of apprentices' welfare in three important respects--
acquiring occupational proficiency on-the-job, ensuring the delivery of
adequate and proper safety training to new and inexperienced workers
(particularly in higher hazard occupations), and demonstrating success
in competency acquisition through supervised on-the-job training.
Approximately 1 year of full-time training is necessary to establish a
track record of occupational proficiency, demonstrated understanding of
safe occupational and workplace practices and techniques, and
experience in learning and achieving competencies on-the-job under
appropriate supervision. With respect to apprenticeships in hazardous
occupations, safety training does not solely involve teaching
apprentices the appropriate techniques for the safe and secure
operation of a piece of machinery or interaction with a known hazard.
In order for apprentices to operate in a safe environment, they must
also be trained to recognize the signs of a potential hazard, to be
proactive in applying safety measures and precautions, and to be
diligent and aware on the job.
Registered apprenticeship is ultimately meant to transform
apprentices into full-time, proficient, and highly effective employees.
In a registered apprenticeship program, apprentices learn job skills
and techniques that are portable within an occupation and across
employers hiring for that occupation. Completing a quality registered
apprenticeship program should firmly place apprentices on a pathway to
a stable, quality career. Conversely, if a training program only
prepares an apprentice to enter into employment with a single employer,
with little opportunity for vertical or horizontal career mobility, the
benefits of the training program are limited for both the trainee and
any prospective employer. As with safety training, developing the full
set of occupational competencies necessary to become proficient in the
occupation (i.e., to transform from an apprentice to a fully proficient
skilled worker in the occupation) takes time, continuous practice and
application of learned skills, and periodic assessments by program
operators to confirm that apprentices are learning all the skills
necessary for immediate and future career opportunities. The
Department's proposal is ultimately based on its experience operating
the National Apprenticeship System and consideration of the minimum
program requirements for demonstrated occupational proficiency in other
countries with highly sophisticated apprenticeship systems, such as
Canada, Switzerland, Germany, the United Kingdom, and Austria.
The Department is interested in any public comments on a minimum
duration of the training period for quality registered apprenticeship
programs, and whether the longstanding quality hallmark of a 2,000-
hour, yearlong training program works well for existing stakeholders,
and whether this period should be shorter or longer. In particular, for
comments on the 2,000-hour minimum duration requirement, the Department
is interested in reviewing data, statistics, and practical examples
from existing workforce training programs (including existing
registered apprenticeship programs) that illustrate or inform the
merits of establishing a minimum duration of training in terms of
overall training program quality.
Relatedly, apprentices in most registered apprenticeship programs
currently operating within the National Apprenticeship System receive
at least 144 hours (on average per year, or per 2,000 hours, of on-the-
job training) of related instruction to complement the on-the-job
training elements of their program. Such related instruction--also
referred to as ``classroom'' learning or by other terms that reflects
the academic nature of related instruction in the apprenticeship
context--enables apprentices to learn the theoretical concepts that
underpin the work performed in the subject occupation and supplements
their understanding of the job skills and competencies they acquire
through on-the-job training. The Department views related instruction
as a critical element of quality registered apprenticeship programs
that is essential for the ultimate success of the apprentice in their
transformation from an apprentice into a fully proficient worker in the
occupation. While 144 hours of related instruction is only a minimum
recommendation under the current regulatory framework at 29 CFR
29.5(b)(4), because of its importance to the future success of an
apprentice, at proposed Sec. 29.7(b)(4), the Department is proposing
to require that an occupation's proposed work process schedule include
at least 144 hours of related instruction, on average, per 2,000 hours
of on-the-job training, in order for the Department to determine that
the occupation is suitable for registered apprenticeship training. For
example, under this proposal a submission of an occupation for 4,000
hours of on-the-job training would need to provide a related
instruction outline that includes at least 288 hours of related
instruction to maintain the 144-hour average requirement. Because this
applies at 2,000-hour on-the-job training intervals, a 3,000-hour on-
the-job training program would only be required to provide at least 144
related instruction hours.
The Department believes that proposing the establishment of a
uniform minimum requirement of 144 hours of organized, related
instruction in technical subjects related to the covered occupation--
rather than merely referencing such a quantitative instructional
standard as a recommendation, as the current regulation at 29 CFR
29.5(b)(4) does--accords with the usual instructional standard of 144
hours of related instruction for each year of on-the-job training that
is, with very few exceptions, utilized by registered apprenticeship
programs across a wide range of occupations in their standards of
apprenticeship. The 144-hour related instruction standard posits a
scenario where an apprentice attends such classroom instruction for 4
hours per week over the course of a 36-week period (4 x 36 = 144), a
period that coincides with the term of instruction in a typical school
year calendar. The Department takes the view that it is essential for
apprentices to have a broad educational and theoretical component to
their training as a foundation of knowledge to help them adapt to
changes in the market and to maintain currency with occupation
competencies. Hence, the Department believes that the establishment of
a uniform 144-hour related instruction requirement would help to ensure
that apprentices receive a sufficient number of hours of classroom
instruction to supplement and reinforce the practical skills obtained
during the on-the-job training component of the apprenticeship,
[[Page 3146]]
thereby ensuring the attainment of the requisite occupational
competencies at the conclusion of the apprenticeship.
In most instances, program sponsors require that an apprentice
fulfill the related instruction component of the apprenticeship during
after-work hours. This approach is both realistic and sensible, given
that the average age of apprentices in the United States is
approximately 29 years old \71\--a considerably older age cohort than
is found in the national apprenticeship systems of the European Union,
where an average age under the age of 20 is not uncommon.\72\ As a
practical matter, the prevalence of an older apprenticeship age cohort
in the United States means that many such apprentices may be required
to balance competing work-life demands, such as holding down a second
job or providing parental care for young children. Additionally, while
many apprenticeship sponsors pay for or reimburse apprentices for the
related instruction component of an apprenticeship, some sponsors may
require an apprentice to absorb the costs of such classroom
instruction. Because of the widespread prevalence of such outside
obligations and economic burdens among older apprentices, the
Department believes that the retention of the usual 144-hour
quantitative standard for related instruction for each 2,000 hours of
on-the-job-training in this proposal would be sensible, and that any
significant increase in the duration of such instruction could prove
unduly burdensome to those U.S. apprentices who must navigate such
challenges.
---------------------------------------------------------------------------
\71\ Taylor White, ``Young Adults in Registered Apprenticeship:
What New Data Can and Cannot Tell Us,'' New America, Sept. 20, 2022,
https://www.newamerica.org/education-policy/edcentral/young-adults-in-registered-apprenticeship-what-new-data-can-and-cannot-tell-us/.
\72\ Briefing Note, ``Apprenticeships for Adults,'' European
Centre for the Development of Vocational Training, June 2020,
https://www.cedefop.europa.eu/files/9147_en.pdf.
---------------------------------------------------------------------------
The Department is interested in comments to this approach,
including any alternatives such as a minimum ratio of 144 hours of
related instruction per 2,000 that would be applied to the total hours.
In the example of a 3,000-hour on-the-job training program, the ratio
of 144 related instruction hours to 2,000 hours of on-the-job training
would equate to a floor of 216 hours of related instruction. The
existing requirement for apprenticeability only requires that there
must be related instruction to supplement the on-the-job training,
without setting a minimum number of hours.
The Department seeks comments on the inclusion of the related
instruction hours as part of the determination of suitability,
particularly those that may recommend no criteria be used in the
occupational eligibility process and how the Department could still
ensure more occupational consistency and integrity in its training of
apprentices. The Department is also interested in comments about a
minimum average as part of the suitability process, particularly
whether to apply it at the 2,000-hour level or if an alternative method
of scaling an increase in related instruction consistent with an
increase in on-the-job training hours should be considered. In line
with the Department's guiding principle to ensure registered
apprenticeship programs are responsive to employer needs, the
Department is proposing these minimum standards for consideration by
the regulated community in this NPRM and is interested in feedback from
all apprenticeship stakeholders regarding the proposed minimum
standards for occupational suitability in this proposal.
In addition to the minimum standards proposed in this section, an
applicant submitting a suitability request could submit an occupation,
work process schedule, and related instruction outline that exceeds the
minimum standards for the purposes of setting an industry standard for
the suitable occupation. For example, an electrician apprenticeship
program could submit an occupational request for 8,000 on-the-job
training hours as the industry standard at proposed paragraph (c). At
proposed Sec. 29.7(d), the Administrator would solicit public comment
to assist in evaluating whether submissions meet the requirements of
proposed paragraph (c). Additionally, the Administrator could consider
other information such as industry or occupational data to assist in
making any determinations. An example could include the utilization of
the O*NET system,\73\ which includes national and localized data. Such
requests for comment and information may include an opportunity for
industry leaders, programs, and other members of the public to comment
on the number of hours proposed for the occupation's industry standard,
including feedback that it should be higher. Due to its statutory
obligation to protect the welfare of apprentices, the Department's
strong view is that programs training apprentices to perform an
occupation must meet some minimum parameters related to on-the-job
training and related instruction, which may also be higher based on an
industry standard for that occupation. Such consistency is important
for ensuring that all apprentices attain proficiency in an occupation
through their participation in a registered apprenticeship program, an
important goal and protection for apprentices within the National
Apprenticeship System that ensures they enjoy labor market mobility in
their careers (both with employers associated with the program, and
other employers hiring workers in that occupation).
---------------------------------------------------------------------------
\73\ DOL, O*NET OnLine, https://www.onetonline.org/ (last
updated Oct. 3, 2023).
---------------------------------------------------------------------------
The Department recognizes that, in the United States, many jobs do
not require a year of paid, full-time, work-based learning, nor a
significant investment of time spent providing related instruction to
workers. Ultimately, registered apprenticeship training is not suitable
for all occupations, including many occupations that are essential for
the healthy functioning of the national economy. Because the Department
must meet its statutory obligation to protect apprentices' welfare in
overseeing the National Apprenticeship System, it must consider
programs' potential effectiveness for preparing apprentices to enter
into stable, rewarding careers. As such, determining an occupation's
suitability for registered apprenticeship training is central and
definitional to the registered apprenticeship model and quality
assurance throughout the National Apprenticeship System. This more
uniform approach to suitability minimizes the possibility that
individual programs provide vastly different employment and training
experiences. As discussed above, these minimum standards are designed
to ensure a minimum framework for determining the suitability of
occupations for use in registered apprenticeship programs, acquiring
skills and competencies acquired, and the type and amount of related
instruction, as well as common expectations on how much on-the-job
training is necessary for a typical apprentice to achieve proficiency.
Accordingly, the Department proposes to carry forward the existing
2,000-hour minimum duration of on-the-job training requirement
criterion for an occupation's suitability for registered apprenticeship
training, and to require, rather than recommend, that an occupation
provide at least 144 hours of related instruction, on average, per
2,000 hours of on-the-job training.
The Department has further determined that the existing regulatory
framework on ``apprenticeability'' needs to be modernized and
strengthened in order to preserve and enhance quality, maintain and
build both registered apprenticeship program and
[[Page 3147]]
occupational consistency, and ensure apprentice mobility throughout a
national system of quality apprenticeships. Many employers with
multistate or nationwide operations would benefit from a registered
apprenticeship program to train their future workforce and address
their talent needs. Such employers and apprentices would benefit from a
clear, national, uniform set of regulatory parameters related to the
identification of occupations that are suitable for registered
apprenticeship training. For an employer operating in multiple States
or on a nationwide basis, the potential for an occupation to ultimately
be determined to be suitable for registered apprenticeship training in
one State, but not in another, would present challenges in planning and
operations for multistate employers and would dilute the effectiveness
of registered apprenticeship in addressing workforce needs. For
example, the current approach does not require any showing that a
particular occupation is recognized throughout an industry as a stand-
alone occupation, nor does it require a general understanding of the
skills and time necessary to obtain proficiency. This proposed approach
would establish a more uniform process and uniform results, reducing
uncertainty, preventing fragmentation of workforce training operations,
and enhancing the attractiveness and potential effectiveness of a
registered apprenticeship program for a nationwide or multistate
employer.
The ACA's 2022 Interim Report included recommendations related to
the ``apprenticeability'' framework to complement efforts to expand
registered apprenticeship, including a recommendation from the Industry
Engagement in New and Emerging Sectors ACA subcommittee for the
Department to have sole responsibility for designating occupations as
suitable for registered apprenticeship training.\74\ The ACA
recommended that the criteria for determining an occupation's
suitability for registered apprenticeship training should be universal
for all potential programs--that is, a potential program sponsor
seeking recognition for an occupation in one State should not face a
different set of circumstances in seeking to register a program in
other States or nationwide. The Department concurs with these
recommendations to ensure a truly national system of occupations
eligible for registration for Federal purposes based on established,
universal criteria, which the Department views as key principles to
advance the goals of program transparency, enhanced portability of
programs and credentials, equity among programs and participating
apprentices, and program quality and integrity. Accordingly, the
Department proposes several changes to the process for determining an
occupation's suitability for registered apprenticeship, as further
discussed below.
---------------------------------------------------------------------------
\74\ ACA, ``Interim Report to the Secretary of Labor,'' May 16,
2022, at 28, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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Another consideration to guide expansion and quality oversight of
the National Apprenticeship System, arising from the Department's
ongoing consultations with registered apprenticeship stakeholders,
including the ACA and representatives from industries where registered
apprenticeship is both new and well-established, is striking the
appropriate balance between expansion of the registered apprenticeship
model and the impact of any change on established programs. The
proposed regulation would set the minimum occupational standard by
which an occupation may be determined suitable for registered
apprenticeship and provide for the input of industry to set higher
minimum standards for on-the-job training at proposed Sec. 29.7(d).
The minimum standard exists in the current regulation at 29 CFR
29.4(c), which provides for both the 2,000-hour minimum and that it be
in accordance with the ``industry standard for the occupation.'' For
example, an established program may have a set of standards of
apprenticeship that exceed the minimum 2,000-hour on-the-job training
requirements in the existing regulation based on the ``industry
standard for the occupation.'' This industry standard is not imposed by
OA, but rather is set through the apprenticeship suitability process.
In this example, an industry standard for an occupation may be the
equivalent of 3 full-time years of training (e.g., 6,000 hours of on-
the-job training, well above the minimum requirement of 2,000 hours for
a time-based program under the existing regulation). If a new program
enters the system in the same occupation and submits standards of
apprenticeship that are significantly lower than those associated with
the established program, such as only requiring the minimum 2,000 hours
of on-the-job training, the established program is not in alignment
with the industry standard for the occupation. A departure this
significant likely indicates an entirely separate occupation
potentially only training in a subset of the skills required or outside
of an industry norm for an apprentice to achieve the same degree of
proficiency. The Department would have concerns that an existing
program's quality standards would be undercut by the introduction of a
new, less rigorous program in the same occupation. These concepts about
maintaining and enhancing both a minimum floor for any occupation to be
eligible for a registered apprenticeship program, and potentially a
higher floor based on industry standards, help to ensure greater
consistency both in the skill acquisition and occupational proficiency
of apprentices. The introduction of a new, less rigorous program also
would raise concerns in the marketplace where employers may be
competing for talented workers and would also be eligible for potential
Federal, State, and local benefits associated with employing
apprentices in a registered apprenticeship program. Maintaining and
building on both of these concepts is critical to avoid a ``race to the
bottom'' and to avoid incentivizing less skilled labor, less safe
workplaces, and potentially lower wages for workers in any particular
occupation. Ultimately, OA seeks to preserve and enhance the
established level of quality for all registered apprenticeship programs
in the occupations that have been determined suitable for registered
apprenticeship training within the National Apprenticeship System, and
to maintain that standard of quality going forward. The ACA framed this
potential issue as ``splintering'' and discussed it from two different
perspectives--the potential for recognition of an occupation to detract
from the successful operation of established programs for very similar
occupations, and the ``excessive partitioning'' of an occupation into
overly specific job skill sets.
The ACA identified these potential ``splintering'' issues in its
2022 Interim Report,\75\ and proposed addressing the issues related to
splintering, in part, by leveraging labor data, such as industry data
from DOL's O*NET and the DOL's Bureau of Labor Statistics (BLS), to
inform expansion efforts. The Department agrees that the issues
identified by the ACA are worth considering as it pursues efforts to
expand and strengthen the National Apprenticeship System and has
determined that updates to strengthen the regulatory framework for
determining an occupation's suitability
[[Page 3148]]
for registered apprenticeship training are necessary to facilitate
expansion efficiently and without adverse impacts to the existing,
successful National Apprenticeship System. Accordingly, the Department
proposes to create an updated and expanded provision in the part 29
regulations, discussed in further detail below.
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\75\ ACA, ``Interim Report to the Secretary of Labor,'' May 16,
2022, at 15, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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Proposed Sec. 29.7 would make several significant changes to
update key terminology to more accurately describe this important first
step in creating a registered apprenticeship program. The proposal
would replace the term ``apprenticeability'' with the term
``suitability,'' and describes the process that OA would use to
determine if an occupation is suitable for registered apprenticeship
training. Proposed Sec. 29.7 would also implement the ACA's
recommendation to avoid ``splintering'' \76\ within occupations. The
Department believes that the changes to existing Sec. 29.4 would
ensure that completing a registered apprenticeship program places
apprentices on a pathway to sustainable careers with a fair opportunity
for career advancement and economic mobility, discussed in more detail
below. The Department also proposes that if no sponsor has registered a
program in a given occupation for a number of years, OA may, at its
discretion, rescind an existing apprenticeability or suitability
determination.
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\76\ See the recommendation from the ACA's Modernization
subcommittee. ACA, ``Interim Report to the Secretary of Labor,'' May
16, 2022, at 14, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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Proposed paragraph (a) explains that an occupation determined to be
suitable for registered apprenticeship would be eligible for local
registration by any Registration Agency. The reference to local
registration is intended to clarify that while a positive suitability
determination would be the first step for registration of National
Program Standards for Apprenticeship or National Guidelines for
Apprenticeship Standards, such registration would require sponsors to
satisfy the additional criteria in proposed Sec. Sec. 29.14 and 29.15
in this part, respectively.
The 2008 final rule did not definitively state whether SAAs have
the authority to approve occupations for Federal purposes. This lack of
clarity has created several problems, including ambiguity around
whether occupations approved by SAAs are eligible for Federal purposes
as defined in proposed Sec. 29.2. Some States have delegated
apprenticeability (suitability) determinations to non-governmental
advisory boards. In addition, there are different applications of the
regulatory criteria in approving occupations that create inconsistency
in both the identification of industry recognition of an occupation and
the minimum quality standards associated with such occupation. This has
created planning and operational challenges for national employers
seeking to establish workforce training programs through registered
apprenticeship in multiple States and complicates the Department's
planning and execution of targeted efforts to expand registered
apprenticeship's footprint nationwide. To address these issues and
clarify who is able to fulfill this key duty, proposed paragraph (a)
states that the Administrator would have the sole discretion to
determine whether an occupation is suitable for registered
apprenticeship. This would apply to States where OA serves as the
Registration Agency, as well as States where SAAs serve as Registration
Agencies.
In pursuing a national approach to making determinations about an
occupation's suitability for registered apprenticeship training, the
Department seeks to maximize the impact of Federal benefits (such as
the disbursement of investments, the availability of tax credits
available under the IRA, prevailing wage considerations for apprentices
under the Davis-Bacon and related Acts, resources providing support to
apprentices such as WIOA, and uniformity in administrative and
oversight practices related to registered apprenticeship) throughout
the system. The Department considers it critical that suitability
determinations be made by OA to maintain consistency across the
National Apprenticeship System so that different States do not make
substantially different suitability determinations. In addition,
centralized suitability determinations would ensure that they can be
made with the benefit of conferring with industry leaders across the
country, and, once occupations are deemed suitable for apprenticeship,
they could be registered across the country. Moreover, given the role
and increasing Federal benefits associated with registration for
Federal purposes, OA seeks to avoid situations in which the same
occupation would be ineligible for registration in some States but
eligible for registration and Federal benefits in other States.
Under this proposed rule, SAAs would be able to submit suitability
applications to the Department for determination, including for those
occupations they have previously approved but OA has not approved. The
Department acknowledges that its decisions could impact receipt of
State benefits conferred to employers, organizations, or other
apprenticeship stakeholders.\77\ Under this proposed rule, the
Department would consider any such implications when a State submits
suitability applications for previously recognized occupations to OA
and would prioritize avoiding any adverse impacts to established
programs.
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\77\ For example, many States offer tax credits for businesses
that hire apprentices from approved registered apprenticeship
programs. For a list of such programs by State, see OA, ``State Tax
Credits and Tuition Support,'' https://www.apprenticeship.gov/investments-tax-credits-and-tuition-support/state-tax-credits-and-tuition-support (last visited July 20, 2023).
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The Department is interested in comments about this approach, or
any alternatives, such as whether States should formally have the
authority to approve occupations for Federal purposes within their
State, or an additional option where an SAA could apply to OA for
approval of an occupation for Federal purposes specific to that State.
The Department is particularly interested in any comments on how this
approach may impact reciprocity with other States or OA, the
transferability and portability of a program that is approved for
Federal purposes exclusively in that State, and what criteria the
Department should consider when approving and implementing the
determination that an occupation is suitable for ``Federal purposes''
(as described in Sec. 29.2 of this proposed rule) specific to a State.
The Department considered another alternative approach to revising the
regulations for making suitability determinations wherein occupations
could be approved for Federal purposes as ``regional'' occupations
where appropriate (for example, an occupation that is prevalent in a
State or region of States, but that otherwise does not have a
nationwide footprint), and invites comments on this and all other
regulatory alternatives, including transferability, criteria,
implementation, or any other alternative approaches to the suitability
process.
Proposed paragraph (b) would establish the minimum criteria that
must be met for an occupation to be determined to be suitable for
registered apprenticeship.
Proposed Sec. 29.7(b)(1) would replace existing Sec. 29.4(b) with
the additional clarification that to be suitable for registered
apprenticeship, the occupation must be clearly identified and commonly
recognized as a stand-alone and distinct occupation. The added terms
are intended to be
[[Page 3149]]
responsive to the ACA's Interim Recommendation to avoid
``splintering,'' which the ACA described as occurring when an
occupation is too specific or specialized within an occupational
subset. This proposal is intended to prevent a favorable suitability
determination where an occupation may be clearly identified and
commonly recognized yet be so similar to all or parts of an existing
occupation that recognizing both occupations could undermine the labor
mobility, transferability, and career prospects of apprentices. For
example, if a sponsor were to submit a suitability determination
request for an occupation that replicates many, but not all, of the
work processes in an occupation previously determined to be suitable
for registered apprenticeship, the Administrator could determine that
the occupation in question is not stand-alone and distinct and thus not
suitable for registered apprenticeship. The Department has determined
that avoiding the ``splintering'' of occupations into occupational
subsets is critical for ensuring that completing apprentices possess
portable credentials that are widely recognized by employers in the
apprentice's industry. If the occupation were determined to be
suitable, then the lesser standard it represents would lead to a less
skilled apprentice who would be less able to find and retain the type
of work the registered apprenticeship program is designed to provide to
apprentices. The Department remains committed to working with industry
to inform suitability determinations and invites public comments on the
Department's proposed approach to avoid splintering occupations,
potential examples of overly specific occupational subsets, or any
other elements of the proposed process for making determinations about
occupations' suitability for registered apprenticeship training. If OA
concludes that a new occupation cannot be recognized as suitable for
apprenticeship because of proposed Sec. 29.7(b)(1), OA would inform
the applicant of already suitable occupations to facilitate the
registration of a program using an already suitable occupation.
Proposed Sec. 29.7(b)(2) is new and would require applicants for a
suitability determination to demonstrate that the occupation under
consideration leads to a sustainable career. A sustainable career is
one that places apprentices who complete their program on a trajectory
to a sustainable career, one that provides a fair opportunity for
career advancement and economic mobility. This proposed requirement is
responsive to the ACA's interim recommendation that wages be taken into
consideration in the process of determining which occupations may be
suitable for registered apprenticeship. The proposed requirement is not
intended to limit the number of programs or apprentices in occupations
that have slower-than-average projected growth rates or estimated
future job openings. The applicant may also provide supplemental
information demonstrating that the occupation is associated with a
career ladder or a ``stackable'' set of occupational credentials in
that occupation to demonstrate the occupation's opportunity for career
advancement and economic mobility.
The Department provides the following scenarios to illustrate the
options available to applicants proposing a new occupation for a
suitability determination. An applicant could propose a new occupation,
such as Technologist I (term of 1 year), that upon completion has a
compensation profile for a journeywork of $25,000 per year. An
applicant could also propose a new occupation, such as Technologist II
(term of 2 years), that has a compensation profile for a journeyworker
of $70,000 per year. Finally, an applicant could propose a
``stackable'' apprenticeship model for Technologist II (term of 2
years) but include an interim credential at Year 1 to convey competency
at the Technologist I level.
The Department is interested in hearing views on this approach,
including perspectives on whether applying a more specific wage
standard as part of the suitability determination process is
appropriate, or if alternative standards or approaches should be
considered, balanced against the goal of expanding apprenticeships
models into new industries and building career ladders to higher
quality jobs. In addition, the Department invites comments on what
criteria should be taken into account to determine whether an
occupation leads to sustainable careers.
Proposed Sec. 29.7(b)(3) and (4) would replace existing Sec.
29.4(a) and (c) and would require that a structured registered
apprenticeship program provide the skills, techniques, and competencies
required to attain proficiency in the occupation. However, proposed
Sec. 29.7(b)(3) would remove the qualifier of skills being ``manual,
mechanical or technical'' as those terms are linked specifically to
skilled trades and are not as broadly applicable to other industries
expanding into developing registered apprenticeship models. The
requirement that skills attainment be progressive would also be deleted
in favor of the requirement of skill acquisition leading to proficiency
in the occupation, as would be required by proposed Sec. 29.7(b)(3).
Proposed Sec. 29.7(b)(4) would retain the requirement that at least
2,000 hours of on-the-job training be necessary to achieve proficiency
in the occupation. As explained above, this 2,000-hour requirement is
intended to capture roughly 1 year of full-time on-the-job training.
The requirement is intended to distinguish between other forms of work-
based learning, such as programs that only support on-the-job training,
incumbent worker training, and other shorter certificate programs on
the one hand, and proficiency in an occupation that would afford
apprentices a lifelong career, on the other. Notably, the 2,000-hour
requirement would apply specifically to on-the-job training--work
process schedules that would last a calendar year or more but that
would not require 2,000 hours of on-the-job training would not satisfy
this requirement. The fact that an individual applicant for a
suitability determination would require 2,000 hours of on-the-job
training would not be dispositive in OA's analysis because OA would
look to the number of on-the-job training hours typically required to
achieve proficiency in the occupation. In addition, proposed Sec.
29.7(b)(4) would require an industry standard of not less than a
minimum average of 144 hours of off-the-job, related instruction for
every 2,000 hours of on-the-job training in order to obtain proficiency
in the occupation.
Proposed Sec. 29.7(c) is new and explains the information that
would be submitted electronically to the Administrator in support of a
suitability determination request. The Department believes that
specifying the documentation and explanation necessary for the
Administrator to reach a new suitability determination would assist
applicants who may be unfamiliar with this process.
Proposed Sec. 29.7(c)(1) explains that an applicant for a
suitability determination would need to submit sufficient documentation
to demonstrate that the elements in proposed Sec. 29.7(b)(1) through
(4) are satisfied.
Proposed Sec. 29.7(c)(2) would require that the applicant provide
a work process schedule as well as an explanation of how the components
of the work process schedule are appropriately structured such that
completing apprentices will have achieved proficiency in the
occupation. As part of the suitability determination,
[[Page 3150]]
the work process schedule associated with the occupation submitted in
this section would be the work process schedule in which sponsors must
substantially align their standards of apprenticeship under proposed
Sec. 29.8.
Proposed Sec. 29.7(c)(3) would require an applicant for a
suitability determination to document the number of hours required to
achieve proficiency in an occupation. Although the minimum number of
hours would always be 2,000 as established by proposed Sec. 29.7(b)(4)
above, some occupations could require more than 2,000 hours of on-the-
job training to achieve proficiency. For example, an industry standard
term might be set at 8,000 hours for certain occupations. If an 8,000-
hour term were to be set for an occupation through this process, future
sponsors' work process schedules and related instruction outlines would
need to substantially align with the work process schedule and related
instruction outline approved under proposed Sec. 29.7. If a work
process schedule and related instruction outline submitted for
registration under proposed Sec. 29.10 do not substantially align, for
example because the required hours of on-the-job training are
substantially fewer, then a new suitability determination would be
required as provided for in proposed Sec. 29.10(b)(1). The Department
acknowledges that an industry standard may change over time given
changes in technology or other factors, which is addressed through
proposed paragraph (h) of this section.
Proposed Sec. 29.7(c)(4) is new and would require a related
instruction outline that describes the proposed curriculum. The number
of hours of related instruction would need to be at least an average of
144 hours for every 2,000 hours of on-the-job training. The number of
related instruction hours would not need to be evenly distributed
during the term of the apprenticeship as long as this average were
achieved.
Proposed Sec. 29.7(c)(5) is new and would require an applicant for
a suitability determination to disclose if there are any interim
credentials, recognized postsecondary credentials, or license
requirements for an apprentice to obtain during their registered
apprenticeship program to work in that occupation. This is important to
ensure OA can validate those submissions through a process to ensure
programs registered in an approved occupation provide the industry-
validated credentials required for the occupation. The Department notes
that programs may provide interim credentials to apprentices, which can
signify the attainment of industry-recognized competencies; however,
under this provision applicants would need to disclose required
credentials needed to practice an occupation in a given State. For
instance, some occupations, such as a teacher, nurse, or electrician,
require a license in every State. This criterion would help provide
more clarity to sponsors seeking to register programs regarding what
credentials they must offer in a program, as well as what credentials a
program may offer to apprentices.
As described earlier, proposed Sec. 29.7(d) explains that the
Administrator would solicit public comment for at least 30 days on all
occupational suitability determinations. This addition would also
ensure feedback from industry leaders is considered, while also
allowing for additional registered apprenticeship and industry experts
to provide input into the occupational and work process schedule
design. The Administrator would render a determination within 90
calendar days from receiving a completed application, though this time
period could be extended by notifying the applicant that more time is
needed to reach a determination. Proposed Sec. 29.7(d) would also
require the Administrator to maintain an up-to-date publicly available
list of all occupational determinations related to suitability for
registered apprenticeship.
Generally, as a first step in evaluating an application, the
Administrator would utilize a standardized process to identify a
proposed occupation and determine whether it is already recognized as
part of an existing suitable occupation. In practice, the Administrator
currently utilizes industry-validated resources to assist in this
determination such as the O*NET Program. The O*NET program assists the
Administrator in identifying standardized and occupation-specific
descriptors, such as core Tasks, and important knowledge, skill, and
ability areas, for almost 1,000 occupations covering the entire U.S.
economy. As an example of what might occur under this proposed
provision, the Administrator could identify an O*NET code for each
submission. Next, the Administrator would share the application with
industry leaders and solicit feedback. Soliciting feedback from such
stakeholders regarding whether an application for a suitability
determination satisfies the requirements in proposed Sec. 29.7(b)
would assist the Administrator to adjudicate applications and to ensure
that the work process schedule and related instruction outline are in
accord with industry standards.
Although the Department feels that a process of soliciting feedback
from industry leaders has worked well to date, the Department requests
comments regarding how it may seek input from a wider distribution of
industry leaders, the public, and other stakeholders, or utilize
alternative or innovative methods such as analyzing data to assist the
Administrator in making suitability determinations. In addition, the
Department is interested in comments regarding when it may be
appropriate to vary the process (i.e., when it may be most appropriate
to consult with the public versus employing data analysis). In
particular, the Department wants to ensure that a process of soliciting
feedback from industry leaders does not limit the expansion of
apprenticeship into new industries where fewer industry leaders
familiar with apprenticeship may exist.
Proposed Sec. 29.7(e)(1) through (4) explain the basis by which
the Administrator could reach an unfavorable suitability determination.
Proposed Sec. 29.7(e)(1) explains that an application for a
suitability determination could be rejected if the application were
incomplete, meaning that it did not include or address all of the
elements in proposed Sec. 29.7(b) or include all of the information
required in proposed Sec. 29.7(c).
Proposed Sec. 29.7(e)(2) explains that to be suitable for
registered apprenticeship, all of the criteria in proposed Sec.
29.7(b) would need to be satisfied. Ultimately, the discretion as to
whether these criteria are satisfied would rest solely with the
Administrator for the reasons discussed above.
Proposed Sec. 29.7(e)(3) and (4) are intended to prevent the
``splintering'' of occupations as described above. Proposed Sec.
29.7(e)(3) would prevent the Administrator from recognizing as suitable
for registered apprenticeship an occupation if the scope of the
apprenticeship training is confined to a narrowly specialized subset of
skills and competencies within an established occupation that are not
readily transferable between employers in the sector.
Proposed Sec. 29.7(e)(4) would prohibit the Administrator from
making a favorable suitability determination where the occupation under
adjudication replicates a significant portion of the work processes
from another occupation that OA previously approved as suitable for
registered apprenticeship training without leading to a more advanced
occupation. Thus, for example, if an occupation already considered
suitable trains apprentices in
[[Page 3151]]
48 competencies and would result in a professional certification, but
the Administrator were to receive a suitability determination request
for a new occupation that replicates some, but not all, of the 48
competencies and would not result in a professional certification, the
Administrator could decline to find the new occupation suitable for
registered apprenticeship. The Administrator would consult with
industry leaders and stakeholders to inform the determination as to
whether an occupation is not suitable for registered apprenticeship due
to splintering concerns. The standard supplied in proposed Sec.
29.7(e)(4) is not intended to present an opportunity for a single
industry leader or stakeholder to ``veto'' a new occupation, and the
Administrator would analyze all feedback received in reaching a
determination. If an occupation under consideration replicates a
significant portion of the work processes of more than one occupation
previously determined to be suitable for registered apprenticeship, the
Administrator would analyze the multiple occupations for potential
splintering according to the standard in Sec. 29.7(e)(4). The
qualifier that a new occupation may replicate a significant number of
work processes but lead to a more advanced occupation is intended to
facilitate the development of occupations with multiple levels (i.e.,
Boilermaker I versus Boilermaker II) and stackable credentials.
Proposed Sec. 29.7(f) explains that in the event the Administrator
determines that an occupation is not suitable for registered
apprenticeship, the Administrator would notify the applicant and
provide the Administrator's reasoning. In such cases of a final agency
determination, the Administrator would need to publish the final agency
determination on an OA public-facing website in compliance with
proactive disclosure requirements under the Freedom of Information Act
(5 U.S.C. 552 (a)(2)). An applicant could reapply by addressing the
issues raised by the Administrator, and the Administrator could, in
their discretion, reevaluate such an application and approve the
application provided that it meets the criteria for approval.
Proposed Sec. 29.7(g) provides that adjustments to existing
suitable occupations, work processes, duration, or other significant
adjustments in scope would need to be submitted to and approved by the
Administration to remain valid. The Department anticipates that over
time occupations could significantly adjust in scope or duration based
on the needs of industry, advancements in technology, or other changes.
Requiring adjustments to be submitted to the Administrator would help
ensure that suitable occupations and work process schedules remain
relevant for industry and provide the required training for an
occupation.
Proposed Sec. 29.7(h) is new and explains that the Administrator
would review existing occupations determined to be suitable for
registered apprenticeship on a 5-year cycle. In addition to determining
whether the occupation is still suitable for registered apprenticeship,
the Administrator would review to ensure that the work process
schedule(s) and related instruction outline(s) approved with the prior
suitability determination remain consistent with industry standards. In
conducting this review, the Administrator would use the process
described in Sec. 29.7(d), meaning that the Administrator would seek
public comment, input from industry leaders or other stakeholders, and
make use of other relevant information to assist with reaching a
suitability determination and updating the work processes schedule and
related instruction outline. The substantive criteria for determining
continued suitability on a 5-year cycle would be the same as outlined
in Sec. 29.7(b). If the Administrator determines that previously
approved work processes schedules and related instruction outlines
require revisions, the Administrator would notify in writing existing
programs in the occupation of the need for updates. Existing programs
would need to submit updated standards to their Registration Agency
that reflect updates before the start of the next training cycle. If an
occupation is determined to no longer be suitable for registered
apprenticeship, the Administrator would notify any existing programs in
writing and the programs would no longer be permitted to register
apprentices in the occupation after the conclusion of their current
training cycle.
Section 29.8--Standards of Apprenticeship
Proposed Sec. 29.8 describes the minimum standards of
apprenticeship that would apply for all apprenticeship programs that
are registered by a Registration Agency. The establishment and
implementation of robust standards of apprenticeship is essential to
ensuring that registered apprenticeship programs deliver consistently
high-quality training to apprentices, while also ensuring that
apprentices are trained in a safe and accessible workplace environment
where they are protected from exploitation and abuse. While the current
version of the labor standards of apprenticeship regulation at 29 CFR
29.5 does establish minimum standards of apprenticeship for the conduct
of registered programs that address key program components (such as
progressively increasing wages, apprentice-to-journeyworker ratios,
work process schedules, safety requirements, probationary periods, and
advanced standing and credit), the revised regulation would further
elaborate and strengthen those minimum standards. As discussed in
detail below, the proposed rule would extend the application of such
minimum standards of apprenticeship to important topics that are not
addressed in the current regulation, such as establishing a cost
transparency and reasonableness requirement for registered
apprenticeship programs, as well as stipulating that such programs
undertake effective measures to ensure that apprentices are free from
violence, intimidation, and retaliation in the workplace. Proposed
Sec. 29.8 would change the order in which the standards of
apprenticeship are listed to assist program sponsors, participating
employers, apprentices, and other interested parties in understanding
the minimum standards of apprenticeship. Finally, proposed Sec. 29.8
would include additional requirements as a result of statutory changes
enacted by Congress. Taken together, the updated standards provisions
contained in proposed 29 CFR 29.8 are intended to enhance registered
apprenticeship program quality and to safeguard the welfare of
apprentices.
Proposed paragraph (a) is based on an existing provision that sets
forth that a registered apprenticeship program must have a written set
of standards of apprenticeship and outlines what provisions must be
included in those standards.
Proposed Sec. 29.8(a)(1), which is based on an existing provision,
would require that the standards of apprenticeship contain a provision
that establishes the minimum eligibility requirements for entry into
the registered apprenticeship program. Proposed Sec. 29.8(a)(1), as
with the existing provision, sets forth the minimum starting age for an
apprentice of not less than 16 years to reflect the general 16-year
minimum age requirement for apprentices to be employed in otherwise
prohibited occupations in nonagricultural employment under the Fair
Labor Standards Act. See 29 U.S.C. 203(l). However, proposed Sec.
29.8(a)(1) would update the provision by explicitly stating that the
minimum starting age could be higher than 16 years if required
[[Page 3152]]
by Federal, State, or local law. Certain occupations suitable for
registered apprenticeship could be subject to Federal or State laws
that require a minimum starting age that is higher than 16 years; for
example, an electrician's occupation would require individuals to be at
least 18 years of age in many circumstances.\78\
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\78\ See ETA, TEN No. 31-16, ``Framework on Registered
Apprenticeship for HS Students,'' including Attachment 1, ``Guide on
Child Labor Laws and Workers' Compensation for Apprentice Minors,''
Jan. 17, 2017, https://www.dol.gov/agencies/eta/advisories/training-and-employment-notice-no-31-16.
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Proposed 29 CFR 29.8(a)(2) is not a new requirement for program
sponsors. Under the current regulations at 29 CFR 29.5(b)(21), the
Department requires program sponsors to include a provision in their
program standards that describes the program's method for the selection
of apprentices. The current regulations specify that program standards
for all registered apprenticeship programs must fully comply with the
EEO in Apprenticeship regulations at 29 CFR part 30, and current 29 CFR
29.5(b)(21)--which forms the basis for the language proposed at Sec.
29.8(a)(2) in this NPRM--specifies that selection procedures must
conform to the regulations governing the selection of apprentices at
current 29 CFR 30.10. The current regulatory text covers selection
procedures within a provision that includes other requirements for
program sponsors that have EEO elements and corresponding part 30
requirements. The Department has determined that the regulatory
community would benefit from the clarity that would arise from
separating these elements out into distinct provisions. Accordingly,
the Department proposes to relocate a distinct provision covering
selection procedures to proposed 29 CFR 29.8(a)(2) and clarifies in
this proposed provision that selection procedures must conform to the
corresponding requirements at 29 CFR 30.10.
The EEO in Apprenticeship regulations at 29 CFR 30.10 reiterate the
part 29 requirement that sponsors must submit selection procedures in
the written plan for their program standards, which are submitted to
and approved by the Registration Agency. The regulations at 29 CFR
30.10 stipulate that sponsors may use any method or combination of
methods for the selection of apprentices, as long as the selection
method(s) comply with the Uniform Guidelines on Employee Selection
Procedures found at 41 CFR part 60-3, which require an evaluation of
the selection procedures' impact on race, sex, and ethnic groups, as
well as a demonstration of the business necessity for procedures that
result in an adverse impact across any of these demographic groups. The
regulations at 29 CFR 30.10 also stipulate that selection procedures be
applied uniformly and consistently across all applicants and
apprentices, and that the selection procedures must comply with title I
of the Americans with Disabilities Act (ADA) and the implementing
regulations at 29 CFR part 1630. Finally, the regulations at 29 CFR
30.10 clarify that selection procedures must be facially neutral with
respect to race, color, religion, national origin, sex, sexual
orientation, age (40 or older), genetic information, and disability.
Per the ruling from Washington v. Davis, 426 U.S. 229 (1976),\79\ a
decision (or selection procedures, in the case of the apprenticeship
regulations at parts 29 and 30) appears facially neutral if it neither
creates a ``suspect classification'' nor infringes on a ``fundamental
right.'' These regulatory requirements are unchanged by this NPRM, and
existing program sponsors in compliance with the existing regulations
would not need to make any changes to their current practices with
respect to selection procedures and the submission of information about
selection procedures to the Registration Agency. Any potential new
programs seeking to enter the National Apprenticeship System must
comply with the selection procedures regulations at parts 29 and 30,
and the Department stands ready to provide subregulatory guidance on
these requirements or any other requirements related to the
development, submission, and approval of program standards.
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\79\ Thomas B. Henson, ``Proving Discriminatory Intent From a
Facially Neutral Decision With A Disproportionate Impact,'' 36 Wash.
& Lee L. Rev. 109 (1979), https://scholarlycommons.law.wlu.edu/wlulr/vol36/iss1/5.
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Proposed 29 CFR 29.8(a)(3) is a new proposed provision in the
program standards section of the part 29 registered apprenticeship
regulations, but it corresponds to existing requirements in the part 30
EEO regulations regarding the registered apprenticeship program
sponsor's obligation to take affirmative steps to provide EEO in
apprenticeship. Proposed paragraph (a)(3) would require program
sponsors to include a description of their recruitment area for new
apprentices in their program in the written program standards they
submit to the Registration Agency. The Department has determined that
the benefits of requiring a written statement on recruitment area in
the program standards are two-fold: first, as a matter of transparency
and access, receiving this information from sponsors would enable OA,
SAAs, and other stakeholders to collaborate with program sponsors in
outreach and awareness efforts to attract new apprentices to a program.
Understanding whether a program is recruiting new participants online,
in a given geographic area, or some combination thereof, for example,
is useful information for OA, SAAs, and other stakeholders to include
in publicizing registered apprenticeship program availability and
options for potential apprentices, such as through the Apprenticeship
Finder portal on Apprenticeship.gov.
In addition to the benefits related to access and transparency for
this proposed addition, the Department has determined that requiring
sponsors to report their recruitment area in their program standards
would ultimately benefit sponsors in meeting their EEO obligation to
engage in universal outreach and recruitment, as required by the
existing regulations at 29 CFR 30.3(b). Identifying the recruitment
area is a key piece of a program's outreach because the EEO regulations
require that sponsors implement measures to ensure outreach and
recruitment efforts extend to all people available to potentially
participate in a registered apprenticeship program without excluding
any person based on race, sex, ethnicity, or disability. Understanding
a program's recruitment area is also important for identifying
potential partnerships in a given area--these may be local government-
funded resources, like one-stop centers or local workforce development
boards, private-sector partners looking to support workforce
development and locate potential talent for businesses, or community-
based organizations or other community non-profit entities that are
engaged and active with the local community and its resident.
Ultimately, proposed paragraph (a)(3) is not a new requirement for
program sponsors, which must identify their recruitment area as part of
compliance with the part 30 EEO regulations. The Department has
determined that requiring that program sponsors include information
about their recruitment area in their program standards would provide
transparency on programs' recruitment processes, would improve access
to programs for interested apprentices, and would assist programs in
meeting their EEO requirements. Examples of the recruitment area could
include a range of miles from the location of the sponsor
[[Page 3153]]
(e.g., within 100 miles of a city) or a political jurisdiction (e.g.,
residents of a State or counties). Identifying the program's
recruitment area would also help the program identify resources to
assist with outreach to a diverse set of prospective apprentices in a
given area. OA's Universal Outreach Tool includes contact information
for non-profit, State, local, and community organizations, and other
resources to assist with targeted outreach.\80\ Ultimately, the
requirement for programs to divulge their recruitment area is meant to
assist programs with recruitment. Programs benefit from diversity
within apprentice cohorts due to the variety of experiences and
perspectives that diverse communities bring to the table, and the
corresponding EEO requirements are intended to assist programs with
recruiting valuable candidates and to help connect prospective
apprentices with opportunities they might not be aware of but for such
active recruitment efforts.
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\80\ OA, ``Outreach Tool,'' https://www.dol.gov/agencies/eta/apprenticeship/eeo/recruitment/outreach-tool (last visited July 20,
2023).
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Under the current labor standards of apprenticeship regulation at
Sec. 29.5(b)(2), a registered apprenticeship program may adopt one of
three alternative approaches to providing apprenticeship training: (1)
a ``time-based'' approach, which imputes an apprentice's acquisition of
relevant occupational skills through their completion of at least 2,000
hours of on-the-job apprenticeship training; (2) a ``competency-based''
approach, under which a sponsor determines the apprentice's acquisition
of relevant occupational skills during the apprenticeship, without
specifying the minimum duration of such training; or (3) a ``hybrid''
approach, under which an apprentice acquires skills through a
combination of a minimum number of on-the-job training hours and the
successful demonstration of occupational competency. In addition, Sec.
29.5(b)(4) of the current regulation stipulates that a program's
standards of apprenticeship provide for organized, related instruction
in technical subjects related to the occupation, and further states
that a minimum of 144 hours of such instruction is recommended for each
year of apprenticeship training.
In this proposed rule at Sec. 29.8(a)(4)(i), the Department
proposes to eliminate the tripartite on-the-job training approaches
established in the current regulation and substitute a streamlined,
unitary training approach for use by all registered apprenticeship
programs that would combine key features of the current time-based and
competency-based approaches to on-the-job training approaches. Proposed
Sec. 29.8(a)(4)(i) would establish a uniform minimum term of on-the-
job apprenticeship training of not fewer than 2,000 hours in duration
to ensure an apprentice's acquisition of proficiency in all of the
skills and competencies relevant to an occupation during that
apprenticeship term; \81\ it would combine this minimum on-the-job
durational component with a requirement that the apprenticeship program
provide an apprentice with all of the skills and competencies necessary
to become proficient in the covered occupation. In effect, the proposed
unitary approach to on-the-job training for all apprenticeship programs
would resemble the ``hybrid'' approach to apprenticeship training found
at 29 CFR 29.5(b)(2)(iii) of the current regulation, one that that
measures skill acquisition through a combination of a specified number
of hours of on-the-job training and a demonstration of relevant
occupational competencies.
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\81\ As a matter of current administrative practice, OA has
ordinarily not registered a set of standards of apprenticeship that
have included fewer than 2,000 hours of on-the-job training for
apprentices, as the current regulations (at 29 CFR 29.4) do not
regard an occupation that requires fewer than 2,000 hours as one
that is suitable for apprenticeship training.
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The Department recognizes that the minimum apprenticeship term for
a particular occupation may be greater than the 2,000-hour threshold in
those instances where a longer term of apprenticeship training is the
customary industry standard for acquiring technical proficiency within
that occupation. Conversely, the Department notes that the proposed
minimum 2,000-hour requirement for program duration could be reduced on
a case-by-case basis for individual apprentices in instances where an
apprentice is granted advanced standing or credit by the program for
prior learning or previously acquired skills and experience,\82\ or in
instances where an apprentice makes accelerated progress in the
acquisition of occupational competencies during the course of their
apprenticeship (see proposed Sec. 29.8(a)(20)).
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\82\ The Department notes that the proposed minimum 2,000-hour
requirement for program duration could be reduced on a case-by-case
basis for individual apprentices in instances where an apprentice is
granted advanced standing, receives credit by the program for prior
learning or previously acquired skills and experience, or completes
a registered CTE apprenticeship or pre-apprenticeship program, or in
instances where an apprentice makes accelerated progress in the
acquisition of occupational competencies during the course of their
apprenticeship (see proposed Sec. 29.8(a)(20)).
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The adoption of a unitary on-the-job training approach in the
standards of apprenticeship would serve to clearly differentiate
registered apprenticeship programs from shorter-term, less intensive
workforce training approaches (i.e., training programs of less than a
year of full-time work in duration), while also expressly linking this
minimum durational requirement to a fundamental premise: that all
registered apprenticeship programs must impart occupational skills and
competencies to the apprentices whom they train, and that apprentices
reach proficiency in the occupation when they complete the
apprenticeship (this idea was discussed at length in the preamble to
proposed Sec. 29.7 above). Combining occupational competency and
proficiency outcomes with a uniform minimum durational requirement
would address a criticism that the current ``time-based'' approach to
apprenticeship training permitted under the current regulation only
obligates apprentices to complete a designated quantity of on-the-job
``seat time'' in that program to obtain a Certificate of Completion.
Moreover, this proposed reform would prevent sponsors from providing
considerably less than 2,000 hours of on-the-job training by utilizing
the ``competency-based'' approach. Such a lower durational threshold
for competency-based training would be conspicuously at odds with the
current 2,000-hour minimum standard required for an occupation to be
considered suitable for registered apprenticeship training under the
current regulation at 29 CFR 29.4 and in proposed Sec. 29.7. That
approach, if used by a program to seek program registration for the
Federal benefits associated with such registration but without
providing an opportunity for the apprentice to reach proficiency in an
occupation through dedicated employment in on-the-job training, would
harm the apprentice's ability to learn and benefit from registered
apprenticeship.
The notion of linking the minimum duration of an apprenticeship
term to the acquisition of key occupational competencies by apprentices
received a clear endorsement in the ACA's 2022 Interim Report, which
recommended updating the current regulatory framework ``to ensure
competency attainment is achieved through all [training] models, while
providing certain protections into standards with regard to time in
[on-the-job training] to ensure proficiency is obtained, potentially
expanding the hybrid model as a long-term goal for quality
[[Page 3154]]
standards.'' \83\ The proposed unitary training approach also would
align with the 2023 Quality Apprenticeships Recommendation of the ILO,
which advises Member States to establish standards for quality
apprenticeships that address, among other things, ``the expected
minimum and maximum duration of [an] apprenticeship'',\84\ and it also
would be fully consistent with another provision of the same ILO
recommendation, which advises Member States to take into account ``the
duration of the apprenticeship required to acquire [occupational]
competencies.'' \85\
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\83\ ACA, ``Interim Report to the Secretary of Labor,'' May 16,
2022, at 14, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
\84\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO
Recommendation No. 208), Conclusion 10(g), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
\85\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO
Recommendation No. 208), Conclusion 9(c), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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The proposed establishment of a 2,000-hour (or 1 year of full-time
work equivalent) minimum standard for on-the-job-training would also be
consistent with the notion of a minimum duration of on-the-job training
for apprenticeship programs that are regulated in G20 nations and other
peer countries,\86\ including Canada,\87\ Australia,\88\ the United
Kingdom (i.e., England),\89\ Switzerland,\90\ and Germany.\91\
Accordingly, if workers in the United States who complete a registered
apprenticeship program are to remain competitive with their
counterparts from these other nations, it is imperative that American
apprentices receive the same quality and quantity of substantial,
sustained, on-the-job apprenticeship training that is offered to
similarly situated workers elsewhere.
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\86\ ILO, ``Overview of Apprenticeship Systems and Issues: ILO
Contribution to the G20 Task Force on Employment,'' Nov. 2012, at 5
(see Table 2, ``Regulated apprenticeship and youth unemployment in
selected G20 countries'').
\87\ Apprenticeships in Canada ordinarily are between 2 and 5
years on duration. See Government of Canada, ``How to become an
apprentice,'' https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/become-apprentice.html (last
updated Mar. 31, 2023).
\88\ Apprenticeships in Australia are ordinarily between 1 and 4
years in duration. See Fair Work Ombudsman of the Australian
Government, ``Guide to Starting an Apprenticeship,'' June 2023, at
2, https://www.fairwork.gov.au/sites/default/files/migration/712/guide-to-starting-an-apprenticeship.pdf.
\89\ Apprenticeships in England are ordinarily between 1 and 5
years in duration and cannot be less than 1 year in duration. See
Andrew Powell, ``Apprenticeships Policy in England,'' House of
Commons Library, Jan. 20, 2023, at 10, https://researchbriefings.files.parliament.uk/documents/SN03052/SN03052.pdf,
as well the information on the following website: https://www.gov.uk/employing-an-apprentice.
\90\ Apprenticeships in Switzerland are ordinarily between 1 and
2 years in duration. See SwissInfo, ``Apprenticeships and high
school,'' https://www.swissinfo.ch/eng/politics/apprenticeship-system/43796482 (last visited July 20, 2023).
\91\ Apprenticeships in Germany are ordinarily between 2 and 3.5
years in duration. See Fazit Communication GmbH, ``Dual vocational
training,'' https://www.tatsachen-ueber-deutschland.de/en/working-germany/dual-vocational-training (last visited July 20, 2023).
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The advantage of linking a minimum term of on-the-job
apprenticeship training to the acquisition of an apprentice's
acquisition of occupational proficiency was articulated in a 2012
landmark report prepared for the Government of the United Kingdom (the
Richard Review of Apprenticeships) \92\ that spurred the enactment of
major apprenticeship reforms by the United Kingdom parliament. The
review's author, Doug Richard, made the following observations, which
the Department believes are both relevant and applicable to registered
apprenticeship in the United States:
---------------------------------------------------------------------------
\92\ Doug Richard, ``The Richard Review of Apprenticeships: Main
Report,'' Nov. 2012, https://www.gov.uk/government/publications/the-richard-review-of-apprenticeships.
[A]pprenticeships must endure. There is real value in an
apprenticeship lasting for a year or more. Apprenticeships measured
in weeks or months, even if it is enough time to teach the required
material and gain the requisite experience, can still fall short. It
is as though the apprenticeship experience itself requires time to
bed in and for the individual to transform from an apprentice to a
skilled worker.\93\ . . . [A] minimum duration [of apprenticeship
training] should be made mandatory . . . [and] may help guard
against instances of poor employer practice and protect the
interests of the learner.\94\
---------------------------------------------------------------------------
\93\ Doug Richard, ``The Richard Review of Apprenticeships: Call
For Evidence,'' June 2012, at 10, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/34708/richard-review-full.pdf.
\94\ Id. at 90.
The Department expects that ensuring that the on-the-job-training
component of a registered apprenticeship program has a sustained
duration of at least 2,000 hours would benefit program sponsors,
employers, and the economy at large because workers completing such
programs would be well-grounded and proficient in the skills and
competencies associated with the occupation for which they have
received training, thereby enhancing their overall productivity and
labor market mobility.95 96 To ensure that such a minimum
durational requirement could be sustained by apprentices who face
structural barriers to registered apprenticeship programs, the proposed
regulation contains a provision (at Sec. 29.10(a)(4)) that would
require sponsors, as a condition for program registration, to submit a
written plan for the equitable recruitment and retention of
apprentices. The plan could describe any partnerships that the
apprenticeship program will establish with external entities to provide
for the delivery of supportive services to apprentices who face such
impediments.\97\ The Department also believes that the adoption of this
proposed unitary approach to apprenticeship training would provide all
apprentices, including those from underserved communities, with a more
sustained and comprehensive training regimen for acquiring the skills
required to attain proficiency in an occupation than the shorter-term
``competency-based'' alternatives that have been proposed by some
applicants.
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\95\ See Beth Stackpole, ``Practical Ways to Tackle
Manufacturing's Labor Crunch,'' Massachusetts Institute of
Technology Sloan School of Management, May 16, 2022, https://mitsloan.mit.edu/ideas-made-to-matter/practical-ways-to-tackle-manufacturings-labor-crunch.
\96\ See Beth Stackpole, ``How to Make `Work of the Future' Work
for Everyone,'' Massachusetts Institute of Technology Sloan School
of Management, Apr. 26, 2022, https://mitsloan.mit.edu/ideas-made-to-matter/how-to-make-work-future-work-everyone.
\97\ See Gregory Ferenstein, ``Job Training Programs Are Rarely
Flexible Enough to Succeed,'' Brookings Institution, Sept. 16, 2019,
https://www.brookings.edu/blog/techtank/2019/09/16/jobs-training-programs-are-rarely-flexible-enough-to-succeed.
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It is also important to note that the longstanding 2,000-hour
minimum durational standard in the United States for the on-the-job
training component of an apprenticeship that is expressed in the
current regulation actually predates the enactment of the NAA. The
standard was established, pursuant to the labor standards-setting
authority contained in the National Industrial Recovery Act of 1933,
under President Franklin D. Roosevelt's Executive Order (E.O.) 6750-C
(June 27, 1934); the same presidential directive also established the
Federal Committee on Apprenticeship Training (the forerunner of today's
ACA) to advise the Secretary on apprenticeship-related matters.
Pursuant to that executive order, the Secretary issued ``General
Regulation No. 1'' on August 14, 1934, which
[[Page 3155]]
directed the Federal Committee on Apprenticeship Training to promulgate
standards of apprenticeship consisting of not fewer than 2,000 hours of
on-the-job training and not fewer than 144 hours of ``group
instructions in general and technical subjects.'' \98\ There has been
almost 90 years of successful implementation of this 2,000 hour minimum
on-the-job training durational standard at the Federal level, and this
standard has been accepted over the years and across all industries as
a key attribute of a high-quality apprenticeship program.
---------------------------------------------------------------------------
\98\ Lucius Q.C. Lamar, ``History of General Exemptions,''
National Recovery Administration, Division of Review, Mar. 1936, at
36-37, https://www.govinfo.gov/content/pkg/GOVPUB-Y3_N21_8-07cbfa706293e70fe6faff2cd615eb3d/pdf/GOVPUB-Y3_N21_8-07cbfa706293e70fe6faff2cd615eb3d.pdf.
---------------------------------------------------------------------------
The proposed rule at Sec. 29.8(a)(4)(ii) also would modify the
current regulatory provision that appears at 29 CFR 29.5(b)(4) by
expressly requiring, rather than recommending, that registered
apprenticeship programs provide to apprentices a minimum average of 144
hours of related instruction in technical subjects relevant to the
occupation for every 2,000 hours of on-the-job training provided by the
program. As discussed above, the related instruction portion of the
program is necessary to complement the on-the-job training by providing
an apprentice with a sufficient amount of classroom learning that
conveys key foundational and theoretical concepts that an apprentice
needs to acquire in order to obtain full proficiency in the occupation
covered by the program. In this connection, the Department invites
comment from the public on whether the proposed 144-hour minimum
durational requirement for related instruction is sufficient, or
whether it should be raised to a higher amount, given that several
Western nations (such as Canada,\99\ Austria,\100\ and England \101\
(in the case of English apprentices who work more than 30 hours a
week)) stipulate that at least 20 percent of the apprentice's paid
hours, over the usual minimum duration of a 1-year apprenticeship, have
to be spent on off-the-job training (which would correspond to a 400-
hour minimum durational requirement for related instruction for U.S.
apprenticeships of 2,000 hours in duration). Commenters who advocate a
higher minimum threshold for related instruction than the one set forth
in this proposal should also provide their opinion regarding whether
such a revised requirement should be phased in over time.
---------------------------------------------------------------------------
\99\ See Government of Canada, ``How to become an apprentice,''
https://www.canada.ca/en/services/jobs/training/support-skilled-trades-apprentices/become-apprentice.html (last updated Mar. 31,
2023).
\100\ See Federal Ministry of Labour and Economy,
``Apprenticeship training procedure (vocational training,
apprenticeship diploma),'' Feb. 24, 2023, https://www.oesterreich.gv.at/en/themen/bildung_und_neue_medien/lehre/Seite.333400.html.
\101\ See Andrew Powell, ``Apprenticeships Policy in England,''
House of Commons Library, Jan. 20, 2023, at 10, https://researchbriefings.files.parliament.uk/documents/SN03052/SN03052.pdf.
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The Department is also interested in any alternative suggestions
from commenters, particularly as the Department is looking to align
education systems more closely with registered apprenticeship, on
whether a topic such as semester or trimester hours should be
considered. Based on analysis by ED, 30 in-class or ``clock'' hours
equates to 1 semester hour of academic credit.\102\ The 144-hour
standard would approximately equate to 4 semester or trimester hours,
plus an additional 24 clock hours.
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\102\ See Federal Student Aid, ``Implementation of updated
clock-to-credit conversion regulations,'' May 25, 2021, https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2021-05-25/implementation-updated-clock-credit-conversion-regulations-ea-id-general-21-34.
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The Department is proposing flexibility for program sponsors in how
they would count the number of hours related to this requirement.
Sponsors may utilize contact hours, credit hours, a conversion of
credit to clock hours, or any combination. The Department is interested
in any comments related to ensuring and calculating the total number of
hours of related instruction for programs. The Department considers
this to be an appropriate minimum amount because additional related
instruction such as safety training, EEO training, anti-harassment
training, and other sponsor or employer specific related instruction is
likely necessary to successfully supplement the on-the-job training
portion of the registered apprenticeship program. The Department
believes that a minimum number of hours should be required but is open
to comments on these alternative amounts or on whether a minimum amount
should be established by occupation, and if so, how such occupation
specific standards should be established.
Proposed Sec. 29.8(a)(5) would require that the program's
occupation(s), work process schedules, and related instruction
outline(s) be included in the standards of apprenticeship. The
submission by a registered apprenticeship program of the occupation and
work process schedule is currently required under the existing
regulation at 29 CFR 29.5(a)(3). However, the proposed revised
standards of apprenticeship would also expressly require the submission
of a related instruction outline so that a Registration Agency would
have a clear understanding of the breadth and quality of such an off-
the-job curriculum, and its relevance to providing an apprentice with
the theoretical knowledge needed to attain full proficiency in an
occupation. The Department notes that a sponsor could submit standards
for multiple occupations as part of their submission, and if so, would
need to submit work process schedules and related instruction outlines
for every occupation for which it is seeking program registration.
Proposed Sec. 29.8(a)(6) would add a new requirement that the
standards of apprenticeship must include the related instruction
provider and the instructional methods used to deliver related
instruction. Currently, there is not a provision for including the
related instruction provider or the instructional methods used to
deliver related instruction in the development and subsequent approval
of standards of apprenticeship. However, information about the related
instruction provider and types of methods to deliver instruction is
collected during program registration through Section I of the ETA 671
Form. Currently Sec. 29.5(b)(4) requires standards of apprenticeship
to include a ``[p]rovision for organized, related instruction in
technical subjects related to the occupation'' and provides examples of
how the instruction in technical subjects may be delivered. Permissible
instructional methods include in-person classroom instruction;
occupational or industry courses; electronic media, such as delivery
via web-based instructional platforms; or other appropriate
instructional methods that are approved by the Registration Agency. The
proposed requirement for including this new information in standards of
apprenticeship would create a record of the instructional methods
utilized by the program to deliver related instruction to apprentices,
thus providing the Department with a better picture of the types and
prevalence of the different instructional modes and methods used by
programs generally.
Proposed Sec. 29.8(a)(7) is new and would create a requirement
that the standards of apprenticeship include an attestation to document
in writing that the qualifications and experience of the trainers and
instructors providing the on-the-job training and related instruction
to apprentices satisfy the
[[Page 3156]]
requirements in proposed Sec. 29.12. The proposed requirement in this
section would be an acknowledgment in the standards that the
requirements of proposed Sec. 29.12 are being met. The Department
believes it is important that the standards of apprenticeship include
this requirement so that programs can ensure they meet these
requirements and submit it as part of their application in the
standards in proposed Sec. 29.10.
Proposed Sec. 29.8(a)(8) is new and would create a requirement
that the standards of apprenticeship include a description of interim
credentials (including recognized postsecondary credentials),
qualification, or credit received by an apprentice during the term or
upon the completion of the registered apprenticeship program. The
Department proposes this new requirement to provide increased
transparency to the apprentice who, with this description, would be
better able to understand the credentials and credit that they would
receive because of participating in the apprenticeship program.
Proposed Sec. 29.8(a)(8)(i), which is based on an existing
requirement, would require that the description include any interim
credentials issued to an apprentice during the term of the registered
apprenticeship program. Proposed Sec. 29.8(a)(8)(ii) would require
that the description include any industry-portable occupational
qualification, license, credential, or certification that the
apprentice receives, or may be eligible to receive, upon completion of
the registered apprenticeship program. The Department is interested in
collecting this information because it is aware that some programs do
provide this information, and the potential benefits to apprentices as
result of the attainment of these credentials means that the Department
should begin collecting more information from program sponsors on this
development. The Department is interested in any comments on this new
requirement to collect more information about credentials and other
measures as part of the registration process.
Proposed Sec. 29.8(a)(8)(iii) would recognize that some registered
apprenticeship programs may be operated by, or in partnership with,
educational institutions that provide postsecondary credit.\103\
Accordingly, this provision would require that the description include
any postsecondary credit that an apprentice receives, or may be
eligible to receive, upon completion of the related instruction or on-
the-job training components of the registered apprenticeship program.
The Department notes that there would not be a requirement to provide
additional credentials or postsecondary credit in a registered
apprenticeship program; however, it acknowledges that many programs do
provide this already, and is requiring this to be included in the
standards to support the welfare of apprentices by providing them key
information about the credentials and credit they would obtain as part
of their participation in a registered apprenticeship program.
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\103\ ED, Office of Career, Technical, and Adult Education,
``Opportunities for Connecting Secondary Career and Technical
Education (CTE) Students and Apprenticeship Programs,'' June 2017,
https://careertech.org/resource/connecting-secondary-cte-and-apprenticeships.
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Proposed Sec. 29.8(a)(9) would create a new, separate provision
that would require a statement in the standards of apprenticeship of
whether time the apprentice spends in the related instruction component
of the apprenticeship training would be counted as hours worked, and if
so, what the wage rate and any fringe benefits would be for those
hours. This requirement would serve as a safeguard to ensure that
sponsors consider the payment of wages for related instruction and to
provide notice to the apprentices of whether paid related instruction
is a part of the registered apprenticeship program's standards. In
considering whether related instruction would be paid, sponsors must
comply with any Federal, State, or local legal requirements regarding
the payment of wages for training time, including, but not limited to,
the Fair Labor Standards Act and its implementing regulations. In
addition, regardless of any legal obligations to pay for related
instruction time, sponsors may choose to do so for the benefit of the
apprentices.
Proposed Sec. 29.8(a)(10) would be a new requirement for sponsors
to set forth a process for regularly assessing and providing feedback
to the apprentice regarding the apprentice's acquisition of job-related
knowledge, skills, and competencies during the on-the-job training
component of the apprenticeship. It would expand upon the requirement
in existing Sec. 29.5(b)(6) of periodic review and evaluation of the
apprentice's performance on the job by requiring that a process for
regular assessment of knowledge, skills, and competencies be set forth
in the standards and that such feedback be shared with the apprentice.
The Department notes the importance that feedback provided would be
inclusive and structured in a way that would be accessible to all
apprentices, including those with disabilities. This provision is
intended to complement proposed Sec. 29.8(a)(4), which would set forth
the minimum term for the registered apprenticeship program sufficient
for an apprentice to attain proficiency in the occupation, and proposed
Sec. 29.10(a)(1), which would require a sponsor to include in the
submission for program registration the work process schedule and
related instruction outline, by coupling the time requirements of the
overall apprenticeship term, and work process schedule within such
apprenticeship term, with a process for regular assessments. A clear
process for regular assessment throughout the term of the
apprenticeship, using the work process schedule and the term of the
apprenticeship to measure progress, would ensure that the apprentice is
achieving competencies and advancing throughout the registered
apprenticeship program in accordance with the program standards.
Additionally, a process for regular feedback would ensure ongoing
dialogue regarding the performance of the apprentice and their progress
through the program, as measured against the work process schedule and
the term of the apprenticeship as set forth in the performance
standards. Finally, to the extent that the progressive wage is measured
by certain competencies achieved (rather than a set schedule per the
terms of a collective bargaining agreement, for example), a process for
regular assessment and feedback would ensure that the apprentice is on
track for the wage progression set forth in the program standards and
the apprenticeship agreement.
This proposed paragraph also provides that in instances in which an
apprentice attains such occupational skills and competencies at an
accelerated pace, the program may grant advanced standing to such an
individual pursuant to proposed Sec. 29.8(a)(20). This would allow
flexibility for high performing apprentices who progress through their
apprenticeship at an accelerated rate to gain advanced standing or
credit and an increased wage commensurate with such progression. In
this way, there would be flexibility for the sponsor to adapt to the
progress of apprentices throughout the registered apprenticeship
program and allow for acceleration where appropriate. The Department
anticipates that such individual apprentices, may be able to complete
their apprenticeship terms with fewer hours of on-the-job training or
related instruction than the minimum standard established under the
proposed rule at Sec. 29.8(a)(4). Because of
[[Page 3157]]
the requirement around the attainment of competencies that lead to
occupational proficiency, and the requirement that apprentices be
continuously assessed on their progress, it is critical that programs
establish clear methods to assess the progress of all apprentices and
to accurately identify and credit those apprentices who are progressing
at an accelerated pace.
Proposed Sec. 29.8(a)(11) would address the utilization of end-
point assessments the program uses to determine if an apprentice is
fully proficient in the occupation and eligible to complete their
registered apprenticeship program. Proposed Sec. 29.16 would require
stipulating the administration of an end-point assessment to
apprentices at the conclusion of their apprenticeship term and proposed
Sec. 29.18 would require the maintenance of appropriate apprentice
progress records by the sponsor or participating employer. As explained
more fully at proposed Sec. 29.16, an end-point assessment would serve
to validate that the apprentice was successful in acquiring the skills
and competencies necessary for proficiency in the covered occupation.
The Department notes the importance of structuring end-point
assessments in a manner that is inclusive to all apprentices, including
those with disabilities. The requirement in this section would be an
acknowledgment in the standards that the requirements of Sec. 29.16
are being met. The Department believes it is important that the
standards of apprenticeship include this requirement so that the
process is clear to anyone reviewing the program standards.
Proposed Sec. 29.8(a)(12) would retain language from the 2008
final rule at Sec. 29.5(b)(8), which stipulates the provision of a
probationary period that is ``reasonable'' and does not exceed 25
percent of the length of the program, or 1 year, whichever is shorter.
Proposed Sec. 29.8(a)(13) is new and would require that the
standards of apprenticeship include a statement that the registered
apprenticeship program will be conducted in accordance with all
applicable Federal, State, or local laws. The Department proposes to
add this requirement to emphasize that the apprenticeship programs
registered under this part must ensure apprentice safety and welfare.
Program sponsors are responsible for ensuring their programs meet the
requirements for apprentices to legally work in the occupation in which
they are doing on-the-job training, such as if there are State licenses
required to perform the work. In instances where the sponsor is not
operating in accordance with all applicable law, they could be subject
to deregistration proceedings for noncompliance with their program
standards.
Proposed Sec. 29.8(a)(14) is new and would require that the
standards of apprenticeship include a statement that apprentices
participating in an apprenticeship program registered under this part
are entitled to the same worker allowances, rights, and protections,
afforded by applicable Federal, State, or local laws, to which
similarly situated, non-apprentice employees would be entitled. Such
worker allowances, rights, and protections could include, but would not
be limited to, family and medical leave; workers' compensation; and
health and retirement plan benefits. The Department proposes to add
this requirement in furtherance of its goal to ensure that these
minimum standards of apprenticeship protect apprentice safety and
welfare, while noting that it would not require that apprentices
receive allowances, rights, and protections that similarly situated
non-apprentices would not also be entitled to receive. The Department
anticipates that adding this requirement would also provide apprentices
with information about the allowances, rights, and protections to which
they may be entitled, increasing transparency, and allowing potential
apprentices to make an informed choice regarding a specific program.
Proposed Sec. 29.8(a)(15) would expand upon an existing
requirement and make changes to further emphasize the Department's
commitment to ensuring apprentice safety and welfare. Specifically,
proposed Sec. 29.8(a)(15) would require that the standards of
apprenticeship include an attestation that the program sponsor will
provide adequate, safe, and accessible facilities for the training and
supervision of apprentices. Additionally, sponsors should provide any
documentation, where available, to support their attestation, such as
any OSHA or other relevant certifications. The Department acknowledges
that not all sponsors may have such certifications at the time of
program registration, or they may not be relevant to all sponsors.
However, this information could assist the Department in ascertaining a
program's ability to meet this requirement. The Department proposes to
change the existing requirement by requiring that the attestation
include that the program sponsor will provide accessible facilities
(including for individuals with disabilities), aligning with the
Department's broader goal that apprenticeship programs registered under
this part are career pathways available to everyone. For example, to
ensure facilities are accessible, programs should ensure bathrooms and
changing facilities, including for provision of lactation, should be
close to sites where work and training is taking place. Additionally,
such attestations and documentation for safety would need to ensure
that personal protective equipment is available to apprentices and fits
appropriately according to each apprentice's size and body type. The
Department adds that the attestation also would require that the
facilities be compliant with all applicable Federal, State, and local
laws, including, but not limited to, disability, occupational safety,
and occupational health laws.
Proposed Sec. 29.8(a)(16) would create a new requirement that the
standards of apprenticeship include an attestation that the program
sponsor will provide adequate, industry-recognized safety training for
apprentices in both the on-the-job training and related instruction
components of the registered apprenticeship program. This proposed
change would expand upon the existing requirement at 29 CFR 29.5(b)(9)
that addresses safety training in the standards of apprenticeship. This
expanded requirement would further the goal of ensuring apprentice
safety and welfare. Proposed Sec. 29.8(a)(16) would require that
safety training provided to apprentices be tailored to mitigate the
potential workplace hazards that may be encountered in the covered
occupation. For example, the standards of apprenticeship for registered
apprenticeship programs in the electrician occupation would need to
include an attestation that the program sponsor will provide adequate,
industry-recognized safety training that addresses potential workplace
hazards encountered specifically by electricians.
Proposed Sec. 29.8(a)(17) would require the written standards to
include wages and fringe benefits that the apprentice will receive
during the registered apprenticeship program. The current regulation at
29 CFR 29.5(b)(5) stipulates the payment of a progressively increasing
schedule of wages to be paid to the apprentice with the skill required,
and the entry wage may not be less than the Fair Labor Standards Act
minimum wage, where applicable, unless a higher wage is required by
other applicable Federal law (such as the Davis-Bacon and related
Acts), State law, respective regulations, or by collective bargaining
agreement.
In the proposed rule at Sec. 29.8(a)(17), the Department proposes
to add the requirement that fringe benefits provided to the apprentice
also be articulated in the program standards.
[[Page 3158]]
The phrase ``fringe benefits'' is intended to convey the generally
understood meaning of providing benefits as a part of overall
compensation, such as health insurance and contributions to retirement
plans. For registered apprenticeship programs subject to the Davis-
Bacon and related Acts and the McNamara-O'Hara Service Contract Act,
the more specific requirements of the Acts, including those relating to
fringe benefits, apply in addition to the proposed requirements of this
section. The Department views the proposed addition of ``fringe
benefits'' as strengthening the standards by providing clarity and
transparency around the fringe benefits provided to apprentices.
The Department also proposes to retain the requirement of a minimum
wage floor at the outset of the apprenticeship and a graduated schedule
of progressively increasing wages for apprentices during the remainder
of the apprenticeship term. However, the proposed Sec. 29.8(a)(17)
would stipulate that the graduated schedule of wages paid to an
apprentice would increase over the balance of the apprenticeship term
to reflect the apprentice's progressive acquisition of occupational
skills and competencies.\104\
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\104\ This proposal is aligned with Conclusion 16(a) of the 2023
Quality Apprenticeships Recommendation of the ILO, which recommends
that apprentices ``receive adequate remuneration . . . which may be
increased at different stages of the apprenticeship to reflect the
progressive acquisition of occupational competencies.'' ILO,
``Quality Apprenticeships Recommendation, 2023'' (ILO Recommendation
No. 208), Conclusion 16(a), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
Basic Requirements for the Proposed Wage Standard in Registered Apprenticeship
[Sample program with the minimum required 2,000-hour duration, and with a journeyworker wage of $20.00/hour]
----------------------------------------------------------------------------------------------------------------
Initial Apprentice Wage Intermediate Step 1 3 Intermediate Step 2 6 Final Apprentice Wage 9
Entry-3 months months-6 months months-9 months months-completion (1 year)
----------------------------------------------------------------------------------------------------------------
$7.25 $10.00 $12.50 $15.00
----------------------------------------------------------------------------------------------------------------
This table reflects the basic requirements of the proposed wage standard for registered apprenticeship. Under
the proposed wage standard, wages for apprentices would need to (1) be at least at or above the Federal,
State, or local minimum wage (in this example, the initial wage is the Federal minimum wage of $7.25); (2)
include at least one wage progression (in this example, there are intermediate steps reflecting wage increase
after 3 and 6 months); and (3) be at least 75% of the typical journeyworker wage after the final wage
progression (in this example, the apprentice's final wage, paid through months 9 through 12 of the program, is
$15.00/hour, 75% of the journeyworker wage of $20.00/hour).
The Department also proposes that the graduated schedule of
increasing apprentice wages paid by an employer include at least one
incremental wage step increase between the entry wage and the final
wage step during the first 2,000 hours of the apprenticeship term, with
additional wage step increments scheduled at reasonable intervals for
program terms of longer duration designed to support apprentices'
progression and success throughout their apprenticeship. This proposed
language is intended to require a thoughtful approach to wage
progression in instances in which there is no governing collective
bargaining agreement, such that adequate consideration is given to
recognizing and compensating an apprentice's progress through the
program. In addition, the Department proposes that the wages provision
stipulate that the apprentice's final wage step in the program must be
not less than 75 percent of the usual journeyworker wage paid by the
employer for that occupation, except in instances where the scheduled
progression of apprentice wages is stipulated by other applicable
Federal, State, or local laws, such as those governing the payment of
prevailing wages, or by the terms of an applicable collective
bargaining agreement. This final requirement would be especially
relevant for programs of longer duration where the apprentice may have
spent several years with the employer and where it is more likely that
the apprentice would be doing similarly skilled work as journeyworkers
and should therefore be paid commensurate with that experience. The
Department notes that Florida and Delaware have established similar
standards for the final wage step paid to an apprentice for registered
apprenticeship programs operating in those States, pegging that
terminal wage to a percentage of the established wage paid to
journeyworkers by an employer.\105\
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\105\ See Florida Administrative Code, Chapter 6A-
23.004(2)(e)(5), which utilizes the minimum standard of 75 percent
of the established journeyworker wage for the final wage step of the
apprenticeship term, and Delaware Administrative Code, title 19,
chapter 1101, sec. 6.2.7.3, which utilizes the minimum standards of
85 percent of the established journeyworker wage for the final wage
step of the apprenticeship term.
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This revised wage provision is intended to protect apprentices from
receiving low and relatively flat wages over the course of the
apprenticeship term. Taken together, the enhanced wage provisions
contained at proposed Sec. 29.8(a)(17) are intended to place
apprentices on a more secure career pathway, to enable apprentices to
support themselves during an apprenticeship, and to provide skilled and
productive apprentices with a positive incentive for completing the
training program. The Department invites comments on these provisions
to bolster the registered apprenticeship progressive wage requirements
and is interested in the feasibility of this approach across
industries. The Department believes that most programs already provide
progressive wages consistent with these requirements but invites
comments on a way to ensure continuous progressive wages with
competency attainment against the needs for flexibility for industry
regarding wage increases.
In addition to these proposed wage progression revisions, the
Department reminds sponsors that, consistent with the requirements of
29 CFR part 30, the wages paid by a sponsor or a participating employer
to an apprentice must not discriminate against such persons on the
basis of race, color, religion, national origin, sex, sexual
orientation, gender identity, age (40 or older), genetic information,
or disability. In addition, the Department reminds both registered
apprenticeship program sponsors and participating employers that
apprentices who meet the definition of an employee under either the
Internal Revenue Code or the Fair Labor Standards Act--which they will
in virtually every instance--must not be misclassified by such sponsors
or employers as independent contractors.
Proposed Sec. 29.8(a)(18) would address program costs and expenses
incurred by apprentices. The current regulations do not address or
place any limitations upon the costs, fees, or expenses that an
apprentice may be obligated to assume
[[Page 3159]]
in connection with their on-the-job training or related instruction. As
some individual apprentices lack economic bargaining power relative to
their potential sponsors and employers, the absence of regulatory
language governing program costs in the existing rule has the potential
to undermine the welfare of apprentices by exposing such persons to a
heightened risk of financial exploitation. For instance, there is
currently no obligation placed upon sponsors or employers in the
current regulation to disclose to potential apprentices, in advance of
their enrollment, the nature and amount of any costs, fees, or expenses
that those individuals may incur in connection with their participation
in the program. Moreover, there is no requirement in the current rule
stipulating that only program costs that are both necessary and
reasonable may be charged to a participating apprentice. The Department
is aware of circumstances where apprentices in certain programs have
been confronted with exorbitant costs for training, related
instruction, and other fees that have subjected them to financial
hardship and personal indebtedness. Such costs have sometimes also
prevented apprentices from either completing their apprenticeship
training, or from enrolling in the apprenticeship program in the first
place.
To address these concerns, the proposed Sec. 29.8(a)(18) would
establish cost transparency and reasonableness provisions as part of a
program's standards of apprenticeship, requiring a sponsor or a
participating employer to include in the program standards the nature
and amount of any unreimbursed costs, expenses, or fees that the
apprentice may incur for participating in the program (such as for
equipment, supplies, on-the-job training, related instruction, books,
tuition, or assessment fees). This provision would further stipulate
that such unreimbursed costs, expenses, or fees could be assessed by a
sponsor or participating employer only if they are necessary and
reasonable, do not impose substantial or inequitable barriers to
program enrollment or completion by an apprentice, and are compliant
with all applicable Federal, State, and local wage laws and
regulations, including but not limited to the Fair Labor Standards Act,
the Davis-Bacon and related Acts, the McNamara-O'Hara Service Contract
Act, and their implementing regulations. In instances where a program
sponsor or a participating employer engages an outside party or
educational institution (such as a community college) to provide
related instruction to apprentices enrolled in the program, such
sponsor or employer should ensure that the terms as articulated in the
standards are complied with and that the costs of such instruction do
not impose financial burdens of a magnitude that could jeopardize such
a person's ability to participate in or complete the registered
apprenticeship program.
This new regulatory provision would empower potential apprentices
by providing them with the fundamental consumer protection of having
complete program cost information disclosed to them prior to their
participation in the program. In addition, this provision would serve
to protect enrolled apprentices from possible financial exploitation or
abuse by prohibiting the imposition of unnecessary or unreasonable
costs by program sponsors or participating employers during the course
of the apprenticeship term. The Department thinks that the inclusion of
a cost transparency and reasonableness provision in the standards of
apprenticeship would help to advance DEIA in registered apprenticeship
programs by reducing or eliminating barriers to program access and
completion by individuals from underserved communities and populations.
The Department believes mitigation and removal of such financial
barriers is essential if registered apprenticeship is to fulfill its
potential as an effective vehicle for enabling persons from underserved
communities and population to achieve economic mobility.
The Department is cognizant of the fact that, despite its proven
capacity to provide a skilled and talented workforce, a registered
apprenticeship program nevertheless requires a significant investment
of time and funds by a sponsor or an employer to achieve its desired
outcomes. To mitigate such training costs, many sponsors and employers
have formed effective partnerships with labor unions, intermediaries,
educational institutions, trade and industry associations, and other
organizations to create efficiencies of scale that can reduce the costs
of delivering on-the-job training and related instruction to
apprentices. In addition, sponsors and employers may qualify to receive
Federal or State apprenticeship grants, tax credits, or other resources
that may help to offset such training costs. The utilization of such
partnerships and grant opportunities by sponsors and employers to
defray training costs can also serve to minimize the imposition of such
costs upon apprentices, many of whom may not be able to sustain such a
financial burden. The Department encourages sponsors to partner with
organizations that can provide resources in their communities to
mitigate any costs passed on to apprentices, which may include tuition,
supportive services, or other assistance.
The Department is also interested in receiving comments on the
impact of costs borne by apprentices that relate to the up-front
purchase of equipment and supplies essential to their work or required
by the sponsors or participating employers, but that have not been not
paid for by such sponsors or participating employers; in addition, the
Department is interested in receiving comments on the impact of any
deferred payments required of apprentices that relate to the costs of
maintaining such essential equipment and supplies. In addition, the
Department is interested in receiving comments as to whether the
``necessary and reasonable'' standard for evaluating unreimbursed costs
in this provision should be modified to establish a more precise,
mathematical formula for ascertaining cost reasonableness (such as a
threshold value as a percentage share of wages), or whether the more
flexible standard proposed in this provision is more appropriate and
administratively feasible.
Proposed Sec. 29.8(a)(19) would update and reformat an existing
requirement that is addressed in Sec. 29.5(b)(7), regarding the ratio
of apprentices to journeyworkers. The intended purpose of this ratio
requirement is to further the Department's goal of ensuring the safety
and welfare of apprentices, while on the job, via an established ratio
of apprentices to journeyworkers. Proposed Sec. 29.8(a)(19)(i) would
specify that the sponsor's ratio must be approved by a Registration
Agency, consistent with the proper safety, health, supervision, and
training of the apprentice. This requirement would center apprentice
safety and welfare as the main considerations in the establishment of
the specific numeric ratio for a registered apprenticeship program. To
ensure that the ratio is consistent with the proper safety, health,
supervision, and training of the apprentice, program sponsors and the
reviewing Registration Agency should consider factors that could
endanger the welfare of an apprentice who is participating in the
program, such as risk of exposure to hazardous working conditions and
risk of serious bodily injury or death while on the job.
One such consideration to help protect the safety and welfare of
[[Page 3160]]
apprentices is ensuring a proper apprentice-to-journeyworker ratio in
industry sectors with a high rate of fatal work-related injuries. High-
hazard industries, empirically defined with data compiled by BLS, may
be subject to a heightened level of scrutiny with respect to their
utilization beyond an apprentice-to-journeyworker ratio of one-to-one
(1:1).\106\ Industries that have been identified as high-hazard
industries have an average fatal work injury rate exceeding 5 deaths
per 100,000 full-time equivalent workers over the 3 most recent
calendar years for which such statistics are available and include such
industry sectors as: construction; transportation and warehousing;
mining, quarrying, and oil and gas extraction; and agriculture,
forestry, fishing, and hunting. Less hazardous industries or
occupations in other (non-high-hazard) industries may not require as
much scrutiny and may be able to use expanded ratios, but each ratio
would be reviewed and considered on a case-by-case basis.
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\106\ ETA, OA Circular No. 2021-02, ``Guidelines for Reviewing
Apprentice to Journeyworker Ratio Requests,'' Jan. 12, 2021, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular%25202021-02%2520FINAL%25201.12.21.doc.
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The Department is adding ``health'' to the list of factors for
establishing a numeric ratio. Health and safety go hand in hand, and
the Department thinks that apprentices should have proper supervision
and training when they participate in on-the-job training at worksites
that may expose them to toxic materials or harmful physical agents.
This change would ensure that program sponsors, employers, and
Registration Agencies are aware of and consider potential health risks
for apprentices at worksites, and that an appropriate numeric ratio of
apprentice-to-journeyworkers is used to allow for the necessary
training and supervision to mitigate potential material impairment of
health or functional capacity of an apprentice who may be exposed to
toxic materials or harmful substances while on the job.
The Department notes that it has not included ``continuity of
employment'' in the factors. ``Continuity of employment'' was
previously listed with additional factors, such as ``proper
supervision, training, and safety,'' in establishing a numeric ratio of
apprentices-to-journeyworkers under 29 CFR 29.5(b)(7). The Department
understands that the term has been carried forward from previous
rulemaking and may have numerous operational meanings as a term of use;
however, the Department no longer thinks that it is relevant to an
assessment of whether a particular ratio is appropriate--that is,
whether a particular ratio will further the safety of the apprentice.
Accordingly, the Department is proposing to remove it as a factor.
However, the Department is interested in comments as to what and how
``continuity of employment'' could or should mean in the context of
ratios and providing a safe workplace and any rationales for continuing
to have that language or alternative language to address the proper
ratio factors.
In practice, a ratio of one apprentice to one journeyworker has
been the norm for programs; however, as registered apprenticeship has
expanded into new industries the Department has considered expanded
ratios particularly in industries where there is a reduced safety risk
(for example, a job primarily in an office setting).
While apprentice safety is the focus of the proposed requirement,
there would also be flexibility provided to sponsors in setting the
specific numeric ratio. Proposed Sec. 29.8(a)(19)(ii) would specify
that sponsors must use a ratio that is consistent with the provisions
of any applicable collective bargaining agreements, as well as any
applicable Federal and State laws governing ratios of apprentices to
journeyworkers, and specific and clearly described as to its
application to a particular workforce, workplace, job site, department,
or plant. The Department recognizes that a one-size-fits-all approach
would not be feasible with respect to ratios and that ratios could
differ depending upon the specific industry or occupation in which the
registered apprenticeship program is taking place. The Department also
recognizes that a specific numeric ratio of a registered apprenticeship
program could be set in an applicable collective bargaining agreement
or by applicable Federal and State laws. Ultimately, each program must
have a ratio specific to that program that is designed to protect the
safety of its apprentices consistent with the considerations described
and discussed above. The Department is seeking comments on these
longstanding criteria, particularly to ensure how the ratios are
applied in both emerging and traditional industries.
Proposed Sec. 29.8(a)(20) would change an existing requirement
concerning the granting of advanced standing, credit, and an increased
wage to an apprentice. The proposed provision would require that the
standards of apprenticeship grant advanced standing, credit, and an
increased wage to an apprentice when appropriate, and in such
circumstances would instruct sponsors to include a process by which
they would reduce the usual term of on-the-job training or related
instruction. This change would recognize that the reduction of the
usual term of on-the-job training or related instruction could be
appropriate in two scenarios: (1) where an apprentice comes to a
program with prior qualifications that warrant the reduction of the
usual term of on-the-job training or related instruction; and (2) where
an apprentice demonstrates expedited progress while in a registered
apprenticeship program that warrants the reduction of the usual term of
on-the-job training or related instruction. Proposed Sec.
29.8(a)(20)(i) would require that the established process be fair,
transparent, and objective in identifying, assessing, and documenting
an apprentice's prior learning or experience as well as any accelerated
progress made by an apprentice.\107\ Proposed Sec. 29.8(a)(20)(ii)
would require that the process must result in advanced standing,
credit, and an increased wage that is commensurate with any progression
granted because of the apprentice's prior qualifications or accelerated
progress. The Department encourages the use and development of
appropriate methods of applying advanced standing. Examples of advanced
standing because of an apprentice's prior qualifications could include
prior experience and training related to military service for veterans
joining a registered apprenticeship program, an apprentice's completion
of a pre-apprenticeship program which has a documented partnership with
the registered apprenticeship sponsor, as well as an individual's
completion of a registered CTE apprenticeship program under subpart B.
In addition to advanced standing for prior experience, the Department
notes that the feature of accelerating apprentices for their
achievements during a program was a feature of the competency-based
model of registered apprenticeship under the current rule, which the
Department is proposing to remove as a separate model. The Department's
proposal seeks to combine the benefits of competency attainment from
the competency-based
[[Page 3161]]
model with minimum employment duration requirements for on-the-job
training. This proposal would allow sponsors the flexibility to advance
apprentices, and for apprentices to receive commensurate advancement in
wages, based on their prior experience. This proposal would help to
ensure sponsors continue to have some of the main flexibility
components of the competency-based approach, with key quality
enhancements where the Registration Agency could review to ensure
apprentices are progressed fairly and such processes are equitable and
objective.
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\107\ Proposed Sec. 29.8(a)(20) aligns with the 2023 Quality
Apprenticeships Recommendation of the ILO at Conclusion 10(h), which
advises Member States to establish apprenticeship standards that
describe ``the extent to which the expected duration of the
apprenticeship may be reduced on the basis of prior learning or
progress made during the apprenticeship.'' ILO, ``Quality
Apprenticeships Recommendation, 2023'' (ILO Recommendation No. 208),
Conclusion 10(h), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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The Department's proposed method of requiring a minimum amount of
on-the-job training hours while allowing advanced standing based on
existing competency would be similar to the current ``hybrid'' model
and provide the right balance of training participants to an industry
standard and duration, while recognizing the unique skill and
competency progressions of apprentices. This provision would also
ensure that an apprentice does not have an abbreviated on-the-job
training experience in the program if circumstances do not warrant it,
so that a program is not graduating apprentices from their program
before they have completed their training and demonstrate the requisite
proficiency.
Proposed Sec. 29.8(a)(21) would update an existing requirement
concerning the transfer of apprentices. The changes made by proposed
Sec. 29.8(a)(21) would be non-substantive and seek to increase clarity
by explicitly stating that the standards of apprenticeship must include
a provision addressing the transfer of apprentices. The substantive
elements of existing Sec. 29.5(b)(13)(i) through (iii), which require
that a transferring apprentice be provided a transcript of related
instruction and on-the-job learning, transfer to the same occupation,
and sign a new apprenticeship agreement when the transfer occurs, would
remain unchanged in proposed Sec. 29.8(a)(21).
Proposed 29 CFR 29.8(a)(22) would build upon the existing
regulations at 29 CFR 29.5(b)(23) and add a reference to participating
employers. The Department has determined that the maintenance of
apprenticeship records by all parties involved with operating or
participating in a registered apprenticeship program is critical to
achieving the Department's goal of collecting and analyzing high-
quality data to enhance its ability to oversee, analyze, and improve
registered apprenticeship and the National Apprenticeship System.
Information about an apprentice's interactions with an employer
participating in their registered apprenticeship program, such as
whether the apprentice was ultimately hired, any interim credentials
earned by the apprentice that would certify them to complete job tasks
for an employer, the apprentice's wage upon hire, and other important
data, is vital for achieving the Department's data and information
goals. Adding participating employers here would allow the Department
to collect more important data on the utilization of registered
apprenticeship programs by employers.
In addition to adding participating employers to the maintenance of
records requirement, the Department proposes to replace the existing
language of 29 CFR 29.5(b)(23) covering recordkeeping requirements that
``may be required by the Office of Apprenticeship or recognized State
Apprenticeship Agency and other applicable law'' with a cross-reference
to the proposed recordkeeping provisions set forth in this NPRM at
proposed Sec. 29.18. As described below, the Department has determined
that enhancements to the recordkeeping requirements for registered
apprenticeship are essential for the development of a comprehensive,
national dataset on apprenticeship, for garnering data-driven insights
about the National Apprenticeship System, and for making data-driven
decisions to improve the National Apprenticeship System. The change
made here would clarify that program sponsors and participating
employers must maintain the records specified in proposed Sec. 29.18
for five years.
Proposed Sec. 29.8(a)(23) would address a program's adherence to
EEO Requirements. The proposed Sec. 29.8(a)(23) would replicate the
requirement currently at Sec. 29.5(b)(21), which stipulates that the
standards of apprenticeship must include a statement that the program
must be conducted, operated, and administered in conformity with 29 CFR
part 30, as amended, or, if applicable, an approved State EEO plan.
Proposed Sec. 29.8(a)(24) would address maintaining a safe and
inclusive workplace. The proposed Sec. 29.8(a)(24) would obligate
program sponsors and participating employers to promote and maintain a
safe and inclusive workplace environment that is free from violence,
harassment, intimidation, and retaliation against apprentices. The
requirement to maintain such a workplace environment would include an
obligation to develop and implement procedures to ensure that its
apprentices are not harassed and the program is free from intimidation
and retaliation. The inclusion of this provision in the standards of
apprenticeship would serve to supplement and reinforce the retained
non-discrimination and EEO requirement at proposed Sec. 29.8(a)(23)
and is intended to make it clear that any such conduct or actions
directed against apprentices is completely unacceptable.\108\ As with
other instances of noncompliance with the standards of apprenticeship,
any failure to abide by this requirement could be grounds for a
Registration Agency to impose sanctions against any program sponsor or
participating employer that fails to take immediate and effective
action to remedy the situation. Such sanctions could include the
initiation of deregistration proceedings and referral to law
enforcement agencies, as appropriate. The inclusion of a prohibition on
intimidation and retaliation against apprentices in this provision of
the standards of apprenticeship is intended to deter sponsors and
participating employers from enabling or tolerating a climate of fear
in the workplace that might deter apprentices from reporting instances
of misconduct by supervisors, journeyworkers, or colleagues (including
instances of sexual assault), or alternatively, from joining a labor
union or engaging in organizing activities.
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\108\ Proposed Sec. 29.8(a)(23) and (24) are consistent with
the content of Conclusion 22 of the ILO's 2023 Quality
Apprenticeships Recommendation, which advises that Member States
``should take effective measures to prevent and eliminate any
discrimination, violence and harassment and exploitation against
apprentices.'' ILO, ``Quality Apprenticeships Recommendation, 2023''
(ILO Recommendation No. 208), Conclusion 22, June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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Proposed Sec. 29.8(a)(25) is new and is being added to ensure
compliance with a related Federal law. Proposed Sec. 29.8(a)(25) would
require, for those apprenticeship programs registered on or after
September 22, 2020, that the standards of apprenticeship include an
attestation that the program sponsor will provide each of the written
assurances as required under sec. 2(b)(1) of the Support for Veterans
in Effective Apprenticeships Act of 2019 (Pub. L. 116-134, 134 Stat.
277, 29 U.S.C. 50c). The Department has previously implemented these
provisions through its information collection requests (ICRs) under OMB
Control Number 1205-0223; however, as this is a statutory requirement
the Department considers it important to include in the operative
regulatory text.
Proposed Sec. 29.8(a)(26) would carry forward an existing
requirement that the
[[Page 3162]]
standards of apprenticeship identify the contact information of the
individual with authority in the program to receive, process, and make
disposition of complaints. The Department is proposing to make an email
address a requirement, whereas the current rule only says, ``if
appropriate.''
Proposed Sec. 29.8(b) would address a gap in the existing minimum
standards of apprenticeship by creating a new requirement with respect
to group programs and participating employers. Currently, employers can
participate in a group program, and these employers often sign an
agreement (commonly referred to as an employer acceptance agreement),
or participate via a collective bargaining agreement, with a joint
labor-management group program sponsor. This agreement seeks to ensure
that the participating employer will abide by the minimum standards of
apprenticeship, but the existence of such an agreement is not currently
required. This lack of requirement means that the sponsor is not
formally required to ensure that the employer is abiding by the terms
of the standards of apprenticeship and apprenticeship agreement, and
therefore limits the Registration Agency's ability to hold the sponsor
responsible. The lack of accountability may allow harm caused to
apprentices to go unaddressed, or at least make it harder to address
and remedy.
This rulemaking proposes a new Sec. 29.11, Program Standards
Adoption Agreement, which would outline the requirements of such
agreements signed by participating employers. Proposed Sec. 29.8(b)
would synchronize the minimum standards of apprenticeship with proposed
Sec. 29.11, creating a corresponding requirement on group program
sponsors to ensure that the minimum standards of apprenticeship include
an attestation from each participating employer, which is required
prior to the employer being admitted to the program. Proposed Sec.
29.8(b)(1) would require the attestation include that a participating
employer will abide by the requirements in parts 29 and 30.
Proposed Sec. 29.8(b)(1) would require group program sponsors to
ascertain, via the attestation, whether a participating employer has
violated any applicable laws governing workplace practices or conduct,
and actions taken to remedy any violation. This disclosure would not
prevent a program from being registered or from allowing the sponsor to
enter into an agreement with the participating employer; however, the
Department, in safeguarding the welfare of apprentices, considers it
important that a Registration Agency know of these instances as part of
its program oversight role. If an entity fails to disclose such
violations, then, as with any materially false, fictitious, or
fraudulent statement or representation knowingly and willfully to the
Federal Government, a referral to the Department of Justice for a
potential violation of 18 U.S.C. Sec. 1001 would be necessary.
Proposed Sec. 29.8(b)(3) would require group program sponsors to
monitor participating employers for their compliance with the minimum
standards of apprenticeship and other requirements contained in parts
29 and 30. The Department has determined that creating this requirement
would help address a gap in existing requirements with respect to group
programs and participating employers. Through this requirement, the
Department anticipates furthering apprentice safety and welfare by
adding a check on the actions of the participating employer and
providing a mechanism for the Registration Agency to hold the sponsor
accountable. These safeguards would promote compliance with the terms
of the standards of apprenticeship and apprenticeship agreement. While
not an explicit requirement, group program sponsors may need to
dedicate staff as coordinators to ensure all the program partners and
employers are coordinated and connected in the delivery of the
registered apprenticeship program.
Section 29.9--Apprenticeship Agreements
As discussed above, one of the principles informing the development
of this proposed regulation is the desire to increase transparency and
accountability throughout the National Apprenticeship System. The
apprenticeship agreement between registered apprenticeship program
sponsors and apprentices joining their programs is critical to allowing
the apprentice to understand their rights and obligations. The
apprenticeship agreement is the agreement that governs the relationship
between the apprentice and the sponsor (and employers, where
applicable) regarding the terms and conditions of the registered
apprenticeship program. A potential apprentice seeking to join a
program should have access to as much information as possible to help
them make such an important career decision, including any costs
associated with participating in or completing the program, the types
of training and instruction they can expect to receive, what will be
expected of them in order to complete the program, and what completion
of the program will mean for their near- and longer-term career
development.
The agreement also serves as an assurance to the potential
apprentice, as well as the Department and any other entities with a
role in overseeing a program, that the program sponsor will abide by
the terms and conditions of the registered apprenticeship program as
laid out in the agreement. As an important tool for achieving optimal
transparency and accountability within the National Apprenticeship
System, the apprenticeship agreement is central to registered
apprenticeship and thus represents an important piece of the
Department's focus in proposing strengthened transparency,
accountability, and worker protections in the part 29 regulations.
The current regulatory provisions governing the apprenticeship
agreement are at 29 CFR 29.7. The Department proposes to move that
provision to Sec. 29.9, retaining and reorganizing many of the
existing provisions and adding further measures to strengthen
transparency, accountability, and worker protections within the
National Apprenticeship System.
The apprenticeship agreement is intended to clearly encompass all
fundamental aspects of the terms and conditions of the registered
apprenticeship program, as described in the requirements below, and
cannot be modified or altered by a subsequent agreement that
contravenes the requirements of this part.
Proposed Sec. 29.9(a) would require that all apprenticeship
programs registered by a Registration Agency develop and establish a
written apprenticeship agreement that contains the terms and conditions
of the employment and training of the apprentice, and that such
agreement must be signed by the parties prior to the start of the
apprenticeship term. Proposed Sec. 29.9(a) incorporates existing text
currently at Sec. 29.7 that establishes the requirement for an
apprenticeship agreement setting forth the terms and conditions of the
employment and training of the apprentice and existing text at Sec.
29.7(a) requiring the signatures of the relevant parties. It would
further require the signature of a participating employer in a group
program that has adopted the sponsor's standards of apprenticeship
through a program standards adoption agreement. This is to ensure that
the participating employer understands the terms and conditions of the
apprentice's employment and training and can be held accountable by the
apprentice or a Registration Agency for any violations of the terms and
conditions of the
[[Page 3163]]
agreement. This requirement would be specific to participating
employers in group programs with a standards adoption agreement.
Further, this paragraph would clarify that the agreement must be signed
prior to the start of the apprenticeship term. This clarification would
add a temporal requirement to the apprenticeship agreement in that it
must be agreed to by the parties prior to the start of the
apprenticeship. This would be consistent with the intent of the
apprenticeship agreement to set forth the terms of the apprentice's
training and employment, would ensure that there is a valid operative
agreement governing the relationship of the parties at the start of the
program, and would allow the apprentice to review and understand the
terms of the program before joining the program.
Proposed section 29.9(b) contains a new requirement that, prior to
signing the apprenticeship agreement, an apprentice who has been
admitted to the apprenticeship program must be furnished by the program
sponsor with a copy of both the proposed apprenticeship agreement and
the program's standards of apprenticeship, and must also be provided
with a reasonable opportunity to inspect and review the content of
those documents. Proposed section 29.9(b) also stipulates that, after
the apprenticeship agreement has been signed by the apprentice, the
sponsor, and any other relevant parties, the sponsor must transmit or
deliver to the apprentice a copy of the executed apprenticeship
agreement and the program's standards of apprenticeship not later than
the starting date of the apprenticeship. The Department takes the view
that this disclosure provision is necessary to ensure that apprentices
are made fully aware of the terms and conditions of their employment
before entering into an apprenticeship agreement with the sponsor or
participating employer and beginning their work as an apprentice. The
inclusion of this disclosure requirement is also a recognition that
apprenticeship agreements entered into between apprentices and sponsors
or participating employers often involve a significant imbalance of
bargaining power between the contracting parties, and that apprentices
are thus more susceptible to entering into an apprenticeship agreement
without an understanding of the terms of the contract or, in some
circumstances, as a result of coercion, deception, and other forms of
procedural unconscionability. The Department further believes that
adherence to this disclosure requirement should help to ensure that the
apprenticeship agreement is procedurally lawful, and that the
apprentice has entered into the agreement freely, voluntarily, and with
a reasonable opportunity to review its terms and understand its
meaning. The Department has refrained from establishing in proposed
Sec. 29.9(b) a uniform, minimum duration of time that would constitute
``a reasonable opportunity to inspect and review the content'' of the
apprenticeship agreement and the program's standards of apprenticeship;
in this connection, the Department has abstained from specifying such a
quantitative requirement in order to provide program sponsors with some
measure of flexibility in determining what would constitute an
appropriate period of time for an apprentice to review the documents,
based upon a given set of facts and circumstances. However, the
Department invites comments on whether the establishment of a specified
minimum duration of time for an apprentice to review these documents
would be appropriate in this rulemaking, and, if so, what that duration
of time should be.
The Department understands that the proposed requirement to include
the standards of apprenticeship in the apprenticeship agreement may
appear to be duplicative, as such standards include similar provisions
such as the progressive wage schedule and associated program costs.
However, it is important to include the standards in the agreement to
make compliance with the standards part of the contract between the
apprentice, program sponsor, and participating employer. Moreover,
because the standards could be incorporated by reference, the
apprenticeship agreement would not need to repeat verbatim the content
of the standards, but rather would only need to provide the information
described in paragraphs (c)(1) through (3). The proposed requirement to
give the apprentice both the signed apprenticeship agreement and the
program standards accompanies the requirement in proposed Sec.
29.9(c)(4) to incorporate the program standards into the apprenticeship
agreement either directly or by reference and would expand upon the
current apprenticeship agreement requirement to incorporate by
reference the standards of apprenticeship.
Proposed Sec. 29.9(c) would contain the minimum requirements of
the apprenticeship agreement. It would incorporate many of the current
requirements in Sec. 29.7. As discussed above, existing Sec. 29.7(a)
would now be a part of proposed Sec. 29.9(a).
Proposed Sec. 29.9(c)(1) would require apprentice contact
information and identifying information for the apprentice, including
the apprentice's date of birth and, on a voluntary basis, their Social
Security number. Both the date of birth and the voluntary provision of
the apprentice's Social Security number are in the current requirement
at Sec. 29.27(b). Proposed Sec. 29.9(c)(1) would also require that
the apprentice's contact information be provided. This would be
consistent with current practice and necessary for the administration
of the apprenticeship program and registration of the agreement.
Apprentices may not be denied program entry or subjected to any adverse
action taken by a program sponsor if an apprentice refuses to disclose
their Social Security number.
Proposed Sec. 29.9(c)(2) would require that the apprenticeship
agreement contain the contact information for the Registration Agency,
the program sponsor, and the participating employer(s). This
requirement would be similar to the existing requirement in Sec.
29.7(c), with the addition of the contact information for any
participating employers that are signatories to the agreement at the
time the apprenticeship agreement is signed. However, the
apprenticeship agreement would not need to be modified or re-signed if
any participating employers join the registered apprenticeship program
after the apprenticeship agreement is signed because those
participating employers agree to comply with the existing program
standards and are bound by the program adoption agreement to employ
apprentices based on the terms of the apprenticeship agreement. The
Department is proposing this while mindful of the potential burden of
re-signing apprenticeship agreements for each program standards
adoption agreement that an apprentice may be employed by. The
Department is interested in any comments on this proposed flexibility,
or any comments recommending a requirement that the agreements be re-
signed as a transparency feature for an apprentice.
Proposed Sec. 29.9(c)(3) would incorporate the existing
requirements in Sec. 29.7 to include the occupation in which the
apprentice is to be trained as well as the associated work process
schedule and related instruction outline.
Proposed Sec. 29.9(c)(4) would require that the program's
standards of apprenticeship be incorporated into the apprenticeship
agreement either directly or by reference. This requirement is in
[[Page 3164]]
current Sec. Sec. 29.5(b)(11) and 29.7(i) and would be carried forward
in this proposal.
Proposed Sec. 29.9(c)(5) is new and would require that the
apprenticeship agreement contain a description of the respective roles,
duties, and responsibilities of the parties to the apprenticeship
agreement. This description would need to include the responsibility of
sponsors and any participating employers to provide information to
apprentices about their rights and protections under Federal, State,
and local laws, including their right to file complaints with the
applicable Registration Agency. This proposed provision would capture
an important element of the apprenticeship agreement--that the parties
have clearly defined roles and responsibilities--and would emphasize
that a particularly important responsibility of the sponsors and
employers is to ensure that apprentices are aware of their rights under
the apprenticeship agreement and applicable laws. This proposed
provision would also align with the 2023 Quality Apprenticeships
Recommendation of the ILO, specifically Conclusion 18(a), which advises
that Member States should ensure that an apprenticeship agreement
``clearly defines the parties' respective roles, rights and
obligations.'' \109\ Explicitly requiring that the agreement include
information about their rights and the complaint filing process would
better protect the apprentice by easily allowing them to exercise their
rights if necessary. In light of the Department's mandate to protect
the welfare of apprentices, the Department thinks this is an important
safeguard.
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\109\ ILO, ``Quality Apprenticeships Recommendation, 2023'' (ILO
Recommendation No. 208), Conclusion 18(a), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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Proposed Sec. 29.9(c)(6) would require that the agreement contain
the dates of the registered apprenticeship program, including the
beginning date and expected duration of the apprenticeship program, the
beginning date of the on-the-job training, and the duration of any
probationary period of the apprenticeship program. This would
incorporate requirements in existing Sec. 29.7(d) and (h) regarding
dates, expected duration of the apprenticeship, and the length of the
probationary period. By requiring disclosure of the start date of the
program and start date of the on-the-job training portion of the
program apprentices would have more complete information and
expectations of when they will begin the paid on-the-job training
portion of the program. In addition to these key dates, the
apprenticeship agreement would also inform the apprentice of the
expected duration of the registered apprenticeship program in addition
to the duration of any probationary period.
Proposed Sec. 29.9(c)(7) would require a detailed statement of the
entry wage, subsequent graduated scale of increasing wages to be paid
to the apprentice over the term of the apprenticeship, the
journeyworker wage, and any fringe benefits. This requirement would
incorporate the existing requirement in Sec. 29.7(g) but would add the
requirement that the wages correspond to specific periods of time: an
entry wage, a graduated scale of wages that correspond to the
apprentice's attainment of occupational skills and competencies
throughout the registered apprenticeship program, and the journeyworker
wage that the apprentice can expect to receive upon their successful
completion of the apprenticeship. This added requirement in the
apprenticeship agreement would align with the program standards
requirements for a graduated schedule of increasing wages, from entry
wage to journeyworker wage, in proposed Sec. 29.8(a)(17)(B) and is
intended to provide explicit notice to the apprentice of the expected
cadence of wage increases that corresponds to the acquisition of
specific occupational skills and competencies. It would also give
notice to the apprentice of fringe benefits provided as a part of the
registered apprenticeship program.
Proposed Sec. 29.9(c)(8) would require that the apprenticeship
agreement disclose the expected minimum number of hours that are
allocated by the program to the on-the-job training component and the
related instruction component during the apprenticeship term. In
practice, because progress in the program is measured through both time
in on-the-job training and competency attainment, this may include an
approximate range of hours from the minimum to a maximum number of on-
the-job training hours to obtain proficiency in the occupation. This
proposed provision would replace existing Sec. 29.7(e) and align with
the program standards requirement in proposed Sec. 29.8(a)(4)
regarding the minimum duration of the on-the-job training and related
instruction components of the registered apprenticeship program.
Proposed Sec. 29.9(c)(9) would be a new requirement for the
apprenticeship agreement to include a description of the methods used
during the course of the apprenticeship to measure progress on
competency attainment and the program's end-point assessment. The
Department emphasizes here that the methods should be inclusive and
accessible to all apprentices, including those with disabilities and
others from underserved communities. This proposed requirement would
add transparency to the apprenticeship agreement regarding the
assessment and evaluation of apprentices, both on a continuous basis
throughout the apprenticeship and at the end of the registered
apprenticeship program. It corresponds to the new requirements at
proposed Sec. 29.8(a)(10) and (11) regarding regular and end-point
assessments in the program standards of apprenticeship. As with many
other requirements, the Department thinks that adding this information
into the apprenticeship agreement would ensure transparency to the
apprentice, who would have a better understanding of the program they
are joining, what will be expected of them, and, in this case, how they
will be assessed.
Proposed Sec. 29.9(c)(10) would be a new requirement that the
apprenticeship agreement include a description of any supportive
services that may be available to the apprentice including childcare,
transportation, equipment, tools, or any other supportive service
provided by the sponsor or a partnering organization. This proposal
would provide transparency to the apprentice of any supports they may
receive during their participation in the program. Such supports may be
arranged through partner organizations or in coordination with the
workforce development system.
Proposed Sec. 29.9(c)(11) would be a new requirement that the
apprenticeship agreement disclose the nature and amount of any
unreimbursed costs, expenses, or fees that the apprentice may incur
during their participation in the registered apprenticeship program.
This corresponds with the proposed Sec. 29.8(a)(18) requirements in
the standards of apprenticeship regarding disclosure and conditions of
any unreimbursed costs, expenses, or fees incurred by the apprentice
during the registered apprenticeship program. The Department discussed
above its reasons for requiring this information in the program
standards. This proposed addition here would give the apprentice
explicit notice of such costs, expenses, or fees so that they have
necessary and relevant information regarding their wages and costs
during the registered apprenticeship program and can plan accordingly.
It would also ensure
[[Page 3165]]
transparency to assist in protecting the apprentice from hidden or
arbitrary costs, fees, or expenses.
Proposed Sec. 29.9(c)(12) would be a new requirement that the
apprenticeship agreement must describe any recognized postsecondary
credits, credentials, and occupational qualifications that the
apprentice will receive or be eligible to receive upon successful
program completion, as well as a description of any additional
conditions or requirements that the apprentice must fulfill to satisfy
any applicable Federal, State, or local qualification and licensure
requirements to engage in the occupation. This proposed inclusion in
the apprenticeship agreement corresponds with the proposed standard at
Sec. 29.8(a)(8) to include a description of any interim credentials,
occupational qualifications, licenses, credentials, or certification,
or postsecondary credit that an apprentice may receive or be eligible
to receive upon successful completion of the registered apprenticeship
program. This provision would provide notice to the apprentice of
expected outcomes throughout and at the conclusion of the registered
apprenticeship program and would allow the apprentice to understand the
full benefits of the apprenticeship program.
Proposed Sec. 29.9(c)(13) would require a statement in the
agreement that the parties will adhere to the applicable requirements
of 29 CFR part 30 as amended and, where applicable, an approved State
EEO plan. This would replace the requirement in Sec. 29.7(j) to
include an equal opportunity statement with a statement instead
regarding adherence to part 30 and any applicable State EEO plan. This
proposed change is meant to explicitly reference the requirements in
part 30 in their entirety to not only avoid duplication but also
clarify that the expectation is for sponsors and employers to adhere to
all applicable requirements.
Proposed Sec. 29.9(c)(14) would require a statement addressing
whether the apprentice is paid wages and any fringe benefits during the
related instruction component of the program and, if so, what the wage
rate and fringe benefits are, and whether the related instruction is
provided during work hours. This requirement would be similar to the
existing requirement in Sec. 29.7(g) that the apprenticeship agreement
specify whether related instruction is compensated; however, it would
more precisely require that the apprenticeship agreement address both
any wages (i.e., not some other form of compensation) and fringe
benefits and whether related instruction occurs during work hours. This
would provide notice to the apprentice of whether to expect related
instruction to occur on their own time and, regardless of when related
instruction takes place, whether it is paid and at what rate. As
discussed in proposed Sec. 29.8(a)(9), sponsors must consider, as a
part of their programs' standards of apprenticeship, whether to pay
wages for related instruction. Since registered apprenticeship is an
``earn-and-learn'' model, this provision would provide transparency to
the apprentice about when wages will be received, what wages will be
received, and during what component(s) of the program. This provision
would also make transparent a schedule of paid and unpaid time an
apprentice is expected to be present to fulfill learning and worksite
productivity objectives when attending related instruction and on-the-
job training. Making this information available to apprentices for
transparency purposes would provide apprentices with the necessary
information to make financial decisions, seek out resources or
supportive services through a program sponsor to attend related
instruction or compensate costs incurred, and manage time to
accommodate responsibilities, such as providing care to family members.
Proposed Sec. 29.9(c)(15) would be the existing requirement in
Sec. 29.7 that the apprenticeship agreement include the contact
information of the appropriate party to address complaints within the
program. As discussed below, in addition to filing complaints with the
program, apprentices may make complaints to a Registration Agency
consistent with proposed Sec. 29.17, and information on how to do so
would need to be included in the apprentice agreement as required by
proposed Sec. 29.9(c)(5).
Proposed Sec. 29.9(c)(16) is new and would require the
apprenticeship agreement to contain a description of the processes and
procedures that the sponsor will utilize to grant advanced standing or
credit to apprentices. The processes and procedures in the
apprenticeship agreement would need to be the same as in the sponsor's
approved standards. This proposed provision would ensure that
apprentices are aware of the processes and procedures in place for
receiving advanced standing before the apprentice signs the
apprenticeship agreement.
Proposed Sec. 29.9(d) is new and would prevent sponsors and
participating employers from including in the apprenticeship agreement
or otherwise imposing on apprentices a non-compete provision or similar
provision that would restrict an apprentice's labor market mobility and
limit competition among employers. Proposed Sec. 29.9(d) would include
a prohibition on any provisions restricting the apprentice's ability to
seek or accept employment with another employer prior to the completion
of the registered apprenticeship program. The substance of a non-
compete provision may vary between employers and jurisdictions, but the
general purpose of a non-compete provision is to restrict the ability
of a worker to compete with their current employer for some specified
period of time, often in a specified geographic area.110 111
Non-compete provisions undermine workers' mobility and rights, and the
proposal to restrict them is meant to further protect the safety and
welfare of apprentices and to promote competition for labor services.
The Department has tentatively determined that where a non-compete
provision seeks to restrict the apprentice's labor market mobility,
including prior to the completion of the registered apprenticeship
program, the inclusion of a non-compete provision is impermissible
because it harms the apprentice by preventing them from finding or
accepting employment. Moreover, the use of non-compete provisions by
program sponsors or participating employers in the sponsor's program
can substantially undermine a key purpose of registered
apprenticeships, which is to provide a worker with marketable and
portable occupational skills when the apprenticeship has concluded.
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\110\ U.S. Department of the Treasury, Office of Economic
Policy, ``Non-compete Contracts: Economic Effects and Policy
Implications,'' Mar. 2016, https://home.treasury.gov/system/files/226/Non_Compete_Contracts_Econimic_Effects_and_Policy_Implications_MAR2016.pdf.
\111\ U.S. Department of the Treasury, ``The State of Labor
Market Competition,'' Mar. 7, 2022, https://home.treasury.gov/system/files/136/State-of-Labor-Market-Competition-2022.pdf.
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At the turn of this century, the use of non-compete provisions in
employment contracts was typically concentrated within higher paying
occupations requiring advanced levels of education; today, however,
such restrictive employment covenants have increasingly been utilized
by employers for workers entering jobs in occupations that pay
considerably less.\112\ Moreover,
[[Page 3166]]
when such contractual provisions are enforced, they have been shown to
harm lower income workers in particular by undermining employment
opportunities that can provide greater economic stability and
mobility.\113\ A number of States have prohibitions on non-compete
provisions that disproportionately impact workers who are paid an
hourly wage,\114\ make equal or less than an hourly wage of $15
($31,200 annually),\115\ or work for technology businesses.\116\
Safeguarding the ability for an apprentice to traverse the labor market
with employable skills and competencies attained while in a registered
apprenticeship program has several benefits that accrue to apprentices
and the communities where they live and work. Prohibiting such
restrictions on apprentices' labor market mobility enables them to
pursue the broadest possible scope of employment opportunities, and
also benefits the communities where apprentices live and work.
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\112\ See ibid. Note: Non-compete provisions are common among
workers who report lower rates of trade secret possession: 15
percent of workers without a 4-year college degree are subject to
non-compete provisions, and 14 percent of workers earning less than
$40,000 are subject to non-compete provisions. This is true even
though workers without 4-year degrees are half as likely to possess
trade secrets as those with 4-year degrees, and workers earning less
than $40,000 possess trade secrets at less than half the rate of
their higher earning counterparts.
\113\ Ayesha Bell Hardaway, ``The Paradox of the Right to
Contract: Noncompete Agreements as Thirteenth Amendment
Violations,'' 39 Seattle U. L. Rev. (2016), 957, 959, https://digitalcommons.law.seattleu.edu/cgi/viewcontent.cgi?article=2334&context=sulr.
\114\ Nevada AB276 (2017) prohibits a non-compete provision from
applying to an employee who is paid solely on an hourly wage basis,
exclusive of any tips or gratuities.
\115\ Maryland SB 328 (2019) makes null and void any non-compete
or conflict of interest provision in an employment contract that
restricts the ability of an employee who earns equal to or less than
$15 per hour or $31,200 annually to enter into employment with a new
employer or to become self-employed in the same or similar business.
\116\ Hawaii HB 1090 (2015) prohibits non-compete provisions
among employees of technology businesses.
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Prohibiting the inclusion of a non-compete provision in the
apprenticeship agreement would align with the Department's broader goal
of ensuring good jobs, increased earnings for workers, and competition
among employers. A Federal Trade Commission (FTC) proposal that would
ban non-compete provisions more broadly in the American economy
estimated a potential increase in workers' earnings by nearly $300
billion per year.\117\ Though the Department's proposal has a more
limited reach than the FTC's proposal, a review of that agency's
estimates suggests that restricting non-compete provisions in the
Department's proposal would lead to an increase in apprentice earnings.
While the Department's proposal fundamentally is designed to help
workers ensure their labor is mobile, the Department believes such a
ban on non-compete provisions could ultimately benefit sponsors and
employers as well since they would have access to a greater pool of
qualified workers. The Department is also interested in comments on how
the proposal to restrict non-compete provisions would impact employers
in the National Apprenticeship System.
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\117\ Federal Trade Commission, ``FTC Proposes Rule to Ban
Noncompete Clauses, Which Hurt Workers and Harm Competition,'' Jan.
5, 2023, https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-proposes-rule-ban-noncompete-clauses-which-hurt-workers-harm-competition.
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Proposed Sec. 29.9(e) would prevent including in the
apprenticeship agreement or otherwise imposing on apprentices a non-
disclosure provision that would have the effect of preventing the
worker from working in the same field after the conclusion of the
worker's employment with the employer, or that would restrict an
apprentice's ability to file a complaint with a Registration Agency or
other governmental body concerning possible violations of this part or
of 29 CFR part 30. Non-disclosure provisions, more acutely, can have
the effect of silencing workers if and when they experience harassment,
discrimination, or violations of worker rights.\118\ This provision
would serve to promote accountability by ensuring that all apprentices
can file complaints concerning harassment and discrimination in the
workplace.
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\118\ One in three women has faced sexual harassment in the
workplace during her career, and an estimated 87 to 94 percent of
those who experience sexual harassment never file a formal
complaint; additionally, sexual harassment in the workplace forces
many women to leave their occupation or industry or pass up
opportunities for advancement. See Select Task Force on the Study of
Harassment in the Workplace, ``Report of Co-Chairs Chai R. Feldblum
& Victoria A. Lipnic,'' June 2016, https://www.eeoc.gov/select-task-force-study-harassment-workplace.
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Non-disclosure provisions, like non-compete provisions, vary in
substance, but they share a common purpose in seeking to prevent
disclosure of information designated as confidential by the
agreement.\119\ The Department notes that this proposed prohibition on
non-disclosure provisions would apply to all circumstances in which a
non-disclosure provision would effectively prevent the worker from
working in the same field or effectively restrict the worker from
filing a complaint alleging a violation of the workers' rights.
Regardless of the intent of the non-disclosure provision, if it would
have such an effect, then it would be prohibited. Notwithstanding these
restrictions, however, a sponsor or participating employer may include
a non-disclosure provision that relates to the protection of the
sponsor's or participating employer's confidential business information
or trade secrets, such as in the IT industry where an employee could
otherwise disclose their programming source codes. This provision
intends to protect an apprentice's future job prospects while also
recognizing the need of businesses to safeguard confidential business
information.
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\119\ Rachel Arnow-Richman, Gretchen Carlson, Orly Lobel, Julie
Roginsky, Jodi Short, and Evan Starr, ``Supporting Market
Accountability, Workplace Equity, and Fair Competition by Reining in
Non-Disclosure Agreements,'' Federal of American Scientists, Jan.
31, 2022, https://www.dayoneproject.org/ideas/supporting-market-accountability-workplace-equity-and-fair-competition-by-reining-in-non-disclosure-agreements.
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Proposed Sec. 29.9(f) would require the program sponsor to submit
a copy of the executed apprenticeship agreement for each apprentice
registered to the program's Registration Agency within 30 days of
execution. This change, which would be a reduction in time from the 45
days currently required, is being proposed as part of a broader change
to require more expedited reporting to OA from 45 days to 30 days,
which the Department thinks is reasonable given the advancements in
technology available to sponsors and the ability to use RAPIDS, which
provides for these submissions electronically. In proposing this
change, the Department expects sponsors to take active steps to provide
all appropriate information required in the agreement. Agreements
submitted with incomplete or inaccurate information would not be deemed
to have met this requirement. Further, in situations in which a sponsor
submits an apprenticeship agreement that covers multiple apprentices
and contains a list of signatories, the sponsor would need to provide
the updated list of signatories to the apprenticeship agreement within
30 days.
Proposed Sec. 29.9(g) is based on an existing requirement that the
apprenticeship agreement may be cancelled during the probationary
period specified in the agreement by either party without cause and
would modify the current provision relating to this topic found in the
existing regulation at Sec. 29.7(h)(1). As discussed below, the
current language in Sec. 29.7(h)(1) regarding written notice to the
Registration Agency would be relocated to proposed Sec. 29.25(a)(2).
Proposed Sec. 29.9(h) states that after the probationary period of
the apprenticeship concludes, the apprenticeship agreement: (1) may be
cancelled at the request of the apprentice at any time; or (2) may be
[[Page 3167]]
suspended or cancelled by the program sponsor only for good cause, and
after reasonable opportunity for corrective action. When terminating an
agreement, the sponsor would need to provide written notice to the
apprentice explaining the cause for the termination and provide written
notice to the Registration Agency of the termination. These
requirements would incorporate the existing requirements in Sec.
29.7(h)(2) with minor rewording that would not change the substance of
the requirement. Examples of good cause could include misconduct, a
violation of a sponsor's policies, or continuous and documented poor
performance. The Department is interested in comments that can provide
clarity for the Department and regulated community on what a ``good
cause'' cancellation by the sponsor should entail. These requirements
would incorporate the existing requirements in Sec. 29.8(a)(12) with
minor rewording that would not change the substance of the requirement.
This provision would ensure that the apprentice is aware of their right
to cancel the apprenticeship agreement at any time and that the
apprentice is notified of and given a chance to address any concerns or
issues raised by the sponsor about the apprentice's performance or
conduct. It would also require that sponsors provide written notice
explaining the decision to cancel the apprenticeship agreement, which
would mean the termination of the apprentice's participation in the
registered apprenticeship program. As is currently required, the
sponsor would also need to provide written notice to the Registration
Agency of the cancellation of the apprenticeship agreement and
termination of the apprentice from the registered apprenticeship
program so that they are aware of the matter and can take any action
they think may be appropriate.
Section 29.10--Program Registration
The ``Program registration'' section would incorporate requirements
from existing Sec. Sec. 29.3 and 29.6 for program registration and the
provisional registration of new programs while adding further
provisions containing the requirements for a prospective program
sponsor's application for apprenticeship program registration and the
process for determination, provisional and permanent registration, and
ongoing program compliance. Provisions in this section would describe
the required contents of the application, such as the inclusion of a
work process schedule that has been developed for an occupation
suitable for registered apprenticeship as determined by the
Administrator. This section would describe new requirements that a
prospective program sponsor must include in their application, such as
a written plan of recruitment sources, information on a potential
program's financial capacity for program sustainability, and disclosure
of violations and actions taken to correct violations. Requirements for
applications described in this section would also include a written
acknowledgement of whether or not the program would participate in
partnership through such mechanisms as a collective bargaining
agreement and how the program sponsor intends to align with 29 CFR part
30 requirements. A Registration Agency's determination process and
subsequent issuance of a Certificate of Registration for provisional
approval if requirements are met would be described in this section.
This section would also include the requirements for permanent approval
along with the necessary compliance measures for programs to meet 29
CFR parts 29 and 30 requirements and maintain at least one apprentice
with a given timeframe.
Proposed Sec. 29.10(a) would contain the requirements for
submitting an application for registration of a new apprenticeship
program. The Department anticipates electronic submission of
applications, which would lead to a more efficient process, increased
timeliness of reviews, and improved technical assistance. The
Department has successfully launched a web-based platform called
Standards Builder,\120\ which has also been leveraged by SAAs. Current
regulations do not require that standards be submitted electronically
and this proposed rule would change that by mandating electronic
submission. The Department anticipates that requiring submissions
electronically would result in better customer service, enable
technical assistance to be provided electronically and instantly, and
could yield more responsive approvals of programs that meet the
requirements of this part and part 30. The Department anticipates
continuing to expand and refine its development of web-based tools to
assist in the registration process, and requiring electronic
submissions would allow OA to focus its efforts more on providing
sponsors technical assistance than on reviewing and providing feedback
through nonelectronic means.
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\120\ OA, ``Standards Builder,'' https://www.apprenticeship.gov/employers/registered-apprenticeship-program/register/standards-builder (last visited July 20, 2023).
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Proposed Sec. 29.10(a)(1) through (3) would require a prospective
program sponsor to submit: (1) the work process schedule and related
instruction outline that is consistent with an occupation deemed
suitable for registered apprenticeship by the Administrator, set forth
in proposed Sec. 29.7; (2) the standards of apprenticeship for the
proposed program, set forth in proposed Sec. 29.8; and (3) the
apprenticeship agreement for the registered apprenticeship program, set
forth in proposed Sec. 29.9.
Proposed Sec. 29.10(a)(1) would explicitly require that the
occupation has been determined suitable for registered apprenticeship.
OA maintains a list and sample work process schedules of occupations
suitable for registered apprenticeship, which is available at OA's
Occupation Finder Tool.\121\ If the sponsor is submitting a program
that is in an occupation that has not been deemed suitable for
registered apprenticeship, the sponsor would need to request a
suitability determination in accordance with the process in proposed
Sec. 29.7. This is a fundamental first step for any program
registration: if the occupation has not been deemed suitable for
registered apprenticeship, then the prospective program is not eligible
for registration. The proposal would also require the submission of a
work process schedule and related instruction outline that is
consistent with an occupation deemed suitable for registered
apprenticeship by the Administrator so that a Registration Agency can
assess the alignment of the work process schedule and related
instruction with the occupation in which the apprentice is training,
per proposed Sec. 29.10(b)(1) described below. The Department notes
that a sponsor may submit standards for multiple occupations as part of
their submission, and if so, would need to submit work process
schedules and related instruction outlines for every occupation for
which it is seeking program registration. There would be no prohibition
on a sponsor submitting an application for registration under this
section along with a request for a suitability determination under 29
CFR 29.7. However, because suitability is a threshold requirement for
approval of the standards, OA would not review the proposed standards
until the suitability determination has been approved. The
[[Page 3168]]
Department notes that often during a suitability process, changes may
be required to ensure the occupation meets the requirements of industry
described in proposed Sec. 29.7, which would in turn require changes
to the application. Submitting the suitability request for review
before the standards would be the more efficient approach.
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\121\ OA, ``Explore Approved Occupations for Registered
Apprenticeship,'' https://www.apprenticeship.gov/apprenticeship-occupations (last visited July 20, 2023).
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Proposed Sec. 29.10(a)(4) is a new provision that would require a
prospective program sponsor to submit a written plan for the equitable
recruitment and retention of apprentices, including those from
underserved communities. This provision is intended to ensure that all
registered apprenticeship programs, including those that are not
subject to the affirmative action requirements of 29 CFR part 30,
develop and implement intentional and achievable strategies for
optimizing apprenticeship program participation by individuals who face
persistent structural or environmental barriers to program entry or
retention, such as persons from underserved communities. For example, a
sponsor's plan could detail how it intends to leverage local
partnerships with third-party entities such as intermediaries, State or
local workforce development boards, one-stop centers, pre-
apprenticeship programs, educational institutions, labor unions,
community-based organizations, or regional economic development bodies
to facilitate access to a suite of supportive services for its
apprentices, such as the provision of childcare services, and
transportation. The provision of supportive services to individuals
from underserved communities often plays a critical role in enabling
such persons to enroll in, and complete, a registered apprenticeship
program, thereby optimizing the recruitment and retention of a talented
and motivated cadre of apprentices who reflect the demographic
composition of the community in which the sponsor operates.
Potential program sponsors may utilize technical assistance from
Registration Agency field representatives in helping to identify
potential community or intermediary partnerships. Potential program
sponsors are strongly encouraged to develop effective partnerships with
educational and workforce intermediary organizations to form the
foundation of a coherent strategy for the equitable recruitment and
retention of apprentices. In particular, the formation of close
partnerships between registered apprenticeship programs and local pre-
apprenticeship programs can be an effective vehicle for optimizing
sponsor access to untapped pools of talent, as many of the participants
in pre-apprenticeship programs are drawn from underserved communities.
Partnerships with one-stop centers, workforce boards, and community
organizations can also be particularly advantageous for those program
sponsors with limited financial resources, as such networks can provide
sponsors with a cost-effective strategy for gaining access to
supportive services provided by such third parties. Local partnerships
with intermediary organizations can also assist sponsors in advancing
equity goals by providing access to funding sources that can alleviate
the cost burdens typically associated with the operation of a
registered apprenticeship program (such as for tuition, books,
supplies, and equipment); these costs often pose barriers to program
entry and retention for individuals, particularly those from
underserved communities, when they are passed along to such persons by
apprenticeship programs with limited resources.
Proposed Sec. 29.10(a)(5) is a new provision that would require
that a prospective program sponsor submit information showing that it
possesses and can maintain the financial capacity and other resources
necessary to operate the proposed program on a sustained basis. For
example, the prospective program sponsor may submit a narrative
explaining its financial capacity to operate a program, in particular
its ability to ensure pay to apprentices over a sustained period. In
instances where employers are sponsors, they could demonstrate this by
identifying their intent to hire and train apprentices in the program,
and through the wages they pay apprentices. Additionally, this
provision would be particularly useful for programs where the employers
are not the sponsors of programs, and the payment to apprentices would
be made through a group program with participating employers. Among
other considerations, this provision is intended to protect against the
proliferation of registered apprenticeship programs that are initially
set up and financed through a grant program but lack the financial
resources, consistent funding streams, or both that would be necessary
to maintain a registered apprenticeship program over an extended period
beyond the life cycle of a grant.
The Department anticipates that the submission of a forward-looking
narrative around the sponsor or sponsor organization's financial
planning, funding streams, and overall financial solvency would satisfy
the financial integrity provision at proposed Sec. 29.10(a)(5). The
Department primarily wants to see some discussion in the application
about how the sponsor or sponsor's organization intends to operate and
sustain itself, whether it is an employer sponsor that is ensuring it
has the necessary in-house infrastructure or partnerships, a community
college sponsor ensuring it has the sufficient commitment of employers
and resources to provide related instruction, or other entities such as
intermediary sponsors indicating they have the necessary programmatic
infrastructure and resources to maintain the programmatic requirements.
Given its role in protecting the safety and welfare of apprentices, the
Department envisions this requirement to ensure the sponsor is
intentional in its commitment and securing of resources for the
employment and training of apprentices in a registered apprenticeship
program. The Department is interested in public comments on the value
and feasibility of this proposed financial integrity provision, as well
as additional examples or suggestions regarding the information
sponsors may submit to demonstrate financial solvency.
The purpose of this provision is to ensure that prospective program
sponsors are financially solvent and can maintain financial integrity,
transparency, and accountability to sustain program operations. In
particular, if the program anticipates relying on grants or other
resources, such as WIOA, to fund some of the program operations, it
would be expected to disclose this information. Workforce investments,
such as investments in industry intermediaries, have shown promise in
expanding registered apprenticeship models to new industries; however,
many of these investments are designed to assist in starting a program.
Over the long term, programs should not need to rely on grant funds for
their day-to-day operations.
Proposed Sec. 29.10(a)(6) is a new provision that would require a
prospective program sponsor to submit with their application a
disclosure in writing of all instances where a Federal, State, or local
government agency has issued a final agency determination that the
prospective sponsor (or any of its officers or employees) has violated
any applicable laws pertaining to occupational safety and health, fair
labor standards (including wage and hour requirements), financial
mismanagement or abuse, EEO, protections for employees against
harassment or assault, or other
[[Page 3169]]
applicable laws governing workplace practices or conduct; such
disclosure would need to include a description of the violation(s), as
well as the actions taken by the prospective sponsor to remedy the
violation(s). This requirement would further the Department's mission
in safeguarding the welfare of apprentices because a prospective
sponsor's violations of laws governing workplace practices or conduct
is relevant to a determination that the prospective sponsor is able to
provide a safe training environment for apprentices and to a
determination that the prospective sponsor will abide by the terms of
the program standards and apprenticeship agreement, including payment
of the required wages and benefits. The Department notes that any
information submitted by a prospective sponsor in response to this
requirement would be considered in the Administrator's review of an
application and could provide sufficient grounds for denial of
registration by the Department. The Department would use this
information as part of its evaluation in determining whether a
prospective program sponsor meets the standards for program
registration.
Proposed Sec. 29.10(a)(7) would incorporate an existing
requirement at Sec. 29.3(j) about union participation. It would divide
the requirement at Sec. 29.3(j) into two parts and make non-
substantive edits to the first part. The proposed provision would
require the sponsor to include union participation provisions in the
application where the apprentice(s) in the program would be a part of a
collective bargaining unit and would incorporate existing language at
current Sec. 29.3(j) regarding collective bargaining agreements. It
would be divided into two parts: one relating to programs in which the
union participates in the operation of the registered apprenticeship
program and one relating to programs in which there is no union
participation in the operation of the apprenticeship program. Section
29.10(a)(7)(i) would provide that in instances where a registered
apprenticeship program is proposed for registration by a sponsor,
employer, or employers' association and the standards of
apprenticeship, collective bargaining agreement, or other instrument
provides for participation by a labor union in any manner in the
operation of the substantive matters of the apprenticeship program (and
where such participation is exercised), written acknowledgement of
union agreement or lack of objection to the registration is required.
Section 29.10(a)(7)(ii) would provide that where no such participation
is evidenced and practiced, the sponsor, employer, or employers'
association must simultaneously furnish to an existing union, which is
the collective bargaining agent of the employees to be trained, a copy
of its application for registration and of the apprenticeship program.
The Registration Agency would need to provide for receipt of union
comments, if any, within 45 days before final action on the application
for registration or approval. Both proposed Sec. 29.10(a)(7)(i) and
(ii) are existing requirements in Sec. 29.3(j) and function to provide
appropriate participation of the union that represents the prospective
apprentices' collective bargaining unit.
Proposed Sec. 29.10(a)(8) would require sponsors to submit to the
Registration Agency a description of the immediate steps it will
undertake to implement the requirements of 29 CFR 30.3(b). This
description would need to, at a minimum: identify the individual(s)
responsible for overseeing the sponsor's EEO obligations; identify how
the EEO pledge will be published, publicized, and available to
apprentices; describe the planned schedule for EEO related orientation
and information sessions; provide the list and contact information of
current recruitment resources that will generate referrals and describe
procedures to address anti-harassment training and procedures for
handling complaints about harassment and intimidation. These part 30
elements would be required in the application because they must be
implemented at the time of program registration, and Registration
Agencies are expected to evaluate applications to determine whether
they include sufficient information that these elements will be met at
the time of registration.
Proposed Sec. 29.10(b) states that a complete electronic
application for registration of an apprenticeship program that includes
all of the requirements of proposed Sec. 29.10(a) would be reviewed
within 90 calendar days by the Registration Agency. An application
would need to be complete in order to start the 90-day review period
for a decision on the application. Paragraphs (b)(1) through (8) would
describe how the application will be reviewed and what determinations
the Registration Agency must make in reviewing the application. These
determinations would correspond to the materials submitted by the
sponsor in support of their application for program registration. All
eight requirements would need to be met to receive approval for program
registration. The Department has made notable strides to provide
sponsors with the opportunity to access the registration process
electronically both through the provision and release of boilerplate
standards of apprenticeship, which have eased the process of assembling
compliant standards, as well as the launch of OA's Standards Builder
tool, which allows potential sponsors to begin the registration process
online.\122\ The Department will continue enhancing these resources to
ensure sponsors have a clear and navigable process to registering their
programs with OA.
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\122\ OA, ``Standards Builder,'' https://www.apprenticeship.gov/employers/registered-apprenticeship-program/register/standards-builder (last visited July 20, 2023).
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Proposed Sec. 29.10(b)(1) would require a determination from the
Administrator that the occupation covered by the proposed program is
suitable for registered apprenticeship training pursuant to proposed 29
CFR 29.7. This would be a step taken by the Registration Agency to
verify that the occupation of the proposed program is suitable for
registered apprenticeship. If the occupation has not been determined to
be suitable for registered apprenticeship, then the Registration Agency
may not approve the application. As discussed in proposed Sec.
29.10(a)(1), the sponsor should verify that the occupation has been
deemed suitable for registered apprenticeship or should obtain such a
determination prior to or at the time of applying for program
registration under this part. Proposed Sec. 29.10(b)(1) would further
clarify that the Administrator may in their sole discretion determine
whether the work process schedule submitted for registration under
proposed Sec. 29.10(a) substantially aligns with those previously
approved work process schedules such that the occupation in question
needs to be determined to be suitable under proposed Sec. 29.7. A
suitability determination under proposed Sec. 29.7(a) would always be
made consistent with the work process schedule and related instruction
outline submitted in support of the suitability determination request.
Even if an application for registration is submitted for an occupation
previously determined to be suitable for registered apprenticeship, the
Administrator could need to make a new suitability determination if the
work process schedule and related instruction outline submitted for
registration differ significantly from the work process schedule and
related instruction outline previously approved under Sec. 29.7. In
other words, the Administrator would
[[Page 3170]]
never be constrained by a sponsor's representation as to what
occupation a work process schedule represents. If the Administrator
determines that a suitability determination is necessary, the 90-day
period for OA to review an application would not start until the
suitability determination is complete. The Department is interested in
any comments regarding the appropriate amount of discretion SAAs that
serve as the Registration Agency for Federal purposes should have to
ensure a submission substantially aligns with an approved occupation.
Proposed Sec. 29.10(b)(2) would require a determination that the
work process schedule proposed for that occupation provides training in
the specific skills and competencies associated with the approved
occupation as required by proposed Sec. 29.7.
Proposed Sec. 29.10(b)(3) would require a determination that the
applicant's work process schedule and related instruction outline would
provide an apprentice with a portable set of occupational skills and
competencies that are readily transferable between employers within the
same industry or sector as required by proposed Sec. 29.7.
Proposed Sec. 29.10(b)(4) would require a determination that the
standards of apprenticeship submitted are consistent with the
requirements of proposed Sec. 29.8.
Proposed Sec. 29.10(b)(5) would require a determination that the
apprenticeship agreement adheres to the requirements of proposed Sec.
29.9.
Proposed Sec. 29.10(b)(6) would require a determination that the
sponsor possesses the financial capacity and other resources necessary
to operate the proposed program.
Proposed Sec. 29.10(b)(7) would require a determination that the
types of misconduct or violations of law acknowledged by the applicant
pursuant to proposed Sec. 29.10(a)(6) have been satisfactorily
addressed and cured by the applicant, and therefore would not pose a
significant ongoing risk to the welfare of apprentices who elect to
enroll in the program.
Proposed Sec. 29.10(b)(8) would require a determination that the
union participation requirements of paragraph (a)(7) are satisfied, if
applicable. The Registration Agency would review the documents
submitted verifying the required union engagement as outlined in
proposed Sec. 29.10(a)(7) and determine whether the requirements have
been met.
Proposed Sec. 29.10(b)(9) would require a determination that the
sponsor's submission of their written plan for the equitable
recruitment and retention of apprentices is satisfactory and that they
have included a satisfactory description of how they will implement,
upon registration, each of the EEO requirements in proposed Sec.
29.10(a)(8).
Proposed Sec. 29.10(c) describes the potential outcomes of the
Registration Agency's review of the apprenticeship program application.
It states that applications for new programs that the Registration
Agency determines meet the required standards for program registration
would be given a Certificate of Registration and provided provisional
registration. It further provides that in instances where a
Registration Agency declines to register a program, the Registration
Agency would provide a written explanation of the reasons why it
determined the application does not meet the requirements of this
subpart, and how any deficiencies could be cured, to the applicant.
Finally, it provides that applicants denied approval could resubmit
consistent with the requirements of this subpart. The written notice of
denial by the Registration Agency should contain adequate explanation
for the sponsor to understand why the application was denied and any
specific instructions for resubmitting an application with new or
supplemental information.
Proposed Sec. 29.10(d) provides additional explanation of
provisional registration and review of provisionally registered
programs for permanent registration. The purpose of the provisional
status for new programs is to establish the relationship between the
program sponsor and Registration Agency and ensure that new program
sponsors fully understand and are willing to take action on
requirements for compliance, that program sponsors can request and
access technical assistance from a Registration Agency, and that
program sponsors make necessary changes to their program during the
expected timeframe to build and sustain an effective and successful
program that is compliant. This provisional status would also serve to
protect apprentices in newer programs until they have established that
they are operating in accordance with Registration Agency approval and
to ensure that any necessary corrections are made at an early stage by
programs. It would require the Registration Agency to review all
provisionally registered programs for compliance with the requirements
of this part and of 29 CFR part 30 within 2 years of the program's
registration date or at the end of the first training cycle, whichever
is sooner. This means that provisionally registered programs with a
duration of less than 2 years would be reviewed at the end of their
training cycle, rather than at the 2-year mark. The proposed change
from a review after the first year, as currently provided in Sec.
29.3(h), to a review at either the end of the full training cycle or
the 2-year mark, whichever is sooner, would allow sufficient time for
programs of longer durations to progress through their programs prior
to being subject to an initial review and also would eliminate a need
for two-part review for programs with full training cycles that are
longer than 1 year but shorter (or equal to) 2 years. This would allow
for programmatic efficiencies both for the Registration Agency and the
registered apprenticeship program sponsor. It would also coincide with
the requirement in 29 CFR 30.4(e) to have an initial written
affirmative action plan completed within 2 years of program
registration.
Proposed Sec. 29.10(d)(1) describes the two possible scenarios
after a Registration Agency approves an application. If the
provisionally registered program has completed its first full training
cycle, then it would be granted permanent registration. If the
provisionally registered program has not completed its first training
cycle, then it would continue to be provisionally approved until it
receives its subsequent program review at the end of the first full
training cycle. Proposed Sec. 29.10(d)(2) provides that if a program
is not found to be operating in compliance with the requirements of
this part and part 30, it would be subject to the deregistration
procedures at proposed Sec. 29.20. It is important to note here that
proposed Sec. 29.20(a) would allow a Registration Agency to provide
technical assistance to a program such that it can continue to operate
subject to additional oversight, so a provisionally registered program
that is found to be noncompliant may receive technical assistance and
enhanced oversight prior to formal deregistration actions being taken.
Finally, proposed Sec. 29.10(d)(3) provides that programs that receive
permanent registration would be subject to subsequent program reviews
by Registration Agencies as provided in proposed Sec. 29.19.
Proposed Sec. 29.10(e) is a new provision that would incorporate
the requirement in existing Sec. 29.6(a) that every registered
apprenticeship program must have at least one apprentice and would add
to this requirement by providing that the failure to comply could
result in deregistration proceedings. Specifically, proposed Sec.
29.19(e) states that if a registered apprenticeship program does not
have at least one apprentice enrolled and participating in the
apprenticeship program and registered with the
[[Page 3171]]
Registration Agency, the Registration Agency could initiate
deregistration proceedings as described in proposed Sec. 29.20.
Proposed Sec. 29.10(e) would incorporate the language in Sec.
29.6(a)(1) and (2) that the requirement to have at least one apprentice
does not apply during the following periods of time, which may not
exceed 1 year: (1) between the date when a program is registered and
the date of registration for its first apprentice(s); or (2) between
the date that a program graduates an apprentice and the date of
registration for the next apprentice(s) in the program.
This proposed requirement is primarily administrative in nature and
is intended to underscore that registered apprenticeship programs must
have apprentices participating in their programs in order to remain
registered or else risk deregistration. Such a requirement is also
administratively appropriate to address those limited instances where a
newly registered apprenticeship program uses that registration to
qualify for the Department's Eligible Training Provider List and
receive Federal WIOA funds but fails to actually enroll any
apprentices. This proposed requirement, however, is not intended to
create undue burdens for new programs that are just beginning to
register apprentices or smaller programs that may have gaps between the
graduation of one apprentice and the start date of another, and it
would allow for a 1-year grace period under these circumstances. The
Department also notes that programs deregistered for having zero
apprentices could reregister with a Registration Agency when they
anticipate utilizing their program again, if it meets the requirements
of this part and part 30. The Department is interested in comments as
to whether a ``latency'' period of more than 1 year of no apprentice
enrollment by a program would be a more appropriate grace period, such
as in instances where an economic downturn may impact apprenticeship
hiring. The Department is also interested in any comments that can
address scenarios where programs have apprentices but do not
successfully graduate or convert them. While the Department is
proposing two different completion rate metrics (annual and cohort), it
is interested in any comments that may address this scenario to ensure
programs are seeking to graduate apprentices and not just to access
benefits available for Federal purposes such as those available under
29 CFR part 5.
Proposed Sec. 29.10(f) would update an existing requirement in
Sec. 29.5(b)(18) concerning modifications to standards of
apprenticeship. It would provide that any sponsor proposals for
modification(s) or change(s) to standards of apprenticeship or
certified National Guidelines for Apprenticeship Standards for a
registered program must be submitted to the Registration Agency. It
would also provide that the Registration Agency must make a
determination on whether such submissions are consistent with the
requirements of this part and 29 CFR part 30, and if so, will approve
such submissions within 90 calendar days from the date of receipt of a
complete submission. Finally, it would provide that, if approved, the
modification(s) or change(s) will be recorded and acknowledged within
90 calendar days of approval as an amendment to such program, and if
not approved, the sponsor must be notified of the disapproval and the
reasons therefore and provided the appropriate technical assistance.
This language would clarify the process for reviewing and approving or
denying modifications or changes to approved standards.
Section 29.11--Program Standards Adoption Agreement
Proposed Sec. 29.11 would prescribe the content and operational
requirements for a written program standards adoption agreement, as
defined in proposed Sec. 29.2, between a sponsor and a participating
employer that is reached outside of a collective bargaining process.
Agreements between the non-union sponsors of a registered
apprenticeship program and an individual employer that elects to
participate in that sponsor's program are not uncommon, but there is
currently no mechanism in place to ensure participating employers'
accountability for compliance with the program's standards and
apprenticeship agreement and no mechanism to hold sponsors accountable
for the actions of the entities with whom they partner. The Department
believes that the inclusion of a regulatory provision expressly
obligating participating employers to comply with the sponsor's
standards of apprenticeship and to adhere to the requirements contained
in 29 CFR parts 29 and 30 would serve to bolster registered
apprenticeship program accountability and integrity and protect the
safety and welfare of apprentices. Because a participating employer in
a sponsor's group program is typically the entity that employs and pays
wages to the apprentices enrolled in that program, and that also
typically provides close on-the-job direct supervision and training to
such individuals, it follows that such employers should be
contractually obligated to adhere to the same standards of
apprenticeship and regulatory obligations as the sponsor of the
program. This would ensure that apprentices are protected and receive
the full benefit of the program.
Specifically, proposed Sec. 29.11(a) would require that the terms
and conditions of a program standards adoption agreement include the
requirements that a participating employer will: (1) adopt and comply
with the sponsor's registered standards of apprenticeship; (2) comply
with all other applicable requirements in this part; and (3) cooperate
with, and provide assistance to, the program sponsor to meet the
program sponsor's obligations under this part and 29 CFR part 30,
including by providing any apprenticeship-related data and records
necessary to assess compliance with these regulatory provisions. These
requirements would operate in tandem to ensure that the employers of
apprentices clearly understand their obligations to comply with the
sponsor's registered standards of apprenticeship, comply with the
applicable requirements in 29 CFR parts 29 and 30, and assist in any
review or compliance efforts concerning such compliance, including
providing any information necessary to assess compliance. Program
sponsors would need to ensure that these requirements are clearly
articulated in every program standards adoption agreement and that
participating employers understand their obligations under these
requirements. This requirement is modeled after the existing practice
of an ``Employer Acceptance Agreement,'' for which a template exists
currently in Appendix D of OA's boilerplate standards of apprenticeship
in Bulletin 2022-17.\123\
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\123\ OA, Bulletin 2022-17, ``Modifications to the Boilerplate
Standards of Apprenticeship,'' Nov. 19, 2021, https://www.apprenticeship.gov/sites/default/files/bulletins/Bulletin-2022-17_0.docx.
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Proposed Sec. 29.11(b) would require transmission of the program
standards adoption agreement to the Registration Agency within 30 days
of the execution of the agreement. This would be necessary for the
Registration Agency to verify compliance with this subpart as well as
provide assurance that employers understand their obligations and
responsibilities as employers of apprentices in registered
apprenticeship programs and to allow the Registration Agency to engage
in more comprehensive oversight of the program.
[[Page 3172]]
Proposed Sec. 29.11(c) would provide the process for the
suspension or cancellation of a program standards adoption agreement.
As described below, a participating employer could cancel the agreement
by providing 30-day written notice to the sponsor, and a sponsor could
cancel or suspend the agreement if the participating employer violates
the terms of the program standards adoption agreement relating to
proposed Sec. 29.11(a)(1) through (3).
Proposed Sec. 29.11(1) provides that the agreement could be
cancelled by the participating employer upon providing 30 days written
notice to the sponsor. The Department anticipates that a participating
employer that decides to cancel the agreement would not have
apprentices in their employment at the time of the cancellation,
meaning that prior to cancellation, the employer's apprentices were
converted into regular employees, ended their on-the-job training with
the employer, or were otherwise placed by the sponsor with a different
participating employer.
Proposed Sec. 29.11(c)(2) provides that the agreement would be
suspended or cancelled by the program sponsor if the program sponsor
determines that the participating employer failed to satisfy the
requirements of the program standards adoption agreement's mandatory
provisions described in proposed Sec. 29.11(a). The sponsor would be
responsible for determining compliance with the program standards
adoption agreement and cancellation or suspension of such agreement if
there were noncompliance by the participating employer.
Proposed Sec. 29.11(c)(2)(i) through (iii) discuss the process
that sponsors would follow to suspend or cancel the program standards
adoption agreement.
Proposed Sec. 29.11(c)(2)(i) would require the program sponsor to
provide written notice of any suspension or cancellation to the
participating employer, all apprentices affected by the suspension or
cancellation, and to the applicable Registration Agency. It would also
specify that the notice must explain the reason for the suspension or
cancellation. The purpose of this proposed provision is to ensure that
adequate written notice is provided to everyone affected by a
cancellation or suspension of a program standards adoption agreement
and the reason for the suspension or cancellation.
Proposed Sec. 29.11(c)(2)(ii) provides that if the suspension or
cancellation results in an interruption or cessation of training for
apprentices, the program sponsor would need to make a reasonable effort
to place such individuals with another of the sponsor's participating
employers or a different registered apprenticeship program in the same
occupation. The purpose of this proposed provision is to ensure that
any apprentices whose programs are affected by such cancellation or
suspension are placed with either another employer or another
registered apprenticeship program, to the extent possible. Registration
Agencies could provide technical assistance upon request if the sponsor
encounters challenges to placing apprentices with other employers or
programs.
Proposed Sec. 29.11(c)(2)(iii) provides that in instances where a
program sponsor fails to suspend or cancel a program standards adoption
agreement as required by this paragraph, the Registration Agency could
initiate deregistration proceedings against the sponsor pursuant to
proposed Sec. 29.20. This proposed provision is intended to both
signal to the sponsor the importance of monitoring compliance with
program standards adoption agreements and to emphasize that neglecting
to do so risks deregistration per the procedures in proposed Sec.
29.20.
Section 29.12--Qualifications of Apprentice Trainers and Providers of
Related Instruction
In registered apprenticeship, trainers and instructors play a
pivotal role in the realization of the benefits of the system's earn-
and-learn framework. The quality of the source material and resources
underpinning training and instruction in registered apprenticeship
programs is vital, but in order for such material to take hold among
apprentices learning about an occupation, the individuals providing
training and instruction must be knowledgeable experts in their field,
must be skilled in instructional competencies, and must be willing and
able to take a lead role in establishing a safe and welcoming
environment conducive to learning for apprentices of all backgrounds.
The current regulatory framework for registered apprenticeship does
not establish any baseline qualifications for apprentice trainers. The
Department has determined that establishing such a baseline in
regulation would benefit all existing and potential registered
apprenticeship programs and apprentices by promoting quality and
transparency within the National Apprenticeship System. Potential
program sponsors of new registered apprenticeship programs would
benefit from regulatory provisions that clarify the baseline elements
of quality trainers and instructors in apprenticeship. Ultimately, the
Department proposes to include a provision on trainer and instructor
quality to ensure that all programs recognize the importance of trainer
and instructor quality, to encourage programs to take steps to keep
trainers and instructors up-to-date on emerging techniques and
technologies, and to promote transparency for potential apprentices,
who would understand the qualifications of those they are receiving
training from and that any trainers and instructors in any registered
apprenticeship program will meet baseline quality standards.
Proposed Sec. 29.12 is a new provision stipulating proposed
requirements for the qualifications of individuals designated to
provide training and related instruction to apprentices. For
apprentices, training and learning while on the job is a core,
definitional element of registered apprenticeship. Trainers and
instructors (traditionally referred to as ``journeyworkers'' in the
apprenticeship context, and used here in the proposed regulatory text
to align with the journeyworker-to-apprentice ratio requirements
discussed above in this NPRM) hold the key to the benefits of
apprenticeship for all stakeholders: apprentices benefit from such
training and learning by developing in-demand skills and becoming
proficient in job tasks that are central to the careers they are
pursuing, and employers benefit from a capable workforce that can
deliver a quality work product. As such, the Department has determined
that trainer and instructor (journeyworker) quality is central to the
success of registered apprenticeship and proposes to include a new
section in the registered apprenticeship regulations at 29 CFR 29.12 to
outline the attributes, qualifications, and experiential requirements
necessary to ensure all training and learning in registered
apprenticeship is high in quality.
Proposed Sec. 29.12(a) would require that all sponsors and
participating employers in the National Apprenticeship System must
ensure that journeyworkers providing on-the-job training meet the
quality requirements that follow in paragraphs (a)(1) through (6). The
proposed regulatory text would clarify that the proposed quality
requirements at paragraphs (a)(1) through (6) are minimum requirements,
and the Department expects that most registered apprenticeship programs
or their participating employers already employ journeyworkers whose
qualifications meet and exceed these proposed minimum requirements.
The first proposed minimum requirement at proposed 29 CFR
[[Page 3173]]
29.12(a)(1) states that apprentice trainers or providers of related
instruction would need to possess a mastery of the relevant job skills,
techniques, and relevant competencies of the occupation. Apprentices
participating in a quality registered apprenticeship program are on a
pathway to become proficient in all the relevant job skills,
techniques, and competencies in the occupation for which they are
training, and the quality of the training they receive during their
program is the single most critical success factor for achieving such
proficiency. Employers need workers who can perform critical job tasks
competently and proficiently, especially in trades or occupations where
time to complete a job task is critical to the employee and employer's
bottom line (such as an electrician who must be able to complete
complex job tasks accurately and efficiently within a certain
timeframe). In order for apprentices to become proficient in the
critical job tasks for an occupation, the training and instruction they
receive during their registered apprenticeship program must be provided
by trainers and instructors who are not only proficient in the tasks
themselves, but who possess a mastery of these skills, techniques, and
competencies such that they can impart their mastery on to the
apprentices training in their registered apprenticeship program.
Proposed Sec. 29.12(a)(2) would further require that
journeyworkers stay up to date on the latest advances in technology,
technical knowledge, new and emerging techniques, and evolving job
skills necessary to maintain their proficiency and mastery in an
occupation. Emerging technologies, technical and mechanical refinements
to machinery and equipment, the proliferation of digital and online
tools, platforms, and capabilities, and developments in the modern
workspace and the emergence of remote work \124\ all carry meaningful
implications for workforce training and development. The Department has
determined that introducing regulatory requirements for journeyworkers
providing training to maintain their proficiency is essential for
ensuring that such developments are reflected throughout the National
Apprenticeship System. Continuous learning and upskilling for
journeyworkers providing training and instruction in registered
apprenticeship programs would be critical for ensuring the
journeyworker retains a mastery as required by proposed paragraph
(a)(1) and for ensuring the skills and techniques apprentices are
learning throughout their program are relevant and up to date.
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\124\ For example, the COVID-19 pandemic has resulted in a major
shift towards remote work throughout the United States workforce.
See Kim Parker, Juliana Menasce Horowitz, and Rachel Minkin,
``COVID-19 Pandemic Continues to Reshape Work in America,'' Pew
Research Center, Feb. 16, 2022, https://www.pewresearch.org/social-trends/2022/02/16/covid-19-pandemic-continues-to-reshape-work-in-america.
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Proposed Sec. 29.12(a)(3) through (5) discuss the proposed
requirements for journeyworkers' capabilities as instructors,
communicators, and evaluators. In addition to possessing a mastery of
the relevant job skills and techniques for their occupation and keeping
up to date on their mastery and proficiency, journeyworkers would need
to be effective communicators to ensure their mastery is passed on to
the apprentices training in their programs. Proposed paragraph (a)(3)
would require that journeyworkers be effective communicators capable of
transmitting and demonstrating any specialized knowledge, job skills,
techniques, or processes necessary for achieving proficiency in an
occupation.
Paragraph (a)(4) would cover another critical aspect of instruction
and training: journeyworkers' ability to evaluate apprentices' progress
and performance fairly and objectively throughout the term of a
registered apprenticeship program, including the ability to evaluate
apprentices' progress in attaining competencies during on-the-job
training. The Department views the fair and transparent evaluation of
apprentices throughout a program as a critical element for registered
apprenticeship program success, because such evaluation is essential
for understanding if apprentices have learned all they need to during
their program and are assured that they are emerging from the programs
with a valuable set of transferrable skills for their careers. Fair,
transparent, and effective evaluation is also an important equity
consideration, and in line with its goal of advancing equity in the
National Apprenticeship System with this proposed regulation, the
Department seeks to embed such qualities in the evaluations provided by
apprentice trainers through the proposed minimum trainer qualification
requirement at proposed paragraph (a)(4). This proposed minimum trainer
qualification requirement is intended to protect apprentices from
diverse backgrounds against unequal treatment in evaluation, to
establish a baseline of equitable and objective evaluation for all
apprentices in a program, and to ensure that apprentices from diverse
backgrounds receive training from, and are evaluated by, qualified and
experienced trainers.\125\ It would also require that a trainer is able
to assess the attainment of competencies acquired by apprentices during
their on-the-job training. This would include the ability to assess
whether apprentices are meeting the appropriate targets at each stage
of the program. Under the Department's proposed approach, all
apprentices would be advanced through programs by their successful
attainment of competencies acquired over a minimum duration of time on-
the-job. A trainer's ability to assess and recognize when an apprentice
has reached a level of competency so as to be proficient in it is vital
to the operation of a registered apprenticeship program. This ability
to assess competency attainment is also vital in programs that
accelerate an apprentice's time in the program based on the rapid
attainment of proficiency in competencies, because acceleration should
only take place when an apprentice is proficient and not just to move
quickly through a program. A core tenet of registered apprenticeship is
journeyworkers' mastery of the job skills within their occupation, and
journeyworkers are therefore in the best position to evaluate whether
an apprentice has achieved the occupational proficiency that all
registered apprenticeship programs should confer upon participating
apprentices.
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\125\ Proposed paragraph (a)(4) aligns with other Federal
government agencies' efforts to establish equitable access to
qualified and skilled educators and instructors. For example, in
2014, ED launched the ``Excellent Educators for All Initiative''
requiring States to submit plans to ensure ``poor and minority
children are not taught at higher rates than other children by
inexperienced, unqualified, or out-of-field teachers.'' Westat,
``Equitable Access to Excellent Educators: An Analysis of States'
Educator Equity Plans,'' 2016, https://www2.ed.gov/programs/titleiparta/equitable/titleiiequityanalysis1031.pdf.
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Proposed Sec. 29.12(a)(5) would concern apprentice trainers' role
in establishing practical connections between the conceptual and
theoretical knowledge apprentices attain through related instruction
and their implications and applications for the covered occupation.
Such connections may clarify how to perform a job-related task
successfully, explain a task or sub-task's importance to successful,
safe, and efficient performance within the occupation, or otherwise
provide apprentices with theoretical context and broader understanding
of the tasks they must perform in the occupation. The Department has
determined that apprentices benefit from developing a clear
understanding of why they are required to participate in the related
[[Page 3174]]
instruction element of registered apprenticeship, and that apprentices'
primary trainers--journeyworkers--must play an essential role in
developing such understanding among the apprentices they train.
Finally, proposed Sec. 29.12(b) would require that journeyworkers
fulfill their important role in ensuring apprentices are receiving
training in a safe and inclusive work environment that supports the
effective development of apprentices from all backgrounds. Studies,
research, and evaluations applying the DEIA lens to analyzing the roles
of trainers, instructors, mentors, and others in positions of authority
indicate that such individuals are in a unique position to shape the
learning and professional environments in which they are operating,
including the creation of an inclusive environment where everyone feels
represented, supported, empowered to speak up, and protected from
harassment, intimidation, or retaliation. OA's fact sheet on advancing
DEIA in registered apprenticeship, designed to inform registered
apprenticeship stakeholders on the key elements and benefits of robust
DEIA protocols in registered apprenticeship programs, discusses the
importance of inclusive leaders in establishing workplace culture and
the role of mentors in building networks to help apprentices from
diverse backgrounds develop positive connections with their place of
work.\126\ OA has also established partnerships with advocacy
organizations to harness the expertise of stakeholders in workforce
development to develop and produce guidance on promising practices for
inclusive workplaces. Research, guidance, and frameworks developed by
these organizations also point to the importance and benefits of
advancing DEIA in registered apprenticeship, including through the
incorporation of authentic program participant voices, training and
instruction that is accessible and representative of diverse
participants in a program, and quality mentorship.\127\ Quality
mentorship is particularly important for youth in educational and
training environments, further supporting the Department's proposal to
include minimum requirements for the journeyworker role in establishing
inclusive workplace environments as the Department seeks to advance
opportunities for increased youth participation in quality registered
apprenticeship programs.\128\
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\126\ OA, ``Scaling Diversity, Equity, Inclusion and
Accessibility (DEIA) in Registered Apprenticeship,'' https://www.apprenticeship.gov/sites/default/files/DOL_DEIAFactsheet_v2.pdf
(last visited July 20, 2023).
\127\ Vanessa Bennett, Maria Cabiya, Myriam Sullivan, and
Deborah Kobes, ``JFF's Program Design Framework for Diversity,
Equity, Inclusion, and Accessibility in Registered Apprenticeship,''
Center for Apprenticeship & Work-Based Learning, https://info.jff.org/apprenticeshipdeia-framework (last visited July 20,
2023).
\128\ Urban Institute, ``Mentoring Matters: The Role of
Mentoring in Registered Apprenticeship Programs for Youth,'' Nov. 8,
2021, https://www.urban.org/events/mentoring-matters-role-mentoring-registered-apprenticeship-programs-youth.
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Proposed paragraph (b) would also reiterate that trainers in
registered apprenticeship programs must also have completed all anti-
harassment trainings required in the part 30 regulations, which is not
a new requirement for program sponsors. Additionally, the Department is
proposing that the trainer should not have a record of substantiated
noncompliance with the EEO requirements to ensure that trainers are
fully inclusive of the EEO in apprenticeship requirements and that
apprentices are protected from trainers unwilling to incorporate these
requirements. The Department has determined that including the
maintenance of a safe and inclusive working and learning environment is
equally important as the anti-harassment training requirements for
ensuring apprentices are supported and protected by the trainers
guiding their professional development during their
apprenticeship.\129\ Such an environment is important for the quality
of the experience of apprentices in the program, which in turn impacts
programs' ability to retain apprentices, and positive feedback and
messaging about the quality, safety, and inclusiveness of a work
environment may also have positive impacts on registered apprenticeship
programs' ability to attract new apprentices. Though not a requirement,
the Department does encourage the adoption of DEIA training for
trainers as a best practice and encourages comments on the advantages
of embedding DEIA training into registered apprenticeship programs.
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\129\ See, e.g., Alexia Fernandez Campbell and Claire Molloy,
``Attacked Behind the Wheel,'' The Center for Public Integrity, Dec.
11. 2022, https://publicintegrity.org/labor/female-drivers-attacked-behind-the-wheel/.
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Proposed Sec. 29.12(c)(1) and (2) would concern providers of
related instruction and the minimum requirements such individuals must
possess in the registered apprenticeship context. These proposed
paragraphs would relocate much of the existing regulatory text in the
Standards of Apprenticeship section of the regulation at 29 CFR
29.5(b)(4)(i) and (ii) with minor adjustments and are not new
requirements for registered apprenticeship programs. Proposed paragraph
(c)(1) would require that providers of related instruction must either
be faculty members or instructors at an accredited postsecondary
institution or meet the State's certification requirements for CTE
instructors in the State where the apprenticeship program is
registered. The Department proposes to add to the existing regulatory
text on this topic, found in the existing regulation at 29 CFR
29.5(b)(4)(i), by clarifying that providers of related instruction who
serve as a faculty member or instructor at an accredited postsecondary
institution would meet the proposed requirement at Sec. 29.12(c)(1).
The Department also proposes to retain the language from the existing
regulation at Sec. 29.5(b)(4)(i) stating that a subject-matter expert,
such as a journeyworker, may also provide related instruction to
apprentices. Many registered apprenticeship programs rely on their
journeyworker assets to provide such instruction because such
individuals possess a mastery of the occupation that enables them to
select the related instruction curricula most appropriate for a
worker's success in the occupation. The Department has determined it is
important to maintain this flexibility in the proposed rule and is
including that language in proposed Sec. 29.12(c)(1).
The Department has determined that it is prudent to maintain these
requirements because the quality of the related instruction components
of registered apprenticeship programs depends on the qualities and
capabilities of the instructor, including their capabilities as an
educator and their ability to communicate complex subject matter. The
certification requirements at proposed paragraph (c)(1) are intended to
ensure that instructors are capable and effective teachers, which the
Department views as a unique skill that transcends the occupation-
specific aspects for any registered apprenticeship program.
Proposed paragraph (c)(2) is not a new requirement and leverages
the existing regulatory language at 29 CFR 29.5(b)(4)(ii). The
Department proposes to maintain the existing requirement that
instructors possess skills in teaching techniques for different
audiences, including adult learning styles. Apprentices in a given
registered apprenticeship program may come from a variety of
backgrounds, and many are adult workers seeking to retrain or upskill
in a different career or occupational sector. As with journeyworkers
providing on-the-job training, providers of related instruction
[[Page 3175]]
must understand the unique characteristics and needs of adult learners
and must be able to apply appropriate instructional techniques to
ensure apprentices of all backgrounds--including adult learners--
receive and understand the instructional components within their
registered apprenticeship program.
While the Department expects that training and related instruction
providers in most registered apprenticeship programs either will
already meet these proposed minimum qualification requirements or will
have clear options available to ensure they meet these proposed
requirements (through existing partnerships, industry certification
programs, learning certification programs, or others), the Department
is committed to providing technical assistance to programs to
streamline registered apprenticeship programs' compliance with this
proposed section. In addition, the Department will commit to promoting
the development of mentorships, templates for trainer and instructor
assessment, and a system-wide network of stakeholders (currently
contemplated as an ``Registered Apprenticeship Academy'') to facilitate
mentoring and trainer development, create a critical feedback loop, and
otherwise provide support for programs and the trainers and instructors
who are so critical to the registered apprenticeship program and
apprentices success profile.\130\
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\130\ Encouraging the inclusion of mentorships in registered
apprenticeship programs aligns with the 2023 Quality Apprenticeships
Recommendation of the ILO at Conclusion 25(o). ILO, ``Quality
Apprenticeships Recommendation, 2023'' (ILO Recommendation No. 208),
Conclusion 25(o), June 16, 2023, https://www.ilo.org/dyn/normlex/en/f?p=NORMLEXPUB:12100:0::NO::P12100_INSTRUMENT_ID:4347381.
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Section 29.13--Development of National Occupational Standards for
Apprenticeship
Proposed 29 CFR 29.13 is a new proposed section of the part 29
regulations that would describe the development and intended use of
National Occupational Standards for Apprenticeship. Accelerated
expansion of the National Apprenticeship System is one of the
Department's primary goals in the development of this proposal, and OA
views the continued development of National Occupational Standards for
Apprenticeship as an important tool for achieving that goal. National
Occupational Standards for Apprenticeship are industry-validated
standards that are national in scope and can be used to accelerate the
development of a registered apprenticeship program. National
Occupational Standards for Apprenticeship are intended to be an off-
the-shelf resource for potential programs seeking to establish a
registered apprenticeship program in an occupation that is national in
scope and suitable for registered apprenticeship, and they would enable
potential sponsors to quickly develop a set of standards of
apprenticeship particular to their proposed program that aligns with
the apprenticeship training standards for the occupation as advanced by
stakeholders and experts in their industry.
The Department has received feedback from stakeholders, including
the members of the 2021-2023 term of the ACA, that potential registered
apprenticeship program sponsors need robust tools, templates, and other
resources to assist sponsors in meeting the required steps for setting
up a new registered apprenticeship program. The Department agrees with
this feedback, captured in several recommendations from the ACA's 2022
Interim Report, and will continue to work with industry stakeholders to
develop such tools.\131\ For National Occupational Standards for
Apprenticeship, OA will work with industry stakeholders to identify the
training needs of particular occupations, ensure national applicability
of those training needs, and develop products (such as sample work
process schedules) based on those needs consistent with the
occupational suitability provisions of 29 CFR 29.7. Sponsors utilizing
National Occupational Standards for Apprenticeship would be able to
accelerate the development of their programs based on their utilization
of these comprehensive standards, which could accelerate the review of
their registration on a national basis either as National Program
Standards for Apprenticeship or as National Guidelines for
Apprenticeship Standards, consistent with proposed Sec. Sec. 29.14 and
29.15 of this part.
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\131\ ACA recommendations on this topic from its 2022 Interim
Report include:
Identify opportunities for more standardization across
the registered apprenticeship system while preserving necessary
flexibilities to ensure the registered apprenticeship model is
adaptable to different industry and regional needs.
Provide detailed guidance so that State-level or
employer/sponsor-level stakeholders know exactly where they need to
go and what they need to do to register a program, obtain answers to
questions, pursue funding opportunities, and whether there are
templates or other guidance to get them started.
Create a toolkit/resource to communicate this
information and refine apprenticeship referral processes, support
provided to apprentices, etc.
Leverage existing tools for onboarding, such as the
Standards Builder (https://www.apprenticeship.gov/employers/registered-apprenticeship-program/register/standards-builder) and
the Apprenticeship Playbook (https://www.apprenticeship.gov/sites/default/files/playbook.pdf), and develop additional requirements
guides as needed.
ACA, ``Interim Report to the Secretary of Labor,'' May 16, 2022,
https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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With regard to these standards, the Department envisions its role
as being a convener of national stakeholders that would take the
initiative in the development of such occupational standards across a
given industry. OA's vision for National Occupational Standards for
Apprenticeship is to convene industry leaders for their expertise and
input on the development of such standards. Engagement with industry
leaders will ensure that occupational competencies needed for
apprentices to be fully proficient in an occupation are industry-
recognized. In addition, OA will seek public comment on the National
Occupational Standards for Apprenticeship in the Administrator's
determination process. OA anticipates that industry leaders and other
stakeholders will have ample opportunity to provide comprehensive input
to inform these new products.
The purpose of National Occupational Standards for Apprenticeship
is to ensure that registered apprenticeship programs continually adapt
to meet quality training needs of industry, and that programs that
leverage these standards can ensure that they are training apprentices
utilizing a nationally recognized approach. As occupations, technology,
and the overall economy evolve, National Occupational Standards for
Apprenticeship may need to be updated or revised, underscoring the
importance of OA's continuous engagement with industry stakeholders and
leaders. The Department recognizes that such industry stakeholders will
be the first to know about changes to technology or business needs that
would necessitate an update to the training standards for an occupation
and intends to rely on those stakeholders to bring forth suggested
changes to established National Occupational Standards for
Apprenticeship for registered apprenticeship programs within their
industry. The Department will be responsive to such industry
suggestions and will work with stakeholders to update, vet, and re-
establish National Occupational Standards for Apprenticeship as needed.
The Department further invites comments on the most effective ways to
keep pace with evolving industry needs and their implications for
established templates for National Occupational Standards for
Apprenticeship.
[[Page 3176]]
While the procedure for receiving approval for an occupation in
proposed Sec. 29.7 does have a process for industry vetting, that
process would be more reactive to the first entity that proposes a work
process schedule for an occupation. The process for the development of
National Occupational Standards for Apprenticeship would not be
designed as a first-come, first-served approach to registered
apprenticeship training. Instead, it would be based on intentional,
proactive, nationwide, and industry-validated curriculum for on-the-job
training and related instruction, including relevant interim
credentials and industry-validated end-point assessments that can be
responsive to emerging labor force needs. The section would provide the
criteria that the Administrator will use in reviewing National
Occupational Standards for Apprenticeship for approval. The criteria
listed in the section would include the suitability of an occupation
for registered apprenticeship under proposed Sec. 29.7 and an
industry-validated work process schedule. Additional criteria described
in this section would include proposed standards that have a nationally
applicable, industry-validated curriculum framework for the provision
of related instruction and the methods for conducting ongoing
evaluations of apprentices successfully attaining the skills and
competencies under such frameworks. As such, proposed Sec. 29.13 is
new and sets forth a discretionary process by which the Administrator
would develop and approve National Occupational Standards for
Apprenticeship. The Department proposes the development of National
Occupational Standards for Apprenticeship as a driver of system quality
and a resource for easing a sponsor's access to the National
Apprenticeship System by making these standards publicly available to
be utilized by sponsors and employers. These would be required as they
are developed to ensure greater quality and industry support for
programs with a national scope as described in proposed Sec. Sec.
29.14 and 29.15 to a common set of high-quality standards.
Proposed paragraph (a) describes the purpose of the proposed
National Occupational Standards for Apprenticeship. The Department, in
developing National Occupational Standards for Apprenticeship, intends
to drive the growth of high-quality registered apprenticeship programs
across a wide range of sectors and occupations deemed suitable for
registered apprenticeship training under proposed Sec. 29.7. The
Department, aligning with broader administration goals, has specific
interest in using National Occupational Standards for Apprenticeship to
increase registered apprenticeship programs in emerging and high-growth
occupations; in occupations and sectors where apprenticeship programs
are not currently widespread; and in occupations and sectors that the
Administration has deemed critical to maintaining or enhancing the
manufacturing capacity, critical infrastructure, public health and
safety, supply chain resilience, environmental protection, renewable
energy resources, educational and cultural advancement, or economic and
national security of the United States. Expansion of the registered
apprenticeship model into new and emerging industries would also align
with recommendations and guidance provided by national apprenticeship
stakeholders. For example, multiple subcommittees of the ACA, including
a subcommittee entirely devoted to this area (the Industry Engagement
in New and Emerging Sectors subcommittee), recommended that OA target
new and emerging sectors for registered apprenticeship expansion.\132\
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\132\ ACA recommendations on this topic from its 2022 Interim
Report include:
Accelerate registered apprenticeship deployment in
growing industries and sectors, while ensuring curricula are
responsive to industry needs, and templates and requirements are
compatible with and flexible for different kinds of jobs and
industries.
Continue expansion of industry intermediary contracts
targeting new and emerging sectors, which have been effective
engines to target incentives.
Ibid.
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Proposed paragraph (b) describes the criteria by which the
Administrator would review and approve proposed National Occupational
Standards for Apprenticeship. As noted previously, the Administrator
and OA continually engage with industry representatives, labor unions,
workforce development experts, and other relevant stakeholders to keep
abreast of evolving industry needs and priorities and updates or
changes to work processes and job skills necessary for successful job
performance in an occupation or industry. Such ongoing engagement
ensures that National Occupational Standards for Apprenticeship remain
current and are also supported and relevant for industry, that any
registered apprenticeship programs informed by such National
Occupational Standards for Apprenticeship are responsive to and in
alignment with industry needs and priorities, and that the workers
entering into such industries are prepared for success based on the
factors and standards applicable to a particular industry.
Apprenticeship stakeholders in the ACA have identified the need to
develop, maintain, and update template occupational standards in
service of multiple goals, including system alignment and easing the
onboarding of new programs, and OA intends to implement such a process
for the development of National Occupational Standards for
Apprenticeship to achieve these goals based on the criteria in (b)(1)
through (4).\133\
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\133\ For example, the ACA recommended that DOL ``should develop
a plan and the necessary infrastructure to move toward a system for
developing, classifying, and updating occupational training
standards in [registered apprenticeship].'' Ibid.
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Proposed Sec. 29.13(b)(1) would require that the National
Occupational Standards for Apprenticeship must be for an occupation
that has been determined suitable for registered apprenticeship
training by the Administrator, pursuant to proposed Sec. 29.7.
National Occupational Standards for Apprenticeship are ultimately
intended as a resource to help set up new registered apprenticeship
programs in their associated occupations, and to help registered
apprenticeship programs providing apprenticeship training for an
occupation stay up to date on the evolving needs of industry. In order
for National Occupational Standards for Apprenticeship to be useful and
relevant within the National Apprenticeship System, they must be tied
to an occupation that has been deemed suitable for registered
apprenticeship training. These products would inform the development of
National Guidelines for Apprenticeship Standards and National Program
Standards for Apprenticeship, all of which would be tools for
onboarding new registered apprenticeship programs. As such, the
national standards frameworks discussed in this proposal would all
relate to an occupation deemed suitable for registered apprenticeship
training.
Proposed Sec. 29.13(b)(2) would require that the work process
schedule framework associated with the occupation be documented as
nationally applicable. In order to make National Occupational Standards
for Apprenticeship a useful resource for setting up programs covering
an occupation that is national in scope, OA would work with industry
and other relevant stakeholders to determine if the occupation's
proposed work process schedule is workable and applicable
[[Page 3177]]
nationwide (and not just in regional or local settings). The proposed
requirement seeks to ensure that the National Occupational Standards
for Apprenticeship, as confirmed by the associated industry in which
the standards are being developed, further the growth and establishment
of registered apprenticeship programs that can meet the training needs
of an occupation on a national level.
Proposed Sec. 29.13(b)(3) would require that the National
Occupational Standards for Apprenticeship include a curriculum
framework for related instruction. As with proposed Sec. 29.13(b)(2),
this proposed requirement seeks to ensure that the National
Occupational Standards for Apprenticeship are documented or endorsed by
relevant stakeholders for the occupation for which the standards are
being developed. This approach to curriculum development would further
the growth and establishment of registered apprenticeship programs, on
a national scope, that provide apprentices with the necessary related
instruction for the subject occupation. OA also intends for curricula
in National Occupational Standards for Apprenticeship to remain up to
date, in line with the ACA's recommendation to update standards to
reflect emerging technologies, work processes, or economic trends
affecting an occupation.\134\
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\134\ ``Update and enhance standards and guidance to reflect new
and emerging technologies (including any updates to existing or
emerging Standards Builder boilerplates/templates).'' Ibid.
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Proposed Sec. 29.13(b)(4) would require the inclusion of methods
to evaluate apprentice progress throughout the registered
apprenticeship program, including the development of an appropriate
end-point assessment. This proposed requirement seeks to ensure that
the National Occupational Standards for Apprenticeship are documented
as relevant for the occupation and provide a framework for the methods
to assess the attainment of the skills and competencies required under
the work process schedule framework. As with the other requirements in
this proposed provision, these methods would need to be nationally
applicable and validated by industry. This provision would build on the
Department's goals to elevate registered apprenticeship program quality
and establish greater accountability measures in the National
Apprenticeship System's governing regulations by requiring that
programs develop transparent, accountable assessments to evaluate
apprentices' attainment of proficiency in an occupation. In the
Department's view, this proposed new requirement for registered
apprenticeship programs also represents an opportunity to further
engage with industry to refine registered apprenticeship programs'
responsiveness to industry needs. The Department expects that industry
stakeholders and leaders will be instrumental in the development and
refinement of rigorous, nationally applicable methods for assessing
apprentices' attainment of proficiency in occupations. In addition to
the assurances that the successful completion of an end-point
assessment would provide for employers hiring apprentices, this new
requirement could also be leveraged by program sponsors to analyze
their program's overall effectiveness and implement continuous
improvements in program design.
Proposed Sec. 29.13(c) explains the proposed process for approving
National Occupational Standards for Apprenticeship. Once the
Administrator has developed National Occupational Standards for
Apprenticeship for an occupation, OA would seek public comment on the
standards to include a nationally applicable end-point assessment. This
process of seeking public comment is intended to ensure that the
finalized National Occupational Standards for Apprenticeship are
industry-vetted and will lead to occupational proficiency anywhere in
the country. To ensure that OA receives sufficient feedback from
industry leaders, OA may specifically invite industry leaders to submit
public comments. Public comments would be accepted for at least 30
calendar days, and the National Occupational Standards for
Apprenticeship in question would be finalized within 90 calendar days
from the opening of the public comment period, though this time period
may be extended at the discretion of the Administrator. The
Administrator may also consider data and other relevant information to
assist in evaluating whether the requirements in proposed Sec.
29.13(b) are satisfied, such as O*NET data. Finally, proposed Sec.
29.13(c) provides that the Administrator will maintain an up-to-date
list of all National Occupational Standards for Apprenticeship.
The Department is interested in any comments about the proposed
development of National Occupational Standards for Apprenticeship and
their potential benefit to potential sponsors or current sponsors in
providing support on some of the upfront challenges with starting a
registered apprenticeship program for an occupation, identifying high-
quality apprenticeship curriculum, development of end-point
assessments, and in turn implementing it at a program level. The
Department is also interested in any comments about the proposed
criteria by which it would evaluate proposed National Occupational
Standards for Apprenticeship, including comments regarding any
additional or different criteria that would assist in meeting the needs
of employers or in successfully training apprentices.
Section 29.14--National Program Standards for Apprenticeship
The ``National Program Standards for Apprenticeship'' section
describes the criteria for establishing National Program Standards for
Apprenticeship, the scope and reciprocity of registration, and
alignment with the National Occupational Standards for Apprenticeship.
The concept of National Program Standards for Apprenticeship has been
developed by OA through subregulatory guidance.\135\ Recent Federal
legislation in the Veterans Apprenticeship and Labor Opportunity Reform
(VALOR) Act has leveraged its use to expedite the approval of programs
for the Department of Veterans Affairs Education Benefits, such as the
GI Bill. National Program Standards for Apprenticeship are an
administrative procedure; the Administrator has to register a program
nationally if the program operates on a national basis, allowing the
program to operate in every State without seeking further registration
from OA or an SAA.\136\ In creating National Program Standards for
Apprenticeship, the Department seeks to drive system alignment and
apprenticeship expansion on a national scale. The Department
anticipates that this process will ensure that registered
apprenticeship programs established on a national scale will adhere to
a common set of industry-validated standards and enable apprentices who
participate in these programs to receive a uniform training experience
regardless of where it takes place. Proposed Sec. 29.14 sets forth the
process by which sponsors could establish registered apprenticeship
programs on a national basis. The criteria for National Program
Standards for Apprenticeship that would be established in this section
[[Page 3178]]
would require that prospective sponsors seeking approval must provide
apprenticeship training for occupations that are not ordinarily subject
to licensing requirements; be national or multistate in design,
suitability, and scope; and satisfy the applicable requirements of this
part and 29 CFR part 30. This section would establish the Administrator
as the approving entity as well as the reciprocity of registration for
SAAs to provide reciprocal registration for approved programs. This
section also describes the proposed requirement for National Program
Standards for Apprenticeship to align with National Occupational
Standards for Apprenticeship under proposed Sec. 29.13.
---------------------------------------------------------------------------
\135\ ETA, OA Circular No. 2022-01, ``Updated Guidance--Minimum
National Program Standards for Registered Apprenticeship Programs,''
Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf.
\136\ OA, ``Hire Veterans,'' https://www.apprenticeship.gov/employers/hire-veterans (last visited July 20, 2023).
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Proposed paragraph (a) would establish the criteria that National
Program Standards for Apprenticeship must meet to be registered by the
Administrator.
Proposed Sec. 29.14(a)(1) would explain that National Program
Standards for Apprenticeship must be for training in an occupation not
ordinarily subject to Federal, State, or local licensing requirements.
The Department recognizes that the existence of Federal, State, or
local licensing requirements impedes the ability of a registered
apprenticeship program to operate with a uniform set of standards
nationally. For an occupation with licensing requirements that differ
across jurisdictions, the training and related instruction necessary to
prepare an apprentice for that occupation would not be adequately
addressed by National Program Standards for Apprenticeship that aim to
provide a uniform standards and training experience regardless of where
the program is taking place. Accordingly, the Department has determined
that National Program Standards for Apprenticeship would be appropriate
for occupations not subject to differing licensing requirements.
Proposed Sec. 29.14(a)(2), in alignment with the Department's
broader goal of driving system alignment and apprenticeship expansion
on a national scale, would require that National Program Standards for
Apprenticeship must be national or multistate in their design,
suitability, and scope. The Department recognizes that there are
multiple ways in which a program may be national or multistate in
design, suitability, and scope. For instance, a program sponsor may be
a national or multistate employer with business operations in multiple
States. In addition, a program sponsor may be an international or
transnational company with business operations in multiple States as
well as in different countries. Also, a sponsor may be a national
organization that has only one physical location in a single State but
is affiliated with multiple employers that operate in multiple States.
Proposed Sec. 29.14(a)(3) explains that any National Program
Standards for Apprenticeship would need to meet the requirements in
proposed parts 29 and 30.
Proposed paragraph (b) explains that upon demonstration that the
National Program Standards for Apprenticeship meet the established
criteria set forth in proposed paragraph (a), the Administrator would
register the standards on a nationwide basis for Federal purposes. The
Administrator would endeavor to render a determination on whether to
approve and register a set of National Program Standards for
Apprenticeship within 90 days of their receipt from an applicant,
consistent with proposed Sec. 29.8. If the Administrator were to
decline to register the standards, the Administrator would provide a
written explanation explaining the decision.
Proposed paragraph (c) explains how National Program Standards for
Apprenticeship would be treated by SAAs. In furtherance of the goal of
driving system alignment and apprenticeship expansion on a national
scale, SAAs would be required to reciprocally approve and register
programs registered via National Program Standards for Apprenticeship.
Proposed paragraph (d) would explain that National Program
Standards for Apprenticeship must use any existing National
Occupational Standards for Apprenticeship that have been approved under
proposed Sec. 29.13. This requirement would only apply if a sponsor is
seeking registration of National Program Standards for Apprenticeship
in an occupation for which the Administrator has already approved
National Occupational Standards for Apprenticeship. For those
occupations where National Occupational Standards for Apprenticeship
currently exist, a program sponsor seeking registration of its National
Program Standards for Apprenticeship would need to use such National
Occupational Standards. The Department further clarifies that a program
could pursue registration using National Program Standards for
Apprenticeship if there is no established set of National Occupational
Standards for Apprenticeship for the subject occupation. The existing
National Program Standards for Apprenticeship are already in use within
the National Apprenticeship System and were last updated and outlined
in the Department's OA Circular No. 2022-01.\137\ National Program
Standards for Apprenticeship are meant to assist a national
organization or employer set up a high-quality apprenticeship training
program with a nationally applicable set of standards. Under the
existing system, programs that use the existing National Program
Standards for Apprenticeship and operate a program on a multistate or
nationwide basis do not need to register their apprenticeship program
in each of the States in which it operates. Proposed paragraph (d)
would provide that when a set of National Occupational Standards for
Apprenticeship has been vetted by industry and approved by the
Administrator for an occupation, National Program Standards for
Apprenticeship for a registered apprenticeship program in the
occupation must align with the established National Occupational
Standards. This requirement to utilize approved National Occupational
Standards for Apprenticeship, where they exist, would be included to
make sure that National Program Standards for Apprenticeship align with
approved National Occupational Standards for Apprenticeship, which the
Department thinks will further its goal of driving system alignment by
ensuring that all National Program Standards for Apprenticeship, in a
given occupation, adhere to a common set of industry-validated
standards. In addition, greater utilization would support the National
Apprenticeship System modernization efforts to enhance the quality of
programs and create greater efficiency in the development and
registration of programs.
---------------------------------------------------------------------------
\137\ ETA, OA Circular No. 2022-01, ``Updated Guidance--Minimum
National Program Standards for Registered Apprenticeship Programs,''
Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf. Note this circular's statement that
it ``supersedes and replaces OA Circular 2018-01,'' reflecting that
OA has been developing and refining tools for national
organizations, employers, or both to set up and operate quality
apprenticeship training programs on a nationwide basis for several
years.
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Programs registered with National Program Standards for
Apprenticeship may receive certain benefits, such as reduced reporting
requirements to Registration Agencies, VALOR Act eligibility, and
registration status for Federal purposes, so the need to ensure high-
quality programs is vital. The Department is interested in any comments
on this approach given the increased Federal benefits associated with
this model, the quality expectations of a program operating with this
designation, and any potential burdens with following a National
Occupational Standard approach. The
[[Page 3179]]
Department notes that while National Occupational Standards for
Apprenticeship are approved as the industry consensus apprenticeship-
related training curriculum for an occupation, an entity seeking
approval of National Program Standards for Apprenticeship may make
minor modifications to the National Occupational Standards based on the
needs of the sponsor provided that the submitted National Program
Standards substantially align with the National Occupational Standards.
Examples of modifications that would be acceptable include any
additions of sponsor or employer-specific training in addition to what
is in the approved framework, the addition of competencies or on-the-
job training hours to achieve those competencies or both, and the
addition of any additional or academic-credit-bearing related
instruction. The Department is interested in any comments as to what
the Department should identify as acceptable deviations that
substantially align without undermining the occupation or quality of
the standards.
Section 29.15--National Guidelines for Apprenticeship Standards
Proposed Sec. 29.15, the ``National Guidelines for Apprenticeship
Standards'' section is new and describes the proposed criteria for
approval of National Guidelines for Apprenticeship Standards, the
Certificate of Recognition, local registration requirement, the
criteria for resubmission, and required alignment with the National
Occupational Standards for Apprenticeship. National Guidelines for
Apprenticeship Standards are a template of standards of apprenticeship
that are registered nationally and adopted locally. They would allow
local affiliates of national organizations or an employer with
locations in multiple States to efficiently adapt recognized guidelines
for local registration of program standards. Since National Guidelines
for Apprenticeship Standards are intended to be adapted for local
registration by local affiliates of national organizations or an
employer with a national presence with locations in multiple States,
the establishment of a uniform process to recognize such standards
would drive system alignment by ensuring locally registered programs
adhere to a common set of industry-validated standards.
Unlike National Program Standards for Apprenticeship, which can be
registered once nationwide, National Guidelines for Apprenticeship
Standards are a customizable template for registered apprenticeship
program standards. They would provide a nationally certified--but
locally registered--framework for occupational standards, while also
preserving programmatic flexibility to account for local needs and
requirements. For example, potential program sponsors with nationally
designed apprenticeship program standards that cover certain
occupations that are subject to extensive State licensing requirements
may be more appropriately served by obtaining National Guidelines for
Apprenticeship Standards certification for their program and then
registering each program utilizing such standards on a State-by-State
basis; this is because the National Guidelines for Apprenticeship
Standards model would allow the template standards developed by the
sponsor to be modified to account for these additional State law
requirements and then registered in those States. In addition, the
National Guidelines for Apprenticeship Standards approach may be more
suitable for organizations with national scope, including labor
organizations as well as trade and industry associations, that wish to
provide State or local affiliates of their organizations with the
option to adapt a set of nationally designed apprenticeship program
standards to meet local conditions and register such programs on a
State-by-State basis. Similarly, the National Guidelines for
Apprenticeship Standards, with its ability to adapt to local labor
market needs, may be more suitable for workforce intermediary program
sponsors that only intend to provide related instruction in connection
with a registered apprenticeship program.
Adoption of National Guidelines for Apprenticeship Standards often
provides an expedited pathway for a local affiliate to register an
apprenticeship program and provides program flexibility to accommodate
local industry and regional economy needs. Proposed Sec. 29.15(c)
provides for State or local affiliates of a national organization to
use the proposed National Guidelines for Apprenticeship Standards as a
template for their specific standards of apprenticeship that are
submitted to the applicable Registration Agency, including SAAs, for
registration of individual programs. By using a template that has
already been registered, the sponsor would be able to more easily meet
the requirements for registration locally. For those occupations where
National Occupational Standards for Apprenticeship currently exist, a
program sponsor seeking certification of its National Guidelines for
Apprenticeship Standards would need to use such National Occupational
Standards. If a sponsor is seeking certification of National Guidelines
for Apprenticeship Standards in an occupation for which the
Administrator has already approved National Occupational Standards for
Apprenticeship pursuant to proposed Sec. 29.13, the sponsor would need
to use those approved National Occupational Standards.\138\
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\138\ The Department clarifies that programs can still use
National Guidelines for Apprenticeship Standards if there is not an
established set of National Occupational Standards for
Apprenticeship for the subject occupation (see below).
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The criteria for National Guidelines for Apprenticeship Standards
established in this section would require that guidelines submitted by
organizations must be national in their applicability and scope with
respect to the covered occupation; be suitable for either adoption or
adaptation by State or local affiliates of the program sponsor; and
satisfy the applicable requirements of this part and 29 CFR part 30.
This section would grant the Administrator sole approval authority.
This section would also describe the requirement for State and local
affiliates to register a program in accordance with proposed Sec.
29.10 and the requirement for National Guidelines for Apprenticeship
Standards to align with National Occupational Standards for
Apprenticeship under proposed Sec. 29.13.
National Guidelines for Apprenticeship Standards are a concept that
exists in the National Apprenticeship System pursuant to the current
Sec. 29.3(h)(1), and they have been further recognized in previously
issued subregulatory guidance.\139\ The Department has seen significant
success in their use, particularly in certain occupations and
industries such as construction where there are national and local
organizations affiliated with each other; the national organization is
responsible for maintaining the core criteria and elements of the
templates; and the local affiliates of the national organization
locally register with a Registration Agency. Their use, and the
elevation of them as a tool in this proposed regulation, would ensure
this vital concept can drive apprenticeship expansion.
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\139\ ETA, OA Circular No. 2022-02, ``Guidance--National
Guidelines for Apprenticeship Standards,'' Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-02.pdf.
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Proposed paragraph (a) would establish the criteria that National
Guidelines for Apprenticeship Standards must meet to be recognized by
the Administrator.
[[Page 3180]]
Proposed Sec. 29.15(a)(1) would explain that National Guidelines
for Apprenticeship Standards must be national in their applicability
and with respect to the covered occupation. The Department recognizes
that there are multiple ways in which an organization may demonstrate
that their standards are national in applicability and scope. For
example, an organization seeking recognition of National Guidelines for
Apprenticeship Standards may demonstrate that they have a national
presence with local affiliates in different States, or by demonstrating
that they have a presence in multiple States, even if the organization
is concentrated regionally. The Department has proposed this criterion
because the intent of National Guidelines for Apprenticeship Standards
is to create an adaptable template of standards that can be tailored to
meet regional labor market requirements. For example, an occupation
suitable for registered apprenticeship may need to be adjusted to align
with local conditions or requirements such as the terms of a collective
bargaining agreement, or applicable State and local laws and
regulations such as occupational licensing or ratio requirements.
Proposed Sec. 29.15(a)(2) would explain that National Guidelines
for Apprenticeship Standards must be suitable for use by State or local
affiliates of the program sponsor. National Guidelines for
Apprenticeship Standards are a template intended for adaptation,
customization, and ultimately, registration at the local level.
Accordingly, the Department proposes this requirement to ensure that
National Guidelines for Apprenticeship Standards would be designed for
this intended purpose.
Proposed Sec. 29.15(a)(3) would explain that, as with any program
standards, National Program Standards for Apprenticeship must meet the
requirements in proposed parts 29 and 30.
Proposed paragraph (b) would explain that upon demonstration that
the National Guidelines for Apprenticeship Standards meet the
established criteria set forth in proposed paragraph (a), the
Administrator will recognize the standards. If the Administrator
declines to recognize the standards, the Administrator would provide a
written explanation explaining the decision. The Administrator would be
solely responsible for the recognition of National Guidelines for
Apprenticeship Standards and would seek to review these submissions
within 90 days of receipt, consistent with the Administrator's goal to
review National Program Standards for Apprenticeship submissions within
90 days of receipt.
Proposed paragraph (c) would explain the process by which State or
local affiliates of the organization receiving recognition of National
Guidelines for Apprenticeship Standards may seek registration of an
individual program. National Guidelines for Apprenticeship Standards
are a template intended to be adapted or adopted for local
registration. Accordingly, the Department provides in proposed
paragraph (c) that State or local affiliates of a national organization
may use the National Guidelines for Apprenticeship Standards as a
template for their specific standards of apprenticeship that are
submitted to the applicable Registration Agency, including SAAs, for
registration of individual programs. National Guidelines for
Apprenticeship Standards may be adjusted for the purposes of local
registration to meet State or local requirements such as ratios,
safety, occupational licensing requirements, different wage scales, and
contact information. The Department is interested in any comments about
other acceptable adjustments between the certified National Guidelines
for Apprenticeship Standards and the locally registered standards.
Proposed paragraph (d) would explain when National Guidelines for
Apprenticeship Standards must be resubmitted for approval by the
Administrator. The Department recognizes that organizations may amend
the content of National Guidelines for Apprenticeship Standards based
on changes to an occupation's training needs, the needs of its State
and local affiliates, or other reasons. The Department also recognizes
that a periodic review can help ensure that National Guidelines for
Apprenticeship Standards continue to meet the training needs of
apprentices and to meet the industry-validated standards for a specific
occupation. Accordingly, proposed paragraph (d) would require that
National Guidelines for Apprenticeship Standards must be resubmitted
for approval upon amendment to the standards or at least every 5 years,
from the date that the standards are originally approved. The
Department is proposing 5 years to align with the general requirement
that program reviews occur every 5 years. Generally, the program review
period has been an opportunity for programs to update their standards
to ensure they continue to meet the requirements of 29 CFR parts 29 and
30, and are current with any changes to approved occupations, new laws,
regulations, or subregulatory guidance. There is no similar requirement
currently for sponsors of National Guidelines for Apprenticeship
Standards to update their standards, which leads to inconsistencies
between the local registrations and National Guidelines for
Apprenticeship Standards. This proposal would require a certification
timetable. The Department is interested in any comments about this
concept or any different timeframes it should consider.
Proposed paragraph (e) would explain that National Guidelines for
Apprenticeship Standards must use any existing National Occupational
Standards for Apprenticeship that have been approved under proposed
Sec. 29.13. This requirement would only apply if a sponsor is seeking
registration of National Guidelines for Apprenticeship Standards in an
occupation for which the Administrator has already approved National
Occupational Standards for Apprenticeship. To define and communicate
the purpose and intended use of National Occupational Standards for
Apprenticeship, National Program Standards for Apprenticeship, and
National Guidelines for Apprenticeship Standards, the Department
clarifies that programs can pursue registration using National
Guidelines for Apprenticeship Standards in scenarios where National
Occupational Standards have not been developed. National Guidelines for
Apprenticeship Standards are an existing tool for potential registered
apprenticeship stakeholders to utilize, and their use and parameters
were outlined in the Department's OA Circular No. 2022-02.\140\
National Guidelines for Apprenticeship Standards have been used by
national organizations seeking to establish registered apprenticeship
programs amongst their local affiliates and can be adjusted based on
local workforce needs or conditions. The Department expects that the
proposed National Guidelines for Apprenticeship Standards would
continue to be used for this purpose, including when there is no
established set of National Occupational Standards for Apprenticeship.
However, when National Occupational Standards for Apprenticeship have
been developed and approved for an occupation (with substantial
industry vetting and review and approval by the Administrator), the
Department seeks to align any National Guidelines for Apprenticeship
Standards within that occupation with the established National
Occupational Standards.
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\140\ Ibid.
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The Department anticipates that aligning National Guidelines for
[[Page 3181]]
Apprenticeship Standards with approved National Occupational Standards
for Apprenticeship would further its goal of driving system alignment
by ensuring that all National Guidelines for Apprenticeship Standards,
in a given occupation, adhere to a common set of industry-validated
standards. The Department notes that while National Occupational
Standards for Apprenticeship are approved as the industry consensus
apprenticeship-related training curriculum for an occupation, there may
be some minor modifications to the National Occupational Standards
based on the needs of the sponsor. Deviations from the National
Occupational Standards for Apprenticeship would be allowed, but the
Administrator would ensure that submissions of National Guidelines for
Apprenticeship Standards substantially align with the National
Occupational Standards. In addition to the examples mentioned in
paragraph (c) above, additional examples of modifications that would be
acceptable include any additions of sponsor or employer-specific
training in addition to what is in the approved framework, the addition
of competencies or on-the-job training hours to achieve those
competencies or both, and the addition of any additional or academic-
credit-bearing related instruction. The Department is interested in any
comments as to what they recommend are acceptable deviations that still
substantially align with National Occupational Standards for
Apprenticeship for that occupation without undermining the occupation
or quality of the standards.
Section 29.16--End-Point Assessment and Certificate of Program
Completion
Proposed Sec. 29.16 would require registered apprenticeship
programs to administer an end-point assessment at the conclusion of the
apprenticeship term to establish the apprentice's successful attainment
of all of the knowledge, skills, and competencies associated with the
occupation. The purpose of this new requirement is to provide objective
confirmation that the apprentice has acquired all of the skills and
competencies required to be proficient in the occupation covered by the
program. A rigorous end-point assessment at the conclusion of the
apprenticeship is essential to give employers in an industry or sector
confidence that the worker can perform successfully in the occupation
in which they have been trained, and possess a set of relevant skills
that are transferrable within that industry. The absence of an end-
point assessment requirement in the current apprenticeship regulation
means that individual apprenticeship program sponsors can adopt widely
differing methods of assessing apprentice performance, which means that
other employers within an industry or sector cannot be sure whether a
graduating apprentice has really ``made the grade'' for proficiency in
the occupation. The end-point assessment should be the culminating
activity of the apprenticeship, and an apprentice should only be
awarded a Certificate of Completion upon successful completion of the
assessment. The Department takes the view that any additional burdens
that this new requirement may impose on program sponsors would be
outweighed by the significant practical benefits that would accrue to
both employers and apprentices on account of a more uniform and
rigorous standard for assessing and confirming the competencies
acquired by apprentices. The proposed introduction of an end-point
assessment requirement for apprenticeship programs is also consistent
with the Department's goal of developing a highly skilled American
workforce that is capable, agile, and competitive at both the domestic
and international level.
Throughout the course of a registered apprenticeship program,
apprentices will learn how to perform critical job tasks, understand
and apply theoretical concepts, and continuously develop a set of core
competencies for the occupation for which they are receiving
apprenticeship training. Developing occupational competencies is
important for apprentices' ability to adequately complete the discrete
set of tasks necessary to accomplish a job task they would be assigned
in the occupation after their apprenticeship training. In order to
fully realize the benefits of the high-quality training and instruction
of a registered apprenticeship program for both apprentices and their
employers, apprenticeship programs should implement effective training
protocols and accurate assessments to ensure apprentices are not only
competent in the discrete job tasks for an occupation, but also
proficient in the occupation overall. This includes assessing the
apprentice's ability to perform the task(s) safely and accurately
(competently), as well as timely and efficiently. Businesses often need
their workforce to complete work to the satisfaction of their customers
within a timeframe that makes it worthwhile (i.e., profitable) for the
business to assign tasks to their workers. For example, an electrician
may need to complete work within a set timeframe to ensure that the
hourly charge to the customer, the hourly wages paid to the
electrician, and the other costs of completing the work (e.g.,
equipment maintenance, travel costs), all add up to a profitable
endeavor. Or a business may depend on fitting as many customer orders
as possible into a certain timeframe (e.g., a day, a week) to offset
costs and turn a profit. The Department proposes to add end-point
assessments to the registered apprenticeship model to encourage
programs to consider this important apprenticeship outcome--the
proficiency of the workforce in an occupation--and develop a program
that results in a highly trained, proficient workforce. The Department
expects that end-point assessments will ultimately benefit individual
employers or sponsors as well as the quality, skill, and readiness of
the occupational workforce throughout a given sector.
Apprentices who successfully complete the assessment would be able
to demonstrate to employers throughout an industry or sector that they
are proficient in their occupation, and that their skills are
transferrable between employers in the relevant sector. The successful
completion of an end-point assessment would benefit apprentices by
improving their employability and labor mobility and would add value to
the Certificate of Completion earned by the apprentice. The assessment,
which the sponsor develops according to the parameters of their
program, could involve a practical, hands-on application of the
apprentice's acquired skills to the completion of a project or the
solution of a problem; alternatively, it may involve both a practical
component and a written component that assesses the acquisition of
occupation-relevant theoretical knowledge by the apprentice. Other
methods would be allowed under this approach and may simply take the
form of an individual meeting, such as a performance review, to assess
and provide feedback on the apprentice's proficiency.
Several nations with well-regarded apprenticeship systems require
an apprentice to complete an end-point assessment at the conclusion of
their apprenticeship training; among these nations are Canada, England,
Germany, Switzerland, and Austria. These assessments utilize nationally
applicable standards in evaluating the apprentice's proficiency in an
occupation. The Department expects that the end-point assessment
requirement would lend greater credibility and value to the
apprenticeship credential, and potential
[[Page 3182]]
employers might have greater confidence in the capabilities of
apprentices who have passed such an examination at the conclusion of
their training. In Canada, for example, the Red Seal Program has
established such final assessments in dozens of skilled trades, and the
passage of a Red Seal examination provides employers with an assurance
that the passing apprentice is proficient in an occupation. In
addition, apprenticeship stakeholders in the United States, such as the
ACA, have discussed the importance of conferring proficiency in
apprenticeship training.\141\ The ACA's 2022 Interim Report also
contained a recommendation to review international workforce training
and apprenticeship models to understand best practices and identify
potential enhancements to the U.S. system. The Department thinks that
an end-point assessment is a way for an apprentice to demonstrate
proficiency (as suggested by the ACA), and to do so in a manner that
has worked in other countries.
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\141\ Recommended principle: Competency must be obtained under
any of these three models; include standards around time in on-the-
job training to ensure proficiency. ACA, ``Interim Report to the
Secretary of Labor,'' May 16, 2022, at 14, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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Proposed Sec. 29.16(a) would establish the requirement of an end-
point assessment requirement for all programs to ensure that they
measure an apprentice's attainment of occupational skills, knowledge,
and competencies necessary to determine proficiency in an occupation.
The Department recognizes that end-point assessments developed and
administered by a given program's operators may result in an assessment
that is more relevant to the training and instruction provided through
the program. However, the Department also recognizes the value of
assessments performed by independent organizations or third parties to
reduce any undue bias and incorporate ideas from outside partners. The
Department invites public comment about the value and feasibility of
end-point assessments generally, as well as whether such assessments
should be performed by independent or third parties or by those
operating a program and delivering on-the-job training or related
instruction.
Proposed Sec. 29.16(b) would provide that an apprentice must be
entitled to at least one additional opportunity to complete an end-
point assessment if they do not pass on the first attempt. This is
intended to ensure apprentices are entitled to a fair opportunity to
pass the assessment if their first attempt to do so is not successful,
and that the end-point assessment does not operate as an inequitable
significant barrier to program completion and journeyworker entry, such
as for apprentices with disabilities. The Department is interested in
any comments on if there should be a limit to the number of
opportunities an apprentice may have to complete the assessment,
balancing the burden of performing multiple assessments against the
importance of providing opportunities for apprentices to demonstrate
proficiency.
Proposed Sec. 29.16(c) would include a provision that ensures an
apprentice's end-point assessment includes an appropriate reasonable
accommodation, if requested prior to the administration of the
assessment. This proposed provision is intended to ensure that
registered apprenticeship programs are fully accessible to job seekers,
including those with disabilities that may require reasonable
accommodations. The ACA's DEIA subcommittee recommended OA take steps
to identify and assess any barriers to accessing or completing a
registered apprenticeship program, and the Department agrees that
programs should make reasonable accommodations when appropriate.\142\
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\142\ Specifically, the ACA recommended that DOL should gather
new data on registered apprenticeship programs' and apprentices'
needs through formal, representative surveys, including
understanding barriers to completion and long-term career pathways.
CA, ``Interim Report to the Secretary of Labor,'' May 16, 2022, at
9, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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Proposed Sec. 29.16(d) would provide that individuals who
successfully complete the on-the-job training and related instruction
requirements of a program and pass an end-point assessment are eligible
for a Certificate of Completion from the appropriate Registration
Agency.
As proposed, this section would not require that sponsors use a
specific type of assessment, given the unique needs of different
industries and occupations. However, the Department sees an opportunity
for greater standardization of tools, such as an end-point assessment,
by engaging industry and sponsors alike through the development and
subsequent approval process of National Occupational Standards for
Apprenticeship. The Department invites comments on whether the final
rule should expressly require that all end-point assessments
administered by sponsors should objectively measure the apprentice's
acquisition of the relevant knowledge, skills, and competencies
necessary to demonstrate proficiency in the occupation covered by the
program, or if the proposed rule should remain silent and leave it to
sponsors to establish what they think is an appropriate assessment. The
Department is particularly interested in comments around any burdens or
challenges with this approach, the extent to which programs have
already adopted an end-point assessment as a means for measuring
attainment, and the value of strengthening those requirements.
In addition, the Department invites commenters to discuss whether
the final rule should expressly require that end-point assessments
should only be administered by qualified and objective examiners who
have not previously provided either on-the-job training or related
instruction to the apprentice during the apprenticeship term. Finally,
the Department invites commenters to opine on whether the final rule
should permit sponsors to utilize third-party examinations as the
program's end-point assessment in instances where: (1) an independent
certification body within a particular industry or sector offers a
nationally recognized examination that incorporates uniform, industry-
recognized quality standards to objectively measure and validate the
attainment of the relevant knowledge, skills, and competencies for the
occupation(s) covered by the registered apprenticeship program; or (2)
the occupation covered by the apprenticeship program is one that
requires the passing of a State-mandated and administered examination
to receive a license or certificate enabling qualified individuals to
perform work in that occupation within a particular jurisdiction.
Section 29.17--Complaints
Complaints or expressions of concern about a program are critical
for transparency into the daily operation of a registered
apprenticeship program, an apprenticeship program's adherence to the
labor and quality standards throughout the parts 29 and 30 regulations,
and ultimately, the protection of apprentices' welfare and well-being.
Apprentices are vulnerable to retaliation or other negative outcomes if
their ability to speak up confidentially and securely is curtailed or
compromised. Apprentices must be afforded opportunities to file
complaints if they are subjected to unsafe or unfair conditions. The
Department believes that the existing complaints process in part 29
should be retained and proposes enhancements to the complaints policy
and additional procedures to investigate complaints, protect
complainants, and improve transparency and accountability throughout
the National
[[Page 3183]]
Apprenticeship System. Proposed Sec. 29.17 would also allow for non-
apprentices to file complaints so long as the complaint arises under a
registered apprenticeship agreement or alleges a violation of this
part.
Proposed Sec. 29.17 would carry forward much of existing Sec.
29.12 with a few notable changes. Proposed Sec. 29.17(e) would
establish more robust and detailed procedures for investigating
complaints and would afford anonymity to complainants, to the extent
practicable, as explained below.
Proposed Sec. 29.17(a) would carry forward existing Sec. 29.12(a)
verbatim.
Proposed Sec. 29.17(b) would carry forward much of existing Sec.
29.12(b), which allows apprentices not covered by a collective
bargaining agreement to submit a complaint to the Registration Agency
when a controversy or difference arises under an apprenticeship
agreement. Two changes in proposed Sec. 29.17(b) would permit but not
require that disputes be resolved locally before a complaint is
submitted to the Registration Agency. OA anticipates that most
complaints will be resolved most efficiently and effectively by the
program sponsor. However, the proposed change to Sec. 29.17(b)
recognizes that there should be an avenue for complaints to be filed
directly with the Registration Agency, such as if the matter complained
of is particularly egregious or if the complainant wishes to remain
anonymous. Complainants who wish to remain anonymous would need to file
their complaints directly with the Registration Agency. Under proposed
Sec. 29.17(b), a Registration Agency would still be prohibited from
resolving a complaint covered by a collective bargaining agreement.
Upon receiving a complaint relating to a union program, OA would be
able to ask the sponsor, participating employer, complainant, or union
representatives whether the complaint is covered by a collective
bargaining agreement. OA would also be able to request a copy of the
collective bargaining agreement. Proposed Sec. 29.17(b) would also
clarify that a complaint must either arise under an apprenticeship
agreement or allege a violation of this part. Minor stylistic changes
were also incorporated into proposed Sec. 29.17(b) for clarity.
Proposed Sec. 29.17(c) would revise the content of the first
sentence of existing 29 CFR 29.12(c) and would establish a deadline to
file a complaint within 300 calendar days after the conclusion of the
events that gave rise to the dispute or the alleged violation of this
part. In the case of an alleged continuing violation of this part, the
300-day period would begin on the day when the violation ceases.
However, to accommodate extenuating circumstances that an apprentice
might face, the Registration Agency would be able to extend the filing
time upon a showing of good cause. For example, the granting of an
extension for good cause could arise where the complainant only became
aware of the alleged violation at a point in time more than 300 days
after the alleged occurrence of the alleged event, or such an extension
might be granted in instances where an apprentice missed the 300-
calendar-day deadline because of an illness or an injury that prevented
them from filing a timely complaint. This proposed time period aligns
with the complaint timeline under 29 CFR part 30 and is designed to
allow apprentices sufficient time to file a complaint with the
Registration Agency. The Department is also proposing a period of 300
days to file a complaint in recognition of the important quality
control function that complaints and complaint investigations serve.
Proposed Sec. 29.17(d)(1) is new and would require that the
complaint include a means of contacting the complainant or the
authorized representative. Requiring the complaint to contain a means
for contacting the complainant or authorized representative, but not
identifying information such as a name or physical address, is intended
to facilitate the submission of anonymous complaints while also
allowing the Registration Agency to contact the complainant or
representative as part of their review of the complaint. The
requirement in existing Sec. 29.12(c) that complaints be signed would
not be carried forward in this proposed rule to facilitate the
submission of anonymous complaints.
Proposed Sec. 29.17(d)(2) is new and would require that the
complaint include the identity of the individual or entity that is
alleged to be responsible for the conduct giving rise to the complaint
to facilitate the Registration Agency's investigation of any complaint.
Proposed Sec. 29.17(d)(3) incorporates language in existing Sec.
29.12(c) with minor clarifying changes. As proposed, it would require a
short description of the events, facts, or circumstances giving rise to
the complaint, including a discussion of when the events giving rise to
the complaint took place.
Proposed Sec. 29.17(e) is new and would explain the process by
which the Registration Agency will investigate a complaint. It would
require that the Registration Agency proceed expeditiously to
investigate complaints. The proposed requirement that investigation of
complaints be conducted expeditiously is intended to require
Registration Agencies to resolve complaints, whenever possible, before
impacted apprentices complete the program so that the apprentice can
benefit from any action necessary to address the matter. However, the
Department invites comments as to whether it is either feasible or
appropriate to establish a uniform ceiling in this proposed rulemaking
on the number of days allotted to a Registration Agency to complete the
investigation of a complaint.
Proposed Sec. 29.17(e)(1)(i) would require the Registration Agency
to provide written notice that the complaint was received. Initially,
only the complainant and the authorized representative, if any, would
receive notice of the complaint.
Proposed Sec. 29.17(e)(1)(ii) would require the Registration
Agency to investigate complete complaints.
Proposed Sec. 29.17(e)(1)(iii) would require the Registration
Agency to complete a thorough investigation of the complaint.
Documentation in the complaint file should include the complaint
itself, a rebuttal statement from the respondent (if provided),
interview statements, copies of pertinent documents as appropriate, and
a narrative report of findings. Proposed Sec. 29.17(e)(1)(iii) is
intended to require Registration Agencies to compile a robust complaint
investigation file, especially where the complaint was filed with the
Registration Agency in the first instance. A robust file is needed to
ensure that an adequate investigation was completed, to facilitate
further review, and to facilitate referral to other government agencies
or the initiation of a program review, if warranted. Although
Registration Agencies would collect names and contact information of
witnesses, Registration Agencies should protect such identifying
information consistent with privacy laws, including the Freedom of
Information Act, including withholding information where appropriate.
Proposed Sec. 29.17(e)(1)(iv) would require the Registration
Agency to provide a written notification of its findings to the
complainant and respondent at the conclusion of the investigation.
Proposed Sec. 29.17(e)(2) is new and would require the
Registration Agency to protect the identity of the complainant to the
extent practicable. If a complainant expresses a desire to remain
anonymous, the complaint would need to be filed with the Registration
Agency in the first instance, and the Registration Agency would need
[[Page 3184]]
to take reasonable steps to protect the identity of the complainant,
such as not naming the complainant in interviews or in response to
inquiries from the sponsor or respondent. Nevertheless, many complaint
identities may be deduced by the respondent, sponsor, or employer
because the complaint relates to a workplace-specific dispute or
because of the relatively small number of apprentices in the program.
Where complaints are filed anonymously, the Department anticipates that
the assigned investigator and the complainant will confer early in the
complaint investigation process and as needed thereafter to discuss
what steps may be taken to investigate the complaint without
compromising the anonymity of the complainant. As discussed below,
proposed Sec. 29.17(i) would incorporate an anti-retaliation provision
designed to protect complainants from adverse actions for filing a
complaint, which is meant to mitigate a complainant's concern and
foster the filing of complaints and the complainant's cooperation.
Proposed Sec. 29.17(e)(3) explains that if at the conclusion of a
complaint investigation, the Registration Agency determines that a
violation of part 29 or the apprenticeship agreement occurred, the
Registration Agency would attempt to resolve the violation as quickly
as possible, generally through technical assistance, initiating a
program review, or the initiation of deregistration proceedings.
Proposed Sec. 29.17(f) would carry forward existing Sec.
29.12(e), which states that no part of existing Sec. 29.12 precludes
apprentices from pursuing alternative avenues of relief authorized
under Federal, State, or local law.
Proposed Sec. 29.17(g) would carry forward existing Sec. 29.12(f)
but clarify that, for an SAA to utilize a complaint review procedure
that differs from the one provided here, the complaint review procedure
would need to first be approved by the Administrator as part of the
process described in proposed Sec. 29.27.
Proposed Sec. 29.17(h) is new and would establish anti-retaliation
protections under part 29 by adapting language from part 30. This
provision would prohibit a broad range of adverse actions, including
intimidation, threats, coercion, retaliation, and discrimination. The
provision would protect a broad range of protected activities,
including filing a complaint, opposing a practice prohibited by this
part or an apprenticeship agreement, furnishing information, or
exercising any rights or privileges afforded under this part or an
apprenticeship agreement. Notably, anti-retaliation complaints cannot
be filed anonymously because Registration Agencies must always reveal
the identity of the complainant to seek a remedy.
Proposed Sec. 29.17(i) would speak to consequences for sponsors
that fail to prevent or remedy retaliation as defined in paragraph (h),
including retaliation by a participating employer in the sponsor's
program. The presumptive remedy for sponsors found to have retaliated
in violation of Sec. 29.17(h) would be to make the apprentice whole.
If, for example, an apprentice is terminated from a program for filing
a complaint, the presumptive remedy would be for the apprentice to be
reinstated to the same step in the registered apprenticeship program
with back pay plus interest. OA also may pursue a remedy for violations
of Sec. 29.17(h) by limiting the responsibilities of the individual
responsible for misconduct such as removing the individual from
interactions with the complainant, to the extent practicable.
Regardless of what the appropriate remedy would be, sponsors that fail
to remedy retaliation may be subject to deregistration under Sec.
29.20(a).
Section 29.18--Recordkeeping by Registered Programs
Recordkeeping is an essential and fundamental requirement in
documenting compliance with the requirements of this rulemaking. Under
this proposed rule, programs would need to maintain records for the
purposes of demonstrating compliance to a Registration Agency as part
of a program review and assisting a Registration Agency in conducting a
complaint investigation. Programs would also need to maintain sources
of data or information used to report to the Registration Agency. The
Department thinks that these proposed requirements balance the needs of
sponsors, employers, and Registration Agencies to conduct effective
monitoring and oversight of program compliance with the burden of
maintaining the required records. The Department is interested in any
comments on whether the Department should add or subtract records from
this proposed section.
Proposed Sec. 29.18 is a new section that would expand upon the
recordkeeping requirement that is in current Sec. 29.5(b)(23) and
detail the categories of records that sponsors and any participating
employers are expected to maintain. Proposed Sec. 29.18 would describe
the general recordkeeping requirement with respect to specific records,
the requirement to maintain records for a specific period of time, the
requirement to allow the Registration Agency access to the records, and
the format of such records. The section would mirror some of the
recordkeeping requirements of 29 CFR 30.12 in order to create uniform
requirements for recordkeeping for registered apprenticeship programs.
Proposed Sec. 29.18(a) would state the general obligation of the
program sponsor, and any participating employer, to maintain any
records that the Registration Agency considers necessary to determine
whether the sponsor has complied or is complying with the requirements
of this part and any applicable Federal or State laws. It would further
list in paragraphs (a)(1) and (2) the specific categories of documents
that are required to be maintained.
Proposed Sec. 29.18(a)(1) would require that records be maintained
concerning employment decisions, such as the hiring or placement,
promotion, demotion, transfer, layoff, termination, right of return
from layoff, and rehiring of apprentices. These are typically
employment records maintained in the ordinary course of business. The
Department considers these records paramount for a sponsor to maintain
since they relate to a foundational requirement of registered
apprenticeship programs, the employment of apprentices. Effective
oversight of the program would not be possible without such records.
Proposed Sec. 29.18(a)(2) would require that records be maintained
related to the operation of the registered apprenticeship program,
including but not limited to the specific requirements in paragraphs
(a)(1)(i) through (x).
Proposed Sec. 29.18(a)(2)(i) would require the maintenance of
records containing information related to the qualification,
recruitment, employment, and training of apprentices, such as the
apprenticeship program standards, apprenticeship agreements, completion
records, cancellation and suspension records, and program review files.
This provision would complement proposed Sec. 29.18(a)(1) in that it
would require maintaining records specific to the operation of the
apprenticeship training program in addition to the requirements of
proposed Sec. 29.19(a)(1) regarding the individual employment
decisions concerning each apprentice. These records are necessary to
ensure the program is operating in compliance with proposed Sec. Sec.
29.8 through 29.10.
Proposed Sec. 29.18(a)(2)(ii) would require maintaining records
pertaining to each apprentice's performance and
[[Page 3185]]
progress in both the on-the-job training and related instruction
components of the registered apprenticeship program, as well as records
related to the apprentice end-point assessments. These recordkeeping
requirements would also be referenced in the proposed program standards
at Sec. 29.8(a)(10) and (11). The records are important to demonstrate
the apprentice's progress during the apprenticeship and at the end-
point assessment. They are related to other important aspects of the
apprenticeship, such as work process schedules and wage progression,
and help document the key quality criteria in this proposed rule
regarding regular assessments of competency. Because competency
attainment enables apprentices to progress through an apprenticeship,
records as to how competency attainment is measured are critical for a
sponsor to retain and have available.
Proposed Sec. 29.18(a)(2)(iii) would require maintaining records
pertaining to an apprentice's attainment of an interim credential as
part of the program, postsecondary academic credit, or other interim
milestones attained during the course of an apprentice's participation
in the program, if available. The Department acknowledges that not all
programs may provide interim credentials or postsecondary academic
credit; however, those that do would need to maintain records of their
provision to apprentices. One quality metric proposed in this NPRM
relates to credential attainment, and maintaining records associated
with those credentials would be required. The Department has proposed a
requirement in this proposed rule to have sponsors disclose any interim
credentials an apprentice receives in the program. Credentials are both
a key source for documenting apprentice progression and success in a
program and represent an additional, tangible benefit for apprentices
in the program. This proposed rule does not propose interim credentials
or academic credit be provided, but because it would ask that they be
disclosed, it is vital that the Department can validate this
information from the sponsor's records if needed.
Proposed Sec. 29.18(a)(2)(iv) would require maintaining records
for each apprentice regarding the number of hours of on-the-job
training, the number of hours of related instruction, the total number
of hours worked, and the wages and fringe benefits paid for all hours.
This is an integral part of the standards of apprenticeship and
apprenticeship agreement, and these records are necessary to
demonstrate compliance with both.
Proposed Sec. 29.18(a)(2)(v) would require that records be
maintained, including personnel records, applicable to any non-EEO
complaints filed with the Registration Agency pursuant to proposed
Sec. 29.17.
Proposed Sec. 29.18(a)(2)(vi) would require that all records be
maintained related to the safety record of the sponsor and all
participating employers in the sponsor's program, where applicable,
including records relating to any safety and health training provided
to apprentices, incident logs required to be maintained under
applicable Federal or State occupational safety and health laws, and
current worker's compensation documentation.
Proposed Sec. 29.18(a)(2)(vii) would require maintaining any
records required to be maintained by a program sponsor under 29 CFR
part 30.
Proposed Sec. 29.18(a)(2)(viii) would require maintaining any
records required to be maintained under title 38, United States Code,
in order for veterans and other individuals eligible for educational
assistance under such title to use such assistance for enrollment in
registered apprenticeship programs.
Proposed Sec. 29.18(a)(2)(ix) would require maintaining records
demonstrating program compliance with registered apprenticeship
requirements to meet Federal purposes as defined in this part. This
could include documents maintained for purposes of compliance with
registered apprenticeship requirements in Federal grants such as WIOA,
the IRA, the Davis-Bacon and related Acts, and any Federal purposes.
Proposed Sec. 29.18(b) is a new requirement in part 29 but would
use the language in part 30 at Sec. 30.12(d) regarding maintenance of
records to provide some uniformity to the recordkeeping requirements
across both sections. Proposed Sec. 29.18(b) would provide that the
records required by this part and any other information relevant to
compliance with these regulations must be maintained by a program
sponsor (or any participating employer, if applicable) for 5 years from
the date of the making of the record or the personnel action involved,
whichever occurs later. The 5-year timeframe would be consistent with
the recordkeeping requirement in 29 CFR 30.12 and align with the 5-year
program review requirement in proposed Sec. 29.19. This provision
would also provide that failure to preserve complete and accurate
records (as would be required by paragraph (a) of this section)
constitutes noncompliance with this part that could lead to OA
initiating deregistration proceedings. This language would be similar
to the language in Sec. 30.12(d).
Proposed Sec. 29.18(c) would provide that the program sponsor (and
any participating employer) must allow the Registration Agency access
to the records described in paragraph (a) of this section upon request
for the purpose of conducting program reviews and investigating
complaints arising under part 29; such program reviews and
investigations may involve the inspecting and copying of books,
accounts, records (including electronic records), and any other
material the Registration Agency deems relevant to the review or
investigation and pertinent to compliance with this part. It would also
provide that, upon request, the program sponsor (and any participating
employer) must provide the Registration Agency information about all
format(s), including specific electronic formats, in which its records
and other information are available. Finally, it would clarify that
information obtained in this manner will be used only in connection
with the administration of this part or other applicable laws. Proposed
Sec. 29.18(c) would adopt language similar to the part 30
recordkeeping requirements at Sec. 30.12(f) but specific to records
related to program reviews and investigations under part 29. This
access provision is important for the Registration Agency to conduct
program reviews and investigate complaints arising under part 29.
Proposed Sec. 29.18(d) is a new requirement. It would acknowledge
that forms, records, and any other documents used and maintained by the
program sponsor (and any participating employer) in the administration
of this part may exist in paper or electronic form or a combination
thereof. It would also specify that, regardless of the medium, these
records must be available and accessible as required under paragraph
(c) of this section for oversight and compliance purposes.
Section 29.19--Program Reviews
The Department's ability to conduct comprehensive reviews of the
apprenticeship programs it registers and oversees is the linchpin for
the quality standards, worker protections, and transparency and
accountability measures discussed throughout this NPRM's preamble and
envisioned in the Department's proposed update to the part 29
regulations. Establishing a clear, transparent, and fair process for
such reviews in the part 29 regulations is critical for all
stakeholders within the
[[Page 3186]]
system, including the governmental entities overseeing programs, the
designers and operators of registered apprenticeship programs, and the
apprentices who participate in apprenticeship programs. While program
reviews are essential for giving the Department the tools necessary to
enforce the part 29 regulations and fulfill its statutory mandate to
protect the welfare and well-being of apprentices, these reviews are
also opportunities for programs to identify and address issues or
discrepancies in service of program improvement. The proposed process
for program reviews aligns with the Department's current practice of
allowing programs time to address issues internally and request
guidance and assistance from the Department or other stakeholders.
Programs should view program reviews as a useful opportunity for
program assessment and the identification of near- and long-term steps
towards improvements in program quality.
To provide clarity for the regulated community, the Department has
decided to propose a new section of the part 29 regulations to
encapsulate all elements of the program review process, which is
referenced in several places throughout the existing parts 29 and 30
regulations. For example, 29 CFR 29.5(b)(21), in the existing
regulation's section on program standards, states that programs must
affirm compliance with the part 30 EEO regulations, and Sec.
29.6(b)(1)(ii) refers to EEO compliance reviews as a responsibility of
Registration Agencies. Under the Department's proposed regulation, EEO
compliance reviews, quality assurance assessments, and other oversight
activities would be covered by this new section, now collectively
referred to as ``program reviews,'' which would clarify the scope of
Registration Agency review of programs' compliance with the entirety of
the regulations at parts 29 and 30. In addition to this reorganization
and consolidation of the program review provisions in the existing
regulation, the Department is proposing various enhancements to the
program review process to increase transparency and accountability in
the system in service of maintaining and improving program quality
throughout the system.
Proposed Sec. 29.19(a) would explain that once a program's
registration is made permanent, the applicable Registration Agency must
conduct a program review at least every 5 years, though more frequent
reviews are permitted based on capacity. This timeframe aligns with the
current rule, wherein new registered apprenticeship programs enter into
an initial, ``provisional'' status upon registration, and are reviewed
approximately 1 year after the registration date. Provided that the
program is operating in accordance with the standards approved by the
Registration Agency, the program then moves out of ``provisional''
status and continues operating as a registered apprenticeship program.
Such programs are then reviewed once every 5 years, with more frequent
reviews occurring depending on specific circumstances.\143\ This
timeframe further aligns with other timelines in the existing
regulations governing registered apprenticeship, such as the
requirement that programs undergo a compliance review ``no less
frequently than every 5 years'' at 29 CFR 29.3(h) and the 5-year
recordkeeping requirement in the EEO regulations at 29 CFR 30.18(b).
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\143\ Circumstances that may trigger more frequent reviews
include, for example, a program's reported outcomes are consistently
falling short of expectations or requirements, and whether serious,
unaddressed complaints related to the program, recognized as
legitimate by reviewers, consistently arise.
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Proposed paragraph (a) would further clarify that the Registration
Agency will include a review of any participating employers in a
sponsor's program during such program reviews, in line with the
proposal's overall goal of establishing and maintaining accountability
throughout the National Apprenticeship System. Throughout the proposal,
the Department seeks to establish accountability measures to monitor,
assess, and address participating employers' compliance with the
proposed registered apprenticeship regulations, and has proposed
changes to the existing registered apprenticeship regulations to
require participating employers' compliance where appropriate. Proposed
Sec. 29.19(a) would establish the necessary connection between
participating employers and the Registration Agency's primary oversight
mechanism--program reviews--to establish such accountability.
Proposed Sec. 29.19(b) would require the Registration Agency to
conduct a review of a program if it receives credible information that
a program, participating employer, or other registered apprenticeship
stakeholder is not operating in compliance with the program's accepted
program standards or any other requirements set forth in this part or
29 CFR part 30. Such credible information or allegations could be
received through any means including, but not limited to, complaints,
referrals, or news stories. Proposed Sec. 29.19(b) would also require
a Registration Agency to conduct program reviews at the request of the
Administrator. The Administrator may request that a Registration Agency
conduct program reviews because the Administrator has received credible
information that a program is not operating in conformance with its
registered standards, part 29 or part 30, because the Administrator
disagrees with a Registration Agency as to whether credible information
of potential noncompliance exists, or for any other reason the
Administrator determines a review is warranted.
Proposed Sec. 29.19(c) would clarify that Registration Agencies
may consider all information and data that are pertinent to the purpose
of the review in reaching a determination at the conclusion of the
review. Registration Agencies would need to consider the program's
performance under Sec. 29.25(b). This provision would ensure that
program performance is included as part of a program review and can
ensure that technical assistance related to program performance is
provided to sponsors.
Proposed Sec. 29.19(d) would require sponsors and participating
employers to cooperate with requests for interviews and documentation
from the Registration Agency. This proposed paragraph would further
clarify that sponsors and participating employers may never impede the
Registration Agency's ability to interview prospective, current, or
former apprentices because such interviews are essential to conducting
a program review. Registration Agencies would be entitled to draw
adverse inferences in the event that a sponsor or participating
employer declines to answer questions, gives evasive answers, or fails
to produce records that the sponsor or participating employer is
required to maintain pursuant to proposed Sec. 29.18. This section is
intended to make program reviews by Registration Agencies as efficient
and effective as possible.
Proposed Sec. 29.19(e) explains what would happen at the
conclusion of a program review. At the conclusion of a program review,
the Registration Agency would need to provide its Notice of Program
Review Findings to the sponsor using the contact information listed in
the registered standards. The Department is proposing to notify the
sponsor using the most recent contact information provided in the
standards because it assumes that the sponsor has provided the most up-
to-date, accurate contact information with its standards, because the
Department should be able to rely on the sponsor's representation that
it can
[[Page 3187]]
effectively receive communication via that contact information, and
because the registered standards require a sponsor to designate a point
of contact to receive complaints.
Paragraphs (e)(1) though (4) would detail what must be contained in
a Notice of Program Review Findings, including a summary of any
noncompliance identified, a concise explanation as to how the
noncompliance may be cured, an explanation that the sponsor has to
develop a compliance action plan as described in paragraph (f), and a
statement that an enforcement action may be taken if compliance is not
achieved within an established timeframe. The Department thinks that
the information required here is sufficient to make the sponsor aware
of the Registration Agency's concerns and steps needed to address areas
of noncompliance.
Proposed Sec. 29.19(f) would describe the steps that the sponsor
must take when it receives a notice pursuant to paragraph (e) as well
as the further actions that the Registration Agency may take in
response.
Proposed Sec. 29.19(f)(1) would explain that where a Notice of
Program Review Findings details one or more areas of noncompliance, the
sponsor is afforded 45 calendar days from the date of notification to
either rebut the findings or submit a compliance action plan. The
Department notes that 29 CFR 30.15 affords sponsors 30 days to
implement a compliance action plan. In proposed Sec. 29.19(f)(1), the
time period would be extended from 30 to 45 days to ensure that the
time period is not shorter than that referenced in Sec. 30.15. The 45-
calendar-day period may be extended once by the Registration Agency for
up to 45 additional days for good cause. Good cause to extend the
period may be present if, for example, the sponsor recently implemented
staffing changes that would alter the personnel responsible for
rebutting the findings or developing a compliance action plan. The
determination as to whether the findings are appropriately rebutted
would be entirely within the discretion of the Registration Agency.
Proposed Sec. 29.19(f)(2) would detail the minimum requirements
that must be included in a compliance action plan. A compliance action
plan would need to make a specific commitment in writing to correct or
remediate identified deficiency(ies) and area(s) of noncompliance,
specify actions that will be taken to remedy each deficiency, specify a
timeline, and provide the name of the individual responsible for
correcting each deficiency. Proposed Sec. 29.19(f)(2) would also
explain that if a sponsor submits a rebuttal to the Notice of Program
Review Findings that in the discretion of the Registration Agency does
not rebut the Findings, the sponsor is afforded 45 calendar days from
receipt of the final notice to submit a compliance action plan for
approval. The compliance action plan should include: (1) a written
commitment to correct or remediate any deficiencies and areas of
noncompliance that have been identified by a Registration Agency; (2)
the precise actions a program sponsor will take for each deficiency
identified; (3) the time period within which a program sponsor will
remedy each deficiency that has been cited and any corresponding
program changes implemented to correct each cited deficiency; and (4)
the name of the individual or individuals responsible for correcting
each deficiency.
Proposed Sec. 29.19(g) explains the menu of options that would be
available to Registration Agencies upon receiving and reviewing a
compliance action plan. Proposed paragraph (g)(1) states that a
Registration Agency could approve the compliance action plan, determine
that the sponsor is in compliance, and terminate the program review
process. This first option is more likely to be selected upon receipt
of a particularly robust compliance action plan. A program sponsor
charged with developing a compliance action plan would need to take
steps to implement that plan in accordance with the requirements of the
regulation, even in instances where the formal program process has been
completed.
Proposed paragraph (g)(2) states that a Registration Agency could
approve the compliance action plan but continue the program review
process until the compliance action plan is appropriately implemented.
This second option may be more appropriate where the Registration
Agency determines that continued monitoring may be necessary to ensure
appropriate implementation of the compliance action plan. For example,
a sponsor could submit, and the Registration Agency could approve, a
compliance action plan that details the sponsor's plan to register its
first apprentice. However, the Registration Agency may elect to wait
until the sponsor in fact registers its first apprentice before making
the determination that the compliance action plan is appropriately
implemented and the sponsor is in compliance.
Proposed paragraph (g)(3) states that a Registration Agency could
reject the compliance action plan and proceed with deregistration
according to proposed Sec. 29.20. A Registration Agency may elect to
work with the sponsor to revise a compliance action plan that had been
rejected instead of proceeding with deregistration.
Section 29.20--Deregistration of a Registered Program
Proposed Sec. 29.20 would substantially revise the existing
provisions regarding deregistration of a registered apprenticeship
program found at 29 CFR 29.8 of the current regulation. Under the
current 29 CFR 29.8, the Department is afforded no administrative
tools, sanctions, or alternatives short of initiating formal
deregistration proceedings in instances where a program is not being
conducted, operated, or administered in accordance with the program's
registered provisions or the requirements of 29 CFR part 29. This
administrative inflexibility stands in sharp contrast to the more
graduated EEO in apprenticeship enforcement provisions found at 29 CFR
30.15, which permit the Department to work with a program sponsor to
rectify areas of noncompliance with the EEO regulatory requirements of
29 CFR part 30 through the pursuit of an intermediate administrative
step: the development of a limited-time compliance action plan that
identifies and rectifies a program's operational deficiencies.
Accordingly, to better align and harmonize the enforcement structures
in 29 CFR parts 29 and 30, the Department has proposed substantially
replicating the compliance action plan procedural mechanism currently
found at 29 CFR 30.15 and incorporating it into the proposed program
review process outlined at Sec. 29.19(f) and (g) of this proposed
regulation (see above). Should a sponsor fail to develop a compliance
action plan that satisfies the Department's requirements, however,
formal deregistration proceedings may then be initiated by the
Department as a last resort under this proposed Sec. 29.20, which the
Department has proposed be significantly updated to improve procedural
clarity and efficiency. Proposed Sec. 29.20(a) would replace the
undesignated introductory paragraph in existing Sec. 29.8 and
eliminate ambiguous references to ``deregistration proceedings'' in
favor of outlining the process step by step. The first step would be to
notify a sponsor or a participating employer of the specific violations
of parts 29 or 30 that were identified as a result of a program review,
complaint investigation, or ``any other basis.'' The reference to ``any
other basis'' is intended to capture the
[[Page 3188]]
multitude of less common methods by which a Registration Agency could
learn of a violation of parts 29 or 30, such as through the news or by
referral from another government agency. However, where a news story or
referral from another government agency may benefit from additional
investigation, the Registration Agency may elect to initiate a program
review to gather additional facts. Proposed Sec. 29.20(a) proposes a
new reference to ``participating employer'' to clarify that a
participating employer can be offered technical assistance by a
Registration Agency if suspected not to be operating in accordance with
parts 29 or 30. Ultimately, however, because a participating employer
is not a sponsor, it would be up to the sponsor to suspend the
participating employer from the program. The addition of a reference to
``participating employer'' is further intended to clarify that a
sponsor may ultimately be deregistered when a participating employer
that has adopted the sponsor's standards is not operating in accordance
with those standards or parts 29 or 30. The notice provided under
proposed Sec. 29.20(a) would in practice be very similar to the Notice
of Program Review Findings under proposed Sec. 29.19(f)(1) in that
both notices would identify an area of noncompliance on the part of the
sponsor and the remedial action that would be taken by the Registration
Agency as a result. However, a Notice of Program Review Findings would
always afford a sponsor the opportunity to submit a compliance action
plan whereas a notice under proposed Sec. 29.20(a) may reference a
wider array of options, including notifying the sponsor that the
program is deregistered.
Proposed Sec. 29.20(a)(1) through (4) are new and detail a
proposed menu of options available to a Registration Agency upon making
a determination that a violation of this part occurred. A Registration
Agency could proceed with any single option or multiple options
concurrently if the Registration Agency thinks such action is necessary
to address the noncompliance, these include
(1) offering the sponsor or participating employer technical
assistance to promote compliance;
(2) requiring the sponsor to submit a compliance action plan
pursuant to Sec. 29.19(f);
(3) suspending the sponsor's right to register new apprentices for
a specified time period; or
(4) deregistering the program pursuant to paragraph Sec. 29.20(b)
of this section.
Proposed Sec. 29.20(a)(1) would be an option to provide technical
assistance to the sponsor. This option may be selected where there is a
clear misunderstanding of the regulatory requirements on the part of
the sponsor and technical assistance may support a timely remedy to the
violation.
Proposed Sec. 29.20(a)(2) would be an option to require that the
sponsor submit a compliance action plan that meets the requirements of
proposed Sec. 29.19(f)(2). This option may be selected where the
noncompliance was discovered outside of the program review process.
Proposed Sec. 29.20(a)(3) would be an option to suspend the
sponsor's right to register apprentices for a set period of time. This
option may be appropriate where there is a concern about the safety of
apprentices in the program.
Finally, proposed Sec. 29.20(a)(4) would be an option to
deregister the program for cause pursuant to proposed Sec. 29.20(b).
Proceeding to deregistration may be appropriate if the sponsor was
already afforded an opportunity to submit a compliance action plan and
the plan was rejected, in the case of particularly egregious
violations, or where the program has failed to respond to the
Registration Agency.
Proposed Sec. 29.20(b) would substantially streamline existing
Sec. 29.8(b). It would remove references to persistent and significant
failure to perform successfully and other enumerated bases for
deregistration and would instead implement a standard for
deregistration by which any program not operated in accordance with
parts 29 or 30 could be deregistered if the sponsor fails to correct
the violations or fails to receive approval of a compliance action plan
and implement that compliance action plan within the required
timeframes. The determination as to whether a compliance action plan is
approvable and whether an approved compliance action plan is being
appropriately implemented would be at the sole discretion of the
Registration Agency. Proposed Sec. 29.20(b) would eliminate references
to ``reasonable cause to deregister,'' which in existing Sec.
29.8(b)(5) serves as the point at which an appeal of the Registration
Agency's decision must be taken. By requiring a sponsor to appeal
deregistration before a final agency determination as to deregistration
has issued, current Sec. 29.8 requires appeals to be taken before they
are ripe. Proposed Sec. 29.20(b) would correct this problem by making
a Notice of Deregistration the point after which a sponsor may either
request a review by the Administrator or, in certain cases, request a
hearing before the Office of Administrative Law Judges (OALJ).
Proposed Sec. 29.20(c) would carry forward much of existing Sec.
29.8(a). References to cancellation are proposed to be struck to avoid
confusion with the cancellation of apprenticeship agreements. The
proposed paragraph would clarify that the Registration Agency will
deregister a program upon receipt of a written request, in contrast
with the existing text that says a Registration Agency may do so. This
change would reflect the reality that OA will always deregister a
program upon the request of the sponsor.
Proposed Sec. 29.20(d) is new and would establish the process by
which the Administrator will review the Registration Agency's Notice of
Deregistration. In summary, this provision would establish a three-step
process of review when a Notice of Deregistration is issued by an SAA:
(1) Informal Resolution (by the Administrator); (2) Appeal (to OALJ);
and Appeal (to ARB). The Department is proposing the addition of this
review process for two reasons. First, the Department believes that
where the deregistration decision was made by an SAA, the Administrator
should review the SAA's deregistration decision so that any novel
issues relating to this part, part 30, or the National Apprenticeship
System are resolved by the Administrator in the first instance, as
opposed to the OALJ. Accordingly, where the Notice of Deregistration
was issued by an SAA, this review process would be a required step
before requesting a hearing before the OALJ. Where the Notice of
Deregistration was issued by the Administrator, this review process
would not be necessary before a request for a hearing is requested.
Second, the Department is proposing the process in Sec. 29.20(d) to
minimize the Departmental resources that must be used to deregister
programs that become unresponsive, even after multiple attempts by the
Registration Agency to contact the sponsor, or where the sponsor fails
to register at least one apprentice. Accordingly, where the Notice of
Deregistration states the basis for deregistration as a failure to
respond to multiple attempts from the Registration Agency to contact
the sponsor or a failure to register at least one apprentice, or both,
the outcome of this review process would serve as the final agency
determination of the Department regarding deregistration. The
Administrator shall publish a notice of final agency determination on
an OA public-facing website in compliance with proactive disclosure
requirements under the FOIA (5 U.S.C. 552 (a)(2)).
[[Page 3189]]
Paragraph (d)(1) would explain how a former sponsor may request
review from the Administrator. Requests would need to be submitted
electronically and in writing within 30 calendar days from the date of
the Notice of Deregistration. The request would not need to be made in
any particular format, but the request itself would need to provide any
and all relevant facts or documentation that exist as of the time of
the request. It would be entirely the obligation of the former sponsor
to provide any arguments, facts, and documents in an understandable
manner as part of the request for review. The Administrator would take
into consideration the totality of the request and supporting
documentation presented and render the Administrator's final decision.
Paragraph (d)(2) would address deregistrations where an SAA is the
Registration Agency. In these situations, the request for review would
need to be sent to the Registration Agency and the Administrator
simultaneously such that the Administrator and the SAA are provided
with identical copies of the request and all supporting documentation.
The SAA would then have 15 calendar days to provide the Administrator
with a record containing the pertinent facts underlying the SAA's
deregistration determination. The Administrator could request
additional information from the sponsor, the Registration Agency, or
both, though the Administrator would not be required to do so.
Paragraph (d)(3) would explain that if OA is the Registration
Agency, OA will compile for the Administrator's review all relevant
information already in OA's possession or already submitted by the
former sponsor, and may request additional information from the former
sponsor, though OA is not obligated to do so.
Paragraph (d)(4) would explain that the Administrator will issue a
final decision that explains the basis for the decision as quickly as
practicable after receiving all information necessary for the
Administrator to make a decision. While the Administrator would work as
quickly as possible, the Department has not included a required
timeframe because the facts and issues in specific cases may require
more or less time to make a decision and, therefore, a uniform
timeframe may inadvertently require the Administrator take less time
than necessary to fully consider a request for reconsideration.
Paragraphs (d)(5) and (6) would explain that except where the basis
for deregistration is a failure to respond to multiple attempts from
the Registration Agency to contact the sponsor or a failure to register
at least one apprentice, or both, the former sponsor may still request
a hearing before the OALJ within 15 calendar days of receipt of the
Administrator's final decision. Where the former sponsor does not
request a hearing within 15 calendar days, or where the basis for
deregistration is a failure to respond or a failure to register at
least one apprentice, the Administrator's final decision would be the
Department's final agency action and the OALJ would not have
jurisdiction to consider an appeal. The Department's intent in
proposing to preclude the OALJ from hearing appeals based on a failure
to respond or a failure to register at least one apprentice is to limit
the expenditure of Departmental resources on disputes that are
typically very straightforward and easily resolved by engagement with
the Registration Agency. The Department's intent is to encourage
sponsors of such programs to work with the Registration Agency before
deregistration to address the lack of responsiveness or failure to
register an apprentice through the provision of technical assistance or
an action plan. If the cause of the deregistration stems from the
program's lack of commitment to operating an apprenticeship training
program, the Department thinks that it is better for the broader
apprenticeship system to deregister such programs expeditiously. In
addition, because these problems are readily resolved, sponsors may
always seek reinstatement of their program under proposed Sec. 29.22
once the issue that gave rise to the failure to respond or failure to
register an apprentice is resolved.
Proposed Sec. 29.20(e) would address the process for requesting a
hearing before the OALJ and would streamline existing Sec. 29.8(b)(6)
through (8). Proposed paragraph (e)(1) would explain that all requests
for hearings must be sent to the OALJ. It would further note that where
an SAA is the Registration Agency, the former sponsor has 15 calendar
days from the date of the Administrator's final decision to request a
hearing. Where an SAA deregistered the program, the Department is
proposing to require the former sponsor to request review by the
Administrator first to ensure that any novel or incorrect
interpretations of parts 29 or 30 are not decided in the first instance
by the OALJ. As OA is the Department's subject-matter expert on
apprenticeship, the Department thinks it most appropriate that OA
should always be afforded the opportunity to review a deregistration
decision by an SAA before the OALJ or the Administrative Review Board
(ARB) render the final agency decision for the Department. As noted
above, this would allow OA to provide input on any novel issues
relating to this part, part 30, or the National Apprenticeship System
that are present in the matter.
Proposed paragraph (e)(2) would explain that a request for a
hearing must simultaneously be furnished to the Administrator (see
https://www.dol.gov/agencies/eta/apprenticeship for contact
information), and the Associate Solicitor for Employment and Training
Legal Services (see https://www.dol.gov/agencies/sol/divisions/employment-training-legal-services for contact information). The
paragraph would further explain that the Administrator will promptly
compile and submit to the OALJ the administrative file containing the
documentation relied on by the Administrator in reaching the
Administrator's final decision or the Notice of Deregistration, as
applicable.
Proposed paragraph (e)(3) would explain that hearings would be
conducted per proposed Sec. 29.21.
Section 29.21--Hearings on Deregistration
Proposed Sec. 29.21 would carry forward much of current Sec.
29.10. However, existing Sec. 29.10(a), which currently requires the
Administrator to request a hearing from the OALJ, would be deleted
entirely and replaced with the process described above. The Department
determined that the current process outlined in Sec. 29.10(a) is
inefficient and that the appealing party's notice is sufficient.
Proposed Sec. 29.21(a)(1) and (2) would carry forward existing
Sec. 29.10(b)(1) and (2) verbatim. In addition, the proposed rule
would add paragraphs (a)(3), to clarify that the request for a hearing
is not a complaint to which an answer is required, and (a)(4), to
clarify that limited pre-hearing motions and discovery may be permitted
at the discretion of the assigned Administrative Law Judge. The
clarification in paragraph (a)(3) that no answer to a request for
hearing would be required is intended to supplement the OALJ
regulations at 29 CFR part 18 and capture the reality that an
Administrative Law Judge assigned to a deregistration hearing will
receive a comprehensive administrative file from the Administrator,
which should render a separate answer unnecessary. The clarification in
paragraph (a)(4) is intended to allow for limited discovery, though the
Department anticipates that in most instances the case will be able to
be decided on the record without further discovery.
[[Page 3190]]
Proposed Sec. 29.21(b) would carry forward existing Sec. 29.10(c)
with the only additions being added citations to the ARB's recently
promulgated Rules of Practice and Procedure and the inclusion of a
standard of review for the OALJ. The Department proposes to clarify
that the arbitrary and capricious standard of review applies because it
is regularly used in administrative adjudications reviewing final
agency determinations. The arbitrary and capricious standard of review
would require the Administrative Law Judge to uphold the
Administrator's decision unless it is shown by the sponsor to be
arbitrary, capricious, an abuse of discretion, or otherwise not in
accordance with the law.
Section 29.22--Reinstatement of Program Registration
Proposed Sec. 29.22 is new and would explain that an
apprenticeship program that is deregistered may have its registration
reinstated if the prospective sponsor submits adequate evidence that
the program is operating in compliance with parts 29 and 30. Although a
former sponsor would normally be able to reapply for registration, this
section would establish a parallel process by which a former sponsor
with an active but unregistered program could submit evidence in
support of having its registration reinstated. The Department envisions
that this process would address situations where a former sponsor's
deregistered standards are in conformance with parts 29 and 30 but
where the former sponsor was deregistered for not operating its program
in conformance with the standards, with part 29, or with part 30. For
example, a sponsor could be deregistered for failure to register a
single apprentice, but post-deregistration provide the Registration
Agency with evidence of registering at least one apprentice as well as
an adequate explanation for not doing so previously; the determination
as to what constitutes adequate evidence lies exclusively with the
Registration Agency.
Section 29.23--Exemptions
Proposed Sec. 29.23 would permit the Administrator to entertain
requests for exemptions from any or all of the provisions contained in
subpart A of 29 CFR part 29. Such requests would be required to be made
in writing and transmitted to the Administrator and would also be
required to contain a statement of the reasons supporting the request.
The Administrator would only grant an exemption for good cause. Good
cause may be found in instances where the sponsor demonstrates to the
Administrator that the granting of the exemption will expand or support
the safety and welfare of apprentices. The Department would not grant
an exemption that would reduce or minimize the protections afforded
apprentices under this proposed regulation. The Department is
interested in any comments regarding criteria the Department could use
to establish when good cause may be found.
This proposed exemption provision would be similar to the existing
exemption allowance contained in 29 CFR 30.19 of the EEO in
Apprenticeship regulations, except that SAAs would be excluded from
involvement in the consideration or issuance of exemptions under
proposed Sec. 29.23, and the Administrator would retain the full and
exclusive authority to evaluate and grant exemptions from the
provisions of subpart A of 29 CFR part 29.
The Department also wishes to note that the proposed exemption
provision would not apply to any of the regulatory provisions contained
in either subpart B or subpart C of the revised 29 CFR part 29. The
Department is proposing this to ensure the exemptions are solely based
on labor standards requirements. The Department would consider comments
on exemptions for subpart B for potential sponsors of registered CTE
apprenticeship. The Department is not proposing an exemption authority
for subpart C because that subpart addresses the collection of
apprenticeship data, which as described below is a key priority of this
rulemaking to ensure a comprehensive data set on registered
apprenticeship programs. Subpart C also governs the SAAs; the
Department is not proposing any exemptions regarding their individual
governance, in an effort to build a more cohesive system. While the
Department may consider individual program level exemptions on labor
standards, given the Department's goal of building a National
Apprenticeship System, the elements of subpart C are not being proposed
to be eligible for exemption.
C. Subpart B--Career and Technical Education Apprenticeship
The Department has long heard from National Apprenticeship System
stakeholders that creating additional apprenticeship opportunities
would expand the benefits of apprenticeship and maximize its workforce
development potential, particularly for individuals who are in the
early stages of career development, such as students in high school and
postsecondary students who are actively taking steps to begin their
future careers and assessing the postsecondary opportunities available
to them. It also would be a beneficial model for businesses looking to
expand their talent pipelines, including businesses that participate in
registered apprenticeship programs under subpart A. Registered
apprenticeship has been a successful workforce development tool for job
seekers for decades, and the Department recognizes that many of the
occupational training and professional development elements of
registered apprenticeship would be valuable for the subset of the
population who are enrolled in high school and in community and
technical colleges and are taking steps to improve their career
opportunities. However, the existing National Apprenticeship System has
had very limited participation from high-school-aged youth. In FY 2022,
only 1.2 percent of active apprentices, or 7,643 apprentices, in
registered apprenticeship programs were 16-18 years old.\144\ Most
youth ages 16-18 are in high school, and these years are critical for
helping students understand and make informed choices for their
education and career paths, particularly for youth who do immediately
enter postsecondary education.\145\
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\144\ OA, ``Data and Statistics,'' https://www.apprenticeship.gov/data-and-statistics (last updated June 16,
2023).
\145\ OA, ``Data and Statistics,'' https://www.apprenticeship.gov/data-and-statistics (last updated June 16,
2023).
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More broadly, the Department is concerned about the persistent
decline in youth labor force participation, as well as an unemployment
rate more than twice as high as the national average, for those
individuals aged 16 to 24 years old. The summer labor force
participation rate for 16- to 24-year-olds was 60.2 percent in July
2023, down from 61.8 percent in July 2019.\146\ Youth labor force
participation has been trending downward since reaching a high of 77.5
percent in July 1989 due to a number of factors, such as lack of
training and work experience, transportation and access to work sites,
and the lasting impact of labor market disruptions during and following
economic downturns.\147\ While some individuals aged 16 to 24 years old
may be attending some type of education or
[[Page 3191]]
training and forgoing employment, research indicates these factors may
also underlie why the unemployment rate for this population, those who
are actively looking for work but are unemployed, is more than twice as
high as the national average. This population's unemployment rate (ages
16-24) remains well above the national average based on the BLS
``Employment and Unemployment Among Youth Summary,'' published in
August 2023, which showed the July 2023 unemployment rate for youth was
8.7 percent,\148\ compared to 3.5 percent overall at the same time.
Ongoing declines in labor force participation and disparities in
unemployment may create long-term challenges for those individuals in
this population who seek job opportunities that provide economic
mobility and may disrupt the development of a skilled workforce needed
to address demographic shifts and sustain U.S. economic
competitiveness. The Department recognizes the need to engage and
support school-aged individuals and adult learners who are seeking to
enter a career pathway and utilize an earn-and-learn model such as
registered apprenticeship, which will help to increase labor force
participation and close the gap in unemployment rates relative to the
rest of the working population.
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\146\ BLS, The Economics Daily, Aug. 29, 2023, https://www.bls.gov/opub/ted/2023/60-2-percent-of-youth-participated-in-the-labor-force-in-july-2023.htm (last visited Oct. 5, 2023).
\147\ Note: After peaking at 77.5 percent in July 1989, the rate
trended downward then ranged between 60.0 to 60.6 percent during
2012 to 2018. Congressional Research Service, ``Youth and The Labor
Force: Background and Trends,'' Aug. 20, 2018, https://crsreports.congress.gov/product/pdf/R/R42519.
\148\ BLS, Economic News Release, ``Employment and Unemployment
Among Youth Summary,'' Aug. 16, 2023, https://www.bls.gov/news.release/youth.nr0.htm.
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Nationally, Perkins CTE programs enroll roughly 8.3 million
secondary students and 3.5 million postsecondary students,\149\ and
they are open for enrollment by students looking to attain industry-
recognized competencies and skills, a recognized postsecondary
credential, and work-based learning experiences. Additionally, the
inclusion of CTE programs within the current registered apprenticeship
model has provided a promising opportunity to bridge education and
workforce development. After working and consulting with registered
apprenticeship stakeholders, workforce development analysts and
experts, and Federal partners at ED, the Department is proposing a new
and emergent type of registered apprenticeship--registered CTE
apprenticeship--modeled on the most relevant elements of traditional
registered apprenticeship but with key distinguishing features to
accommodate students in high school and postsecondary education.
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\149\ ED, Perkins Collaborative Resource Network, ``National
Summary,'' https://cte.ed.gov/profiles/national-summary (last
visited Sept. 8, 2023).
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This proposed registered CTE apprenticeship model seeks to
strengthen the connection with secondary and postsecondary education
programs by bringing together the core concepts of registered
apprenticeship and CTE, and working to ensure that strong State-level
coordination exists to manage the program. To this end, the Department
has proposed the registered CTE apprenticeship program be delivered
through a Perkins-eligible recipient's CTE program because Perkins
already provides a high-quality framework for apprenticeship-related
instruction and can capture economies of scale in matching students
interested and involved in CTE with registered apprenticeship. Perkins-
eligible recipients may choose to become CTE apprenticeship sponsors to
expand and enhance their Perkins CTE program with high-quality on-the-
job experience for their students, culminating in a credential that
would enhance CTE students' prospects to transition to employment,
registered apprenticeship under subpart A, or postsecondary education.
The proposed regulation and registered CTE apprenticeship program would
not impact the independence and function of ED's Perkins program or
that of Perkins grantees and subgrantees. That is, the proposed subpart
would only apply to States that develop a written agreement between
their State CTE Agency and a Registration Agency, States that wish to
become Registration Agencies, and States and CTE programs that wish to
become registered CTE apprenticeship sponsors as recognized by DOL.
Further, ED's implementation and oversight of the Perkins CTE program
would be unaffected. In addition, though the regulations propose that
the State CTE Agency (i.e., the agency with authority to oversee
Perkins) is a required partner, the regulations would not alter the
existing authorities of the State CTE Agency for implementation and
oversight of Perkins.
The proposed requirements for registered CTE apprenticeship's labor
standards, program registration, and program administration would
largely reflect the labor standards, program registration, and program
administration requirements for registered apprenticeship, with some
distinctions and differences as explained in this NPRM's preamble for
subpart B. Many of the proposed requirements are already common
practice in high-quality CTE programs and related work-based learning
programs. The primary distinctions between these two types of
registered apprenticeship programs, under subparts A and B, would be:
(1) the required use of industry skills frameworks to support CTE
apprenticeship-related instruction and provide direction for on-the-job
training; (2) different hours thresholds for related instruction and
on-the-job training; (3) different eligibility requirements for who may
serve as program sponsors; and (4) student outcomes focused on post-
completion career pathways. The Department proposes to center
registered CTE apprenticeship programs around industry skills
frameworks (rather than the occupational basis of most registered
apprenticeship programs). Industry skills frameworks more broadly
encompass the range of career options available to high school and
college students by integrating industry-recognized competencies and
skills. Registered CTE apprenticeship programs would be guided by an
approved industry skills framework and delivered through a Perkins-
eligible recipient's CTE program and paid on-the-job training.\150\
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\150\ The Perkins statute safeguards local control over
instructional content, academic standards and assessments,
curricula, and programs of instruction. 20 U.S.C. 2306a(a).
Accordingly, the regulations proposed would only impact and control
DOL CTE apprenticeship programs and would not create any rules
governing the operation of Perkins programs. Nothing in this
proposed regulation would mandate, direct, or control a State's,
local educational agency's, eligible Perkins recipient's, or
school's specific instructional content, academic standards and
assessments, curricula, or program of study.
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In addition, the registered CTE apprenticeship model would place a
greater emphasis on the related instruction element of registered
apprenticeship, and proposes to involve a higher amount of required
time spent in related instruction (CTE apprenticeship-related
instruction) with postsecondary credit hours and a lesser amount of on-
the-job training, compared to the proposed program in subpart A. For
registered CTE apprenticeship, the Department proposes a minimum of 540
hours of required CTE apprenticeship-related instruction, which
encompasses not less than 12 postsecondary credit hours as part of the
program. The proposed 540 hours of CTE apprenticeship-related
instruction and 900 hours of on-the-job training could occur while a
student is enrolled in high school, or while a student is enrolled in
postsecondary education, or the program could be structured to span
high school and postsecondary education.
For secondary school systems, the registered CTE apprenticeship
model may expand opportunities for students
[[Page 3192]]
to pursue postsecondary coursework, create opportunities to earn
recognized postsecondary credentials that students earn in CTE
programs, including a nationally recognized certificate of completion
of registered CTE apprenticeship, and expand work-based learning to
include paid on-the-job training with designed wage increases, and
support the alignment of CTE programs to registered apprenticeship
programs under subpart A, in addition to postsecondary credential and
degree programs.
For postsecondary institutions the registered CTE apprenticeship
model may create opportunities to develop additional employer-driven
educational programs, particularly in programs where clinical
experiences and similar models may not exist, and where students would
benefit from paid on-the-job training offered alongside or included as
part of a postsecondary credential and/or degree program. Registered
CTE apprenticeship may also help postsecondary institutions to create
education programs that bridge their workforce and degree programs
within their institution, potentially creating opportunities for
students to access federal student aid to support their participation
in the program, in addition to creating opportunities to embed an
apprenticeship program within a degree program, and expand programs
that are offered as an ETP under WIOA.
For regions that are seeking to create or have already established
strong linkages between their secondary education system and community
and technical college system, registered CTE apprenticeship can be
structured to bridge these two education systems, ensuring that
students graduate high school, transition into postsecondary education
with at least 12 postsecondary credit hours, earn a recognized
postsecondary credential, and have strong pathways to continue their
education while simultaneously participating in the workforce and
receiving progressive wage increases. Registered CTE apprenticeship may
also help these communities to better position employers as co-owners
of their education and workforce systems, support paid on-the-job
learning and other forms of Federal and State financial aid that may be
available, to help to offset their education costs, provide additional
student mentorship, and leverage additional support from community-
based organizations to provide wraparound or other student services.
In contrast, for registered apprenticeship under subpart A, the
Department is proposing 144 hours of related instruction for every
2,000 hours of on-the-job training. The higher amount of CTE
apprenticeship-related instruction is proposed to ensure that CTE
apprentices have the requisite number of hours to successfully complete
a program and academic requirements for graduation. The lower amount of
on-the-job training hours is proposed to ensure that CTE apprentices
receive the technical, hands-on opportunities to demonstrate their
progress and attainment of industry-recognized competencies and skills
while also ensuring that CTE apprentices work an age-appropriate number
of hours while attending school. Specifically, researchers have
consistently found that there are negative academic outcomes for
students who work intensively (e.g., more than 20 hours) during high
school. For example, one study that examined the impact of employment
on academic performance and behavioral outcomes (e.g., effort, truancy,
misbehavior, and suspensions) of students in 8th, 10th, and 12th grade
found that intensive work in high school, defined as working more than
20 hours per week, was associated with lower grade point averages,
lower school effort, and greater frequencies of misbehavior. Those who
worked more limited hours (20 hours or less per week) increased their
odds of obtaining a bachelor's degree and exhibited no differences in
high school academic or behavioral outcomes than those who did not work
at all.\151\
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\151\ Jeremy Staff et al., ``Adolescent work intensity, school
performance, and academic engagement,'' Sociology of Education,
83(3), 183-200 (July 2010), https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2926992/.
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Standards of registered CTE apprenticeship would be based on
approved industry skills frameworks and delivered through CTE programs
and paid on-the-job training that must be completed by a CTE apprentice
to receive a certificate of completion of registered CTE
apprenticeship. Completing a registered CTE apprenticeship program
would provide a CTE apprentice with industrywide skills and
competencies, a recognized postsecondary credential(s) and at least 12
transferable postsecondary credit hours, which would enable CTE
apprentices to enroll in a postsecondary educational program, enroll in
a registered apprenticeship under subpart A, potentially with advanced
standing, or continue employment.
While the new model of registered CTE apprenticeship is designed to
align with Perkins CTE programs, CTE apprenticeship programs under this
proposal also would have the option to design programs that meet the
registration requirements of subpart A, particularly in CTE program
areas that are more occupationally based. In doing so, secondary and
postsecondary institutions may choose to build onto their existing
registered apprenticeship programs to create additional opportunities
for learners or they may wish to connect registered apprenticeship
programs that are developed under subparts A and B to create stackable
instructional models. For secondary and postsecondary institutions that
already support registered apprenticeship programs under subpart A, the
development of registered CTE apprenticeship programs may help to
create new pathways into registered apprenticeship, may support
diversity, equity, inclusion, and accessibility efforts, and may create
opportunities to engage existing or new employers to expand their
partnership in new or different occupations and industries.
Registered CTE apprenticeship would be an additional model designed
to specifically align labor standards with State-approved CTE programs
and, where appropriate, State or locally developed educational
curriculum, where it may not always be feasible under subpart A and, in
doing so, would provide multiple postsecondary pathways for CTE
students and employment, and may include opportunities for CTE students
to earn advanced standing in registered apprenticeship under subpart A.
Registered CTE apprenticeship would retain most of the key elements of
the registered apprenticeship model as set forth in proposed subpart A,
with some differences or adjustments based on the unique
characteristics of the population registered CTE apprenticeship will
serve--namely, high school and college students--including, among other
considerations, their age and typical experience, their courseload,
schedule, and stage of career development or transition into a new
career. As proposed, the Department envisions some key adjustments to
the registered apprenticeship model for registered CTE apprenticeship.
The Department considered using exemptions proposed under subpart A to
accommodate this program design, but determined that the requirement
for Registration Agency coordination with State CTE Agencies is an
essential element of this proposal and could not be implemented through
use of exemptions under subpart A. In addition, programs are not exempt
from the establishment and implementation
[[Page 3193]]
of robust standards of registered CTE apprenticeship. Such standards
are essential to ensuring that registered CTE apprenticeship programs
deliver consistently high-quality education and training, while also
ensuring that CTE apprentices are trained in a safe and accessible
workplace environment where they are protected from exploitation and
abuse.
The Department coordinated and sought consultation with ED in
developing the proposed regulations for registered CTE apprenticeship.
In addition, this new model is informed by existing and ongoing efforts
to develop youth and registered apprenticeship models that incorporate
CTE.\152\ In coordination with ED, the Department will seek to provide
technical assistance to States and local stakeholders as needed to
implement this new model.
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\152\ Joseph B. Fuller et al., The Project on Workforce, Harvard
University, ``The Options Multiplier: Decoding the CareerWise Youth
Apprenticeship Journey,'' Nov. 14, 2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
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The Department has also taken into consideration the
recommendations from the ACA to expand apprenticeship opportunities
that offer postsecondary credit and the ability to advance along a
career pathway for in-school youth and other individuals.\153\ The
registered apprenticeship model has been highly successful, as
described throughout this rulemaking, in successfully training
individuals outside of the current secondary and postsecondary
education systems. However, it has not been able to systematically
align with CTE programs and employment opportunities for those students
who may have difficulty meeting the minimum eligibility requirements
for entering into a registered apprenticeship program under subpart A.
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\153\ See ACA, ``Interim Report to the Secretary of Labor,'' May
16, 2022, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf. ACA recommendations on this topic
include to coordinate with ED and education institutions to promote
the provision of academic credit for apprenticeship training or
tuition reimbursement and to enhance high school-level
apprenticeships with credit given for direct entry into formal
registered apprenticeship programs.
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The Department recognizes that previous efforts to create and
strengthen articulation between secondary and postsecondary
institutions have had positive effects for the populations targeted by
this proposal. From fall 2019 to fall 2021, 586,000 fewer recent high
school graduates were enrolled in community college compared with
277,000 fewer older adults, a troubling trend as students of all ages
enter or re-enter the labor market without the necessary education and
training for economic success. However, during this same time, dual
enrollment, a hallmark of successful CTE programs and youth
apprenticeship models that incorporate CTE, continued to grow with high
school students accounting for one in five community college
students.\154\ The impact of obtaining postsecondary education is
profound: for all demographic groups by gender and race, the labor
force participation rate increases by 4.4 percent and the unemployment
rate decreases by 0.5 percent for high school graduates with some
college compared to those who graduated high school but have no
college.\155\ In addition, data from the High School Longitudinal Study
of 2009 indicate that, 3 years after completing high school, public
high school graduates who were not enrolled in a postsecondary
credential program and who had earned 3.00 or more CTE credits during
high school had a lower unemployment rate than their peers who earned
fewer CTE credits.\156\ Additionally, at the secondary level students
who concentrate \157\ in a CTE program have a 96.2 percent 4-year
graduation rate in the aggregate and greater than 90 percent for all
students subgroups disaggregated by gender, race, ethnicity, and
special populations with the exception of youth in foster care (86.7
percent) and youth who are single parents (89.3 percent),\158\ which
are closer to the national average of 87 percent.\159\ By incorporating
the benefits of strong academic and technical preparation and
established articulation between secondary and postsecondary credits,
which is found in high-quality CTE programs, along with establishing
quality labor standards for the paid work-based learning component for
students in the registered CTE apprenticeship program, the Department
anticipates this model will be successful in establishing a strong
skills-based foundation with quality work experience to jumpstart CTE
apprentices' careers, while also ensuring that students continue to
meet core educational milestones.
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\154\ John Fink, ``What Happened to Community College Enrollment
During the First Years of the Pandemic? It Depends on the Students'
Age,'' Jan. 9, 2023, https://ccrc.tc.columbia.edu/easyblog/what-happened-to-community-college-enrollment-depends-students-age.html.
\155\ BLS, Labor Force Statistics from the Current Population
Survey, ``Employment status of the civilian noninstitutional
population 25 years and over by educational attainment, sex, race,
and Hispanic or Latino ethnicity,'' https://www.bls.gov/cps/cpsaat07.htm (last updated Jan. 25, 2023).
\156\ National Center for Education Statistics, ``Data Point:
Labor Market Outcomes for High School Career and Technical Education
Participants: 2016,'' Apr. 2020, https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2020060.
\157\ In Perkins, the term ``CTE concentrator'' means: (1) at
the secondary school level, a student served by an eligible
recipient who has completed at least two courses in a single career
and technical education program or program of study; and (2) at the
postsecondary level, a student enrolled in an eligible recipient who
has either earned at least 12 credits within a career and technical
education program or program of study or completed such a program if
the program encompasses fewer than 12 credits or the equivalent in
total (Perkins sec. 3(12)). This means that once a student completes
two courses in a single CTE program of study, they are counted as a
CTE concentrator.
\158\ ED, Perkins Collaborative Resource Network, ``National
Summary,'' https://cte.ed.gov/pcrn/profile/national/performance/2021/population/1s1/met/secondary/race (last visited Oct. 23, 2023).
\159\ National Center for Education Statistics, ``Fast Facts,
High School Graduation Rates,'' https://nces.ed.gov/fastfacts/display.asp?id=805 (last visited Oct. 23, 2023).
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The Department believes a unique model of quality labor standards,
based on the success of registered apprenticeship, that is designed for
individuals in secondary or postsecondary education can help students
have successful careers and can benefit employers in developing a
skilled workforce. This model, in conjunction with an existing
infrastructure that supports the capacity and expertise to administer
and provide quality CTE curricula and program offerings, could help to
close a widening divide and ensure all learners and workers who face
labor market disparities have greater opportunities for economic
mobility. These quality labor standards while participating in
education activities can be especially beneficial for youth and other
individuals starting their careers by ensuring they are receiving and
applying industry-validated skills and competencies in a paid work
setting.
Section 29.24--Registration of Career and Technical Education
Apprenticeship Programs
Proposed Sec. 29.24 would create the regulatory structure for
registered CTE apprenticeship programs to meet the following core
requirements: coordination between a Registration Agency and State CTE
Agency; program standards and the requirement that they be registered
with a Registration Agency; alignment of competencies obtained through
on-the-job training outlined in approved industry skills frameworks
that provide CTE apprentices with industry-recognized skills and
competencies; CTE apprenticeship-related instruction component of the
standards delivered through a CTE program; program sponsor eligibility
and requirements for LEA, institutions of higher education, State CTE
Agencies, or designated intermediaries; partnership
[[Page 3194]]
requirements and coordination with employers and intermediaries; and
CTE apprenticeship agreements. This is a new and emerging model that is
intended to integrate labor standards and industrywide skills and
competencies into CTE programs and would support the development of a
talent pipeline to meet current and future employer workforce needs.
The Department is interested in comments regarding these proposed core
requirements, which are described herein, including any recommendations
regarding different or additional requirements and any information that
can substantiate those recommendations.
29.24(a) Required coordination
Proposed Sec. 29.24(a)(1) would establish the requirement for a
Registration Agency, whether it is OA or the SAA, and the State CTE
Agency to coordinate on the administration of Registered CTE
apprenticeship programs in each State. The purpose of this requirement
is to facilitate a flexible framework between the Registration Agency,
which would have the responsibility for approving standards of
registered CTE apprenticeship, and the State CTE Agency, which has the
existing responsibility to oversee Perkins CTE programs within
respective States and approved CTE programs. Areas of coordination
include the process of program approvals, program reviews, data
collection, and compliance activities established within this part. The
purpose of coordinating administrative responsibilities is to ensure
that both parties work cooperatively to support registered CTE
apprenticeship program sponsors, such as LEAs, institutions of higher
education, and their designated intermediaries, in the coordination of
registered CTE apprenticeship programs while ensuring that such
programs meet the requirements of this part. Most importantly,
coordination is necessary to ensure the welfare of CTE apprentices,
many of whom are likely to be high school and community college
students who will be transitioning into a postsecondary educational
program, a registered apprenticeship program under subpart A, or other
employment following the completion of the registered CTE
apprenticeship. Coordination to engage industry and business is
integral to the success of all registered apprenticeship programs,
especially a new model that would provide career readiness and
exploration through paid on-the-job training for students in State-
approved CTE programs. A State CTE Agency and Registration Agency are
encouraged to coordinate industry engagement, provide services to
business and employers, promote CTE apprenticeships, and provide
technical assistance on developing program standards.
While high school youth can currently participate in registered
apprenticeship programs under subpart A, this new model would provide
an opportunity for secondary and postsecondary schools to engage with
the National Apprenticeship System and work with education
administrators, instructors, and practitioners to utilize and leverage
their institutional expertise in developing and structuring CTE related
instruction and paid on-the-job training. The Department understands
that the State CTE Agency would have the statutory responsibility for a
number of requirements under this part. If the proposed rule is adopted
as drafted, it would be incumbent on States to develop the proper
coordination to ensure that the welfare of CTE apprentices and
administrative oversight by each party meet all existing Federal and
State statutory and regulatory requirements. The Department notes that
nothing in this proposed rule is intended to alter the existing
authorities of the State CTE Agency for oversight of Perkins and the
Registration Agency for oversight of any registered apprenticeship
program. The Department is interested in comments on how Registration
Agencies and State CTE Agencies should develop the necessary
coordination, what elements should be included in the coordination
process, and what challenges and barriers may exist that would require
technical assistance or additional subregulatory guidance.
Proposed Sec. 29.24(a)(2) would establish the requirement for the
State CTE Agency and Registration Agency to enter into a written
agreement for the statewide coordination and operation of registered
CTE apprenticeship programs. The written agreement should describe the
roles and responsibilities of each agency that has programmatic and
administrative responsibilities throughout this part. The Department
recognizes that States can develop various agreements, such as
memoranda of understanding, interagency agreements, and other types of
written agreements, that establish roles and responsibilities for the
purposes of aligning State resources, administrative infrastructure,
and program accountability. States should have maximum flexibility in
developing such written agreements, but the requirement to have a
written agreement is designed to ensure that a formal understanding
about roles and responsibilities has been agreed upon. The Department
is interested in comments about whether there should be additional
guidance on what should be included in a written agreement. The
Department is also interested in comments about existing coordination
mechanisms for the establishment of written coordination agreements
between a Registration Agency and State CTE Agency that might be
incorporated into SAA State Apprenticeship Plan efforts described below
and in subpart C to facilitate program oversight and fulfill
administrative requirements, such as program review processes and data
sharing agreements.
Sec. 29.24(b) Approval of Industry Skills Framework
Proposed Sec. 29.24(b) would establish industry skills frameworks
as a distinct requirement and component of registered CTE
apprenticeship that would be required to be included in registered CTE
apprenticeship program standards. An industry skills framework
describes industrywide competencies and skills that are foundational to
any number of career pathways within an industry or industry sector for
which the framework has been developed. Industry skills frameworks
would provide the basis for assessing competency and skill attainment
of CTE apprentices in the on-the-job training component of a registered
CTE apprenticeship. They also would be the framework whereby high-
quality labor standards can be applied and integrated into the
registered CTE apprenticeship model. In conjunction with CTE
apprenticeship-related instruction, industry skills frameworks would
enable the programmatic outcomes of placement into employment, a
postsecondary educational program, or a registered apprenticeship
program under subpart A.
Industry skills frameworks are similar in concept to the National
Occupational Standards for Apprenticeship detailed in proposed Sec.
29.13 but are different in that they focus on industrywide
competencies, whereas National Occupational Standards focus on
occupational proficiency. Industry skills frameworks are foundational
industrywide skills and competencies that enable access to a career
pathway and are the essential ``building blocks'' for greater
occupational proficiency. Similar to National Occupational Standards
for Apprenticeship, the Administrator would oversee the development of
and updates to industry
[[Page 3195]]
skills frameworks. As part of the proposed approval process, the
Administrator would ensure that such frameworks are industry validated,
rigorously developed, and portable. Industry skills frameworks should
be designed to incorporate foundational skills and competencies, such
as employability skills or workplace competencies, that are accepted
industrywide and, in combination with technical skills, are applicable
to real-world workplace tasks and activities. Industry skills
frameworks comprehend skills and competencies that are portable across
a number of occupations within the industry. As such, registered CTE
apprenticeship programs would provide an opportunity for CTE
apprentices to discover occupations that would be included within any
one industry skills framework.
Industry skills frameworks can be the foundational component for
developing both standards of registered CTE apprenticeship and a work
process schedule for greater occupational proficiency if a potential
program sponsor endeavors to operate both models of registered
apprenticeship under subparts A and B. Industry skills frameworks are
not, however, a replacement for a work process schedule in the
determination of an occupation suitable for registered apprenticeship
under proposed Sec. 29.7 in subpart A or a framework that is a
substitute for National Occupational Standards for Apprenticeship under
proposed Sec. 29.13 in subpart A. The Department notes that creating a
broad industry skills and competency foundation as a starting point in
program development for registered CTE apprenticeship programs as
opposed one that ultimately requires to proficiency in a specific
occupation is one of the key departures from the registered
apprenticeship model under subpart A. However, the Department envisions
the industry skills framework can be complementary in helping students
get skills and competencies that can be built into registered
apprenticeship programs under subpart A. These proposed industry skills
frameworks establish the floor for student skill development, allowing
programs to build on top of this foundation to create programmatic
opportunities for greater specificity as to the skills and competencies
that would lead toward occupational proficiency, including
opportunities for alignment to registered apprenticeship programs under
subpart A where appropriate. Proposed Sec. 29.24(b)(1) describes the
criteria that must be met before the Administrator will approve an
industry skills framework for use in a registered CTE apprenticeship
program.
Proposed Sec. 29.24(b)(1)(i) would establish the requirement for
an industry skills framework to include a structure for the development
of professional behaviors, workplace competencies, and academic
competencies required by an industry. Examples of professional
behaviors include but are not limited to reliability, initiative,
interpersonal skills, and adaptability; academic competencies might
include the ability to effectively read and write, problem-solve, and
think critically; and workplace competencies might include
collaboration and teamwork, oral and written communication, and
customer service.
Proposed Sec. 29.24(b)(1)(ii) would establish the requirement that
industry skills frameworks are validated, widely recognized, and
nationally applicable in the industry to which the framework is
intended to apply. Industry skills frameworks recognize that many
skills and competencies are cross-cutting, across industries and
sectors, and provide a strong foundation for greater technical
proficiency applied toward learning an occupation or across an
occupational cluster. To the extent that industry skills frameworks
align with CTE Career Clusters and the process by which State and local
advisory councils address workforce needs by providing recommendations
on CTE programmatic alignment, the Department is interested in comments
that explore this interconnection and alignment to create greater
feedback on the development of industry skills frameworks and their
required use in standards of registered CTE apprenticeship.\160\ The
Department envisions leveraging the proposed process for establishing
National Occupational Standards for Apprenticeship (see Sec. 29.13 in
subpart A of this proposal) to develop industry skills frameworks. The
Department anticipates that the initial process for developing industry
skills frameworks would engage a broad set of industry stakeholders.
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\160\ The National Career Clusters[supreg] Framework serves as
an organizing tool for CTE programs, curriculum design and
instruction. There are 16 Career Clusters in the National Career
Clusters Framework, representing 79 career pathways to help learners
navigate their way to greater success in college and career. The
framework also functions as a useful guide in developing programs of
study bridging secondary and postsecondary systems and for creating
individual student plans of study for a complete range of career
options. As such, it helps learners discover their interests and
their passions, and empowers them to choose the educational pathway
that can lead to success in high school, college, and career. More
information, including crosswalks with DOL's O*Net occupational
codes can be found here: https://careertech.org/career-clusters.
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Proposed Sec. 29.24(b)(1)(iii) would require that the skills and
competencies specified within the on-the-job training outline be
obtained by a CTE apprentice through the attainment of at least 900
hours of on-the-job training over the course of the program, as
explained below. The 900 hours may be spread across multiple years;
however, the Department does consider a minimum requirement of on-the-
job training hours to be an important requirement of the registered CTE
apprenticeship model to ensure CTE apprentices are obtaining employment
in the program, at a sufficient length, in order to obtain industrywide
or industry-sector technical competencies.\161\
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\161\ See DOL, ``Building Blocks Model,'' https://www.careeronestop.org/CompetencyModel/competency-models/building-blocks-model.aspx (last visited July 20, 2023).
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Proposed Sec. 29.24(b)(1)(iv) would establish the requirement that
an industry skills framework align with an approved CTE program so that
the employment component of the registered CTE apprenticeship is
providing the appropriate practical on-the-job training supported by
the CTE apprenticeship-related instruction. In this connection to the
National Apprenticeship System, registered CTE apprenticeship programs
with approved industry skills frameworks will align with the National
Career Clusters[supreg] Framework Perkins Career Clusters published by
Advance CTE and associated CTE programs. The Department is interested
in comments that address potential alignment and implementation to
create systematic cohesion and seamless transitions for CTE apprentices
to successfully participate, progress through, and complete a
registered CTE apprenticeship.
Proposed Sec. 29.24(b)(1)(v) would establish the requirement that
industry skills frameworks detail the industry-validated methods for
ongoing evaluations to assess an apprentice's attainment of a
competency to make sure that CTE apprentices are regularly evaluated as
they progress through the registered CTE apprenticeship. As explained
in the preamble for subpart A's proposed Sec. 29.16, the Department
views regular evaluations of apprentices in registered apprenticeship
programs as a central element of program design that verifies whether
or not programs are meeting apprenticeship's foundational goal of
preparing apprentices for their future careers. The Department notes
[[Page 3196]]
that student skill demonstrations and evaluation currently exist in
high-quality CTE programs. Programs must perform assessments or
evaluations to verify that apprentices have learned and retained the
job skills, knowledge of theoretical concepts that underpin successful
performance of such skills, and professional behaviors that will make
them successful in their careers.
At proposed Sec. 29.24(b)(1)(v), the Department proposes to
include regular evaluations as a required element of registered CTE
apprenticeship, and as with the proposed assessment framework for
registered apprenticeship in subpart A, would leave all aspects of the
design of such assessments up to registered CTE apprenticeship program
sponsors. The Department expects that industry stakeholders,
educational and workforce development experts, and other leaders will
be instrumental in developing frameworks for the evaluation of CTE
apprentices in registered CTE apprenticeship programs, and that
individual programs would tailor such frameworks to the specific
elements and needs of their program, course of study, and CTE
apprentice population.
For registered CTE apprenticeship, such evaluations will be
important, but should take a different form than the more robust
evaluation and end-point assessment framework proposed in this
rulemaking for registered apprenticeship programs (at proposed Sec.
29.16). In the Department's view, registered CTE apprenticeship
programs would not need to confer occupational proficiency for all
participants. Registered CTE apprenticeship programs may serve more
secondary and postsecondary student apprentices than registered
apprenticeship programs under subpart A and would benefit such
apprentices by introducing them to career options and ideas, developing
professional behaviors, and conferring occupational competencies that
will aid them in their efforts to find and retain meaningful careers
and pursue higher levels of education. The Department does not view the
attainment of occupational proficiency as an appropriate baseline
requirement for registered CTE apprenticeship programs, because the
unique design of this model focuses more on foundational industry
skills than on occupational proficiency, which the Department has
determined requires more on-the-job training hours to achieve, as
described in subpart A. However, the Department notes that some
registered CTE apprenticeship programs and registered apprenticeship
programs under subpart A should align to support student learning
progression through both programs, and in doing so will blend industry
skills frameworks with established occupational work process schedules
or National Occupational Standards for Apprenticeship under subpart A
to support student mastery of both models.
The Department invites public comments on the proposed requirement
to regularly assess CTE apprentices' progress at proposed Sec.
29.24(b)(1)(v), including the differences between the minimum
requirements for evaluating apprentices across registered
apprenticeship and registered CTE apprenticeship. The Department notes
that there are already existing assessments being utilized by many high
quality CTE programs; however, the Department is seeking comments as to
whether an industry-recognized end-point assessment for registered CTE
apprenticeship would strengthen the relevance of the skills and
competencies attained and maximize the likelihood that students seeking
to directly enter high-quality careers will be able to do so. The
Department is generally interested in comments regarding ideas and
approaches to strengthen the connection between registered CTE
apprenticeship programs and the labor market, and specifically whether
the inclusion of an end-point assessment requirement would strengthen
this connection.
Proposed Sec. 29.24(b)(2) would establish the requirement for the
Administrator to solicit public feedback, including from industry in
evaluating suitability of industry skills frameworks. The purpose of
this proposed provision is to ensure the Administrator would be able to
engage the public and industry leaders, such as industry associations,
large, medium, and small employers, labor unions and, to the extent
feasible, State and local CTE advisory council industry membership, to
ensure that industry skills frameworks are continuously updated to
reflect the changing needs of industry for which a skills framework has
been developed. Such a process, along with the requirement of 30 days
of public comment would ensure the opportunity for robust feedback on
the applicability of standards to industry and ensure standards are of
the highest quality and relevance. Additionally, to ensure transparency
OA would maintain a publicly accessible link to the approved industry
skills frameworks as well as any that were not approved. Lastly, this
provision provides that the Administrator may also use relevant
industry data or information to validate the relevance of industry
skills frameworks. Such resources may include the O*NET database,
industry and occupational data from BLS and other federal agencies, as
well as other data and information available to ensure industry skills
frameworks are aligned with the needs of their respective industries.
The Department recognizes that for a potential program sponsor
looking to develop a registered CTE apprenticeship program, an industry
skills framework must first be developed and approved by the
Administrator. The Department also recognizes that as a new model of
registered apprenticeship, implementation will require a reasonable
timeframe to develop processes through subregulatory guidance, a
written agreement for the coordination between a Registration Agency
and State CTE Agency, registered CTE apprenticeship programs, and
approved industry skills frameworks. The Department anticipates a
robust process for the development of industry skills frameworks will
be required to ensure that industry, across both the National
Apprenticeship System stakeholder and Perkins communities, are engaged
and invited to participate in such frameworks. State CTE Agencies will
be important leaders in these conversations and State CTE standards may
provide a foundation for some industry skills frameworks. This process
will also help the Department determine in which industries such
industry skills frameworks must first be developed, the number of
industry skills frameworks, and their alignment and application with
other frameworks. Until the frameworks are developed and approved, a
registered CTE apprenticeship program sponsor will not be able to
properly develop and align their on-the-job training outlines with the
approved industry skills framework required in this section.
Sec. 29.24(c) Standards of Registered CTE Apprenticeship
Proposed Sec. 29.24(c) would describe the minimum standards of
registered CTE apprenticeship that all registered CTE apprenticeship
programs must include to be registered by a Registration Agency. The
establishment and implementation of robust standards of registered CTE
apprenticeship is essential to ensuring that registered CTE
apprenticeship programs deliver consistently high-quality education and
training to registered CTE apprentices, while also ensuring that CTE
apprentices are trained in a safe and accessible workplace environment
where they are protected from exploitation and abuse. Standards of
[[Page 3197]]
registered CTE apprenticeship largely would follow the labor standards
of apprenticeship under subpart A that elaborate and strengthen the
current standards of apprenticeship for the conduct of registered
apprenticeship programs that address key program components, such as
progressively increasing wages, apprentice-to-journeyworker ratios,
safety requirements, advanced standing and credit, cost transparency,
and effective measures to ensure that apprentices are free from
violence, intimidation, and retaliation in the workplace. These are the
core requirements that help ensure that apprentices receive high-
quality training in a safe, healthy environment.
Registered CTE apprenticeship program standards would differ from
the standards set forth in subpart A by incorporating key concepts such
as industry skills frameworks that inform the outline for the on-the-
job training component, CTE apprenticeship-related instruction that
utilize State-approved CTE programs for the curriculum of non-
duplicative coursework, the requirement that standards include the
awarding of at least 12 postsecondary credit hours leading to a
recognized postsecondary credential attainment, and which may include
advanced standing in registered apprenticeship programs under subpart
A, and how such standards will enable CTE apprentices to enroll in
postsecondary educational programs, engage in employment, or both. The
Department's intention in creating the Registered CTE apprenticeship
model with quality labor standards in conjunction with CTE
apprenticeship-related instruction is to enable the foundation for
sustained academic success within the program and beyond program
completion, provide the opportunity for continuous skill and competency
attainment that will enable greater proficiency in a job as students
enter the labor market, and ensure the program is able to fulfill the
Department's mission to safeguard the welfare of apprentices, which
includes CTE apprentices. Similar to proposed Sec. 29.8, proposed
Sec. 29.24(c) would ensure program sponsors, participating employers,
registered CTE apprentices, and other interested parties understand the
minimum standards of registered CTE apprenticeship and seek to provide
apprentices the necessary skills and competencies for lifelong labor
market success. Given the unique partnerships required at the State
level and the incorporation of State-approved CTE programs embedded
into the CTE apprenticeship-related instruction, the Department is not
proposing a National Program Standards for Apprenticeship registration
framework for registered CTE apprenticeship.\162\ The Department
considers local registration as defined in proposed Sec. 29.2 as the
appropriate method for registering CTE apprenticeship programs.
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\162\ As previously stated, these proposed regulations would
govern the proposed DOL CTE apprenticeship program; they would not
govern ED or the Perkins program. In particular, the Perkins statute
safeguards local control over instructional content, academic
standards and assessments, curricula, and programs of instruction.
20 U.S.C. 2306a(a). These regulations would only impact and control
DOL CTE apprenticeship programs and would not create any rules
governing the operation of Perkins programs. Nothing in this
proposed regulation would mandate, direct, or control a State's,
local educational agency's, eligible Perkins recipient's, or
school's specific instructional content, academic standards and
assessments, curricula, or program of instruction.
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Proposed Sec. 29.24(c)(1) would establish the requirement for
program sponsors to include an on-the-job training outline that aligns
with an approved industry skills framework in standards for registered
CTE apprenticeship. The Department envisions industry skills frameworks
to be the guiding framework for program sponsors to use in determining
the appropriate work activities that lead to proficiency of skills and
competencies that a CTE apprentice would attain in a paid, on-the-job
training work experience. Industry skills frameworks would be inclusive
of all the requisite skills and competencies that an industry would
both recognize and find valuable for employment in a number of
occupations that are predominantly found within a single industry or
across an industry sector. Such on-the-job training outlines aligned to
industry skills frameworks would provide measurable proficiency in the
attainment of industry-recognized skills and competencies. Registration
Agencies would have the discretion to determine whether a proposed on-
the-job training outline submitted by a sponsor aligns with an approved
industry skills framework approved by the Administrator. The Department
acknowledges the need for a balance and customization of on-the-job
training outlines with the goal of ensuring programs are providing
competencies on the job in a way that is industry validated to ensure
CTE apprentices have recognized work experience and are set up for
career success in occupations throughout the respective industry.
Proposed Sec. 29.24(c)(2) would establish the requirement for
program sponsors of a registered CTE apprenticeship to include a
description of the CTE apprenticeship-related instruction that must, at
a minimum, include a State-approved CTE program and have a duration of
at least 540 hours. The Department proposes a minimum of 540 hours of
CTE apprenticeship-related instruction to earn a certificate of
completion of registered CTE apprenticeship which would allow the CTE
apprentice to concentrate in a postsecondary CTE program, as
applicable, complete a recognized postsecondary credential and earn and
receive at least 12 postsecondary credit hours towards a recognized
postsecondary credential or degree, while also providing flexibility
for eligible program sponsors to determine the appropriate number of
hours above this requirement based on State and local CTE programs and
the development of career pathway programs that connect registered CTE
apprenticeship programs with additional postsecondary education
opportunities.
The Department proposes a minimum of 540 hours of CTE
apprenticeship-related instruction to earn a certificate of completion
of registered CTE apprenticeship because 540 hours would provide a CTE
apprentice the opportunity to complete foundational coursework and more
advanced coursework necessary to demonstrate success in postsecondary
education, pursue registered apprenticeship under subpart A, and to
seek further employment.
Related to the 540 hour minimum requirement for CTE apprenticeship-
related instruction, the Department is proposing that CTE apprentices
must receive a minimum of 12 postsecondary credit hours as part of
their program. The Department intends for the use of the term ``credit
hour'' to align with the definition under the Higher Education Act of
1965 and its implementing regulations, as amended.\163\ The Department
notes that each postsecondary credit hour translates to approximately
30 clock hours.\164\ Generally, 12 postsecondary credit hours should
comprise approximately 360 clock hours of the required 540 hour minimum
for CTE apprenticeship-related instruction. However, the Department
notes that postsecondary credit hours may also be acquired as part of
the on-the-job training component of the program, that when combined
with credit hours earned during the CTE apprenticeship-related
[[Page 3198]]
instruction should equal not less than 12 postsecondary credit hours.
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\163\ https://www.ecfr.gov/current/title-34/part-600#p-600.2(Credit%20hour).
\164\ https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2021-05-25/implementation-updated-clock-credit-conversion-regulations-ea-id-general-21-34.
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The Department notes that the remaining CTE apprenticeship-related
instruction hours may be acquired through additional postsecondary
credit hours, secondary education, or through other industry or
employer designed related instruction, as applicable. This proposal is
designed to provide sponsors flexibility of how to attain the 540
hours, in addition to the 12 postsecondary credit hour requirement.
The postsecondary credit hour requirement is proposed so that the
CTE apprenticeship-related instruction includes industrywide skills and
competencies and the acquisition of college credit to ensure that CTE
apprentices make significant progress toward a postsecondary credential
or degree such as an associate's degree and/or bachelor's degree.
Evidence shows clear economic gains for individuals as they attain
higher levels of education after high school, such as the acquisition
of postsecondary credit and credentials. According to the Department's
Bureau of Labor Statistics (BLS), earnings increase and unemployment
decreases among individuals who have attained postsecondary education
and credentials when compared to individuals who have only completed
high school.\165\ In addition, the Department believes the requirement
for 12 postsecondary credit hours that can be applied towards a
recognized postsecondary credential or degree will incentivize the
greater utilization of college programs while students are in high
school, which evidence suggests leads to improved student outcomes.
These benefits include higher student performance on state assessments,
higher high school graduation rates, increased enrollment and
completion of postsecondary programs, and increased lifetime earnings
for students.\166\ Finally, the model of adopting college, including
postsecondary credit hours, in high schools has been shown to increase
access and opportunity to college and postsecondary education for low-
income students, underserved populations, and first-generation college
students.\167\ The Department believes the evidence associated with
postsecondary educational attainment is a critical component and
benefit to students in the design of registered CTE apprenticeship
programs.
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\165\ https://www.bls.gov/emp/chart-unemployment-earnings-education.htm.
\166\ https://www.air.org/project/evaluating-impact-early-college-high-schools.
\167\ Six Years and Counting: The ECHSI Matures (air.org).
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The Department is proposing a 12 postsecondary credit hour standard
because the Department believes that this level of credit has multiple
benefits for CTE apprentices, while balancing the ability to design
programs under this proposed approach. This includes helping CTE
apprentices who are in secondary school to complete high school and
transition into higher levels of education and employment, as evidenced
by the benefits of dual enrollment, as well as serving adults who may
be career changers, and subsequently providing these apprentices with a
head start to pursue additional postsecondary education. Evidence
suggests that the benefits of dual enrollment increase for secondary
students with every postsecondary credit earned, particularly that
benefits and educational attainment increase for those students with 12
or more credits than those with less than 12 credits.168 169
Therefore, the Department is proposing this approach to ensure the
benefits of this evidence is incorporated into the program design of
registered CTE apprenticeship. CTE apprentices under this approach will
be in a strong position to build their careers with continued
employment, including through registered apprenticeship programs under
subpart A, continue their postsecondary education towards a
postsecondary credential and degree, or both.
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\168\ Taylor, J.L., Allen, T.O., An, B.P., Denecker, C.,
Edmunds, J.A., Fink, J., Giani, M.S., Hodara, M., Hu, X.,
Tobolowsky, B.F., & Chen, W. (2022), Research priorities for
advancing equitable dual enrollment policy and practice. Salt Lake
City, UT: University of Utah. Retrieved from: https://cherp.utah.edu/_resources/documents/publications/research_priorities_for_advancing_equitable_dual_enrollment_policy_and_practice.pdf.
\169\ Radunzel, J., Noble, J., & Wheeler, S. (2014). Dual-
credit/dual-enrollment coursework and long-term college success in
Texas. ACT. https://www.act.org/content/dam/act/unsecured/documents/DualCreditTexasReport.pdf.
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The Department is seeking comments on its proposal to require that
all registered CTE apprentices earn 12 postsecondary credit hours as
part of their participation in a registered CTE program, and is
interested in comments that identify: (1) how this proposal supports
the broader goal of the program to increase the labor market
connectivity for CTE apprentices; (2) the benefits for CTE apprentices
of this approach or an alternative standard of postsecondary credit
hours should be considered; and (3) the feasibility for secondary
school sponsors of registered CTE apprenticeship programs to design
programs that include these requirements. Additionally, the Department
is interested in comments regarding the impact of the 12 postsecondary
credit hour requirement across all industries that would utilize
registered CTE apprenticeship and registered apprenticeship programs
under subpart A or if other factors should be considered on an industry
basis.
The Department is particularly interested in comments about how it
can a support the growth of secondary educational models that imbed
postsecondary credit hours into the program design. The Department is
also interested in comments regarding the attainment of a minimum of 12
postsecondary credit hours, including that it leads to a postsecondary
credential or degree, evidenced by a postsecondary institution's
official transcript(s) for a CTE apprentice, and any other factors that
can increase access to the labor market and higher education
opportunities for CTE apprentices. Finally, we recognize that many
registered CTE sponsors will not be credit awarding institutions,
particularly local education agencies. The Department is seeking
comment on whether it will be feasible for sponsors to enter into
partnerships with institutions of higher education or to make other
arrangements for the awarding of the requisite credit hours, and
whether the Department should include an affirmative partnership
requirement between postsecondary institutions and local education
agencies if they seek to sponsor a registered CTE apprenticeship
program.
In considering whether to establish a floor for the number of hours
required in CTE apprenticeship-related instruction, the Department
evaluated a number of factors, such as application of standard credit-
bearing unit, State flexibility for establishing credit hours, and
Perkins performance accountability. Initially, the Department regarded
the Carnegie unit as a universal unit of measurement in credit-bearing
hours for a student's ability to successfully complete the necessary
credits for attaining a recognized secondary or postsecondary
degree.\170\ While the Carnegie unit is a standardized unit of
measurement, under Perkins, States have flexibility in how they define
courses and assign credits to courses. States that use Carnegie or
other units
[[Page 3199]]
may translate those units into hours of instruction.
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\170\ Carnegie Foundation for the Advancement of Teaching,
``What is the Carnegie Unit?,'' https://www.carnegiefoundation.org/faqs/carnegie-unit (last visited July 20, 2023).
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Perkins-eligible recipients typically calculates contact hours for
State accountability purposes. As an example calculation, a P-12 school
year is typically 180 days, and if a student attends school every day
and has 6 CTE contact hours during a school day, that student would
accumulate 540 hours of contact hours. In this example, 540 hours
supports the establishment of the required number of hours in CTE
apprenticeship-related instruction, provided that these hours include
the required postsecondary coursework. Postsecondary Perkins recipients
may also choose to calculate instruction time using clock hour and
credit hour requirements. In this example, 540 clock hours would equate
to 18 credit hours using the guidance provided by Federal Student
Aid.\171\
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\171\ See Federal Student Aid, ``Implementation of updated
clock-to-credit conversion regulations,'' May 25, 2021 https://fsapartners.ed.gov/knowledge-center/library/electronic-announcements/2021-05-25/implementation-updated-clock-credit-conversion-regulations-ea-id-general-21-34.
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In establishing a floor of 540 hours, the Department is allowing
flexibility to accommodate variability in how eligible program sponsors
define hours and how they are applied to meet the requirement for the
CTE apprenticeship-related instruction component. The inclusion of at
least 12 postsecondary credit hours within the 540 hours of CTE
apprenticeship-related instruction is designed to ensure that there are
strong linkages between secondary and postsecondary programs, and
opportunities for students to achieve the desired outcomes of the
program. The Department anticipates that there will be a range of
applicable credit hours that are counted toward a CTE apprentice's
participation in a program as a requirement of a CTE apprenticeship-
related instruction component included in the standards. A program
sponsor would need to determine the required length of time a student
may be enrolled in a corresponding program and as part of the overall
CTE apprenticeship-related instruction. The Department recognizes that
the requirement for 540 hours for CTE apprenticeship-related
instruction may solely occur while students are in high school, may
solely occur while students are enrolled in postsecondary education,
and may also span students' high school experience and into
postsecondary education. To the extent that States have CTE programs
that include dual or concurrent enrollment agreements or articulation
agreements that facilitate the extension of programs that have similar
characteristics to registered CTE apprenticeship programs, the
Department is interested in commenters' examples of such programs and
the necessary coordination amongst CTE stakeholders to achieve the 540
hours of CTE apprenticeship-related instruction and the inclusion of at
least 12 postsecondary credit hours that will be necessary to enable
and expand these types of educational pathways. The Department is also
interested in comments about the established floor for CTE
apprenticeship-related instruction and whether it should be lower or
higher to best accommodate the proposed model while providing
educational attainment pathways for enrolled students.
This proposal also includes a provision found in subpart A
regarding whether apprentices, or CTE apprentices in this instance,
would be provided wages and fringe benefits during their participation
in CTE apprenticeship-related instruction. The Department acknowledges
that under the registered CTE apprenticeship model, where the CTE
program is the primary form of CTE apprenticeship-related instruction,
sponsors and employers may be less likely to provide support wages for
the hours in which the CTE apprentices are participating in their CTE
program. However, the Department encourages, where possible, registered
CTE apprenticeship models in which employers elect to provide wages or
fringe benefits during CTE apprenticeship-related instruction. This may
also be relevant where employer-specific training is added to the CTE
program as part of the total amount of CTE apprenticeship-related
instruction.
Proposed Sec. 29.24(c)(3) would establish the requirement that
program sponsors of a registered CTE apprenticeship include a
description of any recognized postsecondary credentials that would be
awarded to a CTE apprentice as a programmatic outcome either during or
at the completion of registered CTE apprenticeship. Program sponsors
also would be required to include, as applicable, any associate or
baccalaureate degree associated with the program and the amount of
postsecondary credit hours that students will earn as a result of the
registered CTE apprenticeship. Program sponsors must also include the
name of any credential or certificate awarding entity, typically an
accredited education institution, as part of the description. The
Department has proposed a similar requirement in subpart A, requiring
the disclosure of credentials provided by the program; however, the
requirement to disclose the number of postsecondary credit hours is a
proposed requirement for registered CTE apprenticeship. The Department
has determined this information is valuable for Registration Agencies
to have as part of its desire to build high-quality registered
apprenticeship programs in both models.
Proposed Sec. 29.24(c)(4) would establish the requirement that
program sponsors of a registered CTE apprenticeship include a
description of how the program will result in CTE apprentices'
selection into an apprenticeship program registered under subpart A,
enrollment in a postsecondary educational program, employment, or some
combination thereof. The Department considers a program that
accomplishes any one of these three outcomes as key to measuring the
success of the registered CTE apprenticeship model, and believes it is
important for sponsors to have considered these outcomes and for
apprentices to have visibility into the potential outcome of their
participation. Registered CTE apprenticeship programs should establish
a documented relationship with a registered apprenticeship program
established under proposed subpart A, especially in sectors where such
programs are well-established, and with an institution of higher
education, to maximize educational and employment opportunities for CTE
apprentices.
As previously discussed, an industry skills framework is utilized
in developing the on-the-job outline that is a core component of a
registered CTE apprenticeship. Such outlines must have a minimum
duration of 900 hours of paid on-the-job training and lead to
proficiency in the skills and competencies described in the industry
skills framework. Proposed Sec. 29.24(c)(5) would establish the
requirement that program sponsors of a registered CTE apprenticeship
include a description of the employment in which CTE apprentices will
be employed in on-the-job training with criteria included in the on-
the-job training outline. The Department is proposing this requirement
because registered apprenticeship programs under subpart A are
responsible for training in a specific occupation and, therefore, the
specific type of employment is known in that model, under the
registered CTE apprenticeship model, the Department is approving
broader industry skills frameworks that could lead to attainment of
foundational skills in multiple occupations within an industry. The
Department considers the
[[Page 3200]]
requirement critical to ensuring the employment associated with the
registered CTE apprenticeship is relevant to the industry skills
framework. By including this description, a Registration Agency can
better ascertain that the skills identified in the framework are being
achieved by the CTE apprentice through employed on-the-job training.
The Department is basing the 900 hours requirement on certain State
youth apprenticeship models that require a minimum of 450 hours of on-
the-job training per year.\172\ The Department has also reviewed
several State requirements of State youth apprenticeship models and how
States and localities have incorporated CTE into such models, as well
as the incorporation of CTE into pre-apprenticeship and registered
apprenticeship.173 174 Such practices are the basis for
establishing the requirement of 900 hours of on-the-job training. For
example, the State of Wisconsin has established that a youth
apprenticeship consists, at minimum, of 1 year of employment of at
least 450 hours and related instruction of at least two semester-long
courses.\175\ In addition to completing 1 year of a youth
apprenticeship, high school juniors or seniors may choose to also
complete 2 years of employment of at least 900 hours and related
instruction of at least four semester-long courses, which can be
completed during the junior or senior year of high school (including
over the summer or during breaks between semesters). Similarly, the
State of Maryland offers youth apprenticeship opportunities for
students typically in their junior and senior year of high school and
requires students in such programs work a minimum of 450 hours with an
employer approved by the Maryland Division of Workforce Development and
Adult Learning while receiving concurrent related educational
instruction that has been approved by their local school system.\176\
The Department is basing its approach off of these models' 1-year youth
apprenticeship standard, which balances a student's education and work-
life, and applying it to a model that requires the equivalent of a 2
year duration. This would help to ensure the programmatic goal of
bridging secondary and postsecondary education with quality labor
standards. Rather than impose a yearly requirement, the hourly
requirement provides flexibility for multiple models of when the
employment may take place, including during the school year or semester
and over the summer or during breaks between semesters. The Department
welcomes comments both on establishing a floor of paid on-the-job
training hours for registered CTE apprenticeship, as well as any
recommendations on the number of hours needed for that floor. The
Department is interested in comments about whether this proposed floor
limits program development. To the extent that potential program
sponsors are interested in pursuing this new model, the Department is
interested in comments addressing whether existing program design and
outcomes provide evidence that the number of 900 hours should be
lessened. The Department is also interested in comments addressing
whether the 900-hour floor is sufficient to train apprentices on core
industry competencies in a work setting or if a higher number should be
considered.
---------------------------------------------------------------------------
\172\ Wisconsin Department of Public Instruction, ``Career-Based
Learning Experience: State-Certified Youth Apprenticeship,'' Aug.
2022, https://dpi.wi.gov/sites/default/files/imce/acp/pdf/2022_08_State-Certified_Youth_Apprenticeship_handout.pdf.
\173\ An explanation of youth apprenticeship utilizing
registered apprenticeship can be found at https://www.jff.org/what-we-do/impact-stories/center-for-apprenticeship-and-work-based-learning/youth-apprenticeship. See also Joseph B. Fuller et al., The
Project on Workforce, Harvard University, ``The Options Multiplier:
Decoding the CareerWise Youth Apprenticeship Journey,'' Nov.14,
2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
\174\ ED, ``Opportunities for Connecting Secondary Career and
Technical Education (CTE) Students and Apprenticeship Programs,''
June 2017, https://careertech.org/resource/connecting-secondary-cte-and-apprenticeships.
\175\ Wisconsin Department of Workforce Development, ``Youth
Apprenticeship,'' https://dwd.wisconsin.gov/apprenticeship/ya (last
visited July 20, 2023).
\176\ Maryland Department of Labor, ``Policy Issuance 2022-12:
Youth Apprenticeship,'' Dec. 19, 2022, https://www.labor.maryland.gov/employment/mpi/mpi12-22.pdf.
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Proposed Sec. 29.24(c)(6) largely follows proposed Sec.
29.8(a)(17) and would require the written standards to include wages
that the CTE apprentice will receive during the registered CTE
apprenticeship program. The current regulation at 29 CFR 29.5(b)(5)
stipulates the payment of a progressively increasing schedule of wages
to be paid to the apprentice with the skill required. It further
provides that the entry wage may not be less than the Fair Labor
Standards Act minimum wage, where applicable, unless a higher wage is
required by other applicable Federal, State, or local law, or
respective regulations, or by collective bargaining agreement.
The Department also proposes to retain the requirement of a minimum
wage floor at the outset of the apprenticeship and a graduated schedule
of progressively increasing wages for apprentices during the remainder
of the apprenticeship term. However, similar to proposed Sec.
29.8(a)(17), proposed Sec. 29.24(c)(6) would stipulate that the
graduated schedule of wages paid to a CTE apprentice would increase
over the balance of the apprenticeship term to reflect the apprentice's
progressive acquisition of industry skills and competencies.
The Department invites comments on these provisions to bolster the
registered CTE apprenticeship progressive wage requirements. The
Department is interested in comments regarding the feasibility of this
approach across industries, and whether this requirement effectively
balances the goal of providing continuous progressive wages with
competency attainment against industry needs for flexibility regarding
wage increases.
In addition to these proposed wage progression revisions, the
Department reminds sponsors that, consistent with the requirements of
29 CFR part 30, the wages paid by a sponsor or a participating employer
to a CTE apprentice must not discriminate against such persons on the
basis of race, color, religion, national origin, sex, sexual
orientation, gender identity, age (40 or older), genetic information,
or disability. In addition, the Department reminds both registered CTE
apprenticeship program sponsors and participating employers that CTE
apprentices who meet the definition of an employee under either the
Internal Revenue Code or the Fair Labor Standards Act--which they will
in virtually every instance--must not be misclassified by such sponsors
or employers as independent contractors.
Proposed Sec. 29.24(c)(7) would follow proposed Sec. 29.8(a)(19)
in subpart A, regarding the ratio of apprentices to journeyworkers, and
would apply ratio requirements for registered CTE apprenticeship in
this part. The intended purpose of this ratio requirement is to further
the Department's goal of ensuring the safety and welfare of CTE
apprentices while engaged in on-the-job training. Proposed Sec.
29.24(c)(7)(i) would specify that the sponsor's ratio must be approved
by a Registration Agency, consistent with the proper safety, health,
supervision, and training of the CTE apprentice. This requirement would
center apprentice safety and welfare as the main considerations in the
establishment of the specific numeric ratio for a registered CTE
apprenticeship program. To ensure that the ratio is consistent
[[Page 3201]]
with the proper safety, health, supervision, and training of the
registered CTE apprentice, program sponsors and the reviewing
Registration Agency should consider factors that could endanger the
welfare of an apprentice who is participating in their program such as
risk of exposure to hazardous working conditions and risk of serious
bodily injury or death while on the job.
In practice, a ratio of one apprentice to one journeyworker has
been the norm for programs under subpart A; however, registered CTE
apprenticeship may require greater scrutiny for ratios because there is
a greater likelihood that high-school-aged CTE apprentices may
participate in settings where they will need more supervision to ensure
proper training and safety.
While apprentice safety is the focus of the proposed requirement,
there would also be flexibility provided to sponsors in setting the
specific numeric ratio. Proposed Sec. 29.8(c)(7)(ii) would specify
that sponsors must use a ratio that is consistent with the provisions
of any applicable collective bargaining agreements, as well as any
applicable Federal and State laws governing ratios of apprentices to
journeyworkers, and specific and clearly described as to its
application to a particular workforce, workplace, job site, department,
or plant. The Department recognizes that a one-size-fits-all approach
is not feasible with respect to ratios. Instead, the Department is
cognizant that ratios may be different depending upon the specific
industry or on-the-job training opportunity in which the registered CTE
apprenticeship program is taking place. The Department also recognizes
that a specific numeric ratio of an apprenticeship program may be set
in an applicable collective bargaining agreement or by applicable
Federal and State laws. As described in subpart A at proposed Sec.
29.8, the current practice has been to approve a 1:1 ratio, with some
deviations based on safety and other considerations of specific
industries. The Department anticipates a similar ratio for registered
CTE apprenticeship. Ultimately, each program must have a ratio specific
to that program that is designed to protect the safety of its CTE
apprentices consistent with the considerations described and discussed
above. The Department is seeking comments on these longstanding
criteria, particularly to ensure how the ratios are applied in both
emerging and traditional industries that provide CTE apprentices with
foundational skills and competencies and work experiences. The
Department is also interested in comments about setting ratios where
there is a blended on-the-job training component with a registered
apprenticeship under subpart A. Finally, the Department seeks comments
on whether it should require a different CTE apprentice-to-
journeyworker ratio because of the nature of this model being designed
for students and their related employment.
Proposed Sec. 29.24(c)(8) would establish the requirement for a
probationary period that program sponsors of a registered CTE
apprenticeship must include in program standards. The probationary
period for registered CTE apprenticeship programs may not exceed 30
days. Proposed Sec. 29.24(c)(8) differs from proposed Sec.
29.8(a)(12) by creating a shorter probationary timeframe for registered
CTE apprenticeship. The 30-day probation period aligns with customary
practices Perkins-eligible recipients and institutions utilize to allow
students to change courses at the outset of a semester. For example, a
CTE apprentice may choose to change their course schedule or enroll in
another program or other coursework unrelated to the registered CTE
apprenticeship for which they were admitted. The probationary period is
also shortened to recognize that registered CTE apprenticeship
programs' on-the-job training hours are shorter in length than those of
registered apprenticeship programs under subpart A. The Department is
interested in comments about whether the probationary period length is
appropriate for CTE students' participation in and program sponsors'
operation of CTE programs and registered CTE apprenticeship programs.
Proposed Sec. 29.24(c)(9) follows proposed Sec. 29.8(a)(15) and
would require that the standards of registered CTE apprenticeship
include an attestation that the program sponsor will provide adequate,
safe, and accessible facilities for the training and supervision of
apprentices. The attestation must include that the program sponsor will
provide accessible facilities (including for individuals with
disabilities), aligning with the Department's broader goal that
registered CTE apprenticeship programs registered under this part are
career pathways available to everyone. The Department adds that the
attestation would also require that the facilities be compliant with
all applicable Federal, State, and local laws, including, but not
limited to, disability, occupational safety, and occupational health
laws.
Proposed Sec. 29.24(c)(10) follows proposed Sec. 29.8(a)(16) and
would require that the standards of registered CTE apprenticeship
include an attestation that the program sponsor will provide adequate,
industry-recognized safety training for apprentices in both the on-the-
job training and CTE apprenticeship-related instruction components of
the registered CTE apprenticeship program. Proposed Sec. 29.24(c)(10)
would require that safety training provided to CTE apprentices be
tailored to mitigate the potential workplace hazards that may be
encountered in the covered industry skills framework on-the-job
training outline. This proposed requirement would help ensure the
safety of apprentices participating in registered CTE apprenticeship
programs.
Proposed Sec. 29.24(c)(11) would establish the requirement that
program sponsors of a registered CTE apprenticeship include in their
standards the minimum qualifications, if any, required by a sponsor and
its participating employers for persons entering the CTE apprenticeship
program. The purpose of this provision is to ensure that program
eligibility and subsequent opportunities for CTE apprentices to
participate in the paid on-the-job component of their registered CTE
apprenticeship program have inclusive, achievable, and standardized
minimum qualifications to ensure fair and equitable opportunities for
all students looking to access and enter a registered CTE
apprenticeship. This provision would also acknowledge that program
sponsors and employers have minimum qualifications for entry, such as a
student's responsibility to have completed requisite coursework, and
have an appropriate attendance history. The Department requests comment
on whether program sponsors and employers should be permitted to
establish a certain minimum grade point average for CTE apprentices to
obtain entry into, or maintain enrollment in, a registered CTE
apprenticeship program.
Proposed Sec. 29.24(c)(12) would follow existing requirements
under the current regulations at 29 CFR part 29 and proposed Sec.
29.8(a)(2) under subpart A and would apply to this part. Proposed Sec.
29.24(c)(12) would require program sponsors of registered CTE
apprenticeship programs to include a provision in their program
standards that describes the program's method for the selection of
apprentices. The current regulations specify that program standards for
all registered apprenticeship programs must fully comply with the EEO
in Apprenticeship regulations at 29 CFR part 30, and current 29 CFR
29.5(b)(21)--which forms the basis for the language proposed at Sec.
29.8(a)(2) in subpart A
[[Page 3202]]
and in this part in this NPRM--specifies that selection procedures must
conform to the regulations governing the selection of apprentices at
current 29 CFR 30.10. The current regulatory text covers selection
procedures within a provision that includes other requirements for
program sponsors that have EEO elements and corresponding part 30
requirements. The Department has determined that the regulated
community would benefit from the clarity that would arise from
separating these elements out into distinct provisions. Accordingly,
the Department proposes to include a provision covering selection
procedures for registered CTE apprenticeship programs, similar to
proposed 29 CFR 29.8(a)(2). Such selection procedures must conform to
the corresponding requirements at 29 CFR 30.10.
The EEO in Apprenticeship regulations at 29 CFR 30.10 reiterate the
part 29 requirement that sponsors must submit selection procedures in
the written plan for their program standards, which are submitted to
and approved by the Registration Agency. The regulations at 29 CFR
30.10 stipulate that sponsors may use any method or combination of
methods for the selection of apprentices, as long as the selection
method(s) comply with the Uniform Guidelines on Employee Selection
Procedures found at 41 CFR part 60-3, which require an evaluation of
the selection procedures' impact on race, sex, and ethnic groups, as
well as a demonstration of the business necessity for procedures that
result in an adverse impact across any of these demographic groups. The
regulations at 29 CFR 30.10 also stipulate that selection procedures be
applied uniformly and consistently across all applicants and
apprentices, and that the selection procedures must comply with title I
of the ADA and the implementing regulations at 29 CFR part 1630.
Finally, the regulations at 29 CFR 30.10 clarify that selection
procedures must be facially neutral with respect to race, color,
religion, national origin, sex, sexual orientation, age (40 or older),
genetic information, and disability. Per the ruling from Washington v.
Davis, 426 U.S. 229 (1976), a decision (or selection procedures, in the
case of the apprenticeship regulations at parts 29 and 30) appears
facially neutral if it neither creates a ``suspect classification'' nor
infringes on a ``fundamental right.'' \177\ As stated in subpart A,
these regulatory requirements would be unchanged by this NPRM. However,
for this subpart all potential program sponsors seeking approval of a
registered CTE apprenticeship must be in compliance with the selection
procedures regulations at parts 29 and 30, and the Department stands
ready to provide subregulatory guidance on these requirements or any
other requirements related to the development, submission, and approval
of program standards.
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\177\ Thomas B. Henson, ``Proving Discriminatory Intent From a
Facially Neutral Decision With A Disproportionate Impact,'' 36 Wash
& Lee L. Rev. 109, 1979, https://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=2745&context=wlulr.
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Proposed Sec. 29.24(c)(13) would require program sponsors to
provide a list of any supportive services that may be available to the
CTE apprentice, including childcare, transportation, equipment, tools,
or any other supportive service provided by the sponsor or a partnering
organization. This proposal would provide an opportunity for the CTE
apprentice to be aware of any supports they may have access to or
receive during their participation in the program. Such supports may be
arranged through partner organizations or in coordination with the
workforce development system.
Proposed Sec. 29.24(c)(14) would largely follow proposed Sec.
29.8(a)(20), which would change an existing requirement concerning the
granting of advanced standing, credit, and an increased wage to an
apprentice and confers this recognition to CTE apprentices. The
proposed provision would require that the program sponsors' standards
of registered CTE apprenticeship programs not only grant advanced
standing, credit, and an increased wage to a CTE apprentice when
appropriate, but explicitly instruct sponsors to include a process by
which they will reduce the usual term of on-the-job training or CTE
apprenticeship-related instruction. This change would recognize that
the reduction of the usual term of on-the-job training or related
instruction may be appropriate in two scenarios: (1) where a CTE
apprentice comes to a program with prior qualifications that warrant
the reduction of the usual term of on-the-job training or related
instruction, such as previous enrollment in a program that aligns with
the program in CTE apprenticeship-related instruction in a registered
CTE apprenticeship program; and (2) where an apprentice demonstrates
expedited progress while in a registered CTE apprenticeship program
that warrants the reduction of the usual term of on-the-job training or
related instruction, such as the attainment of postsecondary credit
that may be counted for matriculation purposes.
Further, proposed Sec. 29.24(c)(14) would create two requirements
for the process by which sponsors must abide. Proposed Sec.
29.24(c)(14)(i) would require that the established process be fair,
transparent, and objective in identifying, assessing, and documenting a
registered CTE apprentice's prior learning or experience as well as any
accelerated progress made by a CTE apprentice. Proposed Sec.
29.24(c)(14)(ii) would require that the process must result in advanced
standing, credit, and an increased wage that is commensurate with any
progression granted because of the registered CTE apprentice's prior
qualifications or accelerated progress. The Department notes that this
feature of accelerating CTE apprentices was a feature of the
competency-based model of registered apprenticeship under the current
rule, which the Department is proposing to remove as a separate model.
The Department recognizes that the utilization of industry skills
frameworks for the attainment of industrywide skills and competencies
resembles the competency model in some regards but is differentiated by
the successful attainment of industrywide skills and competencies and
not proficiency in any one occupation suitable for registered
apprenticeship. The Department's proposal seeks to embed the benefits
of competency attainment from this model with minimum employment
duration requirements for on-the-job training. This proposal would
allow sponsors the flexibility to advance apprentices, and for CTE
apprentices to receive commensurate advancement in wages, based on
their prior experience. This proposal would help to ensure sponsors
continue to have some of the key flexibility components of the
competency-based approach that are well-suited for registered CTE
apprentices, with key quality enhancements enabling the Registration
Agency, in coordination with a State CTE Agency, to review to ensure
CTE apprentices are progressed fairly, and such processes are
equitable, objective, and align with educational requirements embedded
within a program.
The Department's proposed method of requiring a minimum amount of
on-the-job training hours while allowing advanced standing based on
existing competency is similar to the current ``hybrid'' model of
registered apprenticeship and would provide the right balance of
training participants to an industry standard and duration, while
recognizing the unique skill and competency progressions of CTE
[[Page 3203]]
apprentices. This provision would also ensure that a CTE apprentice
does not have an abbreviated on-the-job training experience in the
program if circumstances do not warrant it, so that a program is not
graduating apprentices from their program before they have completed
their training and demonstrate the requisite proficiency. CTE
apprentices may need to complete on-the-job training even when an
academic school year has ended. The Department is interested in
comments about the applicability of such mechanisms for recognition,
such as prior learning in a program or transferable credit through dual
or concurrent enrollment, in this new model and welcomes comments about
other mechanisms that would enable CTE apprentices the opportunity for
advanced standing, credit, and increased wages.
Proposed Sec. 29.24(c)(15) would create a requirement that the
standards of registered CTE apprenticeship include an attestation to
document in writing that the qualifications and experience of the
trainers and instructors providing the on-the-job training and CTE
apprenticeship-related instruction to CTE apprentices satisfy the
requirements in proposed Sec. 29.12 of subpart A. The requirement in
this section would be an acknowledgment in the standards that the
requirements of proposed Sec. 29.12 are being met. The Department
believes it is important that the standards of registered CTE
apprenticeship include this requirement so that the Registration Agency
can ensure that trainers are qualified and so that apprentices know
that they are being trained by qualified individuals.
Proposed Sec. 29.24(c)(16) would require that registered CTE
apprenticeship program sponsors identify the Registration Agency and
State CTE Agency for which the program is being registered. The purpose
of this proposed provision is to ensure that both coordinating entities
are accurately identified and that such information is available to the
CTE apprentices and their parents or guardian, if applicable, as well
as the Registration Agency for conducting program reviews and
coordinating with a State CTE Agency as applicable in the written
agreement.
Proposed Sec. 29.24(c)(17) would address a program's adherence to
EEO Requirements and would stipulate that the standards of registered
CTE apprenticeship must include the equal opportunity pledge as
required in Sec. 30.3(c), as well as a statement that the program must
be conducted, operated, and administered in conformity with all
applicable provisions of 29 CFR part 30.
Proposed Sec. 29.24(c)(18) would require program sponsors of a
registered CTE apprenticeship to include in standards the contact
information of the appropriate party to address complaints within the
program. In addition to filing complaints with the program, CTE
apprentices may make complaints to a Registration Agency consistent
with paragraph (g) of this section, and information on how to do so
must be included in the apprentice agreement as required by paragraph
(e) of this section.
Sec. 29.24(d) Registered CTE Apprenticeship Program Sponsors
Proposed Sec. 29.24(d) would describe the entities eligible to be
a sponsor of a registered CTE apprenticeship program, the process for
which a sponsor registers a registered CTE apprenticeship program,
additional responsibilities for intermediaries designated to be program
sponsors, and the requirement for program sponsors to enter into an
adoption agreement.
Sec. 29.24(d)(1) Eligible Registered CTE Apprenticeship Program
Sponsors
Proposed Sec. 29.24(d)(1) would establish the types of
organizations and entities that may be eligible for registration by a
Registration Agency to serve as a sponsor of a registered CTE
apprenticeship program. For the registered CTE apprenticeship model,
the Department envisions LEAs, institutions of higher education, State
CTE Agencies, or another State government agency that shares
responsibility for CTE in the State, as the primary organizations and
entities that may serve as a program sponsor. Such Perkins-eligible
recipients and agencies are embedded within the existing infrastructure
of Perkins and are well-positioned to perform many of the programmatic
and administrative requirements that program sponsors must perform
under this part. The proposed eligible registered CTE apprenticeship
program sponsor organizations and entities have institutional
experience and acumen working with and supporting students who are
enrolled in CTE programs. Consistent with statutory Perkins
requirements as administered by ED, Perkins-eligible recipients and
agencies that provide administrative and programmatic oversight would
be required to ensure that rigorous academic standards are developed,
implemented, successfully met, and continuously refined to provide CTE
students with educational outcomes that prepare them for career
pathways in high-demand industries that offer good jobs. In addition,
administrators and CTE faculty would be equipped with certified
training to perform the requisite administration and execution of
recognized programs that registered CTE apprenticeship has included as
an integral component for CTE apprenticeship-related instruction. To
the extent that any of the aforementioned organizations and entities
chose to designate as a program sponsor an intermediary, they may do so
by entering into an agreement.
Proposed Sec. 29.24(d)(1)(iv) would allow a State CTE Agency,
State Educational Agency, LEA, or institution of higher education to
designate an intermediary to act as a program sponsor. To serve as a
sponsor, intermediaries should have expertise in organizing and
coordinating registered CTE apprenticeship programs or registered
apprenticeship programs under subpart A. The following organizations
and entities are examples of entities that may qualify to be designated
as an intermediary: the local affiliate of a labor organization, such
as a joint apprenticeship and training committee; an employer; the
local affiliate of a trade or industry organization; a local workforce
development board as established under WIOA; an institution of higher
education (including community or technical colleges, 4-year degree
granting institutions, Historically Black Colleges and Universities,
Tribal Colleges and Universities, and Minority Serving Institutions);
an LEA; and any other public, private, or not-for-profit entity that
has experience coordinating Perkins funding. This broad list of
examples shows the potential models that may be developed in
coordination and partnership at the State or local level. In practice,
a number of potential program sponsors that would be eligible under
this part operate consortia and designate responsibility to LEAs,
institutions of higher education, or non-profit organizations that
specialize in the administration and operation of education programs.
The Department understands that States and local education systems may
need flexibility in designing registered CTE apprenticeship programs to
accommodate nuances in the development and articulation. The Department
is most interested in comments about both the feasibility and capacity
of the proposed eligible organizations and entities and the types of
intermediaries that may be designated through an agreement to develop
registered CTE apprenticeship programs within existing CTE programs.
[[Page 3204]]
Sec. 29.24(d)(2) Sponsor Program Registration
Proposed Sec. 29.24(d)(2) would contain the requirements for a
program sponsor to submit an application for registration of a new
registered CTE apprenticeship program. The Department anticipates
electronic submission of applications, which would lead to increased
timely technical assistance. The Department has successfully launched a
web-based platform called Standards Builder, which has also been
leveraged by SAAs and could be utilized for the registration of
registered CTE apprenticeship programs. While there is no requirement
that standards must be submitted electronically in the current rule for
registered apprenticeship programs, the Department anticipates that
requiring submissions electronically would result in better customer
service, enable technical assistance to be provided electronically and
timely, and could yield more responsive approvals of programs that meet
the requirements of this part and part 30. The Department anticipates
continuing to expand and refine its development of web-based tools to
assist in the registration process, and requiring electronic
submissions would allow OA to focus its efforts more on providing
sponsors technical assistance than on reviewing and providing feedback
through nonelectronic means.
Proposed Sec. 29.24(d)(2)(i) through (v) would require a
prospective program sponsor to submit: (1) an on-the-job training
outline that aligns with an associated industry skills framework, set
forth in proposed Sec. 29.24(b); (2) a registered CTE apprenticeship-
related instruction outline, set forth in proposed Sec. 29.24(c)(2);
(3) standards of registered CTE apprenticeship for the proposed
program, set forth in proposed Sec. 29.24(c); and (4) the CTE
apprenticeship agreement for the registered CTE apprenticeship, set
forth in proposed Sec. 29.24(e). These requirements would capture the
core elements of a registered CTE apprenticeship program and ensure
that program sponsors have addressed such core elements in the
submission process to register a program.
Proposed Sec. 29.24(d)(2)(v)(A) through (G) would require a
registered CTE apprenticeship program sponsor to include a written plan
with seven components. Proposed Sec. 29.24(d)(2)(v)(A) would require a
description of how the program will ensure the students who are
selected to participate in the registered CTE apprenticeship program
reflect a diverse and inclusive cross-section of the current student
body enrollment of the participating secondary or postsecondary
school(s), consistent with the requirements of 29 CFR part 30. The
purpose of this component of the written plan is for the program
sponsor to demonstrate to the Registration Agency that the program
sponsor is providing equitable opportunities for all students within
the educational institution. Proposed Sec. 29.24(d)(2)(v)(B) would
require a description of how the approved industry skills framework
aligns with the existing CTE program. The purpose of this component of
the written plan is to ensure that there is alignment between the
industrywide skills and competencies detailed within an Administrator-
approved industry skills framework with a State-approved CTE program.
Standards of registered CTE apprenticeship would not impact, direct, or
control Perkins CTE programs, as such are completely within local
control as established in 20 U.S.C. 2306a. Proposed Sec.
29.24(d)(2)(v)(C) would require a description of recognized
postsecondary credentials the program may provide, including how the
program confers such credentials, and its usefulness for apprentices'
entry into employment, a registered apprenticeship program under
subpart A, a postsecondary educational program, or some combination
thereof. The purpose of this component of the written plan is to
demonstrate the likelihood that the registered CTE apprenticeship would
provide corresponding educational credentials and provide a pathway for
a CTE apprentice to enter into any one of the aforementioned outcomes.
Proposed Sec. 29.24(d)(2)(v)(D) would require a written
description from the registered CTE apprenticeship program sponsor of
how they will ensure that each employer participating in the program
has an established record of maintaining a safe and inclusive workplace
that is free from discrimination, violence, harassment, intimidation,
and retaliation against employees. The purpose of including this
description is to ensure the safety and welfare of CTE apprentices
participating in the on-the-job training component of the program.
Proposed Sec. 29.24(d)(2)(v)(E) would require a written
description from the registered CTE apprenticeship program sponsor of
how CTE apprentices will have access to a broad range of career
services and supportive services that enable participation in, and
successful completion of, the CTE apprenticeship program. The purpose
of including this assurance is to provide transparency to potential
program participants and their families that such services are
available so students can equitably access, participate in, and
complete a CTE apprenticeship program regardless of potential
socioeconomic barriers that would otherwise provide a financial
hardship to the CTE apprentice or their families.
Proposed Sec. 29.24(d)(2)(v)(F) would require a written
description from the registered CTE apprenticeship program sponsor of
how it will conduct routine monitoring and oversight of all aspects of
the registered CTE apprenticeship program. The purpose of this written
assurance is to ensure a program sponsor is aware of its responsibility
to provide timely and accurate monitoring and oversight to maintain the
functionality and integrity of the registered CTE apprenticeship
program and to allow the Registration Agency to take necessary
corrective action if the sponsor fails to abide by this assurance.
Proposed Sec. 29.24(d)(2)(v)(G) would require a written
description from the registered CTE apprenticeship program sponsor of
how the program will take affirmative steps to adhere to the
requirements of 29 CFR part 30. This section is the same concept as
proposed for registered apprenticeship programs in proposed Sec.
29.10(a)(8) and the Department is including this provision here, with
updates to account for registered CTE apprenticeship programs and CTE
apprentices in the proposed text to ensure this provision is
referencing the terms of subpart B.
Proposed Sec. 29.24(d)(2)(vi) would require a written assurance
from the registered CTE apprenticeship program sponsor that parties
involved with the operation of the registered CTE apprenticeship
program, such as employers, partnering educational institutions, and
designated intermediaries, agree to the specific commitments, roles,
and responsibilities addressed in the program standards. In addition,
proposed Sec. 29.24(d)(2)(vii) would require an assurance that such
agreements be formalized through memoranda of understanding or other
written agreements. This proposed provision would help establish that
the prospective sponsor has engaged with these stakeholders and
partners and would allow the Registration Agency to hold the sponsor
accountable if they have not engaged these stakeholders and partners.
Proposed Sec. 29.24(d)(2)(vii) would require a written assurance
from the registered CTE apprenticeship program sponsor that, consistent
with Sec. 29.18, the sponsor will maintain any required records that
the Registration Agency considers necessary to determine
[[Page 3205]]
whether the sponsor has complied or is complying with the requirements
of this part and any applicable Federal or State laws. The purpose of
this written assurance is to provide a Registration Agency with
pertinent records for conducting program reviews and other compliance
activities. All records referenced in proposed Sec. 29.24(d)(2)(i)
through (vii) would be subject to the records retention requirement in
proposed Sec. 29.24(d)(2)(viii).
Sec. 29.24(d)(3) Additional Responsibilities for Intermediaries
Serving as a Sponsor
Proposed Sec. 29.24(d)(3) would require an intermediary that has
been designated as a program sponsor under proposed Sec.
29.24(d)(1)(iv) to comply with the requirements of this subpart and
coordinate with relevant Perkins educational institutions and agencies
to ensure program sponsor requirements are met, including the complete
electronic submission of written assurances under proposed Sec.
29.24(d)(2) as well as any and all State and local State laws,
requirements of a State CTE Agency, and any other agency that
administers Perkins CTE programs in the State for which there may be
additional requirements that apply. The Department recognizes that
intermediaries, depending upon the organization or entity designated,
may need to coordinate with partnering educational institutions and
agencies to share applicable registered CTE apprenticeship information,
in compliance with section 444 of the General Education Provisions Act,
as amended, commonly known as the Family Educational Rights and Privacy
Act of 1974 (FERPA), to meet the proposed requirements of this part.
The Department is interested in hearing from potential registered CTE
apprenticeship intermediaries about the potential challenges and
opportunities for meeting requirements of a program sponsor in this
part and the role Registration Agencies and State CTE Agencies may play
to facilitate an intermediary's participation in this new model.
Sec. 29.24(d)(4) Sponsor Standards Adoption Agreements
Proposed Sec. 29.24(d)(4) follows the entirety of proposed Sec.
29.11 in subpart A and would prescribe the content and operational
requirements for a written sponsor standards adoption agreement, as
defined in proposed Sec. 29.2, between a sponsor and a participating
employer that is reached outside of a collective bargaining process.
The Department believes this addition would be critical for the
registered CTE apprenticeship model because employers are not eligible
sponsors of this model. Given the vital role employers play in
providing the on-the-job training in both the registered apprenticeship
and registered CTE apprenticeship model, it is important that an
adoption agreement for employers is developed. The Department notes
that the main difference in subpart B is the name of the agreement, so
the regulated community can distinguish between the agreements an
employer signs for subpart A (a program standards adoption agreement)
and the agreement an employer signs for subpart B (a sponsor standards
adoption agreement). Agreements between the sponsors of a registered
CTE apprenticeship program and an individual employer that participates
in that sponsor's program would be required under this proposal for
registered CTE apprenticeship. The Department believes that the
inclusion of a regulatory provision expressly obligating participating
employers to comply with the sponsor's standards of registered CTE
apprenticeship and to adhere to the requirements contained in 29 CFR
parts 29 and 30 would serve to bolster registered CTE apprenticeship
program accountability and integrity and protect the safety and welfare
of CTE apprentices. Because a participating employer in a sponsor's
group program will typically be the entity that employs and pays wages
to CTE apprentices enrolled in a registered CTE apprenticeship program,
and that also typically provides close on-the-job direct supervision
and training to such individuals, it follows that such employers should
be obligated to adhere to the same standards of CTE apprenticeship and
regulatory obligations as the sponsor of the program so that
apprentices are protected and receive the full benefit of the program.
Sec. 29.24(e) CTE Apprenticeship Agreement
As with registered apprenticeship, the Department views the formal
apprenticeship agreement between a program sponsor and a CTE apprentice
as a foundational element of registered CTE apprenticeship that
protects the welfare of CTE apprentices by clarifying the terms and
conditions of the program in which they intend to participate, and by
serving as a verifiable record of such terms and conditions. The
Department views the apprenticeship agreement as holding equal value
and importance under each model, and accordingly has proposed
provisions in subpart B that largely mirror the apprenticeship
agreement provisions in subpart A, with some minor adjustments or
revisions that reflect the relevant entities and context for registered
CTE apprenticeship programs. As with registered apprenticeship, the
Department views CTE apprenticeship agreements as a critical tool for
protecting CTE apprentices' welfare by establishing transparency and
accountability. Further, the Department recognizes that the success of
efforts to expand registered apprenticeship, including through the
creation of this newly proposed registered CTE apprenticeship model,
depends in part on the effective communication of the benefits of CTE
apprenticeship and what CTE apprentices can expect to achieve in terms
of their career development through participation in a registered CTE
apprenticeship program. The Department views the CTE apprenticeship
agreement as an important tool not only for holding all parties
accountable to a program's agreed-upon terms and conditions, but also
as a tool to succinctly explain the purpose, benefits, and intended
outcomes of a registered CTE apprenticeship program. For registered CTE
apprenticeship, clarifying the shape and value of such outcomes, and
the program's training and instruction plan for achieving such
outcomes, is critical for explaining the potential value of this new
apprenticeship model and encouraging enrollment in any newly created
registered CTE apprenticeship programs.
Proposed Sec. 29.24(e)(1) mirrors the proposed regulatory text at
proposed Sec. 29.9(a) and would establish that all registered CTE
apprenticeship programs must develop an apprenticeship agreement
containing the terms and conditions of the training and instruction
plan for CTE apprentices. The proposed text at Sec. 29.24(e)(1)
differs slightly in that it would require that the agreement include
the program's terms and conditions for education of registered CTE
apprentices, in addition to the employment and training of apprentices
contained at proposed Sec. 29.9(a). This reflects the educational
context of registered CTE apprenticeship, including the entities the
Department expects would establish and participate in such programs,
and the model's increased focus on education and classroom learning.
Proposed Sec. 29.24(e)(1)(i) through (v) would establish the list
of parties that must sign the apprenticeship agreement for registered
CTE apprenticeship programs. These parties would include the CTE
apprentice (proposed paragraph (e)(1)(i)), the CTE apprentice's parent
or legal guardian if the CTE apprentice is
[[Page 3206]]
under 18 years of age (proposed paragraph (e)(1)(ii)), the sponsor
(proposed paragraph (e)(1)(iii)), the secondary or postsecondary
educational institution where the CTE apprentice is enrolled (proposed
paragraph (e)(1)(iv)), and any employers participating in the
registered CTE apprenticeship program that have adopted or agreed to
the sponsor standards adoption agreement (proposed paragraph
(e)(1)(v)). These parties would reflect the same list as the parties
that must sign the apprenticeship agreement for registered
apprenticeship programs at proposed Sec. 29.9(a)(1) through (4), with
one addition that reflects the educational context of the registered
CTE apprenticeship program (the proposed requirement at Sec.
29.24(e)(1)(iv) that the secondary or postsecondary institution sign
the agreement for registered CTE apprenticeship). The Department views
educational institutions as critical partners in the development and
success of registered CTE apprenticeship, given that the Department
envisions that this model would complement and build upon established
CTE programs, curricula, and networks. The Department proposes to
include educational institutions as required signatories for
apprenticeship agreements to extend the transparency and accountability
the agreement would establish to these partners. Further, as discussed
earlier, enrollment as a student in a CTE program in a secondary or
postsecondary institution is a proposed requirement to participate as a
registered CTE apprentice, and the Department expects that requiring
such institutions to sign apprenticeship agreements would further
confirm and clarify participants' eligibility.
Proposed Sec. 29.24(e)(2) would provide that the signed
apprenticeship agreement (which includes the program standards for the
registered CTE apprenticeship program) must be provided to the CTE
apprentice and their parent or legal guardian, as applicable, prior to
the apprenticeship's start date. This provision largely reflects the
proposed requirement at proposed Sec. 29.9(b), but would intentionally
include the CTE apprentice's parent or legal guardian as parties who
must receive the agreement prior to the start of the apprenticeship
term. This difference between the recipients of the apprenticeship
agreement at proposed Sec. 29.9(b) and proposed Sec. 29.24(e)(2)
reflects the school-aged population (secondary or postsecondary
students) that may participate in registered CTE apprenticeship
programs, and the importance of keeping their parents or legal
guardians informed of the terms and conditions of this new career
development opportunity for their child or dependent, including the
hourly demands it will place on the students' schedules, assurances of
the safe and welcoming environment the student would encounter through
the program, and what their child or dependent can expect to receive
through participating in the program to support their professional
development.
Proposed Sec. 29.24(e)(3)(i) through (xvi) would list 16 elements
that apprenticeship agreements must contain for registered CTE
apprenticeship, and this list of elements mirrors the elements that
must be contained in apprenticeship agreements for registered
apprenticeship at proposed Sec. 29.9(c)(1) through (16). Proposed
Sec. 29.24(e)(3)(i) and (ii) would provide that apprenticeship
agreements for registered CTE apprenticeship programs must include
contact and identifying information for CTE apprentices (including date
of birth and, on a voluntary basis, their Social Security number) and
contact information for the Registration Agency, sponsor, and any
participating employers. While the Social Security number is not
required to be reported to the Registration Agency, it will need to be
provided to the employer. These elements would mirror the required
elements for the apprenticeship agreements in registered apprenticeship
at proposed Sec. 29.9(c)(1) and (2) and would ensure that the
apprenticeship agreement is a reliable source for up-to-date contact
information for those individuals participating in registered CTE
apprenticeship programs, and those parties involved in registering,
overseeing, and operating a program.
Proposed Sec. 29.24(e)(3)(iii) would contain some differences from
its companion provision at proposed Sec. 29.9(c)(3). For registered
CTE apprenticeship, the Department proposes that the apprenticeship
agreement must include the identification of the job or occupation the
CTE apprentice will be employed in, as well as the industry skills
framework and CTE apprenticeship-related instruction outline that
underpin the program's alignment with an established CTE course of
study and a career readiness framework (in the context of registered
CTE apprenticeship, this is known as the industry skills framework).
These elements would mirror the related instruction and work process
schedule for registered apprenticeship (the subject of proposed Sec.
29.9(c)(3)) and the Department is including the relevant terminology at
proposed Sec. 29.24(e)(3)(iii) for clarity regarding which terminology
applies within each model.
Proposed Sec. 29.24(e)(3)(iv) would provide that the
apprenticeship agreement includes the program's standards for the
registered CTE apprenticeship and would mirror the proposed regulatory
text at proposed Sec. 29.9(c)(4) for apprenticeship agreements in
registered apprenticeship. Proposed Sec. 29.24(e)(3)(v) would mirror
the proposed regulatory text at proposed Sec. 29.9(c)(5) and would
provide that apprenticeship agreements under the registered CTE
apprenticeship model must describe the roles, duties, and
responsibilities of CTE apprentices, sponsors, and participating
employers. As with proposed Sec. 29.9(c)(5), proposed Sec.
29.24(e)(3)(v) would stipulate that any employers participating in
registered CTE apprenticeship programs must provide CTE apprentices
with information about their rights and protections under Federal,
State, and local labor laws and the process for filing complaints with
the relevant Registration Agency. The reasons for these proposed
requirements in the CTE apprenticeship agreement are the same as for
the apprenticeship agreement under subpart A.
Proposed Sec. 29.24(e)(3)(vi) would provide that the
apprenticeship agreement must provide the beginning and expected end
date for the term of the CTE apprenticeship, as well as the date when
on-the-job training will begin. This differs from the requirement at
proposed Sec. 29.9(c)(6), which would require that apprenticeship
agreements for registered apprenticeship programs provide the beginning
dates for the program overall, the beginning date for on-the-job
training, and the duration of the probationary period for the program.
Regarding the probationary period, this proposal would provide that
apprenticeship agreements for registered CTE apprenticeship programs
must include a description of the program's probationary period and
would stipulate that such period may not exceed 30 days. The Department
is proposing to take a slightly different approach to probationary
periods under the registered CTE apprenticeship model and recognizes
that allowing a probationary period that lasts longer than 30 days
would not serve the best interests of CTE apprentices. Apprentices in
registered CTE apprenticeship programs must also enroll in an
established CTE program, while job seekers considering participating in
a registered apprenticeship program are not so connected to the program
or occupation
[[Page 3207]]
via other established enrollments. Accordingly, the Department believes
that the probationary period for registered apprenticeship programs
should be more flexible and subject to the sponsor's discretion, while
the probationary period for registered CTE apprenticeship programs
should have a shorter maximum length and should reflect that the CTE
apprentice is firmly established in the job training program and course
of study via multiple agreements and enrollments.
Proposed Sec. 29.24(e)(3)(vii) concerns wages paid to CTE
apprentices and contains some differences from the apprenticeship
agreement section for wages in registered apprenticeship at proposed
Sec. 29.9(c)(7). Proposed Sec. 29.24(e)(3)(vii) would require the
apprenticeship agreement include the entry wage and graduated scale of
increasing wages for registered CTE apprentices, as would be required
at proposed Sec. 29.9(c)(7), but would not include the ``journeyworker
wage'' nor the ``fringe benefits'' information that would be required
at proposed Sec. 29.9(c)(7). The Department is not proposing any wage
requirements tied to journeyworker wages in registered CTE
apprenticeship programs. The CTE apprenticeship model's focus is on
industry skills frameworks, and thus reflects an inherent flexibility
in terms of a program's relation to several occupations, rather than
just a single occupation as in registered apprenticeship. Thus, the
Department does not view the journeyworker wage in an occupation as
relevant to the apprenticeship agreement for registered CTE
apprenticeship.
Proposed Sec. 29.24(e)(3)(viii) would provide that the
apprenticeship agreement must contain the allocation of hours between a
registered CTE apprenticeship program's on-the-job training component
and CTE apprenticeship-related instruction component, mirroring
proposed Sec. 29.9(c)(8) with the slight adjustment of the term ``CTE
apprenticeship-related instruction.''
Proposed Sec. 29.24(e)(3)(ix) would provide that the
apprenticeship agreement must explain the methods used over the course
of the registered CTE apprenticeship program to measure CTE
apprentices' attainment of competencies, which differs slightly from
the requirement at proposed Sec. 29.9(c)(9) that would also include
measuring the apprentice's progress towards acquiring the competencies
necessary for a registered apprenticeship program's end-point
assessment. As discussed above, the Department has determined that end-
point assessments will be a useful tool for measuring and affirming
apprentices' proficiency in registered apprenticeship programs;
however, such assessments would not be appropriate for the registered
CTE apprenticeship model. The latter model is based on providing
training and instruction within a broader scope of career readiness
than the registered apprenticeship model, which focuses more acutely on
proficiency within a specific occupation and aligns with an end-point
assessment measuring such occupational proficiency. As such, the
Department's proposed model for registered CTE apprenticeship does not
include an end-point assessment and would grant registered CTE
apprenticeship programs more flexibility in designing program
completion measures that apply to the program's associated career
pathways.
Proposed Sec. 29.24(e)(3)(x) would mirror the proposed regulatory
language at Sec. 29.9(c)(10) and would provide that, under both
models, the apprenticeship agreement should describe any supportive
services available to apprentices or CTE apprentices. These may include
childcare services, transportation stipends or reimbursement programs,
equipment or tools, or other supportive services under both models.
This reflects the Department's consideration of advice from
apprenticeship stakeholders, including the ACA, that the provision of
supportive services is an important factor in addressing barriers to
participation, particularly for underserved communities, individuals in
rural communities, and individuals who face challenges or bear
responsibilities for providing dependent care during typical working
hours. The Department requests comment on whether registered CTE
apprenticeship programs should be required to provide CTE apprentices
with access to supportive services.
Similarly, proposed Sec. 29.24(e)(3)(xi) would mirror the
requirement at proposed Sec. 29.9(c)(11) that apprenticeship
agreements contain a description of the nature and amount of any
unreimbursed costs associated with a program. As discussed above, the
Department is concerned about excessive or undue participation costs
and the burden they place on job seekers seeking to improve their
career readiness through participation in a registered CTE
apprenticeship program. The Department therefore proposes that
registered CTE apprenticeship programs disclose all participation costs
in the apprenticeship agreement so that CTE apprentices are not faced
with unexpected costs once they have taken steps to participating in a
registered CTE apprenticeship program.
To further its goal of establishing transparency throughout all
apprenticeship programs registered for Federal purposes (including
registered apprenticeship programs and registered CTE apprenticeship
programs), the Department proposes to require that apprenticeship
agreements under both models must include a description of any
credentials, secondary credits, or postsecondary credit hours conferred
upon participants who progress through the program. However, the
Department expects that registered CTE apprenticeship programs may not
provide the same breadth of credentials as a registered apprenticeship
program more closely aligned with a specific occupation. Accordingly,
the proposed regulatory text at proposed Sec. 29.24(e)(3)(xii) would
differ slightly from the proposed regulatory text at Sec. 29.9(c)(12)
in that the former would not refer to ``occupational qualifications,''
nor would it refer to other conditions or requirements that may be
related to attaining an occupational qualification or licensure under
Federal, State, or local laws or requirements. The Department expects
that registered CTE apprenticeship programs would confer equally
valuable credentials to registered CTE apprentices, in particular
secondary credits or at least 12 postsecondary educational credit hours
that may accelerate their progress through an educational curriculum or
career development program. As such, for CTE apprenticeship agreements,
the Department proposes that registered CTE apprenticeship programs
include descriptions of the ``secondary or postsecondary credits or
credentials'' associated with completing the program.
Proposed Sec. 29.24(e)(3)(xiii) would provide that apprenticeship
agreements for the registered CTE apprenticeship model must include an
affirmation from all parties that they will adhere to the applicable
requirements of parts 29 and 30 governing registered apprenticeship and
EEO in registered apprenticeship. This language would mirror the
proposed regulatory text at proposed Sec. 29.9(c)(13) and would
reflect the Department's reiteration that, except when explicitly
stated otherwise, the requirements of parts 29 and 30 would apply to
any apprenticeship program registered for Federal purposes.
Proposed Sec. 29.24(e)(3)(xiv) would require a statement
addressing whether the CTE apprentice is paid wages and benefits during
the CTE apprenticeship-related instruction component of the
[[Page 3208]]
program and, if so, what the wage rate is, and whether the CTE
apprenticeship-related instruction is provided during work hours. This
requirement would be the same as the proposed requirement in Sec.
29.9(c)(14) that the apprenticeship agreement specify whether CTE
apprenticeship-related instruction is compensated; however, it would
more precisely require that the apprenticeship agreement address both
wages (i.e., not some other form of compensation) and whether CTE
apprenticeship-related instruction occurs during work hours. This would
provide notice to the CTE apprentice of whether to expect CTE
apprenticeship-related instruction to occur on their own time and,
regardless of when CTE apprenticeship-related instruction takes place,
whether it is paid and at what rate. The Department acknowledges that,
under the registered CTE apprenticeship model, the CTE program would be
the primary form of CTE apprenticeship-related instruction and less
likely to result in a CTE apprentice receiving wages. The Department
encourages, where possible, registered CTE apprenticeship models in
which employers invest in their CTE apprentices with wages or fringe
benefits paid during CTE apprenticeship-related instruction. As
discussed in proposed paragraph (c)(2) sponsors must consider, as a
part of their programs' standards of registered CTE apprenticeship,
whether to pay wages for CTE apprenticeship-related instruction. Since
registered CTE apprenticeship is an ``earn-and-learn'' model, this
provision would provide transparency to the CTE apprentice about when
and what wages would be received, and during what component(s) of the
program. This provision would also make transparent a schedule of paid
and unpaid time an CTE apprentice is expected to be present to fulfill
learning and worksite productivity objectives when attending CTE
apprenticeship-related instruction and on-the-job training. Making this
information available to CTE apprentices for transparency purposes
would provide apprentices with the necessary information to make
financial decisions, seek out resources or supportive services through
a program sponsor to attend CTE apprenticeship-related instruction or
compensate costs incurred, and manage time to accommodate
responsibilities, such as providing care to family members.
Proposed Sec. 29.24(e)(3)(xv) would mirror the proposed regulatory
language at proposed Sec. 29.9(c)(15) and would require that
apprenticeship agreements for registered CTE apprenticeship contain the
contact information of those individuals or entities designated by the
program to receive, review, and address any controversies or complaints
that may arise. The Department expects that CTE apprentices would
benefit from the clarity of understanding the process for filing,
reviewing, and resolving complaints, and as such, is including proposed
regulatory language to include contact information related to the
program's complaint process for both registered apprenticeship and
registered CTE apprenticeship.
Proposed Sec. 29.24(e)(3)(xvi) would require the apprenticeship
agreement to include the consent of the CTE apprentice, or their parent
or guardian if the CTE apprentice is under 18 and not in attendance at
a postsecondary institution, permitting the secondary or postsecondary
institution in which the CTE apprentice is enrolled as a student to
disclose individual apprentice level information to the program
sponsor, to the entity designating any intermediary organization as a
sponsor, to participating employers, to the Registration Agency and the
Department, if OA is not the Registration Agency, and to and any other
institution involved in administering the registered CTE apprenticeship
program, as would be required under proposed subpart B of this part.
Secondary and postsecondary institutions that receive Federal education
funds under a program administered by ED must comply with FERPA. FERPA
requires, among other things, that a parent of a student, or an
``eligible student'' (namely, a student who is 18 years of age or older
or in attendance at a postsecondary institution at any age), provide
prior written consent before an educational institution discloses
personally identifiable information from the student's education
records, unless an exception to FERPA's general written consent
requirement applies. This provision would ensure that secondary or
postsecondary institutions can meet their obligations under FERPA and
disclose individual apprentice level information as required under the
registered CTE apprenticeship program.
Proposed Sec. 29.24(e)(4) would mirror the proposed regulatory
text at proposed Sec. 29.9(d) that would prohibit registered
apprenticeship program sponsors from including any non-compete
provisions or other provisions that would serve to restrict an
apprentice's labor market mobility. The Department views this proposed
prohibition of non-compete and other restrictive labor clauses as a key
reform in this proposed update to the part 29 regulations and seeks to
apply this prohibition to any apprenticeship programs registered for
Federal purposes. Given the nature of the registered CTE apprenticeship
model's outcomes being designed for placement in employment, a
postsecondary educational program, or a registered apprenticeship
program under subpart A, the Department does not expect non-compete
provisions would be as likely as in registered apprenticeship programs
under subpart A. Nevertheless, the Department expects that this
important worker protection would maximize the potential benefits of
apprenticeship training for all participants, whether they are
students, job seekers seeking to receive training in a specific
occupation, or experienced workers seeking to change careers. As such,
the Department proposes including the prohibition on non-compete and
other restrictive labor clauses in the apprenticeship agreements
section for registered CTE apprenticeship.
Similarly, at proposed Sec. 29.24(e)(5), the Department proposes
to apply the same prohibition against non-disclosure provisions from
the proposed Sec. 29.9(e) covering apprenticeship agreements for
registered apprenticeship programs. The Department sees no reason to
exempt registered CTE apprenticeship programs from these proposed
prohibitions on clauses that would serve to restrict an apprentice's
labor market mobility and future success finding employment. On the
contrary, CTE apprentices who receive training and instruction via an
industry skills framework, potentially covering multiple occupations,
are potentially more at risk of suffering career consequences via the
inclusion of such clauses given that they are at an early stage of
their careers and would not be well-served by any restriction on the
employers or occupations they may wish to pursue.
Finally, proposed Sec. 29.24(e)(6) would mirror the proposed
requirement at proposed Sec. 29.9(f) and would stipulate that
registered CTE apprenticeship program sponsors must submit a completed
copy of the executed apprenticeship agreement for each individual
apprentice it registers for participation in its program to the
Registration Agency within 30 days of the execution of the agreement.
In this NPRM's preamble section-by-section discussion at proposed Sec.
29.9(f), the Department explains that the proposed 30-day timeframe for
submitting executed apprenticeship agreements to the Registration
Agency would be a reduction from existing policy (from 45 days to 30
days) in the amount of time a sponsor has to submit agreements, and
[[Page 3209]]
that this proposed timeframe would be reasonable given the advancements
in technology that enable streamlined submission of apprenticeship
agreements via the RAPIDS system. The Department expects that these
same technological advancements would facilitate the submission of
apprenticeship agreements for registered CTE apprenticeship programs
and proposes to align the timelines for submitting apprenticeship
agreements under both models.
The Department invites comments from the public on all aspects of
the apprenticeship agreement requirements for registered CTE
apprenticeship programs, including whether any of the apprenticeship
agreement elements from proposed Sec. 29.9 (applying to registered
apprenticeship programs) should not apply to registered CTE
apprenticeship, or whether the Department should apply different
parameters based on the differences between these two models of
registered apprenticeship, or whether additional elements should be
added.
Sec. 29.24(f) Certificate of Completion of Registered CTE
Aprenticeship
Proposed Sec. 29.24(f) provides that Registration Agencies would
issue certificates of completion of registered CTE apprenticeship to
CTE apprentices who complete all of the requirements of the program.
This proposal is similar to the Certificate of Completion Registration
Agencies would issue to apprentices in registered apprenticeship
programs in subpart A. These Certificates of Completion are important
milestones for all apprentices and help to signify their value in the
job market and opportunities for advancement in their career. The
Department envisions registered apprenticeship programs in subpart A
would consider providing advanced standing as described in Sec. 29.8
to CTE apprentices who complete a registered CTE apprenticeship program
and can demonstrate their completion with a certificate of completion
of registered CTE apprenticeship.
Sec. 29.24(g) Administrative Requirements of the Registration Agency
Proposed Sec. 29.24(g) contains the provisions related to the
administrative requirements for Registration Agencies operating
Registered CTE apprenticeship programs. This section is designed to
address the core duties of Registration Agencies and their roles and
responsibilities in the registered CTE apprenticeship model. Included
in this are key provisions related to technical assistance and
registration of programs, establishment of a compliant process for CTE
apprentices, the operation of program reviews, deregistration
processes, the recognition of Registration Agencies, data collection
and metrics from programs, and program exemptions.
Proposed Sec. 29.24(g)(1) would provide the process that the
Registration Agency uses when it receives an application from a
prospective program sponsor. Similar to subpart A, the Registration
Agency must make a determination within 90 days of the receipt of a
complete application as to whether the program has met the requirements
of this subpart and is eligible for program registration. The
Registration Agency would be responsible for informing applicants in
writing of all decisions regarding the program registration.
Additionally, if programs are denied approval for registration, the
reasons for the denial must be explained in writing. These provisions
would help to ensure a transparent process for sponsors and
Registration Agencies for the review and approval of programs.
Proposed Sec. 29.24(g)(2) is a provision on the role of
Registration Agencies in providing technical assistance and other
support, including outreach, technical assistance, and other assistance
such as referrals to registered apprenticeship programs under subpart A
to sponsors or other potential partners to support the adoption and
expansion of registered CTE apprenticeship programs in a State.
Proposed Sec. 29.24(g)(3) would provide a provision for CTE
apprentice complaints similar to what the Department has proposed for
registered apprenticeship programs in subpart A at proposed Sec.
29.17. The Department anticipates that complaints arising under the
registered CTE apprenticeship model would undergo a similar process to
complaints submitted by apprentices under subpart A, and the discussion
of that process is described in Sec. 29.17. Though this section cites
to Sec. 29.17 for this process, the Department is proposing one
difference, which would provide that the Registration Agency may refer
complaints to the State CTE Agency as appropriate. Due to the close
coordination with the State CTE Agencies envisioned under this proposed
subpart, the Department anticipates that some complaints filed with the
Registration Agency may be better addressed through a referral to the
State CTE Agency. For example, a CTE apprentice who has a concern about
their CTE program may submit a complaint to the Registration Agency. In
those instances, and depending on the nature of the complaint, the
Department believes that the CTE apprentice's issue may be best
addressed by the State CTE Agency. The Department envisions that the
process for such referrals may be addressed in the written agreement
between the Registration Agency and the State CTE Agency proposed in
paragraph (a). The Department welcomes any comments on the value of a
proposed alignment of complaint provisions with subpart A, or if any
other processes or deviations other than the one discussed above should
be considered.
Proposed Sec. 29.24(g)(4) would provide for the conduct of program
reviews to confirm the Registration Agency can ensure the program is
operating in compliance with this subpart. The Department, under
paragraph (g)(4)(i), is proposing to utilize the process described in
proposed Sec. 29.19 in subpart A for the process and conduct of
program reviews by a Registration Agency. Proposed paragraph (g)(4)(ii)
would provide that the reviews should be coordinated between the
Registration Agency and the State CTE Agency, the process for which
would be addressed in the written agreement described in paragraph (a).
The Department envisions that examples of quality program reviews may
include the State CTE Agency reviewing the CTE portions of the program
while the Registration Agency reviews the labor standards. The
Department is allowing flexibility on how this is coordinated but does
expect a strategy or agreement to be included in the written agreement
described in paragraph (a). Proposed paragraph (g)(4)(iii) provides
clarity that program reviews under this subpart would not impact an
entity's eligibility under, or compliance with, the Perkins programs.
This provision is to make clear that the Registration Agency's
authority is limited to the registration of the program and would not
extend to determining eligibility for CTE funding. Perkins CTE programs
would not be governed by this subpart, but rather must meet the
requirements of the Perkins statute as administered by ED. The
Department welcomes comments on the alignment of program review
provisions, including about the goal of a joint review process with the
State CTE Agency. The current proposal encourages the idea of
concurrent reviews but is proposing to provide flexibility to
Registration Agencies and State CTE Agencies to address that process or
alternatives as part of the written agreement in paragraph (a).
Proposed Sec. 29.24(g)(5) would provide for the deregistration of
programs that fail to meet the requirements of this subpart. The
ability to deregister
[[Page 3210]]
programs for noncompliance with this subpart and part 30 is critical to
the effective oversight of registered apprenticeship programs both
under subparts A and B. Provided that the Department is proposing a
registration process for programs that meet the requirements of this
subpart and part 30, a deregistration process is necessary for those
that do not continue to meet those requirements. The process for the
deregistration of programs would be the same as the process in proposed
Sec. 29.20 of subpart A. The Department envisions, similar to the
process in subpart A, that a program review would occur to ascertain a
sponsor's compliance with this subpart and part 30. The Department
welcomes any comments on the alignment of deregistration proceedings,
and the goals of aligning processes, where possible, with subpart A.
Proposed Sec. 29.24(g)(6) would provide the same hearings process
as described in proposed Sec. 29.21 in subpart A. Given that both
models of registered apprenticeship under subparts A and B have similar
processes for registration, review, and deregistration, the Department
is proposing to align this process for hearings. The Department
welcomes any comments on the proposed alignment of this process with
subpart A, particularly regarding if any deviations would provide
administrative efficiencies.
Proposed Sec. 29.24(g)(7) would provide the same hearings on
deregistration process proposed in Sec. 29.21 of subpart A. As
described throughout this paragraph, the Department is proposing to
align administrative processes as much as possible to minimize parallel
processes for the registration, review, data collection, and oversight
of registered CTE apprenticeship programs with registered
apprenticeship programs in subpart A.
Proposed Sec. 29.24(g)(8) would provide for the process of
recognizing Registration Agencies for registered CTE apprenticeship.
Registration Agencies would be responsible for the registration of CTE
apprenticeship programs, which would provide opportunities to build
alignment between registered apprenticeship programs in subpart A and
registered CTE apprenticeship programs. Registration Agencies may be OA
or a recognized SAA. Given the proposed requirement in paragraph (a)
that there be a written agreement between the State CTE Agency and the
Registration Agency, the Department does not anticipate considering
National Program Standards for Apprenticeship, as proposed in subpart
A, as an option for this model. One of the primary goals of this
rulemaking is to bring greater alignment between registered
apprenticeship models with State and local education systems. The
Department envisions this localized alignment would result in quality
program design tailored to local economies. As such, OA is only
considering local registration by the State's respective Registration
Agency. The Department is open to comments on national program
registration models, and whether that could ensure alignment with State
and local educational systems.
The Department clarifies that adopting the requirements of subpart
B would not be a requirement for an SAA to obtain or maintain
recognition as a Registration Agency and SAA. The Department
acknowledges the unique requirements and partnerships needed at the
State and local level to develop quality registered CTE apprenticeship
programs and would not condition an SAA's recognition to register
apprenticeship programs under subpart A of this part on a requirement
that they must also register programs described in this subpart.
Proposed Sec. 29.24(g)(8)(i) would identify the circumstances in
which OA may serve as the Registration Agency in a particular State. OA
may serve as the Registration Agency in States where the OA
Administrator has not recognized an SAA in the State, and there is a
written agreement between OA and the State CTE Agency, as described in
paragraph (a), for the registration of CTE apprenticeship programs in
the State. Under this proposal, OA would not serve as a Registration
Agency in States that have a recognized SAA or if there is not a
written agreement with the State CTE Agency. Given the importance of
aligning the State's education system with this model, the Department
does not anticipate the registration of programs in States that do not
develop written agreements with OA or do not have a recognized SAA.
Proposed Sec. 29.24(g)(8)(ii)(A) through (D) would provide the
process by which SAAs may seek recognition for the registration of CTE
apprenticeship programs. The Department is proposing to limit the
ability to be a Registration Agency to those entities that are
Registration Agencies for the purposes of registering apprenticeship
programs under subpart A. This would ensure alignment at the State
level by providing that entities approving registered apprenticeship
programs under subpart A are the same entities approving registered CTE
apprenticeship programs under subpart B. This would help ensure greater
alignment in program design, technical assistance, and administrative
procedures and minimize redundancies at the State level for the
registration of programs. SAAs recognized or seeking recognition under
subpart C of this proposed rule would be recognized as Registration
Agencies for CTE apprenticeship if they meet the criteria described in
proposed paragraphs (g)(8)(ii)(A) through (D).
Proposed Sec. 29.24(g)(8)(ii)(A) would provide that the State's
proposed or current apprenticeship laws for registered CTE
apprenticeship meet or exceed the requirements for protecting the
safety and welfare of CTE apprentices set forth in subpart B. This is
the same standard that is being proposed for SAAs seeking recognition
under subpart C. The proposed regulations are designed to set the
minimum standards for registration, and SAAs may adopt requirements
that include more protections for CTE apprentices in their laws.
Proposed Sec. 29.24(g)(8)(ii)(B) would provide that the SAA must
have entered into a written agreement with the respective State CTE
Agency as described in paragraph (a), which outlines the required
coordination between the respective agencies, including roles and
responsibilities. This requirement would allow the Administrator to be
sure that necessary coordination is occurring at the State level.
Proposed Sec. 29.24(g)(8)(ii)(C) would provide that the State has
submitted its relevant apprenticeship laws and CTE engagement
strategies as part of its State Apprenticeship Plan submitted according
to proposed Sec. 29.27 in subpart C. This may be done concurrently as
the State government agency is seeking recognition under subpart C for
the purposes of registering apprenticeship programs under subpart A, or
may be submitted as a modification to a State Apprenticeship Plan
according to the criteria for modifications outlined in proposed Sec.
29.27(a)(2).
Proposed Sec. 29.24(g)(8)(ii)(D) would provide that the
Administrator must approve concurrently, or have previously approved,
the State government agency for recognition as an SAA under proposed
Sec. 29.27. This is designed to ensure that State government agencies
would not be recognized for registering apprenticeship programs under
subpart B without being approved to register programs for subpart A.
The Department discussed previously that it believes it is critical
that the Registration Agency for a particular State must be approved to
register apprenticeship programs for subpart A purposes in order to be
able
[[Page 3211]]
to register programs for subpart B purposes. However, a State
government agency may serve as an SAA only for the purposes of
registering apprenticeship programs for subpart A.
Proposed Sec. 29.24(g)(9) is a provision related to the collection
of data and quality metrics concerning registered CTE apprenticeship
programs. The Department is largely proposing to align the data
collection from sponsors and SAAs consistent with the requirements
described in proposed Sec. 29.25 of subpart C. The Department
anticipates utilizing RAPIDS as the primary database and case
management system for the collection and reporting of data on
registered CTE apprenticeship programs and apprentices. The Department
welcomes comments on the data collection for registered CTE
apprenticeship, the proposed alignment with proposed Sec. 29.25, and
the key differences discussed below in data collection. Collectively,
the Department envisions that a comprehensive data set and the
alignment of reporting across both models of registered apprenticeship
in this proposed rule will enable the Department to provide robust
technical assistance to support stakeholders' compliance with these
regulations.
Proposed Sec. 29.24(g)(9)(i) is a provision for the collection of
CTE apprentice information. The information being proposed to be
collected is largely consistent with apprentice information that would
be collected for apprentices under subpart A as described in proposed
Sec. 29.25(a). The discussion of those provisions is discussed in the
preamble for Sec. 29.25(a). The Department is proposing a consistent
collection here with a few exceptions. For registered CTE
apprenticeship under paragraph (g)(9)(i)(A), the Department would
collect an associated industry skills framework with the program rather
than the occupation associated with a registered apprenticeship under
proposed Sec. 29.25(a). This difference is based on the unique
requirements in subpart B regarding associated industry skills
frameworks as the basis for training in registered CTE apprenticeship
rather than occupations suitable for registered apprenticeship.
Separately, the Department is not proposing to collect pre-
apprenticeship participation information as a regulatory requirement in
this section because the Department anticipates pre-apprenticeship
models to be more closely associated with registered apprenticeship
programs under subpart A.
Proposed paragraph (g)(9)(i)(B) would provide for sponsors to
report status updates based on similar changes as discussed in proposed
Sec. 29.25(a), with the exception that the updates would be made on an
academic semester basis rather than within 30 days. This is to account
for the unique nature of this model, and requirement that sponsors be
largely from the education system.
Proposed Sec. 29.24(g)(9)(1)(ii) is a provision for the collection
of program sponsor information and quality metrics that would be
generally consistent with the proposed program sponsor information
proposed for collection under Sec. 29.25 for registered apprenticeship
programs under subpart A. The primary differences are that the program
sponsor information would be collected for each industry skills
framework in this section rather than by occupation under proposed
Sec. 29.25. Additionally, this paragraph proposes collecting
information on the outcomes of registered CTE apprenticeship, which are
placement in a registered apprenticeship under subpart A, a
postsecondary educational program, or employment at the time of program
completion. Employment for this purpose would mean employment outside
of the employment associated with a registered apprenticeship program
under subpart A.
Proposed Sec. 29.24(g)(9)(iii) is a provision for information and
reports based on the information collected in paragraph (g)(9)(ii) to
be made publicly available by the Registration Agency, which would
align with proposed Sec. 29.25(c). This section also would include
similar language to proposed Sec. 29.28 regarding the reporting of
information from SAAs. These provisions would help support a
comprehensive system data on both models of registered apprenticeship
envisioned under these proposed regulations.
Proposed Sec. 29.24(g)(10) would provide for exemptions from the
subpart B requirements similar to the proposal in Sec. 29.23 of
subpart A for registered apprenticeship. As described in the preamble
to proposed Sec. 29.23, such requests would be required to be made in
writing and transmitted to the Administrator and would also be required
to contain a statement of the reasons supporting the request. The
Administrator would only grant an exemption for good cause. Examples of
good cause can be found in the preamble to proposed Sec. 29.23. The
Department has added proposed language regarding exemptions that cannot
be made because they are outside of this subpart, including exemptions
to requirements provided for in other applicable Federal, State, or
local laws. For instance, the Administrator cannot consider exemption
requests from any CTE participation requirements related to a CTE
program or provisions governing the Perkins programs.
D. Subpart C--Administration and Coordination of the National
Apprenticeship System
Section 29.25--Collection of Data and Quality Metrics Concerning
Apprenticeship
In the 15 years since the registered apprenticeship regulations
were last updated, advancements in technology and data functionality
have transformed daily life in the United States and throughout the
world. These developments include a major expansion of the ability to
capture, collect, store, and use data. Institutions, businesses,
governments, and organizations have prioritized the collection,
application, and analysis of data to capitalize on opportunities to
improve programs, policies, and outcomes. Within the world of
registered apprenticeship, significant developments have been made
since 2008 to keep pace with the increasing significance of data,
including OA's efforts to develop and refine RAPIDS as a case
management platform, with the goal of aligning with the growing role of
data in the daily operations of employers and program sponsors within
the National Apprenticeship System.
As part of the Department's effort to modernize data collection and
reporting capabilities through RAPIDS, significant investments have
been made to improve functionality and provide access and
interoperability to SAAs for their data collection and reporting needs.
The enhanced collection of quality data by Federal agencies is
supported by the provisions of the Foundations for Evidence-Based
Policymaking Act of 2018 (Pub. L. 115-435), as well as President
Biden's January 27, 2021 memorandum on restoring trust in government
through evidence-based policymaking.\178\ RAPIDS is the case management
system administered by OA, and it serves as the primary platform for
program sponsors' management of apprentices, occupations, job openings,
and other relevant program information. The Department plans to
continue RAPIDS
[[Page 3212]]
as the primary database and case management system for the foreseeable
future, but RAPIDS may undergo improvements or be altered over time,
including to the name and affiliated acronym of such database and case
management system, to meet the needs of National Apprenticeship System
stakeholders. Technical assistance will be provided by OA,
Apprenticeship Training Representatives, and applicable SAA staff as
needed. This will help facilitate a connection between program sponsors
using RAPIDS and Registration Agencies. While not a requirement for
State recognition, SAA States and their sponsors may voluntarily opt to
use the Department's case management system as a cost-effective
approach to enable and support the data collection and reporting
process described in proposed Sec. 29.28(d).
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\178\ President Joesph R. Biden, Jr., ``Memorandum on Restoring
Trust in Government Through Scientific Integrity and Evidence-Based
Policymaking,'' Jan. 27, 2021, https://www.whitehouse.gov/briefing-room/presidential-actions/2021/01/27/memorandum-on-restoring-trust-in-government-through-scientific-integrity-and-evidence-based-policymaking/.
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Proposed Sec. 29.25 would formalize the requirements for sponsors
to report apprentice and sponsor information to their Registration
Agency and establish a requirement for the Department to make this
information publicly available in the form of sponsor level and
national summary reports. In practice, the Department has made
available related information, but this proposal would provide
stakeholders with more robust and consistent information about the
National Apprenticeship System. The Department is interested in
comments about the benefits of making public more information about the
performance of registered apprenticeship programs and their benefits to
apprentices or career seekers while balancing expectations for sponsors
and apprentices with respect to program burden and privacy. While some
of this type of reporting currently occurs through approved ICRs (see
OMB Control Number 1205-0223), the requirements for reporting have not
been included in regulations in the past and are therefore subject to
some uncertainty in terms of how the requirements might change from
year to year. The Department has made significant investments in
reporting capabilities through RAPIDS, including by making it available
to SAAs for their reporting and data collection needs. Additionally,
the increased Federal funding and benefits associated with registered
apprenticeship programs (such as Apprenticeship grants, WIOA, the
Davis-Bacon and related Acts, and the IRA) enhance the need to develop
a more structured, uniform, and accountable reporting structure while
balancing the burdens associated with collecting this information from
sponsors, apprentices, and employers. The Department is particularly
interested in any comments about whether the proposed approach strikes
the proper balance, if other critical information should be included,
or if less critical information should be omitted. The Department is
also interested in any proposed quality measures for Registration
Agencies or sponsors described below. Lastly, the Department is
interested in comments on how it can utilize the collection of quality
participant data and identify effective performance measures at the
National, State, industry, and occupational level to achieve greater
equity across and within the National Apprenticeship System.
Proposed Sec. 29.25(a) would establish the requirements for what
information about individual apprentices must be collected and reported
by sponsors to the Registration Agency. Under the current approach,
this is done primarily through sponsors entering data into the RAPIDS
system, and the Department anticipates this approach will continue.
Sponsors in States that do not use the system provided by the
Department, whether RAPIDS or another system, would use the case
management system provided by their Registration Agency to collect this
information. SAA States and their sponsors may voluntarily opt to use
the Department's case management system as a cost-effective approach to
enable and support the data collection and reporting process described
in proposed Sec. 29.28(d). The Department is exploring approaches that
would allow for apprentices to self-report and update demographic
information through the mechanisms provided by the Department, which
would help to meet this requirement. Such mechanisms would allow
individual apprentices to report to the Department sensitive
information that they might be hesitant to provide to their employer.
The collection of individual information included in this proposed
section would enable substantive program analyses, including cross-
sectional analyses and improved data disaggregation that would serve to
identify strengths and weaknesses of the National Apprenticeship System
when it comes to crucial goals like DEIA, identifying best practices,
increasing economic mobility, and improving performance outcomes.
Collecting data in this manner in a more uniform way and utilizing a
system provided by the Department would also reduce the burden of data
collection on employers and would enable the Department to ensure the
questions being posed to apprentices are asked in a consistent manner
during data collection. The Department will follow all applicable laws
and procedures to ensure data security.
Improved collection of demographic information would enable the
Department to better disaggregate demographic data, in addition to
leveraging such data to develop and track indices relating to equity in
program access, exit, and completion, which can serve to inform and
drive improvements towards greater equity in the National
Apprenticeship System. These goals are not only important to the
Department, but they are also aligned to the recommendations from the
ACA on this subject. The Department is interested in comments about the
Department's and SAAs' ability to collect individualized data and its
benefits, particularly with regard to the ability to use cross-
sectional analysis of demographic information to ensure that programs
are operating equitably. The Department is also interested in comments
discussing information or strategies that would help the Department
assess the performance of programs in a more standardized manner.
Additionally, this section would establish that within 30 days of a
change, in addition to a change of apprentice's status, sponsors must
also report on the start date of on-the-job training for apprentices,
changes to credentials attained, employment retention, and wage
progression. This requirement would enable the Department to more fully
track an apprentice's progress throughout the program including the
issuance of licenses, degrees, and the full scope of credentials earned
through registered apprenticeship programs, as recommended by the ACA.
This additional information obtained through more regular updates would
enable better analyses and more complete understanding of programs,
particularly when it comes to assessments of program quality and
informing potential apprentices' understanding of what to expect during
their participation in a program.
Another benefit of these proposed requirements is that they would
result in closer alignment between the National Apprenticeship System
and WIOA, as these updates would ensure that reporting timeframes,
processes, and many of the definitions are brought into closer
alignment with the requirements for WIOA programs. By aligning the
reporting requirements, reporting definitions, and reporting processes
more closely, States would benefit from efficiency improvements
[[Page 3213]]
and easier cross program collaboration as information collected by one
program can be collected once and shared rather than similar
information being collected separately in different ways. More
congruity between programs and improved information would also enable
both States and job seekers to make more data-driven decisions. For
example, collecting data in a similar manner to WIOA's data collection
can facilitate more direct comparisons between the data on WIOA ETPs
and registered apprenticeship programs. Aligning this data collection
would benefit job seekers and potential apprentices by enabling them to
make informed decisions based on workforce data from these programs.
This can also be beneficial to employers, as more transparent
information can lead job seekers to seek out programs that they are
more likely to stay with long term.
Proposed Sec. 29.25(b) would establish the requirements for what
information about sponsors and their programs must regularly be
collected and reported by sponsors to the Registration Agency.
Currently, this information is provided to the Department primarily by
Registration Agencies entering data into the RAPIDS system, and the
Department is anticipating that approach will continue. This
information would include data about the sponsor and any participating
employers. This section is divided into two paragraphs. Paragraph
(b)(1) focuses on what type of information sponsors must update within
30 days of a status change, and paragraph (b)(2) describes items that
must be updated and certified by sponsors on an annual basis. For
sponsors using the system provided by the Department, whether RAPIDS or
another system capable of collecting this data should updates be made
in the future to the Department's IT and reporting systems, the
Department anticipates that this process would involve sponsors
ensuring that their data and information in the system are up to date
and then certifying in that system that the records are current and
accurate. The Department anticipates that sponsors that are not using
the system provided by the Department would need to submit and certify
a report in the system provided by the Department.
Under proposed Sec. 29.25(b)(2) the Department anticipates the
annual information being made available to the public to assist job
seekers in being able to make informed choices about programs, and
stakeholders would have a greater understanding of the scope, scale,
and effectiveness of registered apprenticeship programs. This proposal
would significantly enhance the amount of public information made
available about registered apprenticeship programs and their outcomes.
The Department is interested in comments on the appropriate amount of
information collected and reported for public purposes, taking into
account any burdens and privacy protections afforded to apprentices or
programs. In balancing this, the Department is proposing to largely use
measures that a Registration Agency would be able to calculate on
behalf of a sponsor, rather than requiring unique measures that may
require manual tracking.
One new measure would assist Registration Agencies in seeing if
programs are exiting significant numbers of apprentices and not
graduating them, which they can use as the basis for technical
assistance. This measure, unlike the proposed cohort completion rate,
would not exclude exiters during the probationary period of the
program. However, the Department does consider this measure as being
useful for considering any impacts in program design that lead to
apprentices not completing their programs once they are apprentices.
This measure would also align with the Department's ETP reporting under
WIOA for program completion rates. This measure would be calculated as
part of the data requirements of proposed Sec. 29.25 and be subject to
program reviews under proposed Sec. 29.19. The Department is
interested in any comments on this approach, including whether exits
during the probationary period should be included and any other
potential measures.
Another new measure, proposed Sec. 29.25(b)(2)(viii), would assist
Registration Agencies in determining the percentage of exiters that
enter a postsecondary educational program or a career pathway program
at the time of exit. The purpose of this new measure is to identify the
extent to which apprentices who have either left a program prior to
completion or completed a program enter into a postsecondary
educational program or a career pathway program.\179\ In some non-
traditional industries for which registered apprenticeship programs
currently exist, such as health care and education, some apprentices
complete a program, receive a Certificate of Completion, and then
enroll in a postsecondary educational program or another registered
apprenticeship to continue education and training that leads to
corresponding occupations that may provide a higher wage, are along a
career pathway, and require additional competencies, skills, and
recognized postsecondary credentials. The Department recognizes that
the calculation of this metric may yield small percentages since it is
not common across all industries and suitable occupations for
apprentices to enroll in a postsecondary educational program or a
career pathway program following the successful completion of a
registered apprenticeship program. However, the calculation of this
metric would help Registration Agencies identify which programs provide
articulation and connections to the postsecondary system. These
connections may be critical for programs that serve high-school-aged
youth or are designed as entry-level opportunities in the health care
or education industry. In addition, the information collected would
enable the capacity for disaggregation by industry and occupation for
registered apprenticeship exiters who enter into a postsecondary
educational program or a career pathway program.
---------------------------------------------------------------------------
\179\ WIOA sec. 3(7) (definition of career pathway).
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Proposed Sec. 29.25(c) would establish annual reporting
requirements for Registration Agencies, including OA, based on the
information collected in paragraph (b)(2) of this section. This would
include State and sponsor-level reporting and a national summary
report. These requirements would serve to further enhance equity in the
National Apprenticeship System; improve the overall quality of
registered apprenticeship programs through improved transparency and
accountability; and allow for disaggregating registered apprenticeship
data for more informative publicly available and accessible products,
as is recommended by the ACA. The Department is proposing in Sec.
29.25(c)(3) that Registration Agencies use a series of supplemental
information sources, in IC efforts. Registration Agencies should
provide the necessary sources of information, such as surveys, wage
records, or other valid support and technical assistance to sponsors to
ensure that supplemental sources are valid and meet the criteria for
ensuring effective reporting requirements. These supplemental sources
would enable the calculation of quality metrics on a system level, such
as post-apprenticeship employment retention rates calculated 6 and 12
months after program exit; annualized median earnings of exited
apprentices; percentage of all completers of a registered
apprenticeship program that are earning an income that allows them to
support themselves and their
[[Page 3214]]
families, or are placed in a postsecondary educational program or a
career pathway program, 1 year after program completion; and customer
service metrics for Registration Agencies focused on customer
satisfaction of sponsors with registered apprenticeship and
Registration Agency services. In addition, the Department believes that
system-level metrics for registered apprenticeship can be utilized as a
mechanism to improve the overall job quality of a range of occupations
as well as improve wages and working conditions for individuals pursing
these careers.
The registered apprenticeship system is intended to secure
apprenticeship-related pathways that lead to occupations providing
income that allow individuals to support themselves and their families.
Accordingly, the Department seeks to establish a system-level
performance reporting measure that would quantify income outcomes for
apprentices registered under subpart A and CTE apprentices registered
under subpart B. The Department is considering setting the income
performance reporting measure at 200 percent of the Federal poverty
level. (The Federal poverty level is a measure of income calculated
annually by the Department of Health and Human Services and often used
to determine Federal benefit eligibility.) If an individual receives at
least 200 percent of the Federal poverty level (i.e., $49,720 a year
for a family of 3 in the 48 contiguous States and the District of
Columbia, or about $23.90 an hour assuming 2,080 work hours in a year)
in the year after the successful completion of a registered
apprenticeship program, this would be understood to be a successful
program outcome. The Department envisions that making available to the
public the data from this system-level performance reporting measure
would benefit prospective apprentices exploring potential occupations
and apprenticeship programs. The Department invites comments on this
proposed methodology, including whether and how the Department should
define a successful outcome for apprentices in terms of income and
suggestions for modifying this proposed system-level performance
reporting measure.
The Department in proposed paragraph (c)(5) may decide to withhold
certain information described above from publication for good cause
(for example, if the publication of data may result in personally
identifiable information becoming attributable to individuals, or if
the data collected has been documented to be inaccurate). The
Department is interested in any other comments regarding potentially
withholding information from publication.
To support operability and implementation of proposed system level
metrics the Department would conduct additional research, such as
researching the effective mechanisms needed for training through a
registered apprenticeship model that leads to sustainable careers, how
supportive services may increase the annual completion rate, the cohort
completion rate, and the subsequent earnings potential of apprentices.
Utilizing this framework, as noted in proposed paragraph (c)(4), the
Administrator plans to conduct evaluations and longitudinal studies to
assess the impact and improve the effectiveness of registered
apprenticeship programs. To the extent that information is collected in
this process for the development, calculation, and implementation of
publicly facing products, such as program and Registration Agency
reports or dashboards, the Department may omit or suppress data or data
elements necessary to protect apprentice personally identifiable data.
The Department also may omit or suppress other information provided by
sponsors that is collected through standards or requisite agreements
that sponsors request to not be disclosed. The Department will provide
guidance on this process and operational protocol through subregulatory
guidance.
The Department is interested in any comments regarding these
proposed measures, including additional or alternative measures. The
Department is also interested in comments about the proposed
measurement and IC framework as a means to make more programmatic
information available to the public, particularly balancing the
business needs of employers and sponsors, the privacy of apprentices,
and the overarching goal of providing more information to the public,
particularly to job seekers to assist in their career decisions.
Section 29.26--Roles and Responsibilities of State Apprenticeship
Agencies
The concept of SAAs serving as extensions of the Department in the
registration of apprenticeship programs for Federal purposes has been
and can continue to be an effective model to expand capacity,
expertise, and local partnerships. SAAs can also serve as laboratories
to promote innovative models of apprenticeship. SAAs have been
innovative in moving into more formal roles in pre-apprenticeship
programs and in youth apprenticeship models, even if those efforts to
date are not officially recognized for Federal purposes. The Department
supports these innovations at the State level that are designed to make
more apprenticeship models and quality standards available to career
seekers and youth.
However, ambiguity about the roles and responsibilities of SAAs
relative to the roles and responsibilities of State Apprenticeship
Councils, and inconsistent alignment with the Department's current
apprenticeship regulations, has created a highly fragmented,
inconsistent system that has deviated from the model envisioned by the
current regulation and that has, in some instances, created a
challenging market for sponsors and employers seeking to enhance and
invest in their worker training through the registered apprenticeship
training model.
Proposed Sec. 29.26 would substantially revise the content of the
provisions in existing Sec. 29.13 concerning the duties and
responsibilities of SAAs that are recognized by OA for Federal
purposes. Among other things, this updated regulatory provision would
describe the duties and responsibilities of recognized SAAs, as well as
the proper allocation of responsibilities between such SAAs and the
State Apprenticeship Councils that they are responsible for
establishing and overseeing. The Department is concerned that the
current version of the regulation has not been effective in delineating
the respective duties and powers of the foregoing administrative and
advisory bodies, which has seriously impeded the fair, efficient,
consistent, and transparent operation of the National Apprenticeship
System.
The Department has long taken the view that SAAs--acting as
impartial and disinterested governmental bodies that are accountable to
the elected executive authority within their respective States--are
best suited to fairly and equitably discharge the administrative and
oversight duties with respect to apprenticeships that have been
entrusted to such SAAs by the Administrator. While the Department notes
that many SAAs have admirably fulfilled these administrative
responsibilities in accordance with the current regulatory requirements
established at 29 CFR 29.13, the Department has also observed that
other States have not operated in accordance with the current
regulation. Specifically, while the current regulation (at 29 CFR
29.13(a)(2)) stipulates that a State Apprenticeship Council, which
functions in a regulatory or advisory capacity, must be established by
an SAA
[[Page 3215]]
and must operate under the direction of that SAA, the authority to
evaluate and register apprenticeship programs in a number of States has
been improperly ceded--on either a de facto or a de jure basis--to
State Apprenticeship Councils or other non-governmental, external
entities.
The Department has received disturbing complaints from potential
program sponsors--particularly those operating within the skilled
trades--that have unsuccessfully sought to register apprenticeship
programs in certain States where State Apprenticeship Councils have
impermissibly exercised the authority to approve or deny applications
for program registration. These complaints have often cited the
infrequency of State Apprenticeship Council hearings to consider
applications for registration (as these bodies typically meet only on a
quarterly basis), repeated postponements of decisions by a State
Apprenticeship Council on whether to approve or deny program standards
or registration, and the absence of procedural due process, appeal
rights, and a written record in those instances where a Council has
improperly issued a negative final determination on a potential
program's registration. Such conduct by State Apprenticeship Councils
may help to explain why the speed of program registration in SAA States
lags behind the pace of registrations in those States administered by
OA.\180\ In instances where an applicant who otherwise appears to meet
the existing regulatory requirements for program registration has
encountered such inappropriate barriers to registration, the Department
has been obligated to consider whether the exercise of its residual,
plenary authority under existing 29 CFR 29.13(i) to register
apprenticeship programs in any State would be warranted.
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\180\ See Apprenticeships for America, ``The State of
Apprenticeships in the U.S.: A Plan for Scale,'' July 2022, https://www.apprenticeshipsforamerica.org/white-paper.
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Accordingly, this revised provision would clarify that an SAA that
has received recognition (under proposed Sec. 29.27) from the
Administrator possesses the exclusive, non-delegable authority to
evaluate, approve, register, monitor, oversee, suspend, and deregister
apprenticeship programs operating within that State. The only exception
would be when the Administrator--taking into account the interests of
the National Apprenticeship System as a whole--chooses to exercise its
residual authority to register an apprenticeship program on either a
State-by-State or a nationwide basis.
Specifically, as a prerequisite for the recognition or continued
recognition of an SAA by the Department, the proposed rule (at Sec.
29.26(b)) would expressly prohibit a State--either in law or in
practice--from delegating, assigning, or relinquishing any of the
discretionary authority conferred by the Department upon an SAA,
including with respect to registration determinations and the oversight
of apprenticeship programs and standards within that State, to any
external third-party entity, including a State Apprenticeship Council.
In a related vein, the proposed rule (at Sec. 29.26(b)) would
reiterate the requirement contained in the current rule (at 29 CFR
29.13(a)(2)) that State Apprenticeship Councils must operate under the
direction and control of the SAAs that have established them, and would
also expressly prohibit State Apprenticeship Councils from assuming or
exercising any of the discretionary and inherently governmental
regulatory and oversight duties with respect to apprenticeship that are
properly vested in an SAA. The proposed rule would also eliminate the
somewhat inchoate distinction posited under the current version of the
regulation (at 29 CFR 29.2 and 29.13(a)(2)) between those State
Apprenticeship Councils whose purposes and functions are ``advisory''
in nature from those that are ``regulatory'' in nature. The proposed
rule instead would stipulate that all State Apprenticeship Councils
must serve an exclusively advisory function. Specifically, the proposed
rule (at Sec. 29.26(c)) would limit the duties and powers of State
Apprenticeship Councils to providing their respective SAAs with
written, non-binding advice, recommendations, research, and reports
concerning apprenticeship-related matters, and to providing advice in
connection with the State's submission of the State Apprenticeship Plan
that is required under Sec. 29.27 of the proposed rule.
However, the Department wishes to note that the foregoing
prohibition would not prohibit an SAA from using contractors or other
third parties to perform tasks that do not involve or relate to duties
described in proposed Sec. 29.26(a), such as providing assistance to
the SAA with promotional and public outreach activities. The SAA must
retain the ultimate decision-making authority regarding whether an
apprenticeship program qualifies for registration. In addition, the
proposed regulation (at Sec. 29.26(a)(5)) would require SAAs, as a
precondition for receiving either initial or continued recognition, to
provide OA with data relating to apprentices and registered
apprenticeship programs in that State. This regulatory data-sharing
requirement described in proposed Sec. 29.28, if adopted, would
enhance registered apprenticeship program transparency, and provide the
public with a truly national picture of the performance of the National
Apprenticeship System.
SAAs are defined, both under current regulations and under proposed
Sec. 29.2, as the agency of a State government that has responsibility
and accountability for apprenticeships within the State. An approved
SAA steps into the role of OA in that State, administering registered
apprenticeship in lieu of OA and in a manner consistent with OA's role
as outlined in these proposed regulations. In furtherance of a unified
National Apprenticeship System, an SAA can only exercise this
responsibility once it has established, among other things, that its
laws, statutes, and regulations are consistent with Federal
regulations, as discussed below. This serves to promote uniformity and
consistency of experience, particularly for sponsors of registered
apprenticeship programs and apprentices, among not only SAAs, but also
those States where apprenticeship is regulated and overseen by OA. In
short, it facilitates the establishment of a more unified National
Apprenticeship System. Currently, there are 30 SAAs serving as
Registration Agencies, a number that has increased over the last
several years. This section would provide an explanation of the roles
and responsibilities of SAAs and the general requirements to obtain
recognition from the Administrator.
Proposed paragraph (a) is new and explains, upon recognition, what
actions an SAA would be allowed to conduct for Federal purposes.
Proposed Sec. 29.26(a)(1) and (7) would detail the SAA's role and
responsibilities with respect to establishing and implementing
apprenticeship-related regulations, policies, and procedures to meet
the requirements of proposed parts 29 and 30. Proposed Sec.
29.26(a)(2) through (6) and (8) through (10) would describe the SAA's
role and responsibilities over the day-to-day establishment, operation,
and oversight of registered apprenticeship programs. Efforts to expand
and modernize the apprenticeship system must be inclusive of industries
that are well-established within the apprenticeship system as well as
industries seeking to begin or expand their participation. In
furtherance of this goal, the SAA would
[[Page 3216]]
bear the responsibility of promoting cohesion and alignment among
program sponsors and employers. Lastly, proposed Sec. 29.26(a)(11)
would provide for the role SAAs may provide as Registration Agencies
for registered CTE apprenticeship under subpart B. The primary
discussion of SAA recognition for the purposes of subpart B is located
in the preamble for Sec. 29.24(g)(8).
The Department proposed paragraph (a) to clarify the expected role
and responsibilities of the SAA. The requirements in current Sec.
29.13 have some description of the expected roles and responsibilities
of the SAA, but that section is not clear, and the relevant roles and
responsibilities are spread throughout the section. This proposed
paragraph would make those roles and responsibilities clear and include
them in one location for ease of use. Further, the Department is adding
proposed paragraph (a) to establish the key responsibilities of SAAs,
which also applies to Registration Agencies generally and supports
establishing the key roles and responsibilities in the system. The
activities listed in proposed paragraph (a) are those that OA would
ordinarily perform if a State did not have a recognized SAA. The
Department anticipates that proposed paragraph (a) would reduce
confusion about the expectations of the SAA and ensure that the SAA is
fulfilling the needs of apprentices, sponsors, and employers in the
State for which it has been recognized to be the Registration Agency
for Federal purposes.
Proposed paragraph (b) is new and explains that SAA functions in
proposed Sec. 29.26(a) cannot be delegated, assigned, devolved, or
relinquished to any other entity. Proposed paragraph (c), which
describes the role of the State Apprenticeship Council, would further
clarify that the functions described in (a) cannot be performed by the
State Apprenticeship Council. In the preamble to the 2008 final rule
that last updated the apprenticeship regulations in 29 CFR part 29, the
Department confirmed that it would only recognize SAAs and would not
recognize State Apprenticeship Councils in the discussion of public
comments received on 29 CFR 29.13.\181\ The Department acknowledged
that State Apprenticeship Councils comprise knowledgeable
apprenticeship stakeholders representing ``diverse employer, labor, and
public interests,'' but ultimately concluded that State Apprenticeship
Council members are not State officials and are thus not accountable to
the State nor the Department. The Department continues to view State
Apprenticeship Councils as a valuable advisory resource for SAAs but
continues to believe that authority over registered apprenticeship in a
State should rest with a State government agency. The Department
further believes that clarifying that SAAs cannot delegate regulatory
and oversight functions to State Apprenticeship Councils would
strengthen accountability within the National Apprenticeship System.
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\181\ See existing regulation at 29 CFR 29.13, concerning
``Recognition of State Apprenticeship Agencies.''
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Despite the 2008 final rule's clarification that the Department
would not recognize State Apprenticeship Councils, in some States, such
entities have overtaken regulatory and oversight functions from SAAs.
Commenters responding to the 2007 NPRM that preceded the 2008 final
rule confirmed that this practice was ongoing before the 2008 update to
the regulations and remarked that some State laws granting State
Apprenticeship Councils oversight of the State's apprenticeship system
or granting State Apprenticeship Councils the authority to promulgate
regulations dictating the role and functions of SAAs, would need to be
overturned. Such delegation of critical apprenticeship system oversight
has continued in the intervening years, and in some States, State
Apprenticeship Councils continue to perform key apprenticeship
oversight functions, including making determinations on an occupation's
suitability for registered apprenticeship training and making
registration determinations. The Department is concerned that the State
Apprenticeship Councils continue to play this role in some States, and
maintains the view expressed in the preamble to the 2008 final rule
that administration and oversight functions are the responsibility of
government entities comprising Federal or State officials. State
officials are accountable to the interests of an entire State and that
State's population, while State Apprenticeship Council members are not.
State Apprenticeship Council members appropriately comprise equal
numbers of representatives from different sectors and bring diverse
perspectives on apprenticeship to the table, but they are ultimately
not accountable to the public in the same manner as State officials
working in SAAs.\182\ As expressed in the preamble to the 2008 final
rule, the Department maintains that the effective function of the
relationship between the Federal government and State governments
necessitates a direct relationship between Federal and State government
agencies. The Department recognizes and appreciates the valuable
expertise and advice that State Apprenticeship Councils have
historically provided and expects that they will continue to serve as a
valuable source of advice helping to inform matters related to
registered apprenticeship, including ongoing efforts to expand
registered apprenticeship into new and emerging industries and to new
and diverse populations. However, in order to further establish
effective accountability throughout the National Apprenticeship System
and to provide optimal clarity to the regulated community, the
Department has determined to propose revisions to the apprenticeship
regulations to expressly state the appropriate, solely advisory role of
State Advisory Councils and clarify that SAAs may not delegate
apprenticeship oversight nor regulatory functions to such entities.
SAAs are reminded that if the State Apprenticeship Council performs
functions that can only be exercised by the SAA, then the Administrator
can take appropriate remedial action including the initiation of
derecognition proceedings.
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\182\ The existing apprenticeship regulations at Sec.
29.13(a)(2)(ii) require that State Apprenticeship Councils ``must
include an equal number of representatives of employer and of
employee organizations and include public members who shall not
number in excess of the number named to represent either employer or
employee organizations.'' The Department proposes to retain this
requirement on the makeup of State Apprenticeship Councils in this
proposed rule but offers more details on who would constitute a
member of an ``employer organization,'' ``labor organizations,'' and
``members of the public'' at proposed Sec. 29.26(d)(1)(i) through
(iii).
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The regulatory and oversight functions of an SAA are foundational
in ensuring the establishment and maintenance of high-quality and safe
apprenticeship training. For the reasons discussed above, the
Department has determined that these functions should remain as
responsibilities of the SAA, which it has recognized for the purpose of
discharging these responsibilities for Federal purposes and which the
Department monitors and oversees for compliance with the requirements
in proposed parts 29 and 30.
Proposed paragraph (c) is new and would consolidate requirements
around the establishment and duties of State Apprenticeship Councils
into one provision. Proposed paragraph (c) explains SAAs would be
required to establish a State Apprenticeship Council. The Department
emphasizes that proposed paragraph (c) would envision the creation of a
single State Apprenticeship Council. While existing requirements may
have been unclear as
[[Page 3217]]
to the Department's intention, in this rulemaking the Department makes
clear that proposed part 29 would intend for only one State
Apprenticeship Council to be established by a given SAA. As a purely
advisory body, State Apprenticeship Councils' focus should be convening
stakeholders from different sector perspectives--namely, employers,
organized labor, and the public sector--to offer guidance and advice on
apprenticeship matters that balances the priorities and perspectives of
each sector. State Apprenticeship Councils should serve as the forum
for meeting the challenge of balancing different sectoral perspectives
and arriving at consensus advice through robust discussion,
deliberation, and compromise among stakeholders from these sectors. The
Department recognizes that the challenge of balancing competing
perspectives to arrive at consensus advice on apprenticeship matters
would be compounded if multiple State Apprenticeship Councils were
operating in a single State. In such a situation, one State
Apprenticeship Council may be engaged in robust debate on a challenging
issue and arrive at a consensus recommendation over the course of a
series of meetings, while another State Apprenticeship Council may take
up the same issue, engage in such debate, and arrive at a completely
different recommendation. Within each State Apprenticeship Council, the
views of stakeholders from different sectors will have been heard and
considered, but because discussions took place in two different forums,
the ultimate recommendation for the State's consideration may be
unclear. In the Department's view, based in part on successful
interactions with the ACA at the national level, maintaining a single
State Apprenticeship Council would be the best approach for convening
apprenticeship stakeholders from different sectors to produce useful
advice for SAAs on apprenticeship matters.
In order to address the many issue areas and topics related to
registered apprenticeship, and to more closely align the advisory work
of a State Apprenticeship Council with the specific expertise and
professional backgrounds of the individuals who comprise a State
Apprenticeship Council, it may be useful for such Councils to establish
subcommittees, appoint chairs, cochairs, or other leadership roles, and
otherwise divide responsibilities within the Council. Aside from
stipulating that State Apprenticeship Councils contain equal
representation from employers, organized labor, and members of the
public, and limiting the number of State Apprenticeship Councils in a
State to one, the Department is not proposing any limitations or
restrictions on the composition, division of responsibilities, or
internal functions of State Apprenticeship Councils in this proposed
regulation, provided the Council exercises only those functions that it
is authorized to exercise under this proposed regulation.
Proposed paragraph (c) would explain that State Apprenticeship
Councils are strictly advisory bodies that are created by, and with the
purpose to serve, the SAA by providing non-binding advice. State
Apprenticeship Councils have historically provided valuable advice and
insights for consideration by SAAs, and the Department recognizes the
value such entities add to the National Apprenticeship System through
the provision of non-binding advice and recommendations at the State
level. State Apprenticeship Councils have provided, and will continue
to provide, useful advice on sector-specific strategies to inform
efforts to expand registered apprenticeship, considerations on how best
to align different workforce development programs (such as WIOA), LEA
initiatives, or public-private sector partnerships with registered
apprenticeship, and other issues where an SAA benefits from the
synthesis of diverse industry perspectives that may not exist among
State employees working at an SAA. As this proposed rule would
explicitly clarify the advisory role of State Apprenticeship Councils,
the Department expects that State Apprenticeship Councils would be more
effective and timelier in executing their pivotal role of providing
advice on apprenticeship matters based on the input from diverse
stakeholders from different sectors. This is especially true in cases
where a State Apprenticeship Council has been performing functions that
should have been reserved for SAAs, such as reviewing and adjudicating
applications for an occupation's suitability for registered
apprenticeship training or program registration. In such cases, these
responsibilities would be appropriately retained by the SAA, and the
State Apprenticeship Councils formerly acting in such capacity would be
free to focus on deliberations on challenging issues and the provision
of useful, consensus advice reflecting input from multiple sectors and
industry stakeholders.
The Department is also interested in hearing from stakeholders on
the Department's proposal to transition State Apprenticeship Councils
to a more strategic role and away from reviewing applications from
prospective sponsors to allow for greater focus on expansion, quality
improvements, equity, and system alignment initiatives within the
State.
Proposed Sec. 29.26(c)(1) concerns the composition of State
Apprenticeship Councils and would expand upon the language in the
existing regulation at 29 CFR 29.13(a)(2)(i) and (ii). The existing
regulation provides that State Apprenticeship Councils must comprise
individuals who are knowledgeable in matters pertaining to
``apprenticeable occupations'' and must include equal numbers of
representatives from employer and employee organizations, as well as
public members ``who shall not number in excess of the number named to
represent either employer or employee organizations.'' \183\ This
proposed rule would retain the requirement that State Apprenticeship
Councils contain an equal number of representatives from these three
sectors--employers or employer organizations, labor organizations, and
members of the public.\184\ It would further provide more granular
information about the backgrounds of such individuals that would be
useful for aligning State Apprenticeship Council membership with the
Department's goals for expansion of the National Apprenticeship System
and alignment with other workforce development entities and LEAs. This
proposal also envisions that State Apprenticeship Councils would be
balanced from an employer and labor perspective, but also that the
membership would be reflective and inclusive of underserved communities
so the State Apprenticeship Council can provide key recommendations
that promote the goals of expansion, diversification, and greater
equity in the National Apprenticeship System.
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\183\ See 29 CFR 29.13(a)(2)(i) and (ii).
\184\ While the current regulation does stipulate equal numbers
of representatives from the employer and labor sectors, it only
requires that the number of public representatives be equal to (or
less than) the number of representatives from the employer sector or
the labor sector (which are required to be equal). For example, the
current regulation would allow for a State Apprenticeship Council to
be made up of 10 representatives from each of the employer and labor
sectors, and up to 10 (but no more than 10) representatives from the
general public. The proposed regulation would require equal numbers
of representatives from all three sectors--employer, labor, and
public.
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For example, at proposed 29 CFR 29.26(c)(1)(i), the Department
explains that representatives from the employer sector (either
employers or employer
[[Page 3218]]
organizations) may include representatives from sectors where
apprenticeship is not currently widespread. Similarly, proposed
paragraph (c)(1)(ii) explains that representatives from labor
organizations or joint labor-management organizations (an organization
that is known to and relevant for registered apprenticeship, wherein
representatives from both the management and labor divisions of an
organization form a deliberative body that addresses issues with input
from both sides) may include those from industries or occupations where
apprenticeship has not traditionally been utilized. This additional
detail would align with the Department's goal of expanding registered
apprenticeship generally, and particularly into new industries where
registered apprenticeship has yet to take hold as an effective
workforce training tool. The Department expects that State
Apprenticeship Councils would be a useful resource to support this goal
and encourages such bodies to recruit members who can provide insights
from industries targeted for registered apprenticeship expansion.
At proposed 29 CFR 29.26(c)(1)(iii), the Department proposes to
require that State Apprenticeship Councils' representatives from the
general public include at least one representative from the State's
workforce development system, and at least one representative from the
secondary or postsecondary education system in the State who is
familiar with registered apprenticeship. The Department expects that
improved alignment between the National Apprenticeship System and
State-level workforce development programs and educational networks
would be another area where State Apprenticeship Councils can provide
valuable insight, advice, and recommendations to guide the ongoing
integration of these related job strategies. Apprenticeship, workforce
training, and education all share the common goal of preparing
participants--whether apprentices, job seekers, or students--for
success in the labor market, for stable careers, and for achieving
financial security. Successful outcomes for such participants also
benefit U.S. employers by helping them address their talent needs.
Ultimately, successful outcomes for job seekers and employers make U.S.
businesses more competitive in the global marketplace and provide a
meaningful boost to the U.S. economy; achieving optimal alignment among
apprenticeship, workforce development, and education is a critically
important national interest. Accordingly, the Department proposes to
require that State Apprenticeship Councils would recruit and retain
members who represent workforce development and education to facilitate
connections and provide insight for the mutual benefit of their
respective systems and the National Apprenticeship System.
Proposed Sec. 29.26(c)(2) is a new provision that, for the reasons
discussed above, would prohibit State Apprenticeship Councils from
assuming or carrying out any of the responsibilities and functions of
the SAA listed in proposed Sec. 29.26(a).
Proposed paragraph (d) would require that an SAA must establish a
reciprocity process for providing approval in the SAA's State to
apprentices, registered apprenticeship programs, and standards of
apprenticeship that are registered by other Registration Agencies for
Federal purposes. Proposed paragraph (d) would expand upon an existing
requirement that an SAA must accord reciprocal approval for Federal
purposes. The existing requirement does not specify how, or on what
basis, an SAA must provide reciprocal approval which has led to
uncertainty by sponsors on the process for being granted such
reciprocity across SAAs. To address this gap, proposed paragraph (d)
would specify that the process must provide for a determination on a
program sponsor's application for reciprocity no later than 45 calendar
days after receipt of the request. Further, proposed paragraph (e)
would specify a reciprocity process established by an SAA provide
reciprocal approval only when certain conditions are met.
Proposed Sec. 29.26(d)(1) would require that the reciprocity
process must ensure reciprocal approval only be provided where the
program sponsor meets the statutory and regulatory wage and hour
requirements and apprentice-to-journeyworker ratios of the State in
which reciprocal approval is sought.
Proposed Sec. 29.26(d)(2) would require that the reciprocity
process ensures that the program and apprentices to which reciprocal
approval is accorded are registered by the SAA.
Proposed Sec. 29.26(d)(3) would require that the reciprocity
process must account for the development of standards that meet or
exceed the requirements of State or local licensure, if licensure is
required for the occupation that is the subject of the program that is
being accorded reciprocal approval. This proposed change from requiring
reciprocity is a recognition of an evolution in the Department's
understanding of how reciprocity works with regard to SAAs, State labor
laws, licensing laws, and the expansion of State benefits associated
with registration by an SAA. The Department believes the current
regulatory text at Sec. 29.13(b)(7), which essentially requires SAAs
to provide reciprocal approval, is overly simplistic and, if read
literally, could jeopardize the ability of apprentices to legally work
in a State. The current effect has been a barrier to registration
status access and a failure to properly account for all the State
issues related to apprenticeship programs. However, the Department does
believe that reciprocity is a vital tool in assisting sponsors that
have already met the registration requirements in a State but that have
operations in another to more easily acquire registration status in
that State. The Department, in acknowledging these two needs, is
proposing to require that States develop a process in which they would
provide reciprocity and articulate that process as part of their State
Apprenticeship Plan submission in proposed Sec. 29.27(b)(3). The
Department anticipates that expansion of this requirement and further
elaboration upon the criteria that a reciprocity process must address
would further its goal of driving alignment in the National
Apprenticeship System and is interested in comments about this approach
in terms of providing transparency to potential sponsors while
balancing the complex State needs.
Section 29.27--Recognition of State Apprenticeship Agencies
Proposed Sec. 29.27 would provide the framework for OA to confer
recognition to States that seek to obtain recognition or renewal of
recognition as an SAA State. In the process of obtaining recognition,
States would undergo a strategic planning process that seeks to
establish a broad vision of registered apprenticeship expansion,
modernization, diversification, and equitable opportunities for all
learners and workers. The strategic planning process would be an
opportunity for States to convene stakeholders at the State level that
find value and opportunity in bolstering the system of registered
apprenticeship in the State. Through this process, States can build
consensus around a shared strategic vision and goals; promote program
quality and good jobs; leverage and align with an existing workforce
and education infrastructure; meet the skilled workforce needs of
employers in existing and emerging high-growth industries and
occupations; galvanize commitments for increasing access to and support
within registered apprenticeship for individuals from
[[Page 3219]]
underserved communities; and utilize data collection and reporting
capacity for greater system accountability and transparency.
The Department envisions that the State Apprenticeship Plan would
be a blueprint for how a State will prioritize Federal and State
investments in registered apprenticeship and align administrative,
operational, and governance principles for more effective and efficient
implementation of expansion and equity strategies and goals. To the
extent this process for recognition and State apprenticeship planning
is currently underway in States, either through executive order,\185\
statutory mandate,\186\ or unified or combined planning under WIOA
\187\ and Perkins, States can build off of their lessons learned in
this proposed process and continuously incorporate new investments,
statutory or governance changes, and system innovations through
utilization of maximum flexibility to modify plans. States also would
have the opportunity to receive recognition from the Department for the
purposes of operating registered CTE apprenticeship programs in their
States as part of the State Apprenticeship Plan.
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\185\ Office of the Governor of Kansas, Laura Kelly, Executive
Order No. 22-07, ``Establishing the Office of Registered
Apprenticeship,'' Sept. 6, 2022, https://sos.ks.gov/publications/Register/Volume-41/Issues/Issue-37/09-15-22-50504.html.
\186\ Governor's Workforce Board, Rhode Island, ``Unlocking
Apprenticeship: A Strategic Plan for Expanding New and Innovative
Apprenticeship Models in Rhode Island,'' Dec. 2017, https://apprenticeshipri.org/wp-content/uploads/2018/01/2017-Apprenticeship-Report-Final.pdf.
\187\ DOL, ``Required Elements for Submission of the Unified or
Combined State Plan and Plan Modifications under the Workforce
Innovation and Opportunity Act,'' OMB Control Number 1205-0522,
Sept. 5, 2019, https://www.dol.gov/sites/dolgov/files/ETA/wioa/pdfs/State-Plan-ICR.pdf. Note: States must address all program-specific
requirements for the WIOA core programs regardless of whether the
State submits either a Unified or Combined State Plan. The Unified
or Combined State Plan must, with respect to activities carried out
under subtitle B of title I of WIOA, describe how the State will
incorporate registered apprenticeship into its strategy for service
design and delivery as well as provide the procedure, eligibility
criteria, and information requirements for determining training
provider initial and continued eligibility, including for registered
apprenticeship programs.
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Through the State planning process for SAA recognition, States
would have an opportunity to incorporate new and existing investments,
innovations, and strategies into their plans. States can incorporate
recent investments in the transportation, clean energy, and
manufacturing sectors, and in more resilient infrastructure, for
example, through the Bipartisan Infrastructure Law, IRA, and CHIPS Act.
These laws aim to encourage the use of registered apprenticeship and
would offer an opportunity to engage and convene stakeholders in new
and emergent industries that may not have traditionally been
participating in the National Apprenticeship System. Furthermore,
investments that have been made by the Department under AAI,
Apprenticeship Building America, and State Apprenticeship Expansion,
Equity, and Innovation grants have been and continue to be a catalyst
for encouraging States to make strategic investments through
coordinated partnership with regional and local program sponsors and
employers and to build a dynamic system of registered apprenticeship in
their States. States also would have the opportunity to create and join
an interconnected network of industry intermediaries at the national
and State level to facilitate effective industry engagement and support
efforts for program sponsors to better integrate equity into programs.
To the extent that States choose to better align cross-system planning
with WIOA or Perkins or both, States can use the State Apprenticeship
Plan process for coordination at the State and local level to leverage
resources for related instruction and on-the-job training.
Additionally, this would enable the leveraging of Federal- and State-
funded workforce and education infrastructure and provide necessary
supportive services for shared priority populations, underserved
communities, and individuals who face barriers to economic mobility.
This approach would also enable equitable access to career exploration,
pre-apprenticeship, and Job Corps that lead to registered
apprenticeship career pathways for job seekers. Lastly, this approach
would enable SAAs to engage in employer-driven, innovative sector
strategies and State economic development initiatives, as well as align
measurable outcomes and disaggregated demographic data through data
sharing and reporting strategies.
Finally, proposed Sec. 29.27 would modify the existing regulatory
requirement (found at 29 CFR 29.13(a)(1)) that an SAA, to be eligible
for recognition by OA, must submit a State apprenticeship law that
conforms to the requirements contained in 29 CFR parts 29 and 30. The
proposed rule would instead require that a State's apprenticeship laws
either meet or exceed the minimum requirements set forth in 29 CFR
parts 29 and 30 for protecting the safety and welfare of apprentices,
as discussed further below. Over time, the Department has observed that
the existing State law conformity standard has greatly impeded the
efficient and reasonable consideration of applications for recognition
by many SAAs. The Department believes that this revision would ensure
that all SAAs satisfy the minimum Federal labor standards and EEO in
apprenticeship requirements established by the foregoing regulations,
while also providing States with the regulatory flexibility to innovate
and expand the scope of protections available to apprentices who are
enrolled in, or seeking admission into, registered apprenticeship
programs. This provision would also harmonize with the State law
flexibilities that would be preserved under the proposed regulatory
provision concerning ``Relation to Other Laws'' at proposed Sec. 29.5.
The process proposed in this section would further promote
consistency within the National Apprenticeship System as it is intended
to establish a process that would be uniform and transparent for States
seeking recognition or continued recognition as an SAA State. The
implementation of a 4-year State planning process would satisfy each of
those goals by simultaneously creating a consistent cadence by which
all States would have their suitability for recognition assessed, and a
basis to be used by the Administrator to approve or deny submitted
State Apprenticeship Plans. This augmentation to the current process
would leave in place integral components of systemic consistency such
as demonstrated compliance with Federal regulations and submission of a
State EEO plan. The addition of components such as the
operationalization of requirements outlined in proposed Sec. 29.26,
and clear communication of a strategic vision for the continued
expansion and modernization of apprenticeship are needed to strengthen
the existing recognition process. The Department intends to make the
contents of such plans publicly available to promote greater
transparency in the National Apprenticeship System.
Proposed Sec. 29.27 would set forth new requirements for State
government agencies to obtain or maintain recognition as an SAA.
Specifically, this section describes the process by which a State
government agency would submit a State Apprenticeship Plan to the
Administrator for review and approval. As discussed below, this process
would require a State government agency to submit, as part of the State
Apprenticeship Plan, strategic planning elements that address the
[[Page 3220]]
State's goals to expand the registered apprenticeship model.
Proposed paragraph (a) would outline the application process for
the submission, review, approval, or disapproval of the State
Apprenticeship Plan. Current Sec. 29.13(d) prescribes that the State's
apprenticeship law will be reviewed for Federal conformity every 5
years based on their last approval from OA. To address the lack of
consistency, proposed Sec. 29.27(a)(1) would establish a clear process
and a regular cadence for all States to submit a State Apprenticeship
Plan for review and approval by the Administrator. Proposed Sec.
29.27(a)(1) would set forth that State Apprenticeship Plans are due
every 4 years, beginning for a State seeking recognition for a 4-year
period after December 31, 2026, a departure from the current SAA
recognition period of 5 years. This change is precipitated by ETA's
desire to better align apprenticeship with the greater workforce
development system, including WIOA and the Perkins program, which also
utilizes a State planning process on a 4-year cycle. The selection of
December 31, 2026, would provide at least 2 full calendar years for
States to make the necessary changes to their laws and develop plans
consistent with the requirements in this proposed rule. The timing of
2026 generally aligns with the next WIOA State planning process that
States undergo as required by title I of that Act as well as the
Perkins program. While there is some inconsistency with the WIOA State
planning process, which is for the period beginning July 1, 2026, the
Department believes that States do need sufficient time to make
changes, particularly in instances where State apprenticeship laws may
need to be updated. While the cycles do not completely overlap, they do
occur during the same calendar year and the Department considers this
alignment in timing as a strategic opportunity to build greater
cohesion and strategic State operations and coordination with the
State's workforce system, CTE system, and system of registered
apprenticeship, all of which are engaged in planning around the same
time period. This alignment could lead to increased system cohesion and
coordination. To address this gap in time, the Department is proposing
the first State Apprenticeship Plan cycle to be slightly less than 4
years. Proposed paragraph (a)(1)(ii) would provide that the first State
apprenticeship planning cycle would cover SAA recognition from January
1, 2027, through June 30, 2030. Proposed paragraph (a)(1)(iii) would
provide that the second State apprenticeship planning period would
cover the 4-year period beginning on July 1, 2030. The goal of this
proposal is to align with WIOA's State planning process in the future.
Proposed paragraph (a)(1)(iv) would provide that while a State can seek
SAA recognition at any time, consistent with it being at least 120 days
prior to when a State is requesting such recognition, the approved SAA
must also submit a State Apprenticeship Plan to align with the next
State apprenticeship planning cycle. For instance, if a State that has
not been previously recognized as an SAA State applies for and receives
SAA recognition from the Administrator in July 2028, they must still
submit a State Apprenticeship Plan for recognition for the 4-year
period spanning July 1, 2030, to June 30, 2034. The goal of this
proposal is to ensure that all SAAs are on a consistent and aligned
State planning cycle. In addition to ensuring consistency with other
programs such as WIOA and Perkins to enhance synergies between the
systems, it also may lead to benefits from SAAs sharing their planning
experiences with each other to strengthen State coordination and
alignment. Under proposed paragraph (a)(1)(i), SAAs seeking recognition
from the Administrator must submit their plans for the Administrator's
review at least 120 days prior to the proposed effective date of their
recognition. This would mean that State government agencies seeking
recognition for a period after December 31, 2026, must submit on
approximately September 1, 2026, to meet the 120-day criteria. The
Department is interested in comments about this approach, the ability
of States to successfully transition, and any potential flexibilities
the Administrator may need to provide under this approach. Commenters
requesting flexibility are encouraged to describe a standard by which
this could be accomplished so as to not perpetuate longstanding
misalignment with these proposed regulations.
Proposed Sec. 29.27(a)(2) would specify the circumstances that
would lead to an SAA seeking a modification to their State
Apprenticeship Plan. Proposed paragraph (a)(2)(i) outlines when a
modification would be required. These circumstances would include
changes in Federal or State law, changes to labor market conditions, or
changes to State vision, strategies, policies, operational procedures,
or organizational structure of the SAA that would materially impact the
ability of the SAA to fulfill its plan as written and approved. For
example, modifications would be necessary when a new State
apprenticeship law adds further requirements not called for under these
proposed regulations, or a State may restructure its oversight of its
workforce training programs by shifting oversight to a different State
government agency. However, a determination would need to be made that
the modified submission meets the requirements for approval.
Proposed Sec. 29.27(a)(2)(ii) would describe that an SAA also has
the discretion to modify its State Apprenticeship Plan. This may
include an SAA seeking a change in its recognition status from
provisional to full under proposed paragraph (c) of this section. While
regulatory in nature for the compliance of the SAA, the Department
believes Plans are also strategic documents that can lead to greater
institutionalizing of State-based systems of registered apprenticeship
into not just a regulatory or passive role in reviewing programs but in
proactive approaches and strategies to expanding high-quality
registered apprenticeship programs. Another example of when an SAA may
seek a modification to its State Apprenticeship Plan is if the SAA is
seeking recognition for the purposes of registering CTE apprenticeship
programs under subpart B. The Department envisions that SAAs may seek
this recognition at a different time period than the initial SAA
recognition process, and a State Apprenticeship Plan modification would
be an appropriate method to seek recognition for the purposes of
subpart B.
Proposed Sec. 29.27(a)(2)(iii) would specify that modifications to
an approved State Apprenticeship Plan must be submitted to the
Administrator at least 120 days prior to the requested effective date
of the modification. The Department is including this requirement to
allow the Administrator sufficient time to review and confirm that any
proposed modifications meet the requirements for approval.
Proposed Sec. 29.27(a)(2)(iv) would provide that, if the
modifications are approved by the Administrator, modified State
Apprenticeship Plans remain approved until the end of the original
cycle of the Plan.
Proposed paragraph (b) describes the contents of the State
Apprenticeship Plan. Proposed paragraph (b) begins by setting forth the
minimum requirements by which a recognized SAA must abide. Then,
proposed paragraph (b) goes on to describe the full contents of what a
State Apprenticeship Plan must include.
[[Page 3221]]
Proposed Sec. 29.27(b)(1) would establish what the Department has
determined to be the core requirements of the registered apprenticeship
model that a recognized SAA must meet or exceed. As part of this
process the State must submit its proposed or current apprenticeship
laws governing the standards of apprenticeship, apprenticeship
agreements, registration requirements, program standards adoption
agreements, qualifications of apprentice trainers and providers of
related instruction, end-point assessments, complaints, recordkeeping,
processes by which a program will be reviewed and if necessary
deregistered, the roles and responsibilities of SAAs, and the reporting
requirements for an SAA. This provision also would require that the SAA
coordinate with the State's education system, including institutions of
higher education, LEAs, State CTE and Educational Agencies, and other
educational entities that support CTE programs and career pathways, and
mandate that the SAA provide a description of any efforts to align and
leverage apprenticeship-related data with education system and
workforce development system data. The Department believes that these
are core requirements of Registration Agencies and, as such, must
govern the roles of SAAs. Instead of the current standard of conformity
with 29 CFR part 29, the Department is proposing a standard that the
State laws meet or exceed these requirements for protecting the safety
and welfare of apprentices. The Department is proposing this more
flexible approach for States to innovate beyond the current conformity
standard, which essentially requires that the State laws mirror 29 CFR
part 29 with few exceptions. This standard is designed to set the
minimum quality requirements and would provide States the flexibility
to innovate if they can demonstrate that it advances the goal of
protecting the safety and welfare of apprentices. This standard is at
the heart of the Department's mission under the NAA. The Department
welcomes comments on this proposed standard including ideas by which
the Department may apply it. Under the proposed standard, State laws
that, for example, provide higher or more frequent wage progressions
than the proposed rule, would require more frequent program reviews, or
require more training for instructors or protections for apprentices
may all be acceptable deviations.
Proposed Sec. 29.27(b)(2) would identify the Strategic Planning
Elements to be submitted as part of the State Apprenticeship Plan.
Strategic planning elements provide an opportunity for the SAA to
develop a vision for expanding and improving the registered
apprenticeship model in its respective State, something that is
integral to the robust cooperation between OA and SAAs. The absence of
strategic alignment in the current recognition process limits OA's
ability to promote and embed high-quality apprenticeship as a talent
development strategy within States. Increased Federal benefits and
strategies tied to the leveraging of registered apprenticeship programs
have created a need to ensure further cooperation by SAAs to perform a
strategic role in the State's strategic workforce initiatives. Examples
of this increased need include the passage of WIOA and the strategic
role registered apprenticeship programs are designed to play in
fostering registered apprenticeship strategies, and the need to ensure
an active role in promoting equity in apprenticeship in light of both
the 29 CFR part 30 regulation and the Department's priorities. By
mapping out both short-term and long-term strategies through
utilization of available individual and cross-sectional labor market
data that speaks to the past, present, and future potential of
registered apprenticeship as a workforce development strategy, a State
would be better positioned to work with OA and ETA to grow and
modernize apprenticeship within the State. The strategic planning
elements would allow OA to ascertain how an SAA will align with the
Department's goal of, and initiatives around, driving ongoing
modernization and system alignment across stakeholders. Components of
the strategic planning elements would include goals for expanding the
registered apprenticeship model in the State; goals for promoting
registered apprenticeship programs for underserved communities in the
State; goals for aligning a State's registered apprenticeship
activities with broader education and workforce development activities;
activities to coordinate with economic development entities within the
State; and strategies for engaging and leveraging industry
intermediaries as part of the State's strategy for expanding registered
apprenticeship programs.
Proposed Sec. 29.27(b)(3) would identify the Operational Planning
Elements to be submitted as part of the State Apprenticeship Plan.
Operational planning elements would identify key items that are
necessary to the implementation of the vision developed in the
strategic planning elements and that generally describe how the State
government agency would perform the roles and responsibilities of an
SAA described in proposed Sec. 29.26. Proposed Sec. 29.27(b)(3) would
specify the required operational planning elements when a State is
submitting its State Apprenticeship Plan for recognition as an SAA
State every 4 years. The operational planning elements required in an
initial State Apprenticeship Plan would be: the State's EEO plan, in
conformity with part 30; the State's technical assistance plan; the
State's process by which it will meet performance reporting
requirements of proposed Sec. 29.28 including utilizations details of
data management tools and data management procedures; the plan for
conducting program reviews; the State's plans to operationalize
registration standards; the State's reciprocity policy, in accordance
with proposed Sec. 29.26(f); and the structure of how the State
Apprenticeship Council is or will be structured consistent with the
requirements of proposed Sec. 29.26.
Proposed Sec. 29.27(b)(4) would identify the assurances to be
provided to the Administrator as part of the State Apprenticeship Plan.
The assurances would provide a simplified method for OA to ensure that
an SAA is meeting other requirements of proposed parts 29 and 30, not
already identified in the other subsections of proposed Sec.
29.27(b)(4). The assurances identified would be: that the State will
provide a process for local registration of National Guidelines for
Apprenticeship Standards; that the State has the resources necessary to
operate the SAA and is capable of carrying out all of the
responsibilities of the SAA; that the State will have a publicly
available website describing its apprenticeship-related laws,
regulations, policies, and procedures; and that the State will require
from sponsors a written assurance that they are complying with the
requirements of the Support for Veterans in Effective Apprenticeships
Act of 2019. The Department has determined that these assurances would
be necessary to align the operations of recognized SAAs with that of
OA. The Department anticipates that these assurances would help drive
system alignment and deliver high-quality apprenticeship training to
all apprentices by all Registration Agencies. The Department has
proposed these provisions as assurances as a balance of prioritizing
the most important elements where a narrative is needed for a State
Apprenticeship Plan versus the need to have an SAA provide a more
streamlined process for meeting these
[[Page 3222]]
key goals. The Department welcomes comments on these assurances,
including the value an assurance in this situation brings, whether an
assurance is sufficient to drive the alignment desired, and what, if
any, other assurances should be considered in a State Apprenticeship
Plan.
Proposed Sec. 29.27(b)(5) would provide for the process by which a
State government agency operating or seeking to operate as an SAA may
apply for and receive recognition to register CTE apprenticeship
programs in their State. States would not be required to seek
recognition for registering CTE apprenticeship programs under subpart B
to receive recognition for registering apprenticeship programs under
subpart A. States that do seek this recognition would be required to
submit their proposed or current registered CTE apprenticeship laws as
described in proposed Sec. 29.24(g)(8) as part of their State
Apprenticeship Plan or modification. Additionally, this section would
include the requirement that the written agreement between the
Registration Agency in proposed Sec. 29.24(a)(2) would be submitted
with the State Apprenticeship Plan so that OA can ascertain that this
requirement has been met prior to granting recognition. Lastly, the
State Apprenticeship Plan must include a narrative description of how
the State would seek to develop and expand registered CTE
apprenticeship programs in the State. The Department is requiring this
to ensure strategic alignment for the SAA in their strategies for
expanding both registered apprenticeship under subpart A as well as
registered CTE apprenticeship under subpart B.
Proposed paragraph (c) explains the designations that OA would
convey upon review of a State Apprenticeship Plan submitted by a State.
The Department anticipates that this approach would better ensure that
it can both further its goal of driving system alignment and high-
quality apprenticeship training across the National Apprenticeship
System and provide flexibility to States in transitioning to the State
planning process.
Proposed Sec. 29.27(c)(1) would describe the conditions that must
be met for OA to convey full recognition. The Department has determined
that the State Apprenticeship Plan must demonstrate all conditions in
proposed Sec. 29.27(c)(1) for full recognition because they would be
necessary to ensure the State has addressed all of the requirements in
the proposed rule regarding the increased role that the Department
envisions for SAAs. Those requirements would include, but are not
limited to, minimum labor standards, a comprehensive State
Apprenticeship Plan that addresses all of the strategic and operational
elements necessary to drive the expansion of quality registered
apprenticeship programs, clear commitments and progress in promoting
equity throughout the system, and strategies that integrate workforce
development and educational activities.
Proposed Sec. 29.27(c)(2) describes when OA would convey
provisional recognition. Provisionally approved SAAs have provided a
minimally sufficient State Apprenticeship Plan that has met the minimum
requirements and standards set forth in proposed parts 29 and 30.
However, these are plans that the Department has determined have one or
more deficiencies regarding the State's planning that prevent the plan
from obtaining full recognition. Proposed Sec. 29.27(c)(2)(i)
describes the deficiencies that may result in provisional recognition,
including strategic planning or operational elements that are not
complete or responsive, such as not having a technical assistance
strategy for the period covering the State Apprenticeship Plan.
Proposed Sec. 29.27(c)(2)(ii) explains that OA would provide
technical assistance to States as they develop, and prior to the
submission of, any subsequent State Apprenticeship Plan, either a
modification of the initially submitted plan or a new 4-year plan. OA
would require the submission and approval of a corrective action plan
for the purpose of obtaining full recognition. A corrective action plan
would detail a set of actionable steps the SAA will undertake to
address areas of concern in the State Apprenticeship Plan, including a
timeline for the implementation of such activities. This provision also
would contain the requirement that a State may not be provisionally
recognized for more than one full planning cycle. This would allow
provisionally recognized States the time needed to make the necessary
adjustments to be fully recognized.
Proposed paragraph (c)(3) would describe denial of recognition.
Proposed Sec. 29.27(c)(3)(i) specifies that denial of recognition
would mean that the Administrator has determined that the State's
apprenticeship laws do not meet the minimum standards described in
proposed Sec. 29.27(b)(1). Proposed Sec. 29.27(c)(3)(ii) would
specify that denial of recognition would also be conveyed when the
Administrator is unable to fully approve a State Apprenticeship Plan
after the State was provisionally recognized for one full planning
cycle as described in proposed Sec. 29.27(c)(2). Proposed Sec.
29.27(c)(3)(iii) goes on to explain that the processes and procedures
applicable to such denial of recognition would be described in proposed
Sec. 29.29.
Proposed paragraph (d) continues the concept in the current
regulation at 29 CFR 29.13(i) that OA would also retain its existing
authority to register an apprenticeship program on either a local
registration or (with respect to National Program Standards for
Apprenticeship) nationwide basis in instances where such an action
would serve the interests of the National Apprenticeship System.
Proposed paragraph (e) provides that OA would monitor and review
SAAs to ensure they are operating consistent with their approved State
Apprenticeship Plans. While the State Apprenticeship Plan would provide
a regular 4-year cycle for the review of SAAs through their plan
submissions, certain instances may warrant more frequent reviews. For
example, if a State is provisionally granted recognition, OA may
schedule a review to go over the corrective action plan and provide
technical assistance to ensure the agreed upon benchmarks in the plan
are being met or conclude that a revision is needed. The Department is
interested in any comments about when periodic reviews could or should
happen outside of the 4-year State apprenticeship planning cycle.
Proposed paragraph (f) would provide for the derecognition of an
SAA, whether fully or provisionally approved, when the Administrator
determines that an SAA is not operating consistent with its approved
State Apprenticeship Plan, and references the procedures described in
proposed Sec. 29.29 below.
Proposed paragraph (g) explains that OA may suspend an SAA's
authority to register new apprenticeship programs where a corrective
action plan is not submitted for review and approval, as contemplated
by proposed paragraph (c)(2). Proposed paragraph (g) goes on to
describe the process by which the suspension would take effect and the
duration of the suspension. The Administrator would provide written
notice to the State of the suspension, which would take effect 30
calendar days after the date of the written notice. The suspension
would end upon the State's submission of a corrective action plan, as
described in proposed paragraph (c)(2). The Department has determined
that this provision is necessary to ensure that States submit
corrective action plans to OA to address their provisional status and a
plan to
[[Page 3223]]
make the changes necessary for full recognition. While an SAA that does
not submit a corrective action plan as part of its requirement for
provisional recognition would ultimately be considered for
derecognition proceedings, the Department envisions this suspension
provision as an interim step that the Administrator may take prior to
derecognition. The Department is interested in comments regarding an
interim approach towards accountability in this regard, including if
other interim steps should be considered, or if a State's failure to
submit corrective action plans should immediately lead to denial of a
State Apprenticeship Plan and derecognition.
Proposed paragraph (h) explains that where a State Apprenticeship
Plan is denied or where the Administrator derecognizes an SAA, a State
would not be permitted to have a State government agency function as an
SAA. Specifically, a State would not be authorized to conduct
operations and activities, for Federal purposes, in connection with
those responsibilities enumerated in proposed Sec. 29.26(a). Further,
proposed paragraph (h) explains that this prohibition would continue
until OA conveys full or provisional recognition to a State
Apprenticeship Plan. States that have been denied recognition or
derecognized may always submit an updated or new State Apprenticeship
Plan to address the recognition requirements.
Section 29.28--Reporting Requirements for State Apprenticeship Agencies
One of the key goals of the Department's proposed rule is the
collection of accurate and complete registered apprenticeship data. A
key goal for the Department to fully and accurately oversee the
National Apprenticeship System, is to have comprehensive and complete
data from the entire system, including SAAs. While the existing
regulations do not impose a specific requirement regarding data
collection from SAAs, OA and SAAs have made great strides to enhance
and increase SAA data reporting to OA. While those voluntary
submissions have greatly increased OA's ability to oversee the system
and report its successes to stakeholders, the lack of a consistent
reporting requirement leaves significant gaps in the quality of data.
Data collection requirements that fail to mandate a central repository
for program data and the data of individual apprentices do not give
sufficient credence to the importance of data to the continued growth
and modernization of apprenticeship. Data collection and data integrity
are not optional tools to optimize the National Apprenticeship System,
but rather compulsory elements. Replacing voluntary recommendations
with mandatory requirements impresses upon SAAs the Department's
commitment to the creation and sustainment of a transparent, unified
data system.
Proposed Sec. 29.28 would establish requirements for SAAs to
collect and report apprentice and sponsor data and information to the
Department. These requirements would include at least quarterly
submission of individual apprentice records and annual submission of
sponsor records, as defined in proposed Sec. 29.25. This requirement
could be met by using the Department-provided case management system,
such as many SAAs currently do with RAPIDS, or creating interoperable
mechanisms in which the required information is reported accurately,
timely, and with validity in the format determined by the Administrator
on a quarterly and annual basis. Utilizing a central information and
case management system provided by the Department would defer costs for
States related to the development and ongoing maintenance of such
systems and make available technical assistance to States to enable the
technological expertise and capacity to reliably and validly enter
accurate information to manage registered apprenticeship program
participants while also fulfilling reporting requirements.
The purpose of this proposed provision is to facilitate
modernization of the National Apprenticeship System, as recommended in
the ACA's 2022 Interim Report,\188\ and to increase the SAAs' reporting
to OA's RAPIDS, by making data collection and reporting more uniform
and standardized across the Department's and SAAs' case management
systems. Creating a more unified and standardized approach to data
collection and reporting also would enable system transparency and
accountability. Greater transparency is another recommendation in the
ACA's 2022 Interim Report, as enabling greater transparency can help
States develop validation strategies for more reliable data.\189\
Furthermore, increased accountability can help States assess program
quality and support equity strategies to increase registered
apprenticeship program access, participation, and improve outcomes for
underserved communities. Through more robust data collection and
reporting, National Apprenticeship System stakeholders can make more
informed, data-driven decisions about how to best target investments in
registered apprenticeship programs.
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\188\ ACA recommendations from its 2022 Interim Report related
to the uniform collection of apprenticeship data on a national scale
include:
Analyze how to encourage more State participation in
RAPIDS and consider withholding OA State-level funding for States
that do not fully participate in the RAPIDS system. Encourage States
that do not participate in the RAPIDS system, or participate only
partially, to take part in the collection and sharing of
apprenticeship data for the benefit of the national dataset
(RAPIDS).
Encourage sponsors and apprentices to provide requested
data for the benefit of a robust, national apprenticeship dataset.
To assist stakeholders, including States and sponsors,
with improved data collection and usage, OA should consider
investments or other financial support to incentivize complete and
accurate data collection.
ACA, ``Interim Report to the Secretary of Labor,'' May 16, 2022,
https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
\189\ One recommendation from the ACA's 2022 Interim Report was
to ``[m]ake RAPIDS data more publicly available and accessible to
improve transparency and accountability, and enable improved
insights and analysis related to apprenticeship.'' ACA, ``Interim
Report to the Secretary of Labor,'' May 16, 2022, at 16, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
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States would also be able to have a framework for disaggregating
demographic data to support planning requirements and align State
planning goals with State strategic planning efforts under WIOA and
Perkins. Increased data collection and reporting can facilitate
opportunities for States to rigorously evaluate and assess
apprenticeship pathways. Understanding that many States have their own
case management systems for sponsor and apprentice data, this
modernization effort would support flexibility and create mechanisms
for increased interoperability.
Proposed Sec. 29.28(a) would establish the requirement that
information about individual apprentices and sponsors must be collected
by the Registration Agency, which is described in proposed Sec.
29.25(a) and (b). This requirement makes clear that SAAs would be
responsible for reporting to the Department the information that
sponsors report to the Registration Agency under proposed Sec.
29.25(a) and (b). These requirements are key to improving collection of
demographic information that would enable the Department to better
disaggregate and leverage such data to develop and track indices
relating to equity. This data analysis can serve to inform and drive
improvements towards greater equity in the apprenticeship system. These
goals are not only important to the Department, they are also aligned
to the recommendations from the ACA to
[[Page 3224]]
increase SAA reporting to OA on this subject.
These changes not only serve the goals of greater transparency and
equity, but would also enable the Department to modernize its systems
to capture more fully an apprentice's progress throughout the program,
including the capture of licenses, degrees, and the full scope of
credentials earned through registered apprenticeship programs, as
recommended by the ACA.
Proposed Sec. 29.28(b) would establish the requirement that
information collected under proposed Sec. 29.25(a) must be reported by
the Registration Agency to the Department on at least a quarterly
basis. Under the current approach, this type of reporting is done
primarily through sponsors and Registration Agencies entering data into
the RAPIDS system, and the Department anticipates that approach would
continue. This would ensure that Registration Agencies are responsible
for reporting quarterly to the Department the information that sponsors
report to the Registration Agency under proposed Sec. 29.25(a).
Reporting on a quarterly basis would align the reporting cadence with
WIOA and most other workforce programs, and enable more timely
availability of information as well as more timely identification of
any reporting difficulties and deficiencies so that those issues can be
resolved in advance of the submission of annual reports. Quarterly
reporting also would enable the identification of patterns that occur
within the year, such as seasonal changes in employment patterns.
Proposed Sec. 29.28 (c) would establish the requirement that
information collected under proposed Sec. 29.25(b) must be reported by
the Registration Agency to the Department on an annual basis. Under the
current approach, this type of reporting is done primarily through
sponsors and Registration Agencies entering data into the RAPIDS
system, and the Department anticipates that approach would continue.
This would ensure that Registration Agencies are responsible for
reporting annually to the Department the information that sponsors
report to the Registration Agency under proposed Sec. 29.25(b).
Proposed Sec. 29.28(d) would establish that the Department will
make the information collected under proposed Sec. 29.28(c) publicly
available. The Department anticipates utilizing a public-facing website
on apprenticeship.gov to share this information. Information shared
will include raw data in a variety of file formats. This would be
responsive to the recommendation from the ACA to make disaggregated
demographic data publicly available and modernize the National
Apprenticeship System through quality data and analytics.
Proposed Sec. 29.28(e) would establish that to meet the
requirements in proposed Sec. 29.28(a) through (c), SAAs must either
utilize a case management system provided by the Department, such as
RAPIDS, or maintain a State system that is capable of reporting
individual apprentice record level information to the Department in a
manner that meets requirements prescribed by the Administrator and
minimum security requirements consistent with FERPA. This would be a
vital component to ensure that the data reported to OA is consistent
nationally and across State lines. The Department is not proposing to
mandate the use of RAPIDS or a future system; however, as of the end of
fiscal year 2023, 19 States do utilize RAPIDS as their primary system
and it is a service available to them to assist in meeting these
requirements and 11 States use an external case management system,
uploading results into RAPIDS on a quarterly basis. Separately, the
Department acknowledges that some SAAs have their own systems and may
collect additional information that is important for their
stakeholders. This proposal would not require them to no longer use
that system but would require that they report in a consistent format.
Section 29.29--Denial of a State Apprenticeship Plan for Recognition as
a State Apprenticeship Agency and Derecognition of Existing State
Apprenticeship Agencies
The current regulations at Sec. 29.13 include a paragraph
regarding the denial of an application for a State to become an SAA as
well as a paragraph regarding procedures when an SAA voluntarily
withdraws from recognition. The current regulations also feature a
separate section describing the derecognition process at Sec. 29.14.
Proposed Sec. 29.29 is new and would consolidate the processes and
procedures concerning the denial of a State Apprenticeship Plan and the
derecognition of an existing SAA into one section. Proposed Sec. 29.29
would update the existing language and align these existing processes
with the new State apprenticeship planning process in proposed Sec.
29.27. The procedures concerning requests for a hearing after a final
determination denying recognition or derecognizing an existing SAA
would largely be the same as the current regulation but have been
updated to align with the deregistration hearing procedures in proposed
Sec. 29.21. Further, State obligations after derecognition of an
existing SAA would largely retain the language in the current
regulation.
Proposed paragraph (a) would outline the processes and procedures
when OA denies a State Apprenticeship Plan or derecognizes an existing
SAA.
Proposed Sec. 29.29(a)(1) explains that a written notice would be
provided to a State when OA denies a State Apprenticeship Plan,
pursuant to proposed Sec. 29.27(c)(3), or derecognizes an existing
SAA, pursuant to proposed Sec. 29.27(f). The notice would include the
reason, or reasons, for the denial or derecognition. The notice would
also identify what remedial measures the State will need to take to
address the denial or derecognition. Finally, the notice would set a
timeline for addressing those measures, which must be no longer than 12
months after the date of the written notice. Corrective action plans
would be required in the case of a provisionally recognized SAA. Here,
in the case of derecognition, corrective action plans would not exist.
Instead, upon issuance of the written notice that is provided to an SAA
that it will be derecognized including the reasons leading to the
derecognition, the State would be given a timeline to complete
necessary remedial measures to address the reasons leading to
derecognition. The inclusion of a timeline is necessary so that a State
can make the necessary changes or take the necessary actions to ensure
compliance. If a State does not make the necessary changes or take the
necessary actions, the Department would proceed with the denial or
derecognition procedures described in proposed Sec. 29.29. The
Department acknowledges that the reason for the denial or derecognition
will vary based on the facts specific to the scenario, and, as a
result, the time needed to address those measures will vary. However,
the Department believes that a specific timeframe is necessary to
ensure that the reason for denial or derecognition would be addressed
in an expeditious manner. Accordingly, the Department determined that
proposed Sec. 29.29(a)(1) should include a provision specifying that a
State would be given no longer than 12 months after the date of the
written notice to address identified remedial measures. The Department
determined that 12 months would be an appropriate timeframe to allow a
State to make potential changes to their State laws, which may require
a significant amount of State legislative session scheduling. However,
the Department does not want this timeframe to remain open-ended, and
[[Page 3225]]
12 months would provide the urgency needed to make the necessary
changes.
Proposed Sec. 29.29(a)(2) is based on the existing regulation and
would explain that if a State does not address or fails to remedy the
reason(s) for the denial or derecognition in the timeframe identified
in the written notice, the Administrator may issue a final
determination. In the final determination, the Administrator would
include the reason(s) for the denial or derecognition and the State
would be provided an opportunity to request a hearing within 30
calendar days of the date of the final determination. The Department
would provide notice to the public if a State has been derecognized by
the Department.
Proposed Sec. 29.29(a)(3) is based on existing provisions at Sec.
29.13(g) and Sec. 29.14(c)(3). This section would describe the
procedural requirements when a State requests a hearing upon receiving
the Administrator's final determination. Proposed Sec. 29.29(a)(3)
would provide that a request for a hearing must be sent to the OALJ and
the Administrator, who, in turn, transmits the request to the Office of
the Solicitor. The Administrator would also promptly provide the OALJ
with the administrative file containing all relevant documents relied
upon by the Administrator in making the final determination.
Proposed Sec. 29.29(a)(4) and (5) are based on the existing
provisions at Sec. 29.13(g)(1) through (4), respectively. Both
proposed Sec. 29.29(a)(4) and (5) have been updated to align with the
procedures for hearings on deregistration, described in proposed Sec.
29.21.
Proposed Sec. 29.26(a)(6) would describe the procedures applicable
when an SAA voluntarily seeks withdrawal from recognition. This section
would recognize that States have the discretion to voluntarily
relinquish recognition of recognized SAAs.
Proposed paragraph (b) is based on existing provisions at Sec.
29.14(d) and (e) and would describe what actions the Administrator must
take when an existing SAA is denied recognition, derecognized, or
voluntarily seeks withdrawal of derecognition. Proposed Sec.
29.29(b)(1) would be the same as existing Sec. 29.14(d)(1). Proposed
Sec. 29.29(b)(2) would combine existing Sec. 29.14(d)(2) and (e) into
a single provision and also update the procedures described therein.
Specifically, proposed Sec. 29.29(b)(2) would set forth a requirement
that the Administrator must notify sponsors, in the State where the SAA
is derecognized, that the Department will cease to recognize their
programs that were previously registered unless the sponsor submits an
application for registration with OA within 45 calendar days after the
date of the final agency determination to derecognize the SAA. Proposed
Sec. 29.29(b)(2) goes on to describe that the sponsor's application
for registration would be reviewed in accordance with the requirements
and procedures described in proposed Sec. 29.10. Within 90 calendar
days of receiving the application for registration, OA would review the
application to determine if it meets the requirements for registration
described in proposed Sec. 29.10(a) and would approve any applications
for registration in accordance with the procedures and requirements
described in proposed Sec. 29.10(b). OA would deny any applications
for registration if the application does not meet the requirements in
proposed Sec. 29.10(b). The procedures described in proposed Sec.
29.10(c) would apply to any applications for registration that are
declined.
Proposed paragraph (c) is based on a requirement at existing Sec.
29.14(h) and would explain what a State must do when its existing SAA
has been denied recognition or derecognized by OA or has voluntarily
withdrawn from recognition. Proposed Sec. 29.29(c)(1) would describe
the transfer of apprenticeship-related records and information to the
Department after derecognition. Proposed Sec. 29.29(c)(2) would update
language from the current regulation to align with proposed paragraph
(b), adding an additional requirement that the State must notify
sponsors that their programs will no longer be registered for Federal
purposes as of 45 calendar days after the date of the Administrator's
final determination. Sponsors interested in registration with OA must
submit an application for registration to OA, pursuant to proposed
paragraph (b). Finally, proposed Sec. 29.29(c)(3) would require that
States must cooperate fully with the Administrator during a transition
period. For example, the Department, during such a transition,
envisions that the State would maintain open lines of communication
with the Department and would facilitate the transfer of pertinent
records and information in a timely manner. The Department includes
this proposed provision to ensure smooth, seamless continuity of
operations in the National Apprenticeship System, and to further
support the Department in fulfilling its obligations and
responsibilities to apprentices and program sponsors.
Section 29.30--Apprenticeship Requirements in Other Laws
Proposed Sec. 29.30 is designed to help the National
Apprenticeship System integrate with other Federal or State laws that
have been designed to support the expansion of registered
apprenticeship programs by providing a Certificate of Participation to
stakeholders, which provides information on apprentice participation
that may be required by other Federal or State laws. This provision
would seek to address situations where information on apprentices in
registered apprenticeship programs is necessary to document compliance
with Federal and State laws separate from the NAA. For example, the
Department has a long history of providing information on apprentice
participation to satisfy the prevailing wage requirements of the Davis-
Bacon and related Acts and 29 CFR part 5. Additionally, with the
expansion of registered apprenticeship as an allowable activity under
WIOA, the apprenticeship requirements of the IRA, and other Federal and
State laws that provide Federal and State benefits associated with
utilizing registered apprenticeship, there is, and will continue to be,
a need for OA or SAAs to provide information to Federal and State
officials responsible for implementing Federal and State laws, sponsors
or participating employers seeking Federal or State benefits for
participation in registered apprenticeship programs, workforce
development system partners funding individual training accounts or on-
the-job training contracts under WIOA with registered apprenticeship
programs, and potentially future stakeholders as Federal and State
policymakers continue to embrace the registered apprenticeship model.
The Department is adding this provision to make it clear that provision
of this information would be permissible to allow other, related laws
to be effectively implemented provided that it would be done so
consistent with the requirement of any applicable Federal or State
privacy law or other relevant law.
E. Part 30 Revisions
As part of this proposed rule for 29 CFR part 29, the Department is
proposing technical and conforming edits to 29 CFR part 30, which would
address EEO in apprenticeship. The Department invites commenters to
opine on the proposed technical and conforming edits to part 30;
however, the scope of these changes is narrow and primarily confined to
necessary adjustments to align with proposed
[[Page 3226]]
changes to 29 CFR part 29. The Department is fully committed to the
enhanced alignment of the labor standards of 29 CFR part 29 with the
part 30 requirements and has proposed changes through part 29 to bring
about greater alignment. The Department believes that this increased
alignment between the two parts would enhance the implementation of 29
CFR part 30 across the National Apprenticeship System and promote
greater equity and opportunity for job seekers and apprentices
nationwide. Correspondingly, the Department proposes limited changes to
29 CFR part 30 to ensure consistency with the quality enhancements
proposed for 29 CFR part 29 in this rulemaking.
The Department proposes a technical change to replace all cross-
references in part 30 that currently cite to specific sections of part
29 with citations that simply cite to ``part 29.'' The Department
proposes this change to remove what will now be outdated references and
to avoid the need to update these cross-references again following any
future reorganization of part 29. This change would affect the
following sections: 29 CFR 30.3(b)(2)(i), 30.10(a), and 30.12(a)(3);
the introductory language of 29 CFR 30.18(a)(1); 29 CFR 30.18(a)(3) and
(4); the introductory language of 29 CFR 30.18(c); and 29 CFR
30.18(c)(3) and (d).
The Department also proposes a conforming change to replace the
terms ``EEO compliance review'' and ``compliance review'' with
``program review'' throughout part 30. This would be consistent with
the terminology being proposed in part 29 and more accurately reflects
the scope of OA's reviews, which include both parts 29 and 30
components. This change is strictly one of terminology and the
Department is not proposing to change anything about the nature of the
reviews as they are described in part 30. This terminology change would
affect the following sections: 29 CFR 30.5(b)(2) and (c)(6),
30.7(d)(2)(ii), 30.12(f), and 30.13(a), (b), and (c); the introductory
language to 29 CFR 30.15; and 29 CFR 30.17(a)(3) and 30.18(b) and
(c)(1).
Section 30.2--Definitions
Proposed 29 CFR 30.2 would revise the definition section to cite to
the definitions of 29 CFR 29.2. The Department is proposing this change
to place all definitions related to the National Apprenticeship System
in one section. The Department considers this technical change an
important one for the regulated community to be able to navigate and
access all the required definitions in one section of regulatory text
more easily. The Department is proposing all the definitions that were
in part 30, but not in part 29, to be inserted into Sec. 29.2, with
these changes discussed in that section.
Section 30.13--Program reviews
In addition to the proposed terminology change to ``program
reviews,'' discussed above, the Department proposes to amend Sec.
30.13 by replacing references to ``business days'' with simply
``days.'' Days would be defined in 29 CFR 29.2 to mean calendar days,
and not business days or workdays. The Department is proposing to use
calendar days instead of business days for consistency with part 29 and
to improve clarity for the regulated community. In situations where
sponsors currently have 30 business days to comply or respond to a
review finding, under this proposed rule they would have 45 calendar
days to do so. The Department views these timeframes as roughly
equivalent and would not intend to alter the substantive amount of
working time within which sponsors would need to act. The Department is
including a reference to the EEO requirements contained in this part to
ensure that as the Department is proposing the term program reviews to
address compliance with both parts 29 and 30, this edit would ensure
the regulatory text of part 30 is in alignment with this provision.
Section 30.14--Complaints
The Department proposes to add a new subordinate paragraph
(c)(1)(vi) to Sec. 30.14(c), which would require the Registration
Agency to protect the identity of the complainant to the extent
practicable. This addition would maintain consistency with the
complaint process being proposed under part 29. The Department invites
comments on the substance of this provision under Sec. 29.17(e)(2),
where the rationale is more fully laid out.
Section 30.15--Enforcement Actions
The Department proposes to amend Sec. 30.15(b) by deleting ``or if
the Registration Agency does not institute such proceedings within 45
days of the start of the suspension, the suspension is lifted'' at the
end of the paragraph. This alteration would maintain consistency
between the suspension and enforcement procedures under both parts 29
and 30. This change would also permit the Registration Agency to impose
a suspension for a set period of time without being required to proceed
to deregistration proceedings within 45 days of the imposition of the
suspension, thus providing sponsors and Registration Agencies more time
to resolve any deficiencies.
Section 30.20--Severability
The Department proposes to include a severability provision,
identical to that proposed in 29 CFR 29.5, as part of the conforming
edits being proposed for part 30 to maintain consistency between the
two parts.
V. Regulatory Analysis and Review
A. Executive Orders 12866 (Regulatory Planning and Review), 14094
(Modernizing Regulatory Review), and 13563 (Improving Regulation and
Regulatory Review)
Under E.O. 12866, OMB's Office of Information and Regulatory
Affairs (OIRA) determines whether a regulatory action is significant
and, therefore, subject to the requirements of the executive order and
review by OMB. See 58 FR 51735 (Oct. 4, 1993). Section 1(b) of E.O.
14094 amends sec. 3(f) of E.O. 12866 to define a ``significant
regulatory action'' as an action that is likely to result in a
regulation that may: (1) have an annual effect on the economy of $200
million or more (adjusted every 3 years by the Administrator of OIRA
for changes in gross domestic product), or adversely affect in a
material way the economy, a sector of the economy, productivity,
competition, jobs, the environment, public health or safety, or State,
local, territorial, or Tribal governments or communities; (2) create a
serious inconsistency or otherwise interfere with an action taken or
planned by another agency; (3) materially alter the budgetary impact of
entitlements, grants, user fees, or loan programs, or the rights and
obligations of recipients thereof; or (4) raise legal or policy issues
for which centralized review would meaningfully further the President's
priorities or the principles set forth in E.O. 12866. See 88 FR 21879
(Apr. 11, 2023). This proposed rule is a significant regulatory action
under section 3(f)(1) of E.O. 12866, as amended by E.O. 14094.
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
[[Page 3227]]
qualitatively values that are difficult or impossible to quantify,
including equity, human dignity, fairness, and distributive impacts.
1. Summary of the Economic Analysis
The Department anticipates that the proposed rule would result in
benefits, costs, cost savings, and transfers for sponsors,
participating employers, apprentices, and society. The benefits of the
proposed rule are described qualitatively in section V.A.2 (Benefits).
The estimated costs are explained in sections V.A.3 (Quantitative
Analysis Considerations), V.A.4 (Subject-by-Subject Analysis), and
V.A.5 (Summary of Costs). The nonquantifiable costs and cost savings
are described qualitatively in section V.A.6 (Nonquantifiable Costs and
Cost Savings). The nonquantifiable transfer payments are described
qualitatively in section V.A.7 (Nonquantifiable Transfer Payments). An
analysis of distributional impacts of the proposed rule is in section
V.A.8 (Distributional Impact Analysis). Finally, the regulatory
alternatives are explained in section V.A.9 (Regulatory Alternatives).
The quantified costs of the proposed rule for participating
employers are rule familiarization and recordkeeping. The quantified
costs of the proposed rule for sponsors include rule familiarization,
on-the-job training documentation, wage analysis and career
development, data collection and reporting, program registration,
program standards and adoption agreement, administration of end-point
assessments to apprentices and program reviews. The quantified costs of
the proposed rule for apprentices include data collection and reporting
and end-point assessments. The quantified costs of the proposed rule
for SAAs are associated with rule familiarization, data collection and
reporting, program registration, program reviews, data sharing,
reciprocity of registration, and submission of State Apprenticeship
Plans. The quantified costs of the proposed rule for the Federal
Government are associated with the occupation suitability determination
process, program registration, National Occupational Standards for
Apprenticeship, National Program Standards for Apprenticeship, National
Guidelines for Apprenticeship Standards, end-point assessments, and
program reviews. The quantified costs of the proposed rule for
apprentices are the requirement to take an end-point assessment.
Exhibit 1 shows the total estimated costs of the proposed rule over
10 years (2025-2034) at discount rates of 3 percent and 7 percent. The
proposed rule is expected to have first-year costs of $147.9 million in
2022 dollars. Over the 10-year analysis period, the annualized costs
are estimated at $151.9 million at a discount rate of 7 percent in 2022
dollars. In total, over the first 10 years, the proposed rule is
estimated to result in costs of $1.066 billion at a discount rate of 7
percent in 2022 dollars. The majority of these costs are from changes
to registered apprenticeship that would result in an estimated
annualized cost of $145.9 million at a discount rate of 7 percent and
total 10-year costs of $1.024 billion at a discount rate of 7 percent.
The creation of registered CTE apprenticeship is expected to result in
lower costs than the changes to registered apprenticeship as the
Department anticipates that it would be a smaller program. The
Department estimates annualized costs from registered CTE
apprenticeship at $6.0 million at a 7-percent discount rate and total
10-year costs of $42.1 million at a 7-percent discount rate.
Exhibit 1--Estimated Costs
[2022 $millions]
----------------------------------------------------------------------------------------------------------------
Registered
Year apprenticeship CTE program Total costs
program costs costs
----------------------------------------------------------------------------------------------------------------
1............................................................ $147.2 $0.8 $147.9
2............................................................ 126.8 2.5 129.3
3............................................................ 131.9 3.7 135.6
4............................................................ 137.3 4.9 142.2
5............................................................ 142.6 6.1 148.8
6............................................................ 148.2 7.3 155.5
7............................................................ 153.3 8.6 161.9
8............................................................ 158.7 9.7 168.4
9............................................................ 164.1 11.0 175.0
10........................................................... 169.6 12.2 181.8
----------------------------------------------------------------------------------------------------------------
Annualized, 3% discount rate, 10 years................... 147.0 6.4 153.4
Annualized, 7% discount rate, 10 years................... 145.9 6.0 151.9
----------------------------------------------------------------------------------------------------------------
Total, 3% discount rate, 10 years........................ 1,254.2 54.4 1,308.6
Total, 7% discount rate, 10 years........................ 1,024.5 42.1 1,066.6
----------------------------------------------------------------------------------------------------------------
2. Benefits
This section provides a qualitative description of the anticipated
benefits associated with the proposed rule. The Department is unable to
quantify the anticipated benefits due to data limitations and therefore
is providing a qualitative description of those benefits. The
Department seeks public comments and inputs to allow for quantification
of the benefits in the final rule.
a. Benefits From Improvements and Updates to Registered Apprenticeship
There are numerous benefits that are expected to result from the
updates to registered apprenticeship programs, including greater worker
protections, advancements in equity, higher quality apprenticeship
training, and enhanced program transparency. The addition of program
reviews would increase worker protections and program transparency
through reviews of registered apprenticeship programs to ensure
compliance and identify any deficiencies that require remedy. In
addition, program reviews must be conducted if the Registration Agency
receives credible information or allegations that the program is not
being operated in accordance with program standards and requirements.
This requirement would offer greater
[[Page 3228]]
accountability in the operation of apprenticeship programs and provide
an avenue for investigating any potential instances of noncompliance.
In doing so, the Department would create more safeguards for
apprentices to ensure that they have healthy and safe working and
learning environments.
The proposed updates to registered apprenticeship would also yield
additional benefits to apprentices through changes to the process for
determining occupations suitable for apprenticeship. The Department's
proposal would create a more objective, proactive, and transparent
process for determining occupations suitable for apprenticeship, which
would allow occupations in non-traditional apprenticeship industries to
grow while providing protections against the splintering of existing
occupations, which could have a negative impact on workers' wages and
job quality. These modifications also would reinforce that new
occupations suitable for apprenticeship must meet industry-recognized
criteria that place workers on a pathway to earning an income that
allows them to support themselves and their families, with a fair
opportunity for career advancement and economic mobility.
b. General Apprenticeship Benefits From the Creation of the Registered
CTE Apprenticeship Model
The proposed registered CTE apprenticeship model would offer
multiple benefits to individuals who are seeking career opportunities
and looking to develop the skills necessary to be successful in a
certain field. Apprenticeships help workers to master both hard skills
that are relevant to occupations, and soft skills such as
communication, problem-solving, respectful workplace behavior, and
teamwork, all while being paid for their work.\190\ Development of
these skills is highly valued by potential employers and offers
benefits for future employment opportunities. Studies have found that
individuals who participated in a registered apprenticeship program
were 8.6 percent more likely than nonparticipants to be employed 6 and
9 years after enrollment.\191\ In addition, apprenticeship participants
and those who completed registered apprenticeship programs were also
found to have greater lifetime earnings benefits compared to those who
had not participated in or completed a registered apprenticeship
program.\192\ These benefits amounted to $100,000 in lifetime earnings
benefits for registered apprenticeship participants and over $240,000
for those who completed registered apprenticeship programs.\193\ It
should be noted, however, that the results of these studies are
correlational in nature. Apprenticeships not only provide individuals
with valuable training and skill development without requiring a period
of unpaid training time--or even requiring educational loans--but also
serve a long-term benefit in overall career success.
---------------------------------------------------------------------------
\190\ Robert Lerman, ``Expanding Apprenticeship--A Way to
Enhance Skills and Careers,'' Apr. 15, 2010, https://www2.ed.gov/PDFDocs/college-completion/03-expanding-apprenticeship.pdf.
\191\ Debbie Reed et al., ``An Effectiveness Assessment and
Cost-Benefit Analysis of Registered Apprenticeship in Ten States,''
July 25, 2012, https://mathematica.org/publications/an-effectiveness-assessment-and-costbenefit-analysis-of-registered-apprenticeship-in-10-states.
\192\ Ibid.
\193\ Ibid.
---------------------------------------------------------------------------
For businesses sponsoring a program, registration provides a
structure and framework for developing a diverse pool of skilled
workers critical to a company's success and a positive net benefit
through value creation and an ROI. One report shows that utilizing
apprenticeships can contribute to the financial success of a business
by reducing employee turnover; promoting a diverse, inclusive, and
accessible talent pipeline; and contributing to a more positive company
culture.\194\ In embracing DEIA in the workforce, research shows that
businesses will outperform less diverse companies in terms of
profitability. One study found that businesses in the top quartiles for
gender diversity were 21 percent more likely to experience above-
average profitability than companies in the fourth quartile, while
companies in the top quartiles for ethnic and cultural diversity were
35 percent more likely to outperform other companies in terms of
profitability.\195\ Thus, businesses sponsoring an apprenticeship
program will not only have the ability to add diversity to their own
workforce but also may outperform other companies profit-wise. Some
examples of indirect benefits include ``improved pipeline of skilled
employees, improved productivity of coworkers, improved firm culture
and employee engagement and loyalty, reduced turnover, and even process
or product innovation.'' \196\ Another report shows that registered
apprenticeship programs help eliminate the biasing factors that
traditionally create barriers to entry and promotion for workers. This
opportunity creates equity for those who are part of registered
apprenticeship programs and allows for fairness and transparency
throughout the process.\197\
---------------------------------------------------------------------------
\194\ Accenture, ``Getting to Equal: The Disability Inclusion
Advantage,'' 2018, https://www.accenture.com/_acnmedia/PDF-89/Accenture-Disability-Inclusion-Research-Report.pdf.
\195\ Dame Vivian Hunt, Lareina Yee, Sara Prince, and Sundiatu
Dixon-Fyle, ``Delivering through diversity,'' Jan. 18, 2018, https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/delivering-through-diversity.
\196\ Kevin Hollenbeck, Daniel Kuehn, Robert Lerman, and Siobhan
Mills De La Rosa, ``Do Employers Earn Positive Returns to
Investments in Apprenticeship? Evidence from Registered Programs
under the American Apprenticeship Initiative,'' Oct. 26, 2022,
https://wdr.doleta.gov/research/FullText_Documents/ETAOP2022-36_AAI_ROI_Final_Report_508_9-2022.pdf.
\197\ Intelligent Partnerships, ``Expanding DEIA Programs
Through Apprenticeship,'' Apr. 2022, https://www.apprenticeship.gov/sites/default/files/expanding-deia-programs-through-apprenticeship.pdf.
---------------------------------------------------------------------------
The proposed registered CTE apprenticeship model would have
numerous benefits for students who are enrolled in high school or in
community and technical colleges. This new model would allow students
to continue their education while participating in the labor market,
provide students with opportunities to attain a recognized
postsecondary credential, complete college coursework and a registered
apprenticeship program, and participate in paid on-the-job learning.
These opportunities would allow students to earn and learn, accelerate
their completion of postsecondary credentials through dual enrollment,
and put students on a career path. Earn and learn programs provide
students with an opportunity to gain access to good jobs and stable
careers without debt or substantial financial burden.\198\ A study
completed on the CareerWise Colorado program found that nearly 64
percent of CareerWise students achieve the program's goal of
apprenticeship serving as an ``options multiplier,'' in which they
transition on to postsecondary education, employment, or both.\199\ The
program would also provide developmental benefits for youth
participants, both at the personal and professional level.\200\ This
relationship can be especially impactful for youth whose caregivers are
inconsistent or unavailable by providing these
[[Page 3229]]
individuals with a source of stability and a role model. Registered CTE
apprenticeship would also help to develop young people's career-
relevant skillsets at an early age, particularly in the realm of soft
and interpersonal skills. Gaining practical experience in organization,
problem-solving, teamwork, and time management would help these
individuals build the necessary skills for future success in their
occupations.\201\ We welcome comments providing resources and best
practices in mentorship to ensure that programs help apprentices,
including those from underserved communities, excel in mentorship
programs.
---------------------------------------------------------------------------
\198\ Joseph B. Fuller et al., The Project on Workforce, Harvard
University, ``The Options Multiplier: Decoding the CareerWise Youth
Apprentice Journey,'' Nov. 14, 2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
\199\ Joseph B. Fuller et al., The Project on Workforce, Harvard
University, ``The Options Multiplier: Decoding the CareerWise Youth
Apprentice Journey,'' Nov. 14, 2022, https://www.hbs.edu/faculty/Pages/item.aspx?num=63353.
\200\ Jean E. Rhodes et al., ``A Model for the Influence of
Mentoring Relationships on Youth Development,'' Oct. 5, 2006,
https://www.rhodeslab.org/files/Model.pdf.
\201\ Robert Lerman, ``Expanding Apprenticeship--A Way to
Enhance Skills and Careers,'' Apr. 15, 2010, https://www2.ed.gov/PDFDocs/college-completion/03-expanding-apprenticeship.pdf.
---------------------------------------------------------------------------
c. Prohibiting Non-Disclosure and Non-Compete Provisions (Sec.
29.9(d)(1) and (2), (e))
While the proposed prohibitions on non-compete and non-disclosure
provisions in apprenticeship agreements may impose cost burdens on
those program sponsors and participating employers that might otherwise
elect to use them (i.e., the forfeiting of any investment made by such
an employer to train an apprentice), the Department is persuaded that
any such costs would be outweighed on a macroeconomic level by the
substantial economic benefits that would accrue to other employers in
the same sector or occupation that can offer a more competitive salary
and package of benefits to those employees (such as apprentices) who
might otherwise be effectively prevented from offering their skills in
the labor market because of such restrictive employment contract
covenants. By prohibiting or limiting the use of such anticompetitive
practices with respect to apprenticeship agreements, the Department
seeks to promote a freer and more competitive marketplace for both
employers and skilled workers.
The Department acknowledges that prohibiting non-compete provisions
may lead to the unintended consequence of disincentivizing investment
in apprenticeship training. However, the Department has determined that
this risk would be outweighed by the benefit of prohibiting
anticompetitive practices during the term of the registered
apprenticeship program. The Department is seeking to encourage the
growth of high-quality apprenticeship and the increased use of
registered apprenticeship as a training tool. Encouraging competition
in the market would serve these goals by incentivizing employers to
seek to retain their apprentices through high-quality training and
employment rather than through limiting apprentices' ability to seek
employment opportunities elsewhere during the term of the
apprenticeship. In other words, providing high-quality registered
apprenticeship would be a more effective and fair method of retaining
apprentices in a registered apprenticeship program rather than through
a prohibition on labor movement, which the Department views as harmful
to both employers as a restraint on a free and competitive market and
to apprentices as a restraint on their mobility.
In addition, there are several benefits that would accrue to
apprentices by prohibiting non-disclosure and non-compete provisions.
The proposed rule would increase apprentice mobility and labor market
competition by removing certain restrictions such as non-compete
provisions, thus allowing them to move freely between jobs. The absence
of these restrictions would provide apprentices with the opportunity to
seek higher paying positions, which would result in an overall increase
in wages and offer greater opportunities for growth. Increased mobility
is particularly beneficial to younger apprentices, as job changes
account for approximately one-third of early career wage growth.\202\
One recent study estimated that a nationwide ban on non-compete
provisions would increase average earnings by 3.3 to 13.9 percent.\203\
The FTC recently estimated that one in five American workers is bound
by a non-compete provision.\204\ A 2014 survey of workers found that 18
percent of respondents work under a non-compete provision at the time
of the survey and that 38 percent had been subject to a non-compete
provision during their career.\205\ Although these studies are for the
general workforce, the Department does not expect the prevalence of
non-compete provisions to be materially different in registered
apprenticeship. Therefore, the financial benefits of removing non-
compete provisions from apprentice agreements could be significant,
especially for young apprentices.
---------------------------------------------------------------------------
\202\ Robert Topel and Michael Ward, ``Job Mobility and the
Careers of Young Men,'' May 1, 1992, Q.J. Econ. 107(2), 439-479,
https://academic.oup.com/qje/article-abstract/107/2/439/1838303.
\203\ Matthew S. Johnson, Kurt Lavetti, and Michael Lipsitz,
``The Labor Market Effects of Legal Restrictions on Worker
Mobility,'' 2020, at 2, https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3455381.
\204\ 88 FR 3482 (Jan. 19, 2023) (NPRM on non-compete
provisions).
\205\ Evan P. Starr, James J. Prescott, and Norman D. Bishara,
``Noncompete Agreements in the U.S. Labor Force,'' 64 J. L. & Econ.
1, 53-84 (2021), https://repository.law.umich.edu/articles/2263.
---------------------------------------------------------------------------
In addition to earnings increases, the proposed rule could provide
greater opportunities for completed apprentices to potentially engage
in entrepreneurial activities.\206\ The absence of non-compete
provisions generally allows entrepreneurial activity to increase
through the formation of intra-industry spinoffs, which serve as
grounds for knowledge sharing, innovation, and career growth.\207\ The
Department is unable to estimate the extent to which recently completed
apprentices remain under non-compete provisions and their ability to
engage in entrepreneurial activity, but the ability for apprentices to
freely leverage their skills and knowledge through entrepreneurial
ventures would increase career growth opportunities and the potential
for wage increases.
---------------------------------------------------------------------------
\206\ John M. McAdams, ``Non-Compete Agreements: A Review of the
Literature,'' Dec. 31, 2019, https://dx.doi.org/10.2139/ssrn.3513639.
\207\ 88 FR 3482 (Jan. 19, 2023) (NPRM on non-compete
provisions).
---------------------------------------------------------------------------
d. National Occupational Standards for Apprenticeship, National Program
Standards for Apprenticeship, and National Guidelines for
Apprenticeship Standards (Sec. Sec. 29.13 through 29.15)
Under the proposed rule, the Department seeks to facilitate the use
of registered apprenticeship models currently available by defining
``National Program Standards for Apprenticeship'' and ``National
Guidelines for Apprenticeship Standards.'' This would promote
innovation of and enable ease of access to industry-recognized,
standardized products that are intended to facilitate the expansion of
new quality programs to be registered expeditiously and efficiently.
This would create a more efficient process for National Program
Standards for Apprenticeship approval and for local registration of
National Guidelines for Apprenticeship Standards. The proposed rule
also defines ``National Occupational Standards for Apprenticeship.''
This new product would build, and continuously reinforce and improve
with validated industry feedback, a national system of occupational
frameworks that incentivize quality in registered apprenticeship
programs and feature industry-validated training standards and
curricula. The National Occupational Standards for Apprenticeship would
provide a template for national occupations, programs, and guidelines
that would
[[Page 3230]]
create time and cost savings for sponsors or SAAs that would have
submitted new occupation determinations, by allowing them to leverage
national frameworks that are already developed by OA.
e. Complaints (Sec. 29.17)
The proposed rule would extend the amount of time for apprentices
to file complaints against sponsors as well as provide requirements
that Registration Agencies better protect the identity of apprentices
who file complaints. These changes would result in apprentices having
more time and feeling more comfortable in filing complaints against
sponsors, which could result in better work conditions, improved
apprenticeships, and more apprentices completing their programs.
f. Deregistration (Sec. 29.20)
Currently, deregistration of an apprenticeship program occurs when
a sponsor fails to demonstrate compliance with 29 CFR part 29. The
proposed rule would add a suspension step allowing sponsors an adequate
span of time to update their practices and come into compliance without
having to be deregistered and then reregistered at a later date. Under
this procedure, a Registration Agency would suspend a registration of
new apprentices until the sponsor has achieved compliance with part 29
through the completion of a voluntary compliance action plan or until a
final order is issued in formal deregistration proceedings initiated by
the Registration Agency.
The intermediary step of suspension represents a benefit because it
would allow sponsors to become compliant without having to be
deregistered and then reregister or abandon their program. The benefits
of this provision are difficult to quantify because of a lack of data
on how many suspensions might occur as well as the fact that some
programs eligible for deregistration may seek deregistration
voluntarily. Voluntary deregistration, however, can occur for several
reasons and it would be incorrect to assume that all voluntary
deregistrations directly correlate with sponsors that have been
deregistered.
The Department expects that fewer programs would be required to
deregister or voluntarily deactivate as a result of the suspension
procedure, enabling more active total sponsors and the associated
apprenticeship opportunities.
3. Quantitative Analysis Considerations
The Department estimated the costs of the proposed rule relative to
the existing baseline (i.e., regulations at 29 CFR part 29). 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 (i.e., the costs that are expected to
accrue to the affected entities). The analysis covers 10 years to
ensure it captures the major costs that are likely to accrue over time.
The Department expresses the quantifiable impacts in 2022 dollars and
uses discount rates of 3 and 7 percent, pursuant to Circular A-4.
a. Estimated Number of Registered Apprenticeship Program SAAs
The proposed rule would impact SAAs through new regulatory
requirements that result in new burdens to or transfer payments. The
Department currently works with 31 SAAs, and these are used as the
affected population through the period of analysis.
b. Estimated Number of Registered Apprenticeship Program Sponsors
The proposed rule would affect registered apprenticeship programs
and their sponsors. A sponsor can have more than one program but, due
to data availability, this analysis assumes the number of registered
apprenticeship programs is the same as the estimated number of
sponsors. The Department used historical data from the Energy Document
Portal (EDP) on the number of registered apprenticeship programs from
2017 to 2022 to calculate the annual average growth in the number of
programs. To project the number of registered apprenticeship programs
and sponsors from 2025 to 2034 the Department calculated the average
annual increase in programs (942), presented in Exhibit 2. This
increment was applied to project the population of programs from 2025
to 2034.
The proposed rule would add requirements for new registered
apprenticeship program registrations. New program registrations differ
from the average annual increase in sponsors because the increase in
program registrations is partially offset by deregistrations. The
Department used historical data from EDP on the number of new program
registrations from 2017 to 2022 to calculate an average annual increase
in the number of new programs (73) based on the average difference in
programs from year to year and applied to project the population of new
programs from 2025 to 2034. Data on new program registrations are
presented in Exhibit 2.
Exhibit 2--Historical Number of Registered Apprenticeship Programs
----------------------------------------------------------------------------------------------------------------
Total New programs Competency-based Hybrid Non-collectively
Year programs * ** programs programs bargained programs
----------------------------------------------------------------------------------------------------------------
2017.......................... 18,956 2,176 833 980 2,083
2018.......................... 20,371 2,691 1,102 1,295 2,115
2019.......................... 21,872 2,540 1,386 1,544 2,119
2020.......................... 22,495 2,376 1,670 1,755 2,138
2021.......................... 23,785 2,688 2,096 1,981 2,122
2022.......................... 23,666 2,543 2,474 2,114 2,095
---------------------------------------------------------------------------------
Average Annual Increase 942 73 328 227 ..................
***......................
Average ***............... ............ .............. .................. .......... 2,112
----------------------------------------------------------------------------------------------------------------
* Total number of programs does not sum from the detailed components because only a small subset of programs are
competency-based, hybrid, or non-collectively bargained. The remaining programs not competency-based or hybrid
are hourly programs with at least 2,000 hours of on-the-job training and the remaining programs not included
in the non-collectively bargained figures are collectively bargained. These two categories of program do not
face unique costs and therefore are not included in the table.
** New programs are newly registered apprenticeship programs for a particular year. They add to the total number
of programs but are not equal to the difference in total programs between years due the occurrence of
deregistered programs.
*** The average annual increase was calculated by averaging the differences in population from year to year. For
example, 942 = ((20,371-18,956), (21,872-20,371), (22,485-21,872), (23,785-22,485), (23,666-23,785))/5. When
the average annual increase or average has a value, that indicates the value used to develop projections.
[[Page 3231]]
The Department derived subpopulations of registered apprenticeship
programs to estimate the effect of the proposed rule on programs with
certain characteristics. The number of programs that were not solely
time-based (i.e., competency-based programs or hybrid programs) were
calculated by the Department using historical data from EDP from 2017
to 2022. The Department calculated the average annual increase in the
number of competency-based programs (328) and the average annual
increase in the number of hybrid programs (227) based on the average
differences in these programs from year to year. These estimates were
applied to project the populations of these programs from 2025 to 2034.
Lastly, the proposed rule would have new requirements for registered
apprenticeship programs that are not collectively bargained, so the
Department estimated the number of programs for which these
requirements would apply. Using historical EDP data from 2017 to 2022,
the Department assumed that the number of non-collectively bargained
programs would remain constant across years, based on the average
number of these programs across years (2,112).
Exhibit 2 above presents the historical data on the above five
program populations across available years of data as well as average
annual increase used to derive the projected number of entities or, in
the case of programs reviewed, the average population assumed constant
across years. The projected number of each entity from 2025 through
2034, based on either the average annual increase or the average annual
value from Exhibit 2, are provided in Exhibit 3 below.
Exhibit 3--Projected Number of Registered Apprenticeship Programs
----------------------------------------------------------------------------------------------------------------
Total New programs Competency-based Hybrid Non-collectively
Year programs * ** programs programs bargained programs
----------------------------------------------------------------------------------------------------------------
2025.......................... 26,492 2,763 3,459 2,794 2,112
2026.......................... 27,434 2,837 3,787 3,021 2,112
2027.......................... 28,376 2,910 4,115 3,248 2,112
2028.......................... 29,318 2,983 4,443 3,475 2,112
2029.......................... 30,260 3,057 4,771 3,702 2,112
2030.......................... 31,202 3,130 5,100 3,928 2,112
2031.......................... 32,144 3,204 5,428 4,155 2,112
2032.......................... 33,086 3,277 5,756 4,382 2,112
2033.......................... 34,028 3,350 6,084 4,609 2,112
2034.......................... 34,970 3,424 6,412 4,836 2,112
----------------------------------------------------------------------------------------------------------------
The number of programs reviewed by either OA or SAAs would also be
affected by the proposed rule. The Department used a percentage-based
approach to estimate the number of programs reviewed by either
Registration Agency. The Department reviews each program every 5 years,
meaning that 20 percent of programs are reviewed every year. Of the
programs reviewed, the Department estimates that 58.2 percent are
reviewed by SAAs and 41.8 percent are reviewed by OA, based on an
average of 12,946 programs registered by SAAs yearly and 9,288
registered by OA yearly. Therefore, the Department calculates that 8.4
percent of all programs are reviewed by OA yearly and 11.6 percent of
all programs are reviewed by SAAs yearly.\208\ The Department applies
these percentages to the projected number of programs from 2025 to 2034
to determine the number of programs reviewed by each agency.
---------------------------------------------------------------------------
\208\ 8.4 percent = 41.8 percent x 20 percent; 11.6 percent =
58.2 percent x 20 percent.
---------------------------------------------------------------------------
c. Estimated Number of Registered Apprenticeship Program Participating
Employers
The proposed rule would increase requirements for participating
employers in each registered apprenticeship program. The Department
used RAPIDS to gather data on the number of participating employers in
2022 and derive the ratio of employers to programs. By dividing the
number of participating employers in 2022 by the number of programs in
2022, it was calculated that there are roughly 1.53 employers per
program.\209\ This ratio was applied to the projected number of
sponsors from Exhibit 3 to derive the number of employers from 2025 to
2034, presented in Exhibit 4 below.
---------------------------------------------------------------------------
\209\ 36,218 participating employers in 2022/23,666 programs in
2022 = 1.53.
Exhibit 4--Projected Number of Participating Employers
------------------------------------------------------------------------
Number of
Year participating
employers
------------------------------------------------------------------------
2025.................................................. 40,533
2026.................................................. 41,974
2027.................................................. 43,415
2028.................................................. 44,857
2029.................................................. 46,298
2030.................................................. 47,739
2031.................................................. 49,180
2032.................................................. 50,622
2033.................................................. 52,063
2034.................................................. 53,504
------------------------------------------------------------------------
d. Estimated Number of Apprentices
The proposed rule would affect apprentices. The Department used
historical data on the number of apprentices from 2017 to 2022 to
project the population of apprentices from 2025 to 2034 by calculating
the average annual increase in the number of apprentices (32,512).\210\
Exhibit 5 presents the number of apprentices from 2017 to 2022 as well
as the average annual increase.
---------------------------------------------------------------------------
\210\ See OA, ``Data and Statistics,'' https://www.apprenticeship.gov/data-and-statistics (last updated June 16,
2023).
Exhibit 5--Historical Number of Apprentices
------------------------------------------------------------------------
Total
Year apprentices
------------------------------------------------------------------------
2017.................................................. 415,458
2018.................................................. 466,560
2019.................................................. 520,411
2020.................................................. 538,204
2021.................................................. 549,747
2022.................................................. 578,020
-----------------
Average Annual Increase........................... 32,512
------------------------------------------------------------------------
The average annual increase in apprentices is used to project the
number of apprentices in 2025-2034, presented in Exhibit 6 below.
[[Page 3232]]
Exhibit 6--Projected Number of Apprentices
------------------------------------------------------------------------
Number of
Year apprentices
------------------------------------------------------------------------
2025.................................................. 675,557
2026.................................................. 708,070
2027.................................................. 740,582
2028.................................................. 773,094
2029.................................................. 805,607
2030.................................................. 838,119
2031.................................................. 870,632
2032.................................................. 903,144
2033.................................................. 935,656
2034.................................................. 968,169
------------------------------------------------------------------------
e. Estimated Number of Occupations
The proposed rule would impose new requirements in the occupation
determination application process and introduce new administrative
burdens to sponsors, SAAs, and OA, based on the number of occupation
determination applications. The Department used historical data from
RAPIDS to calculate the average annual number of occupation
determination applications. Data on the number of new and revised
occupation determination applications were available from 2019 to 2022.
The Department calculated the average annual number of new occupation
applications (15) and used this to project new applications for a
suitability determination from 2025 to 2034. However, for revised
occupations, the proposed rule at Sec. 29.7(h) envisions that OA would
review existing approved occupations for revisions every 5 years. There
are currently approximately 1,100 approved occupations, so the
Department estimates approximately 220 revised occupations per year
(1100 / 5 years = 220). The proposed rule would allow the establishment
of national occupations, so the Department also estimates that there
would be 15 new national occupations yearly based on the bulletin list
of national occupations from Apprenticeship.gov. Exhibit 7 presents the
historical data on the number of new occupations applications and the
average number used in the analysis for each year from 2025 to 2034.
Exhibit 7--Historical Number of New Occupation Applications
------------------------------------------------------------------------
Number of new
occupation
Year determinations
applications
------------------------------------------------------------------------
2019.................................................. 17
2020.................................................. 14
2021.................................................. 12
2022.................................................. 16
-----------------
Average........................................... 15
------------------------------------------------------------------------
f. Estimated Number of CTE SAAs
The creation of registered CTE apprenticeship would result in CTE
SAAs entering into agreements with OA to run CTE programs. The
Department expects that over the 10-year analysis period that States
running their CTE programs would be a proportion of the States with
recognized SAAs for registered apprenticeship. The Department estimates
that half of the States that are registered apprenticeship SAAs would
become CTE SAAs by 2034. Therefore, the Department estimates a steady
increase to 16 CTE SAAs by 2035 by assuming 3 percent enter each year
(1 SAA per year). Those projected number of CTE SAAs are presented in
Exhibit 8. The Department seeks public comment on the assumption that
half of States that are registered apprenticeship SAAs would become CTE
SAAs by 2034. The Department thinks this estimate is reasonable since
it is a voluntary model that States may or may not subscribe to, but
the public's input is still requested.
Exhibit 8--Projected Number of CTE SAAs
------------------------------------------------------------------------
Number of CTE
Year SAAs
------------------------------------------------------------------------
2025.................................................. 1
2026.................................................. 2
2027.................................................. 3
2028.................................................. 4
2029.................................................. 5
2030.................................................. 6
2031.................................................. 7
2032.................................................. 7
2033.................................................. 8
2034.................................................. 9
------------------------------------------------------------------------
g. Estimated Number of Registered CTE Apprenticeship Program Sponsors,
CTE Participating Employers, and CTE Apprentices
Secondary schools and postsecondary institutions would be eligible
to be registered CTE apprenticeship program sponsors. The Department
estimated the population based on the number of school districts that
receive Perkins Federal Grant Program funds and the number of
postsecondary institutions offering approved CTE programs. The
Institute of Education Services estimates that 65 percent of LEAs
receive Perkins funds. Based on National Center for Education
Statistics (NCES) data, there were 19,359 LEAs in 2021-2022, resulting
in an estimate of 12,583 receiving Perkins funds. Data collected by
NCES through the Integrated Postsecondary Education Data System
indicate that the number of public 2-year and less than 2-year
institutions with CTE programs is 1,134 institutions. This results in a
total potential population of 13,717 sponsors. However, because of
requirements to register, maintain 540 hours of CTE apprenticeship-
related instruction over the program, and expectations for registered
CTE apprenticeship to slowly ramp up, the Department estimates a small
percent of these would become sponsors in the first year (1 percent or
137 sponsors), second year (3 percent or 412 sponsors), and in each
subsequent year (3 percent or 412 sponsors).
To estimate the number of participating employers and apprentices
associated with registered CTE apprenticeship program sponsors, the
Department used data from registered apprenticeship. As discussed in
the population estimates for registered apprenticeship, there are
approximately 1.53 participating employers per sponsor and 23.4
apprentices per sponsor. The Department expects similar ratios under
CTE and used these with the projected number of sponsors to project
participating employers and apprentices.
The Department's projections of registered CTE apprenticeship
program sponsors, participating employers, and apprentices are
presented in Exhibit 9.\211\
---------------------------------------------------------------------------
\211\ Year 1, 137 = 0.01 x 13,717. Year 2, 549 = 137 + 0.03 x
13,717; Year 3, 960 = 549 + 0.03 x 13,717; Year 4, 1,372 = 960 +
0.03 x 13,717; Year 5, 1,783 = 1,372 + 0.03 x 13,717; Year 6, 2,195
= 1,783 + 0.03 x 13,717; Year 7, 2,606 = 2,195 + 0.03 x 13,717; Year
8, 3,018 = 2,606 + 0.03 x 13,717; Year 9, 3,429 = 3,018 + 0.03 x
13,717; Year 10, 3,841 = 3,429 + 0.03 x 13,717.
[[Page 3233]]
Exhibit 9--Projected Number of Registered CTE Apprenticeship Program Sponsors, Participating Employers, and
Apprentices
----------------------------------------------------------------------------------------------------------------
Registered CTE
Year apprenticeship CTE participating CTE apprentices
program sponsors employers
----------------------------------------------------------------------------------------------------------------
2025............................................... 137 210 3,210
2026............................................... 549 839 12,839
2027............................................... 960 1,469 22,468
2028............................................... 1,372 2,099 32,098
2029............................................... 1,783 2,728 41,727
2030............................................... 2,195 3,358 51,356
2031............................................... 2,606 3,988 60,986
2032............................................... 3,018 4,617 70,615
2033............................................... 3,429 5,247 80,244
2034............................................... 3,841 5,876 89,874
----------------------------------------------------------------------------------------------------------------
h. Estimated number of new CTE apprentices.
The Department estimated the costs of the proposed CTE program
based on the number of new apprentices who are projected to enter
registered CTE apprenticeship programs. Accordingly, the Department
developed projections for the number of new CTE apprentices entering
each year of the program based on the number of projected CTE
apprentices in Exhibit 10. Given that 540 hours of CTE apprenticeship-
related instruction would be required for apprentices in registered CTE
apprenticeship programs, the Department expects that it would take 1 to
2 years to complete a registered CTE apprenticeship. To develop its
projections, the Department assumed the value of 2 years and estimated
the cohorts that would enter each year and exit after 2 years based on
the projected CTE apprenticeship population. The projected number of
new CTE apprentices and the cohorts those numbers are derived from are
presented in Exhibit 10.
Exhibit 10--Projected Number of Annual New CTE Apprentices
--------------------------------------------------------------------------------------------------------------------------------------------------------
Year 1 2 3 4 5 6 7 8 9 10
--------------------------------------------------------------------------------------------------------------------------------------------------------
Cohort 1.................................. 3,210 3,210 ......... ......... ......... ......... ......... ......... ......... .........
Cohort 2.................................. ......... 9,629 9,629 ......... ......... ......... ......... ......... ......... .........
Cohort 3.................................. ......... ......... 12,839 12,839 ......... ......... ......... ......... ......... .........
Cohort 4.................................. ......... ......... ......... 19,259 19,259 ......... ......... ......... ......... .........
Cohort 5.................................. ......... ......... ......... ......... 22,468 22,468 ......... ......... ......... .........
Cohort 6.................................. ......... ......... ......... ......... ......... 28,888 28,888 ......... ......... .........
Cohort 7.................................. ......... ......... ......... ......... ......... ......... 32,098 32,098 ......... .........
Cohort 8.................................. ......... ......... ......... ......... ......... ......... ......... 38,517 38,517 .........
Cohort 9.................................. ......... ......... ......... ......... ......... ......... ......... ......... 41,727 41,727
Cohort 10................................. ......... ......... ......... ......... ......... ......... ......... ......... ......... 48,147
-------------------------------------------------------------------------------------------------------------
New Apprentices....................... 3,210 9,629 12,839 19,259 22,468 28,888 32,098 38,517 41,727 48,147
-------------------------------------------------------------------------------------------------------------
Total Apprentices..................... 3,210 12,839 22,468 32,098 41,727 51,356 60,986 70,615 80,244 89,874
--------------------------------------------------------------------------------------------------------------------------------------------------------
i. Compensation Rates
Exhibits 11a through 11c present the hourly compensation rates for
the occupational categories that are expected to experience a change in
level of effort (workload) due to the proposed rule. We used BLS's mean
hourly wage rate for private sector and State employees.\212\ We also
used the wage rate from the Office of Personnel Management's Salary
Table for the 2022 General Schedule for Federal employees.\213\ To
reflect total compensation, wage rates include nonwage factors, such as
overhead and fringe benefits (e.g., health and retirement benefits).
For all labor groups (i.e., private sector, State, and Federal
Government), we used an overhead rate of 17 percent.\214\ For the
private sector, we used a fringe benefits rate of 42 percent, which
represents the ratio of average total compensation to average wages for
private industry workers in 2022.\215\ For the State government sector,
we used a fringe benefits rate of
[[Page 3234]]
62 percent, which represents the ratio of average total compensation to
average wages for State government workers in 2022.\216\ For the
Federal Government, we used a fringe benefits rate of 63 percent.\217\
We then multiplied the sum of the loaded wage factor and overhead rate
by the corresponding occupational category wage rate to calculate an
hourly compensation rate.\218\
---------------------------------------------------------------------------
\212\ BLS, ``May 2022 National Industry-Specific Occupational
Employment and Wage Estimates: NAICS 999200--State Government,
excluding schools and hospitals (OEWS Designation),'' https://www.bls.gov/oes/current/naics4_999200.htm (last updated Apr. 25,
2023).
\213\ Office of Personnel Management, ``Salary Table 2022-GS,''
Jan. 2022, https://www.opm.gov/policy-data-oversight/pay-leave/salaries-wages/salary-tables/pdf/2022/GS_h.pdf.
\214\ U.S. Environmental Protection Agency, ``Wage Rates for
Economic Analyses of the Toxics Release Inventory Program,'' June 1,
2002, https://www.regulations.gov/document?D=EPA-HQ-OPPT-2014-0650-0005. DOL has used 17 percent in prior final rules, including the
Adverse Effect Wage Rate Methodology for the Temporary Employment of
H-2A Nonimmigrants in Non-Range Occupations in the United States
final rule (RIN 1205-AC05), Temporary Agricultural Employment of H-
2A Nonimmigrants in the United States (RIN 1205-AB89), Cranes and
Derricks in Construction: Railroad Roadway Work (RIN 1218-AD07), and
Occupational Exposure to Beryllium and Beryllium Compounds in
Construction and Shipyard Sectors final rule (RIN 1218-AD29).
\215\ BLS, ``Employer Costs for Employee Compensation--2022,''
May 16, 2023, https://data.bls.gov/cgi-bin/srgate. Calculated using
Series Id CMU2020000000000D and CMU2020000000000P, CMU2010000000000D
and CMU2010000000000P. Average of 2022 Q1-Q4 for private industry
total compensation cost per hour worked divided by average of 2022
Q1-Q4 for private industry wages and salaries cost per hour worked.
\216\ Ibid. Calculated using Series Id CMU3020000000000D and
CMU3020000000000P, CMU3010000000000D and CMU3010000000000P. Average
of 2022 Q1-Q4 for State and local government total compensation cost
per hour worked divided by average of 2022 Q1-Q4 for State and local
government wages and salaries cost per hour worked.
\217\ DOL ``Workforce Innovation and Opportunity Act (WIOA)
Common Performance Reporting,'' OMB Control No. 1205-0526, concluded
May 5, 2021, https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202012-1205-003.
\218\ The hourly compensation rates presented in Exhibit 11a,
Exhibit 11b, and Exhibit 11c are rounded. Calculations used
throughout the regulatory impact analysis (RIA) use the unrounded
value. Therefore, numbers may not sum due to rounding for the
convenience of the reader.
Exhibit 11a--Compensation Rates for Private Sector Employees
[2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hourly
Position Grade level Base hourly Loaded wage factor Overhead costs compensation
wage rate rate
(a) (b)........................... (c)........................... d = a + b + c
--------------------------------------------------------------------------------------------------------------------------------------------------------
Training and Development Manager N/A.................... $64.84 $27.23 (=$64.84 x 0.42)....... $11.02 (=$64.84 x 0.17)....... $103.09
Office and Administrative N/A.................... 21.62 $9.08 (=$21.62 x 0.42)........ $3.68 (=$21.62 x 0.17)........ 34.38
Support Occupation.
Apprentice...................... N/A.................... 16.33 $6.86 (=$16.33 x 0.42)........ $2.78 (=$16.33 x 0.17)........ 25.96
Industry Leader................. N/A.................... 64.15 $26.94 (=$64.15 x 0.42)....... $10.91 (=$64.15 x 0.17)....... 102.00
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exhibit 11b--Compensation Rates for State Employees
[2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hourly
Position Grade level Base hourly Loaded wage factor Overhead costs compensation
wage rate rate
(a) (b)........................... (c)........................... d = a + b + c
--------------------------------------------------------------------------------------------------------------------------------------------------------
Training and Development Manager N/A.................... $41.48 $25.72 (=$41.48 x 0.62)....... $7.05 (=$41.48 x 0.17)........ $74.25
Secretary and Administrative N/A.................... 22.74 $14.10 (=$22.74 x 0.62)....... $3.86 (=$22.74 x 0.17)........ 40.70
Assistant.
Computer Systems Analyst........ N/A.................... 39.11 $24.25 (=$39.11 x 0.62)....... $6.65 (=$39.11 x 0.17)........ 70.01
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exhibit 11c--Compensation Rates for Federal Employees
[2022 dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Hourly
Position Grade level Base hourly Loaded wage factor Overhead costs compensation
wage rate rate
(a) (b)........................... (c)........................... d = a + b + c
--------------------------------------------------------------------------------------------------------------------------------------------------------
Administrative Assistant........ GS-7, Step 5........... $20.91 $13.17 (=$20.91 x 0.63)....... $3.55 (=$20.91 x 0.17)........ $37.63
--------------------------------------------------------------------------------------------------------------------------------------------------------
4. Subject-by-Subject Analysis
The Department's subject-by-subject analysis covers the estimated
costs and cost savings of the proposed rule. The hourly time burdens
and other estimates used to quantify the costs are largely based on the
Department's experience with registered apprenticeship.
a. Registered Apprenticeship Costs
(1) Rule Familiarization
When the proposed rule becomes final and takes effect, sponsors,
employers, and SAAs would need to familiarize themselves with the new
regulation, thereby incurring a one-time cost. To estimate the cost of
rule familiarization to sponsors, the Department estimates that each
sponsor would have a Training and Development Manager (private sector)
spend 4 hours reading and reviewing the new rule. The estimate is based
on the length and complexity of this rule, and the Department's program
experience with previous apprenticeship regulations. This estimate
aligns with the time estimate made in the 2016 DOL Apprenticeship Equal
Employment Opportunity (EEO) RIA for the time required to read and
review the rule. The Department seeks public comment on this estimate.
In subsequent years, this cost is only applied to new sponsors. The
estimated cost in year 1 is $10,924,835 (= 26,492 sponsors in year 1 x
4 hours x $103.10 per hour). In years 2-10, only new sponsors would
incur this cost. In year 2, for example, new sponsors would face a cost
of $1,169,764 (= 2,837 new sponsors x 4 hours x $103.10 per hour).
To estimate the cost of rule familiarization to participating
employers, the Department estimates that each participating employer
would have a Training and Development Manager (private sector) spend 2
hours reading and reviewing the new rule. This estimate was made by
dividing the time estimate of 4 hours to read and review the rule from
the 2016 DOL Apprenticeship EEO RIA in half. The Department anticipates
it will take participating employers less time to read and review the
rule since only certain provisions will be relevant to them. The
Department seeks public comment on this estimate with the goal of
providing refined estimates in the final rule. In subsequent years,
this cost is only applied to new participating employers. The estimated
cost in year 1 is $8,357,498 (= 40,533 participating employers in year
1 x 2 hours x $103.10 per hour). In years 2-10, only new participating
employers would incur this cost. In year 2, for example, new employers
would face a cost of $297,175
[[Page 3235]]
(= 1,441 new participating employers x 2 hours x $103.10 per hour).
To estimate the cost of rule familiarization to SAAs, the
Department estimates that each SAA would have a Training and
Development Manager (State level) spend 4 hours reading and reviewing
the new rule. This estimate aligns with the time estimate made in the
2016 DOL Apprenticeship EEO RIA for the time required to read and
review the rule. The Department seeks public comment on this estimate
with the goal of providing refined estimates in the final rule. This
would result in a first-year cost to SAAs of $9,207 (= 31 SAAs x 4
hours x $74.25 per hour). The Department estimates that SAAs would only
incur costs from rule familiarization in the first year.
In total, rule familiarization would have annualized costs over the
10-year analysis period of $3.6 million at a discount rate of 3 percent
and $3.9 million at a discount rate of 7 percent. The total cost over
the 10-year analysis period is estimated at $30.7 million at a discount
rate of 3 percent and $27.6 million at a discount rate of 7 percent.
(2) New Requirements for On-the-Job Training Documentation (Sec.
29.7(b)(3))
The proposed rule would require sponsors to submit documentation of
the industry standard of minimum hours needed to obtain proficiency in
the occupation under consideration, and that the minimum hours are not
less than 2,000 hours. Programs that do not meet the 2,000-hour minimum
requirement would need to update their on-the-job training requirements
and submit documentation. There are currently an average of 3,459
programs that have occupations that are competency-based and 2,794
registered apprenticeship programs that have occupations that are
hybrid (time-based and competency-based). It is assumed that these
programs would not meet the minimum 2,000-hour requirement of on-the-
job training and would incur one-time costs to update their
requirements. The Department estimates that sponsors would have a
Training and Development Manager (private sector) spend 8 hours
updating their on-the-job training requirements and spend 2 hours
submitting documentation. These estimates are based on program
experience, and the Department seeks public comment on these estimates.
In year 1, the Department estimates the cost to be $6,446,568 (= 6,253
occupations with programs with <2,000 hours on-the-job training x 10
hours x $103.10 per hour). In years 2-10, only sponsors with new
occupations would need to submit the documentation of training
requirements and incur costs.
In total, the annualized cost over the 10-year analysis period of
new requirements for on-the-job training documentation is estimated at
$733,723 at a discount rate of 3 percent and $857,800 at a discount
rate of 7 percent. The total cost over the 10-year analysis period is
estimated at $6.3 million at a discount rate of 3 percent and $6.0
million at a discount rate of 7 percent.
(3) Wage Analysis and Career Development Profile (Sec. 29.7(b)(2))
The proposed rule would require sponsors to submit documentation of
the typical compensation and career advancement profile for each
occupation that places workers in an occupation that leads to a
sustainable career. The Department estimates that this new requirement
would impose costs on sponsors to submit documentation of the wage
analysis and career advancement profile for existing occupations and
new and revised occupation determinations. The Department estimates
that sponsors would have a Training and Development Manager (private
sector) spend 2 hours to develop and submit the documentation for each
existing, new, and revised occupation. This estimate aligns with the
time estimates for similar activities in the 2019 DOL Industry-
Recognized Apprenticeship Programs (IRAP) RIA for the time required to
prepare and submit the wage analysis and career development profile.
The Department seeks public comment on this estimate with the goal of
providing refined estimates in the final rule. This would result in an
annual cost to sponsors of $48,455 (= 235 new and revised occupation
determinations x 2 hours x $103.10 per hour).
In total, the annualized cost over the 10-year analysis period of
documenting the wage analysis and career development profile is
estimated at $48,455 at a discount rate of 3 percent and $48,455 at a
discount rate of 7 percent. The total cost over the 10-year analysis
period is estimated at $413,330 at a discount rate of 3 percent and
$340,327 at a discount rate of 7 percent.
(4) DOL-OA Occupation Determination Evaluation Process (Sec. 29.7(c))
The proposed rule would update the process by which OA evaluates
occupation determinations by providing more clarity and being more
precise on what is being evaluated including all the new documentation
submissions under proposed Sec. 29.7(b). In addition, the proposed
rule formalizes the process by which OA solicits feedback from industry
leaders on the suitability of an occupation for registered
apprenticeship.
The Department estimates that OA would incur costs for a GS-13
manager to spend an additional 4 hours reviewing the new documentation
under proposed Sec. 29.7(b) for each occupation application. This
estimate is based on program experience, and the Department seeks
public comment on this estimate. This would result in an annual cost to
OA for new and revised occupation determinations, with a cost in year 1
of $74,617 (= 235 new and revised occupation determinations x 4 hours x
$79.38).
In addition, the Department estimates that industry leaders would
spend a total of 2 hours providing feedback on the suitability of an
occupation for registered apprenticeship. This estimate is based on
program experience, and the Department seeks public comment on this
estimate. This would result in an annual cost to private industry for
new and revised occupation determinations, with a cost in year 1 of
$47,939 (= 235 new and revised occupation determinations x 2 hours x
$102.00).
In total, the annualized cost over the 10-year analysis period of
the new OA occupation determination evaluation process is estimated at
$122,556 at a discount rate of 3 percent and $122,556 at a discount
rate of 7 percent. The total cost over the 10-year analysis period is
estimated at $1.0 million at a discount rate of 3 percent and $860,786
at a discount rate of 7 percent.
(5) Data Collection and Reporting (Sec. Sec. 29.25, 29.8(a), 29.9(b)
and (c))
The proposed rule would create new data collection and reporting
requirements for apprentices, participating employers, sponsors, and
SAAs. Proposed Sec. 29.25(a) would create new apprentice level data
collections, including information on pre-apprenticeship services,
occupations, and wage schedules. Proposed Sec. 29.25(b) would create
new data collections on program sponsors including information such as
participating employers, copies of program standards adoption
agreements, participation with credentialing agencies, numbers of new
and active apprentices, completed apprentices, out-of-pocket costs by
apprentices, earnings from completed apprentices. Proposed Sec.
29.8(a) on standards of apprenticeship would update requirements for
the written set of standards of apprenticeship including information on
term of the apprenticeship program, and related instruction. Proposed
Sec. 29.9 would
[[Page 3236]]
require sponsors to give the signed apprenticeship agreement to the
apprentice and to include new information in the apprenticeship
agreements such as descriptions of roles, terms and conditions, end-
point assessments, unreimbursed costs, expenses or fees, and
credentials.
The Department estimates that complying with these additional data
collections and transmitting them to OA would impose additional time
burdens on apprentices, sponsors, and SAAs. The majority of these data
collections are simple drop down or choice answers similar to the
existing form ETA-671 covered under existing ICR 1205-0223.
The Department estimates that apprentices would spend an additional
5 minutes (0.083 hours) providing information to sponsors (proposed
Sec. 29.25(a)). This estimate aligns with the time estimate in the
supporting statement for Registration and Equal Employment Opportunity
in Apprenticeship Programs (OMB Control Number 1205-0223, hereafter
referred to as the EEO Supporting Statement), Table 1 for the time
apprentices spend on apprenticeship agreements and program registration
additions. The Department seeks public comment on this estimate. This
would result in an annual cost to apprentices, with a cost in year 1 of
$1,455,873 (= 675,557 apprentices x 0.083 hour x $25.96 per hour).
The Department estimates that sponsors would require a Training and
Development Manager (private sector) to spend 0.33 hour to provide
information on standards of apprenticeship (proposed Sec. 29.8(a)).
This estimate aligns with the time estimate in the EEO Supporting
Statement, Table 1 for the time sponsors spend updating standards of
apprenticeship. The Department seeks public comment on this estimate.
The Department estimates that sponsors would also have an office and
administrative support staff (private sector) spend 5 minutes (0.083
hour) per apprentice providing additional data on apprentices (proposed
Sec. 29.25(a)) and providing the apprenticeship agreement (proposed
Sec. 29.9). This estimate aligns with the time estimate in the EEO
Supporting Statement, Table 1 for the time sponsors spend providing
additional data on apprentices and providing the apprenticeship
agreement. The Department seeks public comment on this estimate.
Finally, the Department estimates that sponsors would also have an
office and administrative support staff (private sector) spend 5
minutes (0.083 hour) per participating employer providing additional
data on employers in their programs (proposed Sec. 29.25(b)). This
estimate aligns with the time estimate in the EEO Supporting Statement,
Table 1 for the time sponsors spend providing additional data on
employers in their programs. The Department seeks public comment on
this estimate. This would result in an annual cost to sponsors, with a
cost in year 1 of $2,944,441 (= 26,492 programs x 0.33 hour x $103.10
per hour + 675,557 apprentices x 0.083 hour x $34.38 per hour + 40,533
participating employers x 0.083 hour x $34.38 per hour).
The Department estimates that SAAs would have a Training and
Development Manager (State level) spend an additional 1.5 hours per
sponsor providing additional data to OA (proposed Sec. 29.25(a) and
(b), as required by proposed Sec. 29.28). This estimate is made by
multiplying the time estimate in the EEO Supporting Statement, Table 1
by 1.5 to account for the added length of the form. The Department
seeks public comment on this estimate. This would result in an annual
cost to SAAs, with a cost in year 1 of $2,950,515 (= 26,492 sponsors x
1.5 hours x $74.25 per hour).
In total, the annualized cost over the 10-year analysis period of
the new data collection and reporting requirements is estimated at
$8.64 million at a discount rate of 3 percent and $8.55 million at a
discount rate of 7 percent. The total cost over the 10-year analysis
period is estimated at $73.7 million at a discount rate of 3 percent
and $60.0 million at a discount rate of 7 percent.
(6) Program Registration (Sec. 29.10)
The proposed rule would require sponsors that submit new
applications to include additional information in their applications
including a narrative on how they are working with the workforce
system, information on their financial capacity and other resources to
operate the proposed program, and any history of violations. OA and
SAAs would need to review this new information when making a
registration determination.
The Department estimates that sponsors would have a Training and
Development Manager (private sector) spend 1 hour submitting the
additional information with applications for new programs. This
estimate is based on program experience, and the Department seeks
public comment on this estimate. This would result in an annual cost to
sponsors submitting new program applications, with a cost in year 1 of
$284,874 (2,763 new programs x 1 hour x $103.10 per hour).
Each Registration Agency would spend additional time reviewing the
added information to registration applications. The Department
estimates that SAAs would have a Training and Development Manager
(State level) spend 0.5 hour reviewing the additional information. This
estimate is based on program experience, and the Department seeks
public comment on this estimate. This would result in an annual cost to
SAAs based on the number of new registration applications they would
review. The Department assumes they would review the same proportion of
new registration applications as there are programs registered with
SAAs (58.2 percent, on average between 2019 and 2022), with a cost in
year 1 of $59,730 (= 2,763 new program registrations x 58.2% x 0.5 hour
x $74.25 per hour).
The Department estimates that OA would have a GS-13 level employee
spend 0.5 hour reviewing the additional information. This estimate is
based on program experience, and the Department seeks public comment on
this estimate. This would result in an annual cost to OA based on the
number of new registration applications they would review (41.8
percent), with a cost in year 1 of $45,814 (= 2,763 new program
registrations x 41.8% x 0.5 hour x $79.38 per hour).
In total, the annualized cost over the 10-year analysis period of
the new program registration requirements is estimated at $434,561 at a
discount rate of 3 percent and $431,342 at a discount rate of 7
percent. The total cost over the 10-year analysis period is estimated
at $3.7 million at a discount rate of 3 percent and $3.0 million at a
discount rate of 7 percent.
(7) Reporting for Program Standards Adoption Agreement (Sec. 29.11)
The proposed rule would require non-collectively bargained programs
to include requirements that participating employers would adopt and
comply with the sponsor's standards of apprenticeships as well as
applicable requirements under 29 CFR part 30. This primarily formalizes
existing arrangements between employers and sponsors. In addition to
formalizing these agreements, they must be transmitted by the sponsor
to OA, thereby imposing a new burden on sponsors.
The Department estimates that sponsors that have non-collectively
bargained programs would have a Training and Development Manager
(private sector) spend 1 hour transmitting the adoption agreements with
employers to OA. This estimate is based on program experience, and the
Department seeks public comment on
[[Page 3237]]
this estimate. This would result in an annual cost to sponsors with
non-collectively bargained programs of $217,738 (= 2,112 average annual
non-collectively bargained programs x 1 hour x $103.10).
In total, the annualized cost over the 10-year analysis period of
the program standards adoption agreement provision is estimated at
$217,738 at a discount rate of 3 percent and $217,738 at a discount
rate of 7 percent. The total cost over the 10-year analysis period is
estimated at $1.9 million at a discount rate of 3 percent and $1.5
million at a discount rate of 7 percent.
(8) National Occupational Standards for Apprenticeship, National
Program Standards for Apprenticeship, and National Guidelines for
Apprenticeship Standards (Sec. Sec. 29.13 Through 29.15)
The proposed rule would allow OA to create National Occupational
Standards for Apprenticeship that would be suitable for adoption by
program sponsors. This would extend existing work to identify and
characterize competency-based occupational frameworks and ensure they
meet the new standards of proposed Sec. 29.7. The Department estimates
that a GS-13 level employee would require 40 hours to commission each
new national occupational standard. This estimate is based on program
experience, and the Department seeks public comment on this estimate.
This would result in an annual cost of $47,628 (= 15 annual new
national occupation determinations x 40 hours x $79.38 per hour).
In total, the annualized cost over the 10-year analysis period of
commissioning National Occupational Standards for Apprenticeship is
estimated at $47,628 at both a discount rate of 3 percent and 7
percent. The total cost over the 10-year analysis period is estimated
at $406,277 at a discount rate of 3 percent and $334,519 at a discount
rate of 7 percent.
(9) End-Point Assessments (Sec. 29.16)
The proposed rule would require sponsors to conduct an end-point
assessment with the apprentice after their completion of the registered
apprenticeship program. The end-point assessment would objectively
measure the apprentice's acquisition of the relevant knowledge, skills,
and competencies necessary to demonstrate proficiency in the occupation
covered by the program. The Department understands that many sponsors
already perform end-point assessments but does not have data on how
many do so. Therefore, the Department estimates the costs based on all
sponsors conducting end-point assessments as a result of the proposed
rule. The Registration Agency would award a Certificate of Completion
to the apprentice after successful completion of the end-point
assessment.
The Department estimates that apprentices would spend 1 hour
working with the sponsor answering questions and completing the end-
point assessment. This estimate is based on program experience, and the
Department seeks public comment on this estimate. This would result in
an annual cost to apprentices, with a cost in year 1 of $17,540,640 (=
675,557 apprentices x 1 hour x $25.96 per hour). The Department
estimates that sponsors would also have a Training and Development
Manager (private sector) spend 1 hour working with the apprentices to
assess their proficiency in the occupation covered by the program. This
estimate is based on program experience, and the Department seeks
public comment on this estimate. This would result in an annual cost to
sponsors, with a cost in year 1 of $69,646,975 (= 675,557 apprentices x
1 hour x $103.10). The Department estimates the Registration Agency
would have a GS-7 staff spend 15 minutes (0.25 hour) per program
awarding a Certificate of Completion to each apprentice after
successful completion of the end-point assessment. This estimate is
based on program experience, and the Department seeks public comment on
this estimate. This would result in an annual cost, with a cost in year
1 of $249,276 (= 26,492 x 0.25 hour x $37.64 per hour).
In total, the annualized cost over the 10-year analysis period of
the end-point assessment requirements is estimated at $105.3 million at
a discount rate of 3 percent and $104.0 million at a discount rate of 7
percent. The total cost over the 10-year analysis period is estimated
at $898.5 million at a discount rate of 3 percent and $730.7 million at
a discount rate of 7 percent.
(10) Recordkeeping (Sec. 29.18)
The proposed rule would require participating employers to record
and maintain additional information on end-point assessments and safety
records. The Department estimates that office and administrative
support staff (private sector) would spend 4 hours recording and
maintaining the additional information. This estimate is based on
program experience, and the Department seeks public comment on this
estimate. This would result in an annual cost to participating
employers, with a cost in year 1 of $5,573,384 (= 40,533 participating
employers x 4 hours x $34.38 per hour).
In total, the annualized cost over the 10-year analysis period of
this recordkeeping requirement is estimated at $6.42 million at a
discount rate of 3 percent and $6.36 million at a discount rate of 7
percent. The total cost over the 10-year analysis period is estimated
at $54.7 million at a discount rate of 3 percent and $44.6 million at a
discount rate of 7 percent.
(11) Program Reviews (Sec. 29.19)
The proposed rule would require Registration Agencies to conduct
periodic program reviews at least every 5 years. Program reviews can
consist of off-site reviews such as desk audits of submitted records or
on-site reviews at the workplace of the sponsor or participating
employer, and could involve examination and copying of relevant
documents or interviews. The Registration Agency must also present a
Notice of Program Review Findings to the sponsor. If a sponsor receives
a Notice of Program Review Findings that indicates a failure of
compliance, the sponsor must develop a compliance action plan that
details a commitment to remediate the areas of noncompliance, precise
actions to be taken, the time period over which the deficiency would be
remedied, and identification of individuals responsible for corrections
of deficiencies.
The Department assumes that 20 percent of program sponsors would be
subject to program reviews annually, such that in a 5-year period all
program sponsors would be reviewed. The Department estimates that OA
would conduct annual program reviews for 8.4 percent of sponsors based
on the proportion of programs registered by OA and that a GS-13 level
employee would spend 40 hours conducting each program review. This
estimate aligns with the time estimate made in the 2016 Apprenticeship
EEO RIA for the time required to conduct compliance reviews. The
Department seeks public comment on this estimate. This would result in
an annual cost to OA, with a cost in year 1 of $7,027,755 (= 26,492
sponsors in year 1 x 8.4% x 40 hours x $79.38 per hour).
The Department estimates that SAAs would conduct annual program
reviews for the remaining 11.6 percent of sponsors and that a Training
and Development Manager (State level) would spend 40 hours conducting
each program review. This estimate aligns with the time estimate made
in the 2016 Apprenticeship EEO RIA for the time required to conduct
compliance reviews. The Department seeks public comment on this
estimate. This would result in an annual cost to SAAs, with
[[Page 3238]]
a cost in year 1 of $9,162,569 (= 26,492 sponsors in year 1 x 11.6% x
40 hours x $74.25 per hour).
The Department estimates that 20 percent of sponsors would be found
noncompliant and need to develop a compliance action plan. The
Department thinks this estimate is reasonable due to the number of new
program requirements that sponsors would need to implement but seeks
public comment on this estimate. The Department estimates that a
Training and Development Manager (private sector) would require 8 hours
to develop and write the compliance action plan and 0.17 hour to submit
it electronically. These estimates are based on program experience, and
the Department seeks public comment on these estimates. This would
result in an annual cost to sponsors, with a cost in year 1 of $892,559
(= 26,492 sponsors in year 1 x 20% undergoing program reviews x 20%
found noncompliant x 8.17 hours x $103.10 per hour).
In total, the annualized cost over the 10-year analysis period of
program reviews is estimated at $19.7 million at a discount rate of 3
percent and $19.5 million at a discount rate of 7 percent. The total
cost over the 10-year analysis period is estimated at $167.8 million at
a discount rate of 3 percent and $136.8 million at a discount rate of 7
percent.
(12) Data Sharing (Sec. 29.28)
The proposed rule would require SAAs to furnish OA with
apprenticeship-related data applicable to proposed Sec. Sec. 29.25 and
29.28. Most SAAs already use RAPIDS and therefore would not face costs
to develop software or IT infrastructure as a result of this provision.
For the three SAAs that do not currently use RAPIDS, the Department
assumes that they would face costs associated with developing the
software and IT infrastructure as well as new costs for compiling and
submitting their apprenticeship data. The Department assumes that all
SAAs would face new costs for compiling and submitting their
apprenticeship data.
The Department estimates that the three SAAs not using RAPIDS would
face a one-time cost associated with software and IT systems
infrastructure of $100,000 and $50,000 in licensing costs. The
Department also assumes that they would face annual costs associated
with consulting costs and system maintenance of $75,000. This would
result in costs to SAAs not using RAPIDS of $2,475,000 in the first
year (= 11 SAAs not using RAPIDS x $225,000 for system infrastructure,
licensing, and consulting and maintenance costs) and annual costs in
years 2-10 of $825,000 (= 11 SAAs not using RAPIDS x $75,000 for annual
consulting and system maintenance costs).
The Department estimates that all SAAs would have a Training and
Development Manager (State level) spend 32 hours compiling and
submitting apprenticeship data. This estimate aligns with time
estimates for similar activities in the 2016 WIOA RIA. The Department
seeks public comment on this estimate. The Department further estimates
that all SAAs would have 3 computer systems analysts (State level)
spend 80 hours each working to help compile and submit apprenticeship
data. This estimate aligns with time estimates for similar activities
in the 2016 WIOA RIA for the time required to compile and submit
apprenticeship data. The Department seeks public comment on this
estimate. Finally, the Department estimates that all SAAs would have an
office and administrative support staff (State level) spend 72 hours to
assist with compiling and submitting apprenticeship data. This estimate
aligns with time estimates for similar activities in the 2016 WIOA RIA.
The Department seeks public comment on this estimate. This would result
in an annual cost to SAAs of $685,359 (= 31 SAAs x 32 hours x $74.25
per hour + 31 SAAs x 240 hours x $70.01 per hour + 31 SAAs x 72 hours x
$40.70 per hour).
In total, the annualized cost over the 10-year analysis period for
data sharing is estimated at $1.70 million at a discount rate of 3
percent and $1.73 million at a discount rate of 7 percent. The total
cost over the 10-year analysis period is estimated at $14.5 million at
a discount rate of 3 percent and $12.1 million at a discount rate of 7
percent.
(13) SAA Reciprocity of Registrations (Sec. 29.26(d))
In order to obtain or maintain full or provisional recognition
status, SAAs would be required to establish a process and criteria for
providing approval to apprentices, apprenticeship programs, and
standards of apprenticeship. Under this requirement, SAAs would face a
burden to develop and write a reciprocity statement. The Department
estimates that each SAA would have a Training and Development Manager
(State level) spend 4 hours to develop and write the reciprocity
statement. This estimate is based on program experience, and the
Department seeks public comment on this estimate. This would be a one-
time cost resulting in a first-year cost of $9,207 (= 31 SAAs x 4 hours
x $74.25 per hour). In total, the annualized cost over the 10-year
analysis period is estimated at $1,048 at a discount rate of 3 percent
and $1,225 at a discount rate of 7 percent. The total cost over the 10-
year analysis period is estimated at $8,939 at a discount rate of 3
percent and $8,605 at a discount rate of 7 percent.
(14) Submission of State Apprenticeship Plan (Sec. 29.27)
In order to maintain recognition as an SAA, each SAA would be
required to submit a State Apprenticeship Plan every 4 years, beginning
in 2026. The State Apprenticeship Plan would contain strategic planning
elements such as goals for expansion; promotion of DEIA; a narrative
describing workforce development activities; and a description of its
strategy and initiatives for ensuring its registered apprenticeship
programs feature high-quality apprenticeships. The State Apprenticeship
Plan also would include operational planning elements such as
regulatory documentation, State EEO plan, complaint investigation plan,
technical assistance plan, performance reporting process, program
review plan, registration standards, reciprocity policy, and data
sharing policy. Finally, the State Apprenticeship Plan would include a
variety of assurances that the State would abide by relevant regulatory
requirements, registration requirements, resource availability, and
information availability. Under this requirement, SAAs would face a
burden to write and document these requirements, and then submit their
State Apprenticeship Plan.
The Department estimates that each SAA would have a Training and
Development Manager (State level) spend 86 hours to develop, write,
review, and submit the State Apprenticeship Plan. This estimate aligns
with the time estimate made in the 1205-0522 Supporting Statement for
WIOA State Plans for the time required to write state plans. The
Department seeks public comment on this estimate. This periodic cost
would occur every 4 years, beginning in 2026. Therefore, SAAs would
face costs in years 2, 6, and 10 of $197,948 (= 31 SAAs x 86 hours x
$74.25 per hour). In total, the annualized cost over the 10-year
analysis period is estimated at $58,575 at a discount rate of 3 percent
and $57,723 at a discount rate of 7 percent. The total cost over the
10-year analysis period is estimated at $499,656 at a discount rate of
3 percent and $405,424 at a discount rate of 7 percent.
[[Page 3239]]
b. CTE Costs
(1) Rule Familiarization
When the proposed rule becomes final and takes effect, registered
CTE apprenticeship program sponsors, participating employers, and SAAs
would need to familiarize themselves with the new regulation, thereby
incurring a one-time cost. To estimate the cost of rule familiarization
to sponsors, the Department estimates that each registered CTE
apprenticeship program sponsor would have a Training and Development
Manager (private sector) spend 4 hours reading and reviewing the new
rule. This estimate aligns with the time estimate made in the 2016 DOL
EEO Apprenticeship RIA for the time required to read and review the
rule. The Department seeks public comment on this estimate. In
subsequent years, this cost is only applied to new registered CTE
apprenticeship program sponsors. The estimated cost in year 1 is
$56,566 (= 137 sponsors in year 1 x 4 hours x $103.10 per hour). In
years 2-10, only new sponsors would incur this cost. In years 2-10, new
sponsors would face a cost of $169,699 (= 412 new sponsors x 4 hours x
$103.10 per hour).
To estimate the cost of rule familiarization to participating
employers, the Department estimates that each participating employer
would have a Training and Development Manager (private sector) spend 2
hours reading and reviewing the new rule. This estimate was made by
dividing the time estimate of 4 hours to read and review the rule from
the 2016 DOL EEO Apprenticeship RIA in half. The Department anticipates
it will take participating employers less time to read and review the
rule since only certain provisions will be relevant to them. The
Department seeks public comment on this estimate. In subsequent years,
this cost is only applied to new CTE participating employers. The
estimated cost in year 1 is $43,273 (= 210 participating employers in
year 1 x 2 hours x $103.10 per hour). In years 2-10, only new
participating employers would incur this cost. In year 2, for example,
new employers would face a cost of $129,820 (= 630 new participating
employers x 2 hours x $103.10 per hour).
To estimate the cost of rule familiarization to SAAs, the
Department estimates that each CTE SAA would have a Training and
Development Manager (State level) spend 4 hours reading and reviewing
the new rule. This estimate aligns with the time estimate made in the
2016 DOL EEO Apprenticeship RIA for the time required to read and
review the rule. The Department seeks public comment on this estimate.
This would result in an annual cost to new CTE SAAs, with an estimated
year 1 cost of $297 (= 1 CTE SAAs x 4 hours x $74.25 per hour).
In total, rule familiarization would have annualized costs over the
10-year analysis period of $278,274 at a discount rate of 3 percent and
$274,349 at a discount rate of 7 percent. The total cost over the 10-
year analysis period is estimated at $2.4 million at a discount rate of
3 percent and $1.9 million at a discount rate of 7 percent.
(2) Development of Industry Skills Frameworks (Sec. 29.24(b))
The proposed rule would require OA to develop industry skills
frameworks. OA would be required to develop training outlines that
provide a structure for developing the personal effectiveness,
academic, and workplace competencies required by an industry. The
proposed rule would require the industry skills frameworks to describe
the core competencies to be developed across an industry and must
specify an on-the-job training outline detailing the minimum number of
on-the-job training hours apprentices must attain in order to meet the
specific benchmarks required by an industry.
The Department assumes that OA would develop a specific industry
skills framework for 16 industries \219\ participating in the program
and estimates that OA would have a GS-13 level employee spend 80 hours
per industry developing the training material and course content. This
estimate aligns with the time estimate made in the 2020 DOL IRAP rule
for the time required to develop a training plan. The Department seeks
public comment on this estimate. The Department assumes that it can
develop 8 industry skills frameworks per year and therefore that it
will develop 8 in year 1 and 8 in year 2. The Department also assumes
there will be engagement from industry leaders to support the review of
the industry skills frameworks and industry leaders will spend a total
of 2 hours providing their support for this review. This estimate is
based on program experience, and the Department seeks public comment on
this estimate.
---------------------------------------------------------------------------
\219\ The basis for the 16 industries is the 16 Career Clusters
that were created by Advance CTE on behalf of ED. Advance CTE,
``Career Clusters,'' https://careertech.org/career-clusters (last
visited Oct. 23, 2023).
---------------------------------------------------------------------------
To estimate the costs to OA associated with developing industry
skills frameworks, the Department multiplied the anticipated number of
industry skills frameworks developed per year by the hour burden to
develop the Skills Frameworks and by the GS-13 (Federal) loaded hourly
wage. In years 1-2, the Department estimates costs to OA associated
with developing industry skills frameworks to be $50,803 per year (= 8
industry skills frameworks x 80 hours x $79.38 per hour).
To estimate the costs to industry leaders associated with
supporting the development of the industry skills frameworks, the
Department multiplied the anticipated number of industry skills
frameworks developed per year by the hour burden to develop the Skills
Frameworks and by the industry leader's loaded hourly wage. In years 1-
2, the Department estimates costs to industry leaders associated with
supporting the development of the industry skills frameworks to be
$1,632 per year (= 8 industry skills frameworks x 2 hours x $102 per
hour).
In total, the annualized cost over the 10-year analysis period for
program sponsors to develop industry skills frameworks is estimated at
$11,762 at a discount rate of 3 percent and $13,498 at a discount rate
of 7 percent. The total cost over the 10-year analysis period is
estimated at $100,333 at a discount rate of 3 percent and $94,804 at a
discount rate of 7 percent.
(3) CTE Apprenticeship Program Registration Applications (Sec.
29.24(d)(2))
The proposed rule would require a prospective program sponsor to
electronically submit to a Registration Agency an application that
includes written plans and assurances. The Department anticipates the
program sponsor's Training and Development Manager (private sector)
would spend 10 hours carrying out the duties associated with CTE
apprenticeship registration applications. This estimate is based on
program experience, and the Department seeks public comment on this
estimate.
To estimate the costs associated with CTE apprenticeship program
registration applications, the Department multiplied the number of
anticipated program sponsors in each year by the hour burden to compile
application information and by the Training and Development Manager
(private sector) loaded hourly wage. In year 1, the Department
estimates costs associated with compiling and submitting program
applications to be $141,416 (= 137 program sponsors x 10 hours x
$103.10 per hour). In year 2, the Department estimates costs associated
with compiling and submitting program applications to be $424,249 (=
412 new program sponsors x 10 hours x $103.10 per hour).
[[Page 3240]]
In total, the annualized cost over the 10-year analysis period for
program sponsors to compile and submit program applications is
estimated at $392,058 at a discount rate of 3 percent and $386,614 at a
discount rate of 7 percent. The total cost over the 10-year analysis
period is estimated at $3.3 million at a discount rate of 3 percent and
$2.7 million at a discount rate of 7 percent.
(4) Selection of Diverse and Inclusive Cross-Section of Students (Sec.
29.24(d)(2)(v)(A))
The proposed rule would require program sponsors to ensure a
diverse and inclusive cross-section of students is selected for
participation. The Department assumes that in order to be compliant
with the proposed rule, program sponsors would ensure that information
is distributed regularly to underserved communities. The Department
anticipates the program sponsor's human resources (HR) manager and
administrative assistant would spend 0.5 hours, respectively, carrying
out the duties associated with distributing information. This estimate
aligns with the time estimate made in the 2016 EEO Apprenticeship RIA
for the time spent on outreach to students from underserved
communities. The Department seeks public comment on this estimate.
To estimate the costs associated with ensuring a diverse and
include cross-sections of students are selected, the Department
multiplied the anticipated number of program sponsors per year by the
hour burden to distribute information to underserved communities and by
the HR manager as well as the administrative assistant loaded hourly
wage (private sector), respectively. In year 1, the Department
estimates costs associated with distributing information to underserved
communities to be $10,086 (= 137 program sponsors x 0.5 hours x $32.93
per hour + 137 program sponsors x 0.5 hours x $114.13 per hour).
In total, the annualized cost over the 10-year analysis period for
program sponsors to ensure a diverse and inclusive cross-section of
students is selected is estimated at $138,880 at a discount rate of 3
percent and $129,487 at a discount rate of 7 percent. The total cost
over the 10-year analysis period is estimated at $1.2 million at a
discount rate of 3 percent and $909,461 at a discount rate of 7
percent.
(5) Sponsor Oversight of Participating Employers (Sec. 29.24(d)(4))
The proposed rule would impose costs on sponsors to ensure that
each of the employers that participate in the program adheres to all
requirements of the proposed rule. The Department anticipates the
program sponsor's HR manager would spend 8 hours performing the duties
associated with overseeing the participating employers. This estimate
is based on program experience, and the Department seeks public comment
on this estimate.
To estimate the costs associated with sponsor oversight of
participating employers, the Department multiplied the number of
program sponsors anticipated each year by the hour burden to ensure
participating employers adhere to all the requirements of the proposed
rule and by the HR manager hourly wage (private sector). In year 1, the
Department estimates the costs associated with the oversight of
participating employers to be $125,424 (= 137 program sponsors x 8
hours x $114.13 per hour).
In total, the annualized cost over the 10-year analysis period for
program sponsors to oversee participating employers is estimated at
$1.7 million at a discount rate of 3 percent and $1.6 million at a
discount rate of 7 percent. The total cost over the 10-year analysis
period is estimated at $14.7 million at a discount rate of 3 percent
and $11.3 million at a discount rate of 7 percent.
(6) CTE Apprenticeship Agreement (Sec. 29.24(e))
The proposed rule would require all program sponsors registered by
a Registration Agency to develop and establish a written CTE
apprenticeship agreement that contains the terms and conditions of the
employment, education, and training of the CTE apprentice. The
Department anticipates the program sponsor's Training and Development
Manager (private sector) would spend 0.167 hours performing the duties
associated with the CTE apprenticeship agreements. This estimate aligns
with the time estimate made in the 2020 DOL IRAP rule for the time
required to prepare and sign the apprenticeship agreement. The
Department seeks public comment on this estimate.
To estimate the costs associated with the CTE apprenticeship
agreement, the Department multiplied the number of CTE apprentices
anticipated to participate each year by the hour burden for program
sponsors to prepare and sign the CTE apprenticeship agreement and by
the Training and Development Manager wage (private sector). In year 1,
the Department estimates the costs associated with preparing and
signing CTE apprenticeship agreements to be $55,263 (= 3,210 CTE
apprentices x 0.167 hours x $103.10 per hour).
In total, the annualized cost over the 10-year analysis period for
program sponsors to develop written CTE apprenticeship agreements is
estimated at $421,712 at a discount rate of 3 percent and $395,717 at a
discount rate of 7 percent. The total cost over the 10-year analysis
period is estimated at $3.6 million at a discount rate of 3 percent and
$2.8 million at a discount rate of 7 percent.
(7) Credentials Upon Completion of Program (Sec. 29.24(f))
The proposed rule would impose costs on the Registration Agency to
provide a nationally recognized certificate of completion of registered
CTE apprenticeship and any other industry-recognized credential to
students who meet the graduation requirements for the registered CTE
apprenticeship program. The Department estimates that OA would issue
41.8 percent of the total credentials based on the proportion of
certificates issued by SAAs (58.2 percent). The Department anticipates
that the duties associated with issuing completion credentials would be
performed by a GS-13 level employee who would spend 0.25 hour providing
a certificate of completion of registered CTE apprenticeship and other
credentials to students. This estimate aligns with the time estimate
made in the RAP section of this RIA for the time required to provide a
certificate of compliance to each sponsor. The Department seeks public
comment on this estimate. To estimate the costs associated with OA
providing completion credentials to students, the Department multiplied
the number of CTE apprentices anticipated to receive certificates each
year by the hour burden for OA to prepare and issue the certificates
and by the GS-13 wage (public sector). The Department assumes that the
first cohort of students to receive completion credentials would be
eligible beginning in year 2, and estimates the costs to OA associated
with providing completion credentials to be $26,609 (= 3,210 CTE
apprentices x 41.8% x 0.25 hour x $79.38 per hour).
The Department estimates that SAAs would issue 58.2 percent of the
total credentials based on the anticipated total number of CTE
apprentices per year. The Department anticipates that the duties
associated with issuing completion credentials would be performed by a
Training and Development Manager (public sector) who would spend 0.25
hour providing a certificate of completion of registered
[[Page 3241]]
CTE apprenticeship and other credentials to students. This estimate
aligns with the time estimate made in the RAP section of this RIA for
the time required to provide a certificate of compliance to each
sponsor. The Department seeks public comment on this estimate. To
estimate the costs associated with SAAs providing completion
credentials to students, the Department multiplied the number of CTE
apprentices anticipated to receive certificates each year by the hour
burden for SAAs to prepare and issue the certificates and by the
Training and Development Manager wage (public sector). In year 2, the
Department estimates the costs to SAAs associated with providing
completion credentials to be $34,692 (= 3,210 CTE apprentices x 58.2% x
0.25 hour x $74.25 per hour).
In total, the annualized cost over the 10-year analysis period for
OA and SAAs to issue completion credentials is estimated at $376,291 at
a discount rate of 3 percent and $348,039 at a discount rate of 7
percent. The total cost over the 10-year analysis period is estimated
at $3.2 million at a discount rate of 3 percent and $2.4 million at a
discount rate of 7 percent.
(8) Program Registration (Sec. 29.24(g)(1))
The proposed rule would require Registration Agencies to review CTE
apprenticeship program registration applications and determine whether
the program is eligible for registration within 90 days of receipt.
Additionally, Registration Agencies would have to inform applicants in
writing of decisions regarding program registration.
The Department estimates that OA would register 41.8 percent of
programs based on the proportion of programs that are typically
registered by SAAs (58.2 percent). The Department anticipates that the
duties of reviewing applications and making a determination would be
performed by a GS-13 level employee who would spend 2 hours reviewing
program registration applications and informing applicants of their
decision. This estimate is based on program experience, and the
Department seeks public comment on this estimate. To estimate the costs
associated with OA reviewing CTE apprenticeship program registration
applications and informing applicants of their decision, the Department
multiplied the number of programs typically registered by OA by the
hour burden for OA to review program registration applications and by
the GS-13 hourly wage. This would result in an annual cost to OA, with
a cost in year 1 of $9,097 (= 137 program sponsors x 41.8% x 2 hours x
$79.38 per hour).
The Department estimates that SAAs would register 58.2 percent of
programs, and the time required for a Training and Development Manager
to review program registration applications and inform applicants of
their decision would be consistent with that of OA's at 2 hours. This
estimate is based on program experience, and the Department seeks
public comment on this estimate. To estimate the costs associated with
SAAs reviewing CTE apprenticeship program registration applications and
informing applicants of their decision, the Department multiplied the
number of programs typically registered by SAAs by the hour burden for
SAAs to review program registration applications and by the Training
and Development Manager (State level) hourly wage. This would result in
an annual cost to SAAs, with a cost in year 1 of $11,860 (= 137 program
sponsors x 58.2% x 2 hours x $74.25 per hour).
In total, the annualized cost over the 10-year analysis period for
Registration Agencies to review CTE apprenticeship program registration
applications and inform applicants of their decision is estimated at
$58,102 at a discount rate of 3 percent and $57,295 at a discount rate
of 7 percent. The total cost over the 10-year analysis period is
estimated at $495,622 at a discount rate of 3 percent and $402,418 at a
discount rate of 7 percent.
(9) Technical Assistance and Other Support (Sec. 29.24(g)(2))
The proposed rule would require Registration Agencies to provide
outreach, technical assistance, and other support to potential sponsors
to support the adoption of registered CTE apprenticeship.
The Department estimates that OA would provide technical assistance
to 41.8 percent of program sponsors based on the proportion of programs
that are typically registered by OA. The Department anticipates that
the time required for a GS-13 level employee to provide technical
assistance and other support to sponsors would be 3 hours. This
estimate aligns with time estimates for similar activities in the 2016
WIOA RIA. The Department seeks public comment on this estimate. To
estimate the costs associated with OA providing technical assistance,
the Department multiplied the number of programs typically registered
by OA, and thus receiving technical assistance from OA, by the hour
burden for OA to provide technical assistance and by the GS-13 hourly
wage. This would result in an annual cost to OA, with a cost in year 1
of $13,646 (= 137 program sponsors x 41.8% x 3 hours x $79.38 per
hour).
The Department estimates that SAAs would provide technical
assistance to 58.2 percent of program sponsors based on the proportion
of programs that are typically registered by SAAs. The Department
anticipates that the time required for a Training and Development
Manager to provide technical assistance and other support to sponsors
would be 3 hours. This estimate aligns with time estimates for similar
activities in the 2016 WIOA RIA. The Department seeks public comment on
this estimate. To estimate costs associated with SAAs providing
technical assistance, the Department multiplied the number of programs
typically registered by SAAs, and thus receiving technical assistance
from SAAs, by the hour burden for SAAs to provide technical assistance
and by the Training and Development Manager (State level) hourly wage.
This would result in an annual cost to SAAs, with a cost in year 1 of
$17,791 (= 137 program sponsors x 58.2% x 3 hours x $74.25 per hour).
In total, the annualized cost over the 10-year analysis period for
Registration Agencies to provide outreach, technical assistance, and
other support to potential sponsors is estimated at $432,862 at a
discount rate of 3 percent and $403,586 at a discount rate of 7
percent. The total cost over the 10-year analysis period is estimated
at $3.7 million at a discount rate of 3 percent and $2.8 million at a
discount rate of 7 percent.
(10) Program Reviews (Sec. 29.24(g)(4))
The proposed rule would require Registration Agencies to conduct
reviews of registered CTE apprenticeship programs at least every 5
years. Program reviews can consist of off-site reviews such as desk
audits of submitted records or on-site reviews at the workplace of the
sponsor. On-site reviews could involve copying of relevant documents
and interviews with employees, CTE apprentices, journeyworkers,
supervisors, managers, and hiring officials. The Registration Agency
must also provide a written Notice of Program Review Findings to the
sponsor. If a sponsor receives a Notice of Program Review Findings that
indicates a failure of compliance, the sponsor must develop a
compliance action plan or submit a written rebuttal to the Registration
Agency.
The Department assumes that 20 percent of program sponsors would be
subject to program reviews annually, such that in a 5-year period all
program
[[Page 3242]]
sponsors would be reviewed. The Department estimates that OA would
conduct annual program reviews for 8.4 percent of sponsors based on the
proportion of programs registered by OA and that a GS-13 level employee
would spend 40 hours conducting each program review. This estimate
aligns with the time estimate made in the RAP section of this RIA for
the time required to conduct program reviews. The Department seeks
public comment on this estimate. This would result in an annual cost to
OA, with a cost in year 1 of $36,388 (= 137 sponsors in year 1 x 8.4% x
40 hours x $79.38 per hour).
The Department estimates that SAAs would conduct annual program
reviews for the remaining 11.6 percent of sponsors and that a Training
and Development Manager (State level) would spend 40 hours conducting
each program review. This estimate aligns with the time estimate made
in the RAP section of this RIA for the time required to conduct program
reviews. The Department seeks public comment on this estimate. This
would result in an annual cost to SAAs, with a cost in year 1 of
$47,442 (= 137 sponsors in year 1 x 11.6% x 40 hours x $74.25 per
hour).
The Department estimates that 20 percent of sponsors would be found
noncompliant and need to develop a compliance action plan. The
Department estimates that a Training and Development Manager (private
sector) would require 8 hours to develop the compliance action plan and
0.17 hour to submit it electronically. These estimates align with the
time estimates made in the RAP section of this RIA for the time
required to develop and submit the compliance action plan. The
Department seeks public comment on these estimates. This would result
in an annual cost to sponsors, with a cost in year 1 of $4,621 (= 137
sponsors in year 1 x 20% undergoing program reviews x 20% found
noncompliant x 8.17 hours x $103.10 per hour).
In total, the annualized cost over the 10-year analysis period of
program reviews is estimated at $1.2 million at a discount rate of 3
percent and $1.1 million at a discount rate of 7 percent. The total
cost over the 10-year analysis period is estimated at $10.4 million at
a discount rate of 3 percent and $8.0 million at a discount rate of 7
percent.
(11) Request for Reconsideration of Program Registration Status (Sec.
29.24(g)(5) Through (7))
The proposed rule would allow sponsors to file a request for
reconsideration if their initial application is denied, renewal of the
registration of a program is denied, or the program is deregistered. It
would also require Registration Agencies to review the request and
issue a written explanation of their final decision.
The Department assumes that 25 percent of program sponsors would
submit a request for reconsideration annually but seeks public comment
on this assumption. The Department thinks this estimate is reasonable
due to the level of coordination required for this model and since the
program is new. The estimate is also based on the Department's
experience with registered apprenticeship. The Department also assumes
that the duties associated with preparing and submitting requests for
reconsideration for program sponsors would be performed by a Training
and Development Manager (private sector) who would spend 6 hours
preparing requests. This estimate is based on program experience, and
the Department seeks public comment on this estimate. In year 1, the
Department estimates the costs for program sponsors associated with
requests for reconsideration to be $21,212 (= 137 sponsors x 25%
requesting consideration x 6 hours x $103.10 per hour). In year 2, the
Department estimates the costs for new program sponsors associated with
new requests for reconsideration to be $63,637 (= 412 new sponsors x
25% requesting consideration x 6 hours x $103.10 per hour).
The Department assumes that 41.8 percent of programs will be
registered by OA. The Department also assumes that the duties
associated with Registration Agencies reviewing requests for
reconsideration for OA will be performed by a GS-13 level employee who
will spend 2 hours reviewing requests. This estimate is based on
program experience, and the Department seeks public comment on this
estimate. In year 1, the Department estimates the costs for OA
associated with requests for reconsideration to be $2,274 (= 137
sponsors x 41.8% registered by OA x 25% requesting consideration x 2
hours x $79.38 per hour). In year 2, the Department estimates costs for
OA associated with new request for reconsideration to be $6,823 (= 412
new sponsors x 41.8% registered by OA x 25% requesting consideration x
2 hours x $79.38 per hour).
The Department assumes that 58.2 percent of program sponsors will
be registered by SAAs. The Department also assumes that the duties
associated with Registration Agencies reviewing requests for
reconsideration for SAAs will be performed by a Training and
Development Manager (private sector) who will spend 2 hours reviewing
requests. This estimate is based on program experience, and the
Department seeks public comment on this estimate. In year 1, the
Department estimates costs for SAAs associated with request for
reconsideration to be $2,965 (= 137 sponsors x 58.2% registered by SAAs
x 25% requesting consideration x 2 hours x $74.25 per hour). In year 2,
the Department estimates costs for SAAs associated with new request for
reconsideration to be $8,895 (= 412 new sponsors x 58.2% registered by
SAAs x 25% requesting consideration x 2 hours x $74.25).
In total, the annualized cost over the 10-year analysis period
associated with requests for reconsideration of program status is
estimated at $73,334 at a discount rate of 3 percent and $72,316 at a
discount rate of 7 percent. The total cost over the 10-year analysis
period is estimated at $625,555 at a discount rate of 3 percent and
$507,917 at a discount rate of 7 percent.
(12) Data and Quality Metrics; Submission to Registration Agency (Sec.
29.24(g)(9))
The proposed rule would require CTE apprentices to provide their
information to program sponsors. The Department assumes that CTE
apprentices would spend 0.16 hour providing their information to
program sponsors. This estimate aligns with the time estimate made in
the RAP section of this RIA for the time apprentices spend providing
their information to program sponsors. The Department seeks public
comment on this estimate. To calculate the costs for CTE apprentices
associated with providing information to program sponsors, the
Department multiplied the number of anticipated CTE apprentices each
year by the hour burden to provide information and by the CTE
apprentice hourly wage (private sector). In year 1, the Department
estimates the costs for CTE apprentices to provide their information to
program sponsors to be $13,835 (= 3,210 CTE apprentices x 0.16 hour x
$25.96 per hour).
The proposed rule would require program sponsors to spend time
compiling and sending to OA data on CTE apprentices, participating
employers, and themselves. The Department assumes program sponsors
would spend 0.167 hour (10 minutes) compiling and sending data on CTE
apprentices, 0.167 hour on participating employers, and 0.67 hour on
themselves. These estimates align with the time estimates made in the
RAP section of this RIA for the time required to compile and send data.
The Department seeks public comment on
[[Page 3243]]
these estimates. The Department also assumes that the duties associated
with the hour burden to compile and send data would be performed by a
Training and Development Manager (private sector). To calculate the
costs to program sponsors associated with compiling and sending data,
the Department multiplied the number of CTE apprentices, program
sponsors, and employers anticipated each year by the respective hour
burden to compile and send data and by the Training and Development
Manager wage (private sector). In year 1, the Department estimates the
costs to program sponsors associated with compiling and sending data to
be $67,857 (= 3,210 CTE apprentices x 0.167 hour x $103.10 per hour +
210 participating employers x 0.167 hour x $103.10 per hour + 137
program sponsors x 0.67 hour x $103.10 per hour).
The Department assumes that the duties associated with compiling
and developing reports to be made publicly available would be performed
by a GS-13 level employee who would spend 60 hours compiling and
developing reports. This estimate is based on program experience, and
the Department seeks public comment on this estimate. To calculate the
costs for OA associated with compiling and developing reports, the
Department multiplied the hour burden to compile and develop reports by
the GS-13 wage. In year 1, the Department estimates the costs to OA
associated with compiling and developing reports to be $4,763 (= 60
hours x $79.38 per hour).
The proposed rule would require CTE SAAs to compile and submit all
CTE apprenticeship-related data. The Department assumes that the duties
associated with compiling and submitting CTE apprenticeship-related
data would be performed by management, computer systems, and
administrative staff who would spend 32 hours, 240 hours, and 72 hours,
respectively, compiling and submitting data. These assumptions are
consistent with the assumptions in registered apprenticeship for
similar activities. Additionally, the Department assumes that CTE SAAs
would spend 40 hours compiling and developing reports to be made
publicly available. This estimate is based on program experience, and
the Department seeks public comment on this estimate. In year 1, the
Department estimates the costs to CTE SAAs associated with compiling
and developing reports to be $25,078 (= 1 CTE SAA x 32 hours x $74.25
per hour + 1 SAA x 240 hours x $70.01 per hour + 1 SAA x 72 hours x
$40.70 per hour + 1 SAA x 40 hours x $74.25 per hour).
In total, the annualized costs over the 10-year analysis period
associated with data quality and metrics are estimated at $1.3 million
at a discount rate of 3 percent and $1.2 million at a discount rate of
7 percent. The total cost over the 10-year analysis period is estimated
at $10.7 million at a discount rate of 3 percent and $8.2 million at a
discount rate of 7 percent.
5. Summary of Costs
This proposed rule would result in costs from changes to the
registered apprenticeship regulations and creation of the registered
CTE apprenticeship model. Exhibit 12 presents a summary of the
estimated costs for each quantified provision for the registered
apprenticeship and registered CTE apprenticeship, respectively.
Exhibit 12--Summary Table of Costs by Provision
[2022 $millions, annualized, 7%]
----------------------------------------------------------------------------------------------------------------
Registered
apprenticeship CTE cost
Registered apprenticeship provisions cost per CTE provisions per
provision provision
----------------------------------------------------------------------------------------------------------------
Rule familiarization........................... $3.93 Rule familiarization............. $0.27
New requirements for on-the-job training....... 0.86 Development of industry skills 0.01
frameworks.
Wage analysis and career development........... 0.05 Apprenticeship program 0.39
registration application.
Occupation determination evaluation process.... 0.12 Selection of diverse and 0.13
inclusive cross-section of
students.
Data collection and reporting.................. 8.55 Sponsor oversight................ 1.61
Program registration........................... 0.43 Apprenticeship agreement......... 0.40
Reporting for program standards and adoption 0.22 Credentials upon completion of 0.35
agreement. program.
National occupation, program, and guidance 0.05 Program registration............. 0.06
standards.
End-point assessments.......................... 104.03 Technical assistance and other 0.40
support.
Recordkeeping.................................. 6.36 Program reviews.................. 1.14
Program reviews................................ 19.48 Request for reconsideration of 0.07
program registration status.
Data sharing................................... 1.73 Data and quality metrics......... 1.17
SAA reciprocity of registrations............... 0.001
Submission of State Apprenticeship Plan........ 0.06
----------------------------------------------------------------------------------------------------------------
The proposed rule would result in quantified costs to registered
apprenticeship SAAs, sponsors, participating employers, and
apprentices. The proposed rule would also result in quantified costs to
CTE program SAAs, sponsors, participating employers, and apprentices.
Exhibit 13 presents a summary of the quantifiable costs to each type of
entity associated with the proposed rule.
Exhibit 13--Summary Table of Costs by Provision
[2022 $millions, annualized, 7%]
------------------------------------------------------------------------
------------------------------------------------------------------------
Registered Apprenticeship Program Entities:
SAAs................................................ $13.52
Sponsors............................................ 91.34
Participating Employers............................. 7.77
[[Page 3244]]
Apprentices......................................... 22.60
OA.................................................. 10.62
CTE Program Entities:
SAAs................................................ 1.19
Sponsors............................................ 3.66
Participating Employers............................. 0.12
Apprentices......................................... 0.18
OA.................................................. 0.84
------------------------------------------------------------------------
Exhibit 14 presents a summary of the quantifiable costs associated
with this proposed rule.
Exhibit 14-Estimated Costs
[2022 $millions]
----------------------------------------------------------------------------------------------------------------
Registered
Year apprenticeship CTE program Total costs
program costs costs
----------------------------------------------------------------------------------------------------------------
1............................................................ $147.2 $0.8 $147.9
2............................................................ 126.8 2.5 129.3
3............................................................ 131.9 3.7 135.6
4............................................................ 137.3 4.9 142.2
5............................................................ 142.6 6.1 148.8
6............................................................ 148.2 7.3 155.5
7............................................................ 153.3 8.6 161.9
8............................................................ 158.7 9.7 168.4
9............................................................ 164.1 11.0 175.0
10........................................................... 169.6 12.2 181.8
--------------------------------------------------
Annualized, 3% discount rate, 10 years................... 147.0 6.4 153.4
Annualized, 7% discount rate, 10 years................... 145.9 6.0 151.9
--------------------------------------------------
Total, 3% discount rate, 10 years........................ 1,254.2 54.4 1,308.6
Total, 7% discount rate, 10 years........................ 1,024.5 42.1 1,066.6
----------------------------------------------------------------------------------------------------------------
6. Nonquantifiable Costs and Cost Savings
This section addresses the nonquantifiable costs and cost savings
of the proposed rule.
a. Costs
(1) Authority To Determine Occupations Suitable for Apprenticeship
(Sec. 29.7(a))
The proposed rule would give the authority to determine occupations
suitable for registered apprenticeship only to OA. Currently, some
occupations are determined to be suitable for registered apprenticeship
only by SAAs. Those occupations determined only by SAAs, and not OA, to
be suitable for registered apprenticeship would need to submit new
requests for the occupations to be approved by OA for them to continue
to be suitable for registered apprenticeship. The Department assumes
that sponsors would submit new requests for all occupations only
approved by SAAs to be determined suitable for registered
apprenticeship therefore incurring a one-time cost. The Department does
not have data on the number of occupations that are only determined to
be suitable for registered apprenticeship by SAAs and therefore is
unable to quantify the cost of submitting the new requests for
occupation suitability. The Department seeks public comments on data
supporting costs of occupation suitability determinations to SAAs and
sponsors.
(2) New Requirements for Off-the-Job Training Documentation (Sec.
29.7(b)(4))
The proposed rule would require sponsors to submit documentation of
the curriculum and number of off-the-job training hours, which cannot
be less than 144 hours. Programs that do not meet the 144-hour minimum
requirement would need to update their off-the-job training
requirements and submit documentation. The Department does not have
data on the number of programs that do not meet the minimum 144-hour
requirements of off-the-job training and is therefore unable to
quantify this cost.
(3) Deregistration (Sec. 29.20)
As discussed under the benefits section, the proposed rule would
add a suspension step prior to deregistration allowing sponsors an
adequate span of time to update their practices and be in compliance
without having to be deregistered and then reregistered at a later
date. Both SAAs and OA would need to develop a process for suspension
procedures and offer technical assistance to sponsors to promote
compliance with the suspension process. The Department is unable to
quantify this cost due to uncertainty with procedures that would be
developed and a lack of data on how many suspensions would be expected
to occur. In addition, the addition of the suspension step could reduce
the number of costly deregistrations, potentially even leading to cost
savings for Registration Agencies.
(4) State Apprenticeship Councils (Sec. 29.26(d))
The proposed rule would increase and clarify the requirements for
State
[[Page 3245]]
Apprenticeship Councils that are established by SAAs. State
Apprenticeship Councils provide SAAs with written, nonbinding advice,
recommendations, research, and reports concerning apprenticeship-
related matters, and on the submission of the State Apprenticeship
Plan. The proposed rule would establish requirements for State
Apprenticeship Council composition including requiring State
Apprenticeship Councils to be composed of individuals who are familiar
with occupations suitable for registered apprenticeship, registered
apprenticeship programs, and opportunities across a wide range of
industries and sectors including employers, representatives of
employers, representatives of labor organizations, members of State
workforce development boards, representatives of the secondary or
postsecondary education system, and other stakeholders of the National
Apprenticeship System. State Apprenticeship Council participation would
be voluntary and therefore impose de minimis costs on individuals.
However, SAAs would have a cost to recruit members and maintain the
State Apprenticeship Council. The Department lacks data on the burden
or costs associated with establishing and maintaining a State
Apprenticeship Council and is therefore unable to quantify the costs of
this provision. The Department seeks public comment on data or
estimates of the costs associated with establishing and maintaining a
State Apprenticeship Council for any States that would need to create
State Apprenticeship Councils.
b. Cost Savings
(1) Exemptions (Sec. 29.23)
The proposed rule would provide relief to certain sponsors that can
justify being exempt from certain requirements of subpart A of 29 CFR
part 29. This would result in cost savings for sponsors and potentially
participating employers. The Department is unable to project how many
exemptions would be requested and granted, as well as what provisions
the exemptions would be for. Therefore, the Department is unable to
estimate the potential cost savings resulting from exemptions. The
Department seeks public comment on how sponsors may use the exemption
provision.
7. Nonquantifiable Transfer Payments
a. Progressive Wage Increases (Sec. 29.8(a)(17)(B))
The proposed rule would require a graduated schedule of increasing
wages from entry wage to the journeyworker wage that includes at least
one incremental wage step during the first 2,000 hours of on-the-job
training and a final wage that is at least 75 percent of the
journeyworker wage paid by the employer for that occupation. These
changes would result in transfer payments from participating employers
to apprentices. Participating employers that, in the baseline, do not
increase wages during the first 2,000 hours or do not pay an end-point
wage of 75 percent of the journeyworker wage, would need to pay higher
total wages over the apprenticeship term. The Department lacks data on
the number of participating employers that do not offer at least one
wage increase for every 2,000 hours or the number of participating
employers that do not pay an end-point wage of 75 percent of the
journeyworker wage. Therefore, the Department is unable to quantify the
transfer payments associated with either change. The Department seeks
public comment on how progressive wage increases from this provision
would impact apprentices and employers, specifically data that would
indicate how many apprentices are currently not receiving progressive
wage increases.
b. Unreimbursed Costs to Apprentices (Sec. 29.8(a)(18))
The proposed rule would limit the unreimbursed costs, expenses, and
fees that an apprentice may incur during the registered apprenticeship
program to those that are necessary and reasonable and do not impose
financial barriers. The Department believes that there are currently
some instances in which apprentices are required to pay costs,
expenses, or fees that are excessive and unreasonably burden the
apprentice. The Department expects that this provision would reduce the
instances of these and as a result, be a transfer payment from sponsors
or participating employers to apprentices. The Department does not have
data on the prevalence of excessive costs to apprentices, and therefore
is unable to quantify this transfer payment.
8. Distributional Impact Analysis
E.O. 13985, ``Advancing Racial Equity and Support for Underserved
Communities Through the Federal Government,'' seeks to advance equity
in agency actions and programs. The term equity is defined as
consistent and systematic fair, just, and impartial treatment of
individuals, including individuals who belong to underserved
communities, such as women; Black, Latino, and Indigenous and Native
American persons; Asian Americans and Pacific Islanders; other persons
of color; members of religious minorities; lesbian, gay, bisexual,
transgender, and queer persons; persons with disabilities; persons who
live in rural areas; and persons otherwise adversely affected by
persistent poverty or inequality.
To assess the impact of the proposed rule on equity, the Department
analyzed Census data from the 2020 American Community Survey with data
on the demographic distribution of registered apprenticeship programs.
As shown in Exhibit 15 below, certain underserved communities are well
represented in registered apprenticeship programs and are approximately
equal to or exceed the distribution of these groups in the Census
Workforce Population.\220\ This includes individuals who identify as
Hawaiian/Pacific Islander, Hispanic, Native American, Black, Veteran,
and Youth. Although the remaining demographic groups' representation in
registered apprenticeship programs does not yet reflect the overall
U.S. workforce, significant progress has been made and efforts continue
to advance equity for underserved communities. This proposed rule tries
to further advance registered apprenticeship as an equitable program by
increasing the rights of apprentices such as by removing non-compete
provisions, improving the complaint process, ensuring progressive wage
increases through an apprentice's tenure, and other quality
improvements to registered apprenticeship.
---------------------------------------------------------------------------
\220\ U.S. Census Bureau, ``American Community Survey Data,''
2020, https://www.census.gov/programs-surveys/acs/data.html.
[[Page 3246]]
Exhibit 15--Demographic Comparison Between U.S. Census Workforce and
Registered Apprenticeship Program
------------------------------------------------------------------------
Demographic Census (%) OA (%)
------------------------------------------------------------------------
Asian................................... 6.11 2.04
Black or African American............... 11.89 10.77
Disabled................................ 4.94 1.12
Hawaiian/Pacific Islander............... 0.18 1.10
Hispanic or Latino...................... 17.86 22.75
Multiracial............................. 4.34 1.10
Native American......................... 0.68 1.60
Veteran................................. 4.20 7.09
White................................... 71.63 61.74
Women................................... 43.15 13.8
Youth................................... 12.64 39.00
------------------------------------------------------------------------
The advancement of worker rights and pay through changes in
registered apprenticeship from removal of non-compete provisions,
improvements to the complaint process, progressive wage increases, and
other quality improvements to registered apprenticeship would have the
potential to have two distributional impacts: (1) for the existing
distribution of registered apprenticeship, which serves underserved
communities at a rate equal to or higher than the population, improve
their economic outcomes; and (2) have the potential to make registered
apprenticeship more attractive and increase further the representation
of underserved communities.
For the apprentices in the current distribution of registered
apprenticeship, as shown in Exhibit 15, improvements in registered
apprenticeship would improve their economic outcomes as described by
the benefits of the proposed rule. Workers could potentially receive
higher wages by improving their labor mobility, would participate in
higher quality registered apprenticeship programs, and would face fewer
financial barriers affecting their economic future.
The reduction in financial barriers would potentially increase
participation by underserved communities. Many of the underserved
communities are economically disadvantaged or face other workplace-
related barriers. Reducing financial barriers and improving economic
outcomes from registered apprenticeship could incentivize greater
participation by those underserved communities. Changes to the
registered apprenticeship model, combined with prior updated EEO
regulations for registered apprenticeship programs, which were released
in 2016, would help businesses to reach a larger and more diverse pool
of workers, while also protecting apprentices and applicants from
discrimination.\221\ The effects of the Department's efforts are
evident in the demographic data provided by 686,000 apprentices between
2010 and 2019.\222\ These data show that the representation of Asian
apprentices has increased from 1.7 percent in 2010 to 2.2 percent in
2019.\223\ Additionally, the distribution of Black or African American
apprentices has grown from 12.8 percent in 2010 to 17.1 percent in
2019.\224\ This demonstrates that efforts to advance equity in
registered apprenticeship programs have proven to be effective thus
far, and this work will continue to ensure that underserved communities
are represented in these programs. The new registered CTE
apprenticeship program would expand worker protections and anti-
discrimination initiatives to youth apprentices.
---------------------------------------------------------------------------
\221\ OA, ``Diversity, Equity, Inclusion, and Accessibility,''
https://www.apprenticeship.gov/employers/diversity-equity-inclusion-accessibility (last visited July 20, 2023).
\222\ DOL, ``Equity Snapshot: Apprenticeships in America,'' Nov.
4, 2021, https://blog.dol.gov/2021/11/03/equity-snapshot-apprenticeships-in-america.
\223\ Ibid.
\224\ Ibid.
---------------------------------------------------------------------------
Although the participation of nearly all underserved communities
has become more closely aligned with the makeup of the overall U.S.
workforce, women's representation in registered apprenticeship programs
still falls well below this metric. Although women comprise 43.15
percent of the American workforce in 2020,\225\ only 13.8 percent of
all apprentices are women in 2022.\226\ According to BLS, women
accounted for only 10.9 percent of total employed construction workers
in 2022,\227\ and only 4.2 percent of those working skilled
construction trades occupations.\228\ The Department's Women's Bureau
has worked to expand opportunities for women by administering the WANTO
grant program.\229\ Since 2017, approximately 15 million in grant
funding has been awarded to help recruit, train, and retain more women
in pre-apprenticeship and registered apprenticeship programs in
industries where they are typically underrepresented.\230\ This grant
program, amongst the previously discussed reduction of financial
barriers by this proposed rule, will continue to create a pathway for
more women, including those that are economically disadvantaged, to
enter registered apprenticeship programs.\231\ This proposed rule would
ensure that all registered apprenticeship programs, including those
targeting the disadvantaged, maintain high-quality programming, report
more data that can be used to analyze participation and outcomes, and
do not impose unnecessary financial burdens. The creation of the
registered CTE apprenticeship model would also provide more
opportunities for women to get into registered apprenticeship
[[Page 3247]]
programs at an earlier stage in their career.
---------------------------------------------------------------------------
\225\ U.S. Census Bureau, ``American Community Survey Data,''
2020, https://www.census.gov/programs-surveys/acs/data.html.
\226\ OA, ``Women in Apprenticeship,'' Aug. 2022, https://www.apprenticeship.gov/sites/default/files/dol-industry-factsheet-series-women.pdf.
\227\ BLS, ``Labor Force Statistics from the Current Population
Survey,'' Jan. 25, 2023, https://www.bls.gov/cps/cpsaat18.htm.
\228\ Institute for Women's Policy Research, ``Numbers Matter:
Women Working in Construction,'' July 2023, https://iwpr.org/wp-content/uploads/2023/07/Quick-Figure-construction-July-2023.pdf.
\229\ OA, ``WANTO Grant Program,'' https://www.dol.gov/agencies/wb/grants/wanto (last visited July 20, 2023).
\230\ Ibid.
\231\ DOL, Women's Bureau, ``Advancing Opportunities for Women
through Apprenticeship,'' Jan. 2021, https://www.dol.gov/sites/dolgov/files/WB/media/AdvancingOpportunitiesWomenthroughApprenticeship-jan2021.pdf.
---------------------------------------------------------------------------
9. Regulatory Alternatives
OMB Circular A-4, which outlines best practices in regulatory
analysis, directs agencies to analyze alternatives if such alternatives
best satisfy the philosophy and principles of E.O. 12866. Accordingly,
the Department considered four regulatory alternatives for changes to
registered apprenticeship, two less burdensome and two more burdensome
than the proposed rule. Under the first alternative, end-point
assessments (proposed Sec. 29.16) would not be required under the
proposed rule. Under the second alternative, program reviews (proposed
Sec. 29.19) would only be conducted for cause. Under the third
alternative, program reviews (proposed Sec. 29.19) would be conducted
for all sponsors every 2 years rather than every 5 years. Finally,
under the fourth alternative, end-point assessments (proposed Sec.
29.16) would be conducted by an independent third party. The Department
seeks comment on these four regulatory alternatives as well as
additional regulatory alternatives for the Department to consider.
For the first alternative the Department considered removing the
requirement for end-point assessments. To estimate the reduction in
costs under this alternative, the Department subtracted the estimated
costs of end-point assessments from the total costs estimated of the
proposed rule. Over the 10-year analysis period, the annualized costs
are estimated at $41.8 million at a discount rate of 7 percent. In
total, this alternative is estimated to result in costs of $293.8
million at a discount rate of 7 percent.
The Department decided not to pursue this alternative because end-
point assessments are a key method for sponsors to assess the skills
and knowledge acquired by the apprentice. They help to measure and
ensure the quality of registered apprenticeship programs.
For the second alternative the Department considered conducting
program reviews only for cause, rather than for all sponsors every 5
years. To estimate the reduction in costs under this alternative, the
Department adjusted the calculations described in the subject-by-
subject analysis for program reviews (proposed Sec. 29.19). The
Department estimated that instead of all sponsors undergoing a program
review every 5 years, only 320 sponsors would receive program reviews
in each year. The Department maintained the assumption that 20 percent
of those program reviews would find noncompliance and require a
subsequent compliance action plan. The Department maintained the cost
estimates for all other provisions. Over the 10-year analysis period,
the annualized costs are estimated at $127.9 million at a discount rate
of 7 percent. In total, this alternative is estimated to result in
costs of $898.2 million at a discount rate of 7 percent.
The Department decided not to pursue this alternative because
conducting program reviews only for cause would miss a large number of
programs that may need reviews. To ensure high-quality registered
apprenticeship programs, and that all programs abide by the regulatory
requirements of registered apprenticeship, the Department believes that
all registered apprenticeship programs should be reviewed over a 5-year
period as specified in the proposed rule. This 5-year period ensures
that the Department has the resources available to conduct reviews and
that the review is not overly burdensome on programs undergoing the
review.
For the third alternative, the Department considered conducting
program reviews for all registered apprenticeship programs every 2
years, rather than for all programs every 5 years. This would increase
the frequency at which the Department could identify noncompliance and
potentially improve the quality of registered apprenticeship programs
by ensuring closer compliance with the regulatory requirements. To
estimate the increase in costs under this alternative, the Department
adjusted the calculations described in the subject-by-subject analysis
for program reviews (proposed Sec. 29.19). The Department estimated
that instead of all sponsors undergoing a program review every 5 years,
they would receive a program review every 2 years. This would increase
the annual number of program reviews conducted by SAAs (from 3,085 in
year 1 to 7,713) and by OA (from 2,213 in year 1 to 5,533). The
Department maintained the cost estimates for all other provisions. Over
the 10-year analysis period, the annualized costs are estimated at
$196.9 million at a discount rate of 7 percent. In total, this
alternative is estimated to result in costs of $1,383.1 million at a
discount rate of 7 percent.
The Department decided not to pursue this alternative because
conducting program reviews every 2 years would increase costs by more
than the benefit of more frequent program reviews. In addition, OA, and
potentially SAAs, would lack the resources to conduct the large number
of annual program reviews required. The Department welcomes comments
with recommendations for how OA could use its resources most
effectively to identify and review more frequently programs that need
improvement.
For the fourth and final alternative the Department considered
requiring end-point assessments to be conducted by an independent third
party. An independent third party would remove any potential for
conflicts of interest related to the perceived effectiveness of the
sponsor's registered apprenticeship program that could occur by having
sponsors conduct end-point assessments themselves. Requiring the end-
point assessment to be conducted by an independent third party would
have the potential to increase the quality of registered apprenticeship
programs and ensure apprentices complete the program with the tools and
skills needed to succeed. To estimate the increase in costs under this
alternative, the Department adjusted the calculations described in the
subject-by-subject analysis for end-point assessments (proposed Sec.
29.16). The Department increased the time required for a Training and
Development Manager (private sector) from 1 hour to 4 hours to account
for additional preparation, synthesis of findings, and reporting of
findings by the independent third party. The Department maintained the
estimated cost of all other provisions of the proposed rule. Over the
10-year analysis period, the annualized costs are estimated at $646.3
million at a discount rate of 7 percent. In total, this alternative is
estimated to result in costs of $4,539.5 million at a discount rate of
7 percent.
The Department decided not to pursue this alternative because the
burden placed on registered apprenticeship programs is estimated to be
too high for the resulting benefits of independent third-party end-
point assessments.
The Department presents a comparison of the costs of each of the
four alternatives and the proposed rule in Exhibit 16 below.
[[Page 3248]]
Exhibit 16--Summary of Proposed and Alternatives Costs
[2022 $millions]
----------------------------------------------------------------------------------------------------------------
Year NPRM Alt. 1 Alt. 2 Alt. 3 Alt. 4
----------------------------------------------------------------------------------------------------------------
1............................... $147.2 $59.7 $131.2 $172.8 $408.7
2............................... 126.8 35.1 110.1 153.3 400.9
3............................... 131.9 36.1 114.7 159.4 418.7
4............................... 137.3 37.2 119.4 165.6 436.6
5............................... 142.6 38.4 124.2 171.9 454.6
6............................... 148.2 39.7 129.1 178.4 472.7
7............................... 153.3 40.7 133.7 184.4 490.4
8............................... 158.7 41.8 138.4 190.7 508.4
9............................... 164.1 43.0 143.2 197.0 526.3
10.............................. 169.6 44.3 148.1 203.4 544.5
-------------------------------------------------------------------------------
Annualized, 3% discount rate 147.0 41.7 128.6 185.4 539.4
Annualized, 7% discount rate 145.9 41.8 127.9 196.9 646.3
-------------------------------------------------------------------------------
Total, 3% discount rate, 10 1,254.2 355.6 1,097.0 1,581.8 4,601.3
years......................
Total, 7% discount rate, 10 1,024.5 293.8 898.2 1,383.1 4,539.5
years......................
----------------------------------------------------------------------------------------------------------------
In addition to the four regulatory alternatives discussed above,
the Department also considered maintaining the status quo. E.O. 12866
states, ``In deciding whether and how to regulate, agencies should
assess all costs and benefits of available regulatory alternatives,
including the alternative of not regulating.'' Accordingly, the
Department considered not implementing any of the provisions in this
proposed rule. Under the status quo alternative, the Department would
retain current program standards, apprenticeship agreements, and state
governance requirements, and would not develop a registered CTE
apprenticeship model. Doing so would incur no new costs or benefits.
The Department decided against maintaining the status quo because the
Department believes the proposed rule would improve the capacity of the
National Apprenticeship System to respond to evolving employer needs,
provide workers equitable pathways to good jobs, and increase the
system's long-term resilience.
B. Regulatory Flexibility Act, Small Business Regulatory Enforcement
Fairness Act of 1996, and Executive Order 13272 (Proper Consideration
of Small Entities in Agency Rulemaking)
The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601 et seq.,
as amended by the Small Business Regulatory Enforcement Fairness Act of
1996, Public Law 104-121 (Mar. 29, 1996), hereafter jointly referred to
as the RFA, requires agencies to prepare an initial regulatory
flexibility analysis (IRFA) when proposing, and a final regulatory
flexibility analysis when issuing, regulations that will have a
significant economic impact on a substantial number of small entities.
The Department believes that this proposed rule would have a
significant economic impact on a substantial number of small entities
and is therefore publishing this IRFA as required. It should be noted,
however, that participation in registered apprenticeship programs and
registered CTE apprenticeship programs is voluntary; therefore, only
small entities that choose to continue participate would experience an
economic impact--significant or otherwise. The Department anticipates
that small businesses would continue to participate only if they
believe the benefits will outweigh the costs. Because participation is
voluntary, the increased burdens associated with this proposed rule may
result in certain entities choosing to discontinue participation in the
National Apprenticeship System. On the whole, however, the Department
expects this rulemaking to facilitate the expansion and growth of
registered apprenticeship.
1. Why the Action by the Agency Is Being Considered
The NAA has not been changed since the New Deal. There is need for
a renewed commitment to registered apprenticeship and a modern system.
In addition, there is need for a registered pathway for CTE
apprenticeship. It has been decades since there has been a serious
overhaul and update of registered apprenticeship regulations to address
labor standards in a rapidly changing economy. This proposed rule would
enhance labor standards to affirm guarantees and results for workers,
create a consistent navigable system to support expansion across
industries, and create equitable pathways to registered apprenticeship
for underserved communities and youth. In addition, it would extend the
high-quality requirements associated with registered apprenticeship to
the newly created registered CTE apprenticeship model.
2. Objectives and Legal Basis for the Proposed Rule
The NAA (29 U.S.C. 50) authorizes the Secretary of Labor to
formulate and promote the furtherance of labor standards necessary to
safeguard the welfare of apprentices, to extend the application of such
standards by encouraging their inclusion in contracts of
apprenticeship, to cooperate with States to formulate and promote such
standards, and to bring together employers and labor for the
formulation of programs of apprenticeship. Pursuant to this authority,
the Department has established regulations governing the registration
of apprenticeship programs and apprentices at 29 CFR part 29 that
prescribe minimum quality and content requirements with respect to a
program's standards of apprenticeship and its apprenticeship
agreements; establish procedures concerning the registration,
cancellation, and deregistration of apprenticeship programs; and set
forth a mechanism for the recognition of SAA as Registration Agencies.
The steady expansion of the registered apprenticeship model has
revealed the need to revise and modernize the policies and procedures
contained in the current version of 29 CFR part 29 in order to promote
dual goals of fostering innovation while preserving and enhancing the
quality and effectiveness of the registered apprenticeship model.
[[Page 3249]]
3. Description and Estimate of the Small Entities Affected by the
Proposed Rule
The proposed rule would primarily affect program sponsors and
participating employers in registered apprenticeship. Registered
apprenticeship program sponsors may be employers, employer
associations, industry associations, or labor management organizations
and, thus, may represent businesses, small businesses, and not-for-
profit organizations. The proposed rule would also affect program
sponsors and participating employers in registered CTE apprenticeship.
Registered CTE apprenticeship program sponsors may be secondary schools
and postsecondary institutions. This analysis focuses on the
participating employers and sponsors that participate in registered
apprenticeship programs or registered CTE apprenticeship programs and
would incur costs from the proposed rule. As explained in the E.O.
12866 section above, the Department used historical program data for
registered apprenticeship, and the Department's best estimates of CTE
participation, to estimate the number of participating employers and
sponsors that are projected to participate in registered apprenticeship
programs and registered CTE apprenticeship programs. Exhibit 17 below
summarizes the projections over the 10-year analysis period.
Exhibit 17--Projected Number of Sponsors and Participating Employers
----------------------------------------------------------------------------------------------------------------
Total registered
Total registered apprenticeship Total registered Total CTE
Year apprenticeship program CTE apprenticeship participating
program sponsors participating program sponsors employers
employers
----------------------------------------------------------------------------------------------------------------
1.................................... 26,492 40,533 137 210
2.................................... 27,434 41,974 549 839
3.................................... 28,376 43,415 960 1,469
4.................................... 29,318 44,857 1,372 2,099
5.................................... 30,260 46,298 1,783 2,728
6.................................... 31,202 47,739 2,195 3,358
7.................................... 32,144 49,180 2,606 3,988
8.................................... 33,086 50,622 3,018 4,617
9.................................... 34,028 52,063 3,429 5,247
10................................... 34,970 53,504 3,841 5,876
----------------------------------------------------------------------------------------------------------------
The Department lacks data on the size of these sponsors and
participating employers. Therefore, the Department assumes that
registered apprenticeship program sponsors will have the same size
distribution as the firms in each of the 19 major industry sectors
represented in registered apprenticeship. In addition to the 19 major
industry sectors, the Department assumes that the Educational Services
sector (NAICS 61) would have a similar representation in size
distribution for registered CTE apprenticeship program sponsor. This
assumption allows the Department to conduct a robust analysis using
data from the Census Bureau's Statistics of U.S. Businesses,\232\ which
include the number of firms, number of employees, and annual revenue by
industry and firm size. Using these data allows the Department to
estimate the per-program costs of the proposed rule as a percent of
revenue by industry and firm size. The Department also lacks data on
the size of participating employers in either registered apprenticeship
or registered CTE apprenticeship, but as discussed below, is able to
conclude that there would not be a significant economic impact on any
participating employers that are not sponsors.
---------------------------------------------------------------------------
\232\ See U.S. Census Bureau, ``Statistics of U.S. Businesses,''
https://www.census.gov/programs-surveys/susb/data.html (last updated
May 10, 2022).
---------------------------------------------------------------------------
4. Compliance Requirements of the Proposed Rule
The E.O. 12866 analysis above quantifies several types of labor
costs that would be borne by registered apprenticeship program
sponsors: (1) rule familiarization; (2) on-the-job training
documentation; (3) wage analysis and career development; (4) data
collection and reporting; (5) program registration; (6) program
standards and adoption agreement; (7) end-point assessments; and (8)
program reviews. Since some sponsors can also be participating
employers, the Department adds costs of recordkeeping that are imposed
on participating employers to all sponsors.
As explained in the E.O. 12866 section above, the Department
estimates the following first-year costs to sponsors; each sponsor
would incur a subset of these nine costs:
rule familiarization: $412 per sponsor
on-the-job training documentation: $1,031 per sponsor with
program with less than 2,000 hours on-the-job training
wage analysis and career development profile: $206 per
sponsor submitting a new or revised occupation determination
data collection and reporting: $111 per sponsor
program registration: $103 per sponsor with a new program
program standards adoption agreement: $103 per sponsor
with new non-collectively bargained program standards
end-point assessments: $103 per sponsor per apprentice
program reviews: $842 per noncompliant sponsor
recordkeeping: $138 per employer
Additional costs that may be incurred but could not be quantified
due to a lack of data include new requirements for off-the-job training
and prohibition of non-disclosure and non-compete provisions. In
addition, the proposed rule would result in transfer payments from
participating employers to apprentices in the form of compensation, but
the Department lacks data on the extent of entities that would be
impacted as well as the magnitude of transfers as discussed in the
nonquantifiable transfer payments section of the E.O. 12866 analysis.
The costs associated with the increased requirements for registered
apprenticeship present the possibility that some sponsors and employers
may leave the registered apprenticeship system altogether. However, in
other countries with quality labor standards, such as Germany,
apprenticeship
[[Page 3250]]
participation remains high. In Germany, about 54.5 percent of graduates
from general education \233\ enter the labor force through an
apprenticeship training program.\234\ German apprenticeship programs
include numerous costly requirements, including contractual agreements
between apprentices and employers, national apprenticeship standards
for each occupation, and examinations to ensure apprentices meet the
standards of excellence at the end of their program.\235\ Despite these
program requirements, apprenticeship participation in Germany has
remained high. The Department does not expect the proposed rule to
result in an exodus from registered apprenticeship as a result of
increased requirements. Participation in apprenticeship programs is
greater in Germany than in the United States, indicating that quality
labor standards would unlikely decrease apprenticeship participation in
the United States and could potentially make apprenticeship more
attractive.\236\
---------------------------------------------------------------------------
\233\ Graduating from general education in Germany is comparable
to graduating from high school in the United States.
\234\ Diana Elliott and Miriam Farnbauer, ``Bridging German and
US Apprenticeship Models,'' Aug. 2021, https://www.urban.org/sites/default/files/publication/104677/bridging-german-and-us-apprenticeship-models.pdf.
\235\ Ibid.
\236\ Rates of participation, measured in number of apprentices
per 1,000 workers, are found to be much higher in Germany than in
the United States. See Maia Chankseliani et al., ``People and
Policy: A comparative study of apprenticeship across eight national
contexts,'' Oct. 2017, https://ora.ox.ac.uk/objects/uuid:56a3d0c9-3221-43d9-9da4-e1883e5a7a00.
---------------------------------------------------------------------------
The E.O. 12866 analysis above quantifies several types of labor
costs that would be borne by registered CTE apprenticeship program
sponsors: (1) rule familiarization; (2) program registration
application requirements; (3) selection of a diverse and inclusive
cross-section of students; (4) sponsor oversight; (5) apprenticeship
agreements; (6) program reviews; (7) request for reconsideration of
program registration status; and (8) data and quality metrics.
As explained in the E.O. 12866 section above, the Department
estimates the following first-year costs to registered CTE
apprenticeship program sponsors; each sponsor would incur a subset of
these eight costs:
rule familiarization: $412 per sponsor
program registration application requirements: $1,031 per
sponsor
selection of a diverse and inclusive cross-section of
students: $74 per sponsor
sponsor oversight: $913 per sponsor
apprenticeship agreements: $17 per sponsor per apprentice
program reviews: $842 per noncompliant sponsor
request for reconsideration of program registration
status: $619 per sponsor
data and quality metrics: $495 per sponsor
Additional costs that may be incurred but could not be quantified
due to a lack of data include new requirements for off-the-job training
and prohibition of non-disclosure and non-compete provisions. In
addition, the proposed rule would result in transfer payments from
participating employers to apprentices in the form of compensation, but
the Department lacks data on the extent of entities that would be
impacted as well as the magnitude of transfers as discussed in the
nonquantifiable transfer payments section of the E.O. 12866 analysis.
To quantify the costs to small entities, the Department uses the
same cost estimates for sponsors and participating employers described
in the subject-by-subject analysis of the E.O. 12866 analysis for
registered apprenticeship programs and registered CTE apprenticeship
programs, respectively. Note that ``firm'' refers to ``sponsor'' in
this IRFA. Sponsors are frequently employers, so the Department
combined the costs for sponsors and employers to obtain an upper-bound
estimate of the cost for ``firms.'' Hence, the cost estimates are the
maximum amount that would be borne by a small entity that chooses to
participate. The E.O. 12866 analysis above quantifies two types of
labor costs that would be borne by participating employers in
registered apprenticeship: (1) rule familiarization; and (2)
recordkeeping. These two requirements combined would impose $343.69
\237\ in costs on each participating employer. For participating
employers in CTE, the Department estimates costs of $206.19 for rule
familiarization. These costs are combined with the costs for sponsors
to estimate the costs for firms.
---------------------------------------------------------------------------
\237\ The cost of $343.69 on each participating employer is
derived from the sum of costs per employer associated with rule
familiarization ($206.19) and recordkeeping ($137.50). The cost of
$206.19 comes from the multiplication of the time for existing
entities to read and review the new rule by the Training and
Development Manager loaded private wage rate by 0.5 to determine the
cost per employer. The cost of $137.50 comes from the multiplication
of the time required to record and maintain additional information
by the Office and Administrative Support Occupation hourly wage
rate.
---------------------------------------------------------------------------
Exhibit 18 shows the estimated cost per registered apprenticeship
program sponsor for each year of the analysis period. The first-year
cost per sponsor is estimated at $3,420 at a discount rate of 7
percent. The annualized cost per sponsor is estimated at $3,238 at a
discount rate of 7 percent. These estimates are average costs, meaning
that some registered apprenticeship program sponsors would have higher
costs while other sponsors would have lower costs, regardless of firm
size. The Department seeks public comment on these estimates with the
goal of providing refined estimates in the final rule.
Exhibit 18--Estimated Cost to Registered Apprenticeship Program Sponsors
[$ thousands unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Wage
On-the-job analysis Data Program Number of
Rule training and career collection Program standards End-point Record- Program Total registered Cost per
Year familiari- documen- develop- and registration adoption assess- keeping reviews cost apprentice- sponsors
zation tation ment reporting agreement ments ship program ($)
profile sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.................................................. $10,925 $6,400 $48 $2,944 $285 $218 $69,647 $5,573 $893 $96,933 26,492 $3,659
2.................................................. 1,170 0 48 3,073 292 218 72,999 5,772 924 84,496 27,434 3,080
3.................................................. 1,200 0 48 3,202 300 218 76,351 5,970 956 88,245 28,376 3,110
4.................................................. 1,230 0 48 3,331 308 218 79,703 6,168 988 91,994 29,318 3,138
5.................................................. 1,261 0 48 3,460 315 218 83,055 6,366 1,020 95,742 30,260 3,164
6.................................................. 1,291 0 48 3,589 323 218 86,406 6,564 1,051 99,491 31,202 3,189
7.................................................. 1,321 0 48 3,718 330 218 89,758 6,762 1,083 103,239 32,144 3,212
8.................................................. 1,351 0 48 3,847 338 218 93,110 6,961 1,115 106,988 33,086 3,234
9.................................................. 1,382 0 48 3,976 345 218 96,462 7,159 1,146 110,736 34,028 3,254
[[Page 3251]]
10................................................. 1,412 0 48 4,105 353 218 99,814 7,357 1,178 114,485 34,970 3,274
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................ 3,420
Annualized cost ($), 7% discount rate, 10 years...................................................................................................................................... 3,238
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Exhibit 19 shows the estimated cost per registered CTE
apprenticeship program sponsor for each year of the analysis period.
The first-year cost per sponsor is estimated at $3,476 at a discount
rate of 7 percent. The annualized cost per sponsor is estimated at
$2,398 at a discount rate of 7 percent. These estimates are average
costs, meaning that some registered CTE apprenticeship program sponsors
would have higher costs while other sponsors would have lower costs,
regardless of entity size. The Department seeks public comment on these
estimates with the goal of providing refined estimates in the final
rule.
Exhibit 19--Estimated Cost to Registered CTE Apprenticeship Program Sponsors
[$ thousands unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Selection
of diverse Request for Number of
Rule Program and Apprentice- reconsideration Data and registered Cost per
Year familiari- registration inclusive Sponsor ship Program of program quality Total CTE sponsors
zation application cross- oversight agreements reviews registration metrics cost apprentice- ($)
requirements section of status ship program
students sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1.................................................... $57 $141 $10 $125 $55 $5 $21 $68 $482 137 $3,516
2.................................................... 170 424 40 501 166 18 64 271 1,655 549 3,016
3.................................................... 170 424 71 877 221 32 64 475 2,333 960 2,430
4.................................................... 170 424 101 1,252 332 46 64 679 3,067 1,372 2,236
5.................................................... 170 424 131 1,628 387 60 64 882 3,746 1,783 2,101
6.................................................... 170 424 161 2,004 497 74 64 1,086 4,480 2,195 2,041
7.................................................... 170 424 192 2,380 553 88 64 1,289 5,159 2,606 1,979
8.................................................... 170 424 222 2,755 663 102 64 1,493 5,892 3,018 1,953
9.................................................... 170 424 252 3,131 718 116 64 1,696 6,571 3,429 1,916
10................................................... 170 424 282 3,507 829 129 64 1,900 7,305 3,841 1,902
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................ 3,476
Annualized cost ($), 7% discount rate, 10 years...................................................................................................................................... 2,398
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
5. Estimated Impact of the Proposed Rule on Small Entities
Based on the estimated costs to participating employers, presented
above, to have a significant economic impact on a participating
employer in registered apprenticeship, the participating employer would
need revenue less than $11,400.\238\ For participating employers in
registered CTE apprenticeship, the participating employer would need
revenue less than $6,800.\239\ Based on the Department's analysis of
participating employers that is presented below, there are no
industries that have entities in the smallest size categories where
average revenue is below $34,000.\240\ The majority of costs on
entities that could be small are on sponsors and are described below.
---------------------------------------------------------------------------
\238\ $11,400 is the value at which 3% of revenue impacted would
be larger than 3% (= $343.69/0.03).
\239\ $6,800 is the value at which 3% of revenue impacted would
be larger than 3% (= $206.19/0.03).
\240\ The Management of Companies and Enterprises Industry, for
enterprises with receipts below $100,000, has average receipts per
firm of $34,371 (see Exhibit 32), which is the smallest of the
industries analyzed.
---------------------------------------------------------------------------
a. Registered Apprenticeship Program Sponsors
The Department used the following steps to estimate the cost of the
proposed rule per registered apprenticeship program sponsor as a
percentage of annual receipts. First, the Department used the Small
Business Administration's Table of Small Business Size Standards to
determine the size thresholds for small entities within each major
industry.\241\ Next the Department obtained data on the number of
firms, number of employees, and annual revenue by industry and firm
size category from the Census Bureau's Statistics of U.S.
Businesses.\242\ The Department used the Gross Domestic Product
deflator to convert revenue data from 2017 dollars to 2022
dollars.\243\ Then, the Department divided the estimated first-year
cost and the annualized cost per registered apprenticeship program
sponsor (discounted at a 7-percent rate) by the average annual receipts
per firm to determine whether the proposed rule would have a
significant economic impact on sponsors in each size category.\244\
Finally, the Department
[[Page 3252]]
divided the number of firms in each size category by the total number
of small firms in the industry to determine whether the proposed rule
would have a significant economic impact on a substantial number of
small entities.\245\
---------------------------------------------------------------------------
\241\ U.S. Small Business Administration, ``Table of Small
Business Size Standards,'' Mar. 17, 2023, https://www.sba.gov/document/support-table-size-standards. The size standards, which are
expressed in either average annual receipts or number of employees,
indicate the maximum allowed for a business in each subsector to be
considered small.
\242\ U.S. Census Bureau, ``Statistics of U.S. Businesses,''
https://www.census.gov/programs-surveys/susb/data.html (last updated
May 10, 2022).
\243\ U.S. Bureau of Economic Analysis, ``Table 1.1.9. Implicit
Price Deflators for Gross Domestic Product,'' https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey (last visited May
30, 2023).
\244\ For purposes of this analysis, the Department used a 3-
percent threshold for ``significant economic impact.'' The
Department has used a 3-percent threshold in prior rulemakings. See,
e.g., 79 FR 60633 (Oct. 7, 2014) (establishing a minimum wage for
contractors).
\245\ For purposes of this analysis, the Department used a 15-
percent threshold for ``substantial number of small entities.'' The
Department has used a 15-percent threshold in prior rulemakings.
Ibid.
---------------------------------------------------------------------------
The results for registered apprenticeship are presented in the
following 19 tables, one for each major industry sector. The tables are
in numeric order by their North American Industry Classification System
(NAICS) code--from NAICS 11 (Agriculture, Forestry, Fishing and
Hunting) to NAICS 81 (Other Services). Currently, apprentices are
concentrated in the construction industry (33 percent), public
administration industry (22 percent), and educational services industry
(12 percent),\246\ yet the Department has included tables for all 19
major sectors because the Department anticipates that this proposed
rule would facilitate the expansion of registered apprenticeship. The
variety of industries and occupations that would benefit from
registered apprenticeship keeps growing as the Department identifies
strategies and opportunities to expand the system. Since this proposed
rule is expected to affect small entities across all sectors of the
economy, our analysis shows how entities of different sizes within all
19 major industries could be impacted. In short, the first-year cost or
annualized cost per registered apprenticeship program sponsor would
have a significant economic impact on a substantial number of small
entities in 12 out of 19 industries. It should be noted, however, that
participation in registered apprenticeship programs is voluntary;
therefore, only small entities that choose to continue to participate
would experience an economic impact--significant or otherwise.
---------------------------------------------------------------------------
\246\ OA, ``Apprentice Population by State Analysis (11-09-
2023),'' https://public.tableau.com/app/profile/dol.apprenticeship/viz/ApprenticePopulationbyStateAnalysis11-09-2023_16995503558600/ApprDemoApprLocation (last visited Nov. 20, 2023).
---------------------------------------------------------------------------
As shown in Exhibit 20, the first-year and annualized costs for
registered apprenticeship program sponsors in the agriculture,
forestry, fishing, and hunting industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, and those firms constitute a substantial
number of small entities in the agriculture, forestry, fishing, and
hunting industry (18.0 percent). The first-year costs are estimated to
be 5.7 percent of the average receipts per firm and the annualized
costs are estimated to be 5.4 percent of the average receipts per firm
for firms with revenue below $100,000.
Exhibit 20--Agriculture, Forestry, Fishing, and Hunting Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $2.25 million-$34.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First- year
firms as Average First- year cost per Annualized Annualized
Number percent of Total number Annual receipts receipts cost per firm as cost per cost per
of firms small firms of employees ($ million) \4\ per firm firm with 7% percent of firm with 7% firm as
\1\ in industry \3\ ($) \5\ discounting receipts discounting percent of
\2\ \6\ receipts \7\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts 4,042 18.0 4,495 $242 $59,803 $3,420 5.7 $3,238 5.4
below $100,000...............
Enterprises with receipts of 8,582 38.3 16,607 2,592 302,003 3,420 1.1 3,238 1.1
$100,000 to $499,999.........
Enterprises with receipts of 3,703 16.5 14,450 3,127 844,419 3,420 0.4 3,238 0.4
500,000 to 999,999...........
Enterprises with receipts of 3,686 16.5 28,333 6,781 1,839,700 3,420 0.2 3,283 0.2
1,000,000 to 2,499,999.......
Enterprises with receipts of 1,370 6.1 21,333 5,634 4,112,289 3,420 0.1 3,238 0.1
2,500,000 to 4,999,999.......
Enterprises with receipts of 455 2.0 11,328 3,153 6,929,380 3,420 0.0 3,238 0.0
5,000,000 to 7,499,999.......
Enterprises with receipts of 208 0.9 7,019 2,101 10,101,550 3,420 0.0 3,238 0.0
7,500,000 to 9,999,999.......
Enterprises with receipts of 193 0.9 9,143 2,545 13,188,869 3,420 0.0 3,238 0.0
10,000,000 to 14,999,999.....
Enterprises with receipts of 79 0.4 4,324 1,520 19,242,856 3,420 0.0 3,238 0.0
15,000,000 to 19,999,999.....
Enterprises with receipts of 60 0.3 4,297 1,357 22,619,811 3,420 0.0 3,238 0.0
20,000,000 to 24,999,999.....
Enterprises with receipts of 28 0.1 3,068 710 25,343,408 3,420 0.0 3,238 0.0
25,000,000 to 29,999,999.....
Enterprises with receipts of 17 0.1 1,623 475 27,948,978 3,420 0.0 3,238 0.0
30,000,000 to 34,999,999.....
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Source: U.S. Census Bureau, Statistics of U.S. Businesses. Note that ``firm'' refers to ``sponsor'' in this analysis.
\2\ Number of firms / Small firms in industry.
\3\ Source: U.S. Census Bureau, Statistics of U.S. Businesses.
\4\ Source: U.S. Census Bureau, Statistics of U.S. Businesses.
\5\ Annual receipts / Number of firms.
\6\ First-year cost per firm with 7% discounting / Average receipts per firm.
\7\ Annualized cost per firm with 7% discounting / Average receipts per firm.
[[Page 3253]]
As shown in Exhibit 21, the first-year and annualized costs for
sponsors in the mining industry are not expected to have a significant
economic impact (3 percent or more) on small entities of any size.
Exhibit 21--Mining, Quarrying, and Oil and Gas Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: 500-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees.... 10,808 57.2 16,788 $7,142 $660,839 $3,420 0.5 $3,238 0.5
Enterprises with 5-9 employees.... 2,909 15.4 19,066 6,524 2,242,749 3,420 0.2 3,238 0.1
Enterprises with 10-19 employees.. 2,091 11.1 28,171 10,099 4,829,914 3,420 0.1 3,238 0.1
Enterprises with 20-99 employees.. 2,276 12.0 86,829 40,628 17,850,734 3,420 0.0 3,238 0.0
Enterprises with 100-499 employees 636 3.4 93,513 62,788 98,723,345 3,420 0.0 3,238 0.0
Enterprises with 500-749 employees 80 0.4 26,343 28,174 352,168,820 3,420 0.0 3,238 0.0
Enterprises with 750-999 employees 46 0.2 19,861 23,285 506,201,362 3,420 0.0 3,238 0.0
Enterprises with 1,000-1,499 46 0.2 28,800 25,639 557,359,001 3,420 0.0 3,238 0.0
employees........................
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 22, the first-year and annualized costs for
sponsors in the utilities industry are not expected to have a
significant economic impact (3 percent or more) on small entities of
any size.
Exhibit 22--Utilities Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: 250-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees.... 3,028 52.1 5,752 $3,386 $1,118,256 $3,420 0.3 $3,238 0.3
Enterprises with 5-9 employees.... 983 16.9 6,300 1,771 1,802,011 3,420 0.2 3,238 0.2
Enterprises with 10-19 employees.. 524 9.0 7,065 4,836 9,229,631 3,420 0.0 3,238 0.0
Enterprises with 20-99 employees.. 892 15.3 40,089 40,076 44,927,999 3,420 0.0 3,238 0.0
Enterprises with 100-499 employees 325 5.6 52,541 71,683 220,563,226 3,420 0.0 3,238 0.0
Enterprises with 500-749 employees 45 0.8 20,302 34,430 765,120,600 3,420 0.0 3,238 0.0
Enterprises with 750-999 employees 16 0.3 4,734 5,385 336,536,358 3,420 0.0 3,238 0.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 23, the first-year and annualized costs for
sponsors in the construction industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, and those firms constitute a substantial
number of small entities in the construction industry (24.1 percent).
The first-year costs are estimated to be 5.6 percent of the average
receipts per firm and the annualized costs are estimated to be 5.3
percent of the average receipts per firm for firms with revenue below
$100,000.
[[Page 3254]]
Exhibit 23--Construction Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $19.0 million-$45.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 167,522 24.1 156,090 $10,303 $61,501 $3,420 5.6 $3,238 5.3
$100,000.........................
Enterprises with receipts of 247,074 35.5 544,141 70,010 283,356 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 89,351 12.9 444,318 75,937 849,870 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 95,739 13.8 828,261 178,934 1,868,977 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 45,814 6.6 707,745 189,624 4,138,994 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 17,860 2.6 416,512 127,936 7,163,277 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 9,233 1.3 283,971 93,588 10,136,274 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 9,925 1.4 401,418 141,445 14,251,410 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 5,029 0.7 270,176 101,235 20,130,283 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 3,089 0.4 200,568 79,474 25,728,192 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 2,011 0.3 150,472 63,084 31,369,492 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 1,396 0.2 119,403 51,560 36,934,449 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 1,056 0.2 99,968 44,799 42,423,297 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 1,466 0.2 166,727 74,924 51,107,775 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 24, the first-year and annualized costs for
sponsors in the manufacturing industry are not expected to have a
significant economic impact (3 percent or more) on small entities of
any size.
Exhibit 24--Manufacturing Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: 500-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees.... 102,242 41.5 188,002 $49,168 $480,898 $3,420 0.7 $3,238 0.7
Enterprises with 5-9 employees.... 45,821 18.6 306,025 64,082 1,398,532 3,420 0.2 3,238 0.2
Enterprises with 10-19 employees.. 37,549 15.2 511,380 115,096 3,065,227 3,420 0.1 3,238 0.1
Enterprises with 20-99 employees.. 46,089 18.7 1,872,005 513,594 11,143,518 3,420 0.0 3,238 0.0
Enterprises with 100-499 employees 12,397 5.0 2,162,360 807,852 65,165,144 3,420 0.0 3,238 0.0
Enterprises with 500-749 employees 1,127 0.5 526,397 251,406 223,075,773 3,420 0.0 3,238 0.0
Enterprises with 750-999 employees 608 0.2 370,263 171,676 282,361,226 3,420 0.0 3,238 0.0
Enterprises with 1,000-1,499 578 0.2 487,897 272,079 470,724,074 3,420 0.0 3,238 0.0
employees........................
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 25, the first-year and annualized costs for
sponsors in the wholesale trade industry are not expected to have a
significant economic impact (3 percent or more) on small entities of
any size.
[[Page 3255]]
Exhibit 25--Wholesale Trade Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: 100-250 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with 0-4 employees.... 170,879 57.9 282,713 $338,168 $1,978,989 $3,420 0.2 $3,238 0.2
Enterprises with 5-9 employees.... 48,559 16.5 320,741 317,555 6,539,573 3,420 0.1 3,238 0.0
Enterprises with 10-19 employees.. 34,020 11.5 453,838 422,050 12,405,945 3,420 0.0 3,238 0.0
Enterprises with 20-99 employees.. 33,409 11.3 1,246,435 1,202,036 35,979,399 3,420 0.0 3,238 0.0
Enterprises with 100-499 employees 8,042 2.7 1,109,430 1,214,818 151,059,248 3,420 0.0 3,238 0.0
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 26, the first-year and annualized costs for
sponsors in the retail trade industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, but those firms do not constitute a
substantial number of small entities in the retail trade industry (10.9
percent). The first-year costs are estimated to be 5.6 percent of the
average receipts per firm and the annualized costs are estimated to be
5.3 percent of the average receipts per firm for firms with revenue
below $100,000.
Exhibit 26--Retail Trade Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: 500-1,500 employees
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 69,679 10.9 83,278 $4,273 $61,325 $3,420 5.6 $3,238 5.3
$100,000.........................
Enterprises with receipts of 212,200 33.2 532,330 68,606 323,308 3,420 1.1 3,238 1.0
$100,000 to $499,999.............
Enterprises with receipts of 118,943 18.6 528,280 100,873 848,081 3,420 0.4 3,238 0.4
500,000 to 999,999...............
Enterprises with receipts of 126,105 19.8 914,575 235,819 1,870,018 3,420 0.2 3,238 0.2
1,000,000 to 2,499,999...........
Enterprises with receipts of 57,394 9.0 700,081 234,541 4,086,499 3,420 0.1 3,238 0.1
2,500,000 to 4,999,999...........
Enterprises with receipts of 19,586 3.1 372,573 137,951 7,043,341 3,420 0.0 3,238 0.0
5,000,000 to 7,499,999...........
Enterprises with receipts of 9,435 1.5 244,343 93,510 9,910,941 3,420 0.0 3,238 0.0
7,500,000 to 9,999,999...........
Enterprises with receipts of 9,308 1.5 317,070 128,366 13,790,901 3,420 0.0 3,238 0.0
10,000,000 to 14,999,999.........
Enterprises with receipts of 4,846 0.8 215,896 92,769 19,143,425 3,420 0.0 3,238 0.0
15,000,000 to 19,999,999.........
Enterprises with receipts of 3,166 0.5 167,389 78,331 24,741,263 3,420 0.0 3,238 0.0
20,000,000 to 24,999,999.........
Enterprises with receipts of 2,307 0.4 139,998 69,819 30,263,799 3,420 0.0 3,238 0.0
25,000,000 to 29,999,999.........
Enterprises with receipts of 1,785 0.3 118,314 62,954 35,268,411 3,420 0.0 3,238 0.0
30,000,000 to 34,999,999.........
Enterprises with receipts of 1,510 0.2 110,947 61,983 41,048,054 3,420 0.0 3,238 0.0
35,000,000 to 39,999,999.........
Enterprises with receipts of 2,120 0.3 179,497 102,501 48,349,525 3,420 0.0 3,238 0.0
40,000,000 to 49,999,999.........
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 27, the first-year and annualized costs for
sponsors in the transportation and warehousing industry are estimated
to have a significant economic impact (3 percent or more) on small
entities with receipts under $100,000, and those firms constitute a
substantial number of small entities in the transportation and
warehousing industry (18.0 percent). The first-year costs are estimated
to be 5.8 percent of the average receipts per firm and the annualized
costs are estimated to be 5.5 percent of the average receipts per firm
for firms with revenue below $100,000.
[[Page 3256]]
Exhibit 27--Transportation and Warehousing Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 32,704 18.0 34,795 $1,940 $59,315 $3,420 5.8 $3,238 5.5
$100,000.........................
Enterprises with receipts of 72,673 40.1 152,029 20,835 286,688 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 26,780 14.8 148,113 22,433 837,693 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 25,365 14.0 269,241 46,486 1,832,678 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 11,101 6.1 223,441 44,874 4,042,296 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 4,406 2.4 137,503 30,296 6,876,163 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 2,207 1.2 91,077 21,057 9,540,834 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 2,322 1.3 129,477 29,881 12,868,860 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 1,288 0.7 97,798 21,948 17,040,160 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 772 0.4 78,172 16,800 21,761,486 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 538 0.3 58,986 13,069 24,290,896 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 440 0.2 55,986 12,195 27,715,884 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 333 0.2 37,644 9,427 28,309,025 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 416 0.2 62,522 14,692 35,317,590 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 28, the first-year and annualized costs for
sponsors in the information industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, and those firms constitute a substantial
number of small entities in the information industry (20.0 percent).
The first-year costs are estimated to be 5.9 percent of the average
receipts per firm and the annualized costs are estimated to be 5.6
percent of the average receipts per firm for firms with revenue below
$100,000.
Exhibit 28--Information Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $11.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 15,481 20.0 16,482 892 $57,602 $3,420 5.9 $3,238 5.6
$100,000.........................
Enterprises with receipts of 28,404 36.7 68,508 8,391 295,425 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 10,545 13.6 57,480 8,811 835,598 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 10,590 13.7 109,948 19,795 1,869,207 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 5,196 6.7 99,937 21,171 4,074,388 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 2,180 2.8 65,492 15,155 6,952,024 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 1,173 1.5 48,149 11,398 9,716,735 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 1,325 1.7 73,550 18,201 13,736,535 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 783 1.0 59,471 14,948 19,090,309 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 497 0.6 42,068 11,733 23,607,138 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 372 0.5 39,211 10,737 28,863,621 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 271 0.4 32,396 9,252 34,138,424 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 221 0.3 31,989 8,464 38,297,393 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
[[Page 3257]]
Enterprises with receipts of 317 0.4 43,836 14,133 44,582,414 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 29, the first-year and annualized costs for
sponsors in the finance and insurance industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, and those firms constitute a substantial
number of small entities in the finance and insurance industry (18.7
percent). The first-year costs are estimated to be 5.8 percent of the
average receipts per firm and the annualized costs are estimated to be
5.5 percent of the average receipts per firm for firms with revenue
below $100,000.
Exhibit 29--Finance and Insurance Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $15.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 43,946 18.7 48,037 $2,597 $59,098 $3,420 5.8 $3,238 5.5
$100,000.........................
Enterprises with receipts of 109,042 46.5 244,100 33,314 305,519 3,420 1.1 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 35,651 15.2 158,385 29,334 822,802 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 23,382 10.0 184,397 42,220 1,805,650 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 9,135 3.9 146,376 37,457 4,100,430 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 3,926 1.7 101,333 27,564 7,020,937 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 2,158 0.9 76,995 21,387 9,910,531 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 2,545 1.1 122,949 35,425 13,919,423 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 1,494 0.6 98,142 29,155 19,514,918 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 977 0.4 75,763 24,489 25,065,036 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 642 0.3 61,866 19,483 30,347,565 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 537 0.2 56,634 19,541 36,389,004 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 438 0.2 50,652 17,860 40,776,274 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 567 0.2 79,713 27,717 48,883,444 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 30, the first-year and annualized costs for
sponsors in the real estate and rental and leasing industry are
estimated to have a significant economic impact (3 percent or more) on
small entities with receipts under $100,000, and those firms constitute
a substantial number of small entities in the real estate and rental
and leasing industry (22.3 percent). The first-year costs are estimated
to be 5.5 percent of the average receipts per firm and the annualized
costs are estimated to be 5.3 percent of the average receipts per firm
for firms with revenue below $100,000.
Exhibit 30--Real Estate and Rental and Leasing Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: &9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 68,419 22.3 66,469 $4,217 $61,630 $3,420 5.5 $3,238 5.3
$100,000.........................
[[Page 3258]]
Enterprises with receipts of 136,155 44.3 248,363 39,835 292,575 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 45,372 14.8 171,862 37,654 829,887 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 34,152 11.1 245,779 61,652 1,805,217 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 12,210 4.0 175,672 48,951 4,009,113 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 4,020 1.3 90,148 27,714 6,894,004 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 2,025 0.7 63,474 19,313 9,537,201 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 1,869 0.6 79,396 24,481 13,098,206 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 1,003 0.3 52,698 17,642 17,589,281 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 617 0.2 42,433 13,469 21,829,242 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 446 0.1 33,126 11,579 25,961,260 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 318 0.1 29,216 9,810 30,849,146 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 224 0.1 20,018 7,096 31,680,293 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 327 0.1 37,186 12,327 37,696,094 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 31, the first-year and annualized costs for
sponsors in the professional, scientific and technical services
industry are estimated to have a significant economic impact (3 percent
or more) on small entities with receipts under $100,000, and those
firms constitute a substantial number of small entities in the
professional, scientific and technical services industry (23.4
percent). The first-year costs are estimated to be 5.9 percent of the
average receipts per firm and the annualized costs are estimated to be
5.5 percent of the average receipts per firm for firms with revenue
below $100,000.
Exhibit 31--Professional, Scientific and Technical Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $90 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 188,173 23.4 186,477 $10,990 $58,404 $3,420 5.9 $3,238 5.5
$100,000.........................
Enterprises with receipts of 351,252 43.6 699,310 101,497 288,958 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 109,203 13.6 522,342 91,230 835,416 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 89,925 11.2 852,984 164,634 1,830,797 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 33,619 4.2 622,519 136,728 4,066,997 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 11,965 1.5 366,420 84,405 7,054,313 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 6,097 0.8 256,793 60,418 9,909,398 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 6,150 0.8 348,201 84,884 13,802,321 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 3,200 0.4 251,912 60,785 18,995,362 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 1,894 0.2 177,413 45,631 24,092,221 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 1,339 0.2 151,640 38,655 28,868,541 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 930 0.1 123,198 31,108 33,449,165 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 707 0.1 100,554 26,979 38,160,528 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
[[Page 3259]]
Enterprises with receipts of 964 0.1 161,031 42,285 43,864,307 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 32, the first-year and annualized costs for
sponsors in the management of companies and enterprises industry are
estimated to have a significant economic impact (3 percent or more) on
small entities with receipts under $100,000, but those firms do not
constitute a substantial number of small entities in the management of
companies and enterprises industry (6.2 percent). The first-year costs
are estimated to be 9.9 percent of the average receipts per firm and
the annualized costs are estimated to be 9.4 percent of the average
receipts per firm for firms with revenue below $100,000.
Exhibit 32--Management of Companies and Enterprises Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $38.5 million-$45.5 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 1,043 6.2 11,909 $36 $34,371 $3,420 9.9 $3,238 9.4
$100,000.........................
Enterprises with receipts of 1,228 7.3 3,920 303 246,410 3,420 1.4 3,238 1.3
$100,000 to $499,999.............
Enterprises with receipts of 760 4.5 4,442 361 475,175 3,420 0.7 3,238 0.7
$500,000 to $999,999.............
Enterprises with receipts of 1,684 10.0 16,525 1,052 624,520 3,420 0.5 3,238 0.5
$1,000,000 to $2,499,999.........
Enterprises with receipts of 1,985 11.8 28,340 1,554 782,756 3,420 0.4 3,238 0.4
$2,500,000 to $4,999,999.........
Enterprises with receipts of 1,518 9.0 25,723 1,715 1,129,906 3,420 0.3 3,238 0.3
$5,000,000 to $7,499,999.........
Enterprises with receipts of 1,183 7.0 26,067 1,642 1,388,403 3,420 0.2 3,238 0.2
$7,500,000 to $9,999,999.........
Enterprises with receipts of 1,912 11.3 44,624 3,345 1,749,307 3,420 0.2 3,238 0.2
$10,000,000 to $14,999,999.......
Enterprises with receipts of 1,380 8.2 40,956 3,206 2,323,136 3,420 0.1 3,238 0.1
$15,000,000 to $19,999,999.......
Enterprises with receipts of 1,047 6.2 34,086 2,481 2,369,790 3,420 0.1 3,238 0.1
$20,000,000 to $24,999,999.......
Enterprises with receipts of 859 5.1 34,479 2,911 3,388,883 3,420 0.1 3,238 0.1
$25,000,000 to $29,999,999.......
Enterprises with receipts of 732 4.3 25,244 2,153 2,940,632 3,420 0.1 3,238 0.1
$30,000,000 to $34,999,999.......
Enterprises with receipts of 651 3.9 26,284 2,258 3,468,771 3,420 0.1 3,238 0.1
$35,000,000 to $39,999,999.......
Enterprises with receipts of 905 5.4 42,674 3,667 4,051,611 3,420 0.1 3,238 0.1
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 33, the first-year and annualized costs for
sponsors in the educational services industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, and those firms constitute a substantial
number of small entities in the educational services industry (24.3
percent). The first-year costs are estimated to be 6.1 percent of the
average receipts per firm and the annualized costs are estimated to be
5.7 percent of the average receipts per firm for firms with revenue
below $100,000.
Exhibit 33--Educational Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 22,439 24.3 42,944 $1,267 $56,457 $3,420 6.1 $3,238 5.7
$100,000.........................
[[Page 3260]]
Enterprises with receipts of 37,156 40.3 197,950 10,926 294,070 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 11,425 12.4 139,745 9,464 828,359 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 9,837 10.7 237,256 18,178 1,847,893 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 4,948 5.4 227,231 20,288 4,100,203 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 2,051 2.2 142,147 14,300 6,972,405 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 1,085 1.2 99,135 10,572 9,743,335 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 1,217 1.3 149,025 16,368 13,449,575 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 788 0.9 130,304 14,960 18,984,389 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 405 0.4 83,052 9,610 23,727,832 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 266 0.3 72,713 7,656 28,783,311 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 193 0.2 53,118 6,371 33,011,190 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 157 0.2 49,519 5,840 37,197,306 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 230 0.2 84,073 10,197 44,336,758 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 34, the first-year and annualized costs for
sponsors in the administrative and support and waste management and
remediation services industry are estimated to have a significant
economic impact (3 percent or more) on small entities with receipts
under $100,000, and those firms constitute a substantial number of
small entities in the administrative and support and waste management
and remediation services industry (25.0 percent). The first-year costs
are estimated to be 6.1 percent of the average receipts per firm and
the annualized costs are estimated to be 5.7 percent of the average
receipts per firm for firms with revenue below $100,000.
Exhibit 34--Administrative and Support and Waste Management and Remediation Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $8.5 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 85,880 25.0 107,151 $4,839 $56,346 $3,420 6.1 $3,238 5.7
$100,000.........................
Enterprises with receipts of 140,272 40.8 443,046 41,086 292,902 $3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 47,560 13.8 386,597 39,517 830,890 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 38,169 11.1 676,072 69,641 1,824,533 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 15,414 4.5 605,633 62,122 4,030,215 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 5,678 1.7 384,948 38,991 6,867,032 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 2,981 0.9 297,553 28,484 9,555,055 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 3,105 0.9 424,995 39,926 12,858,530 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 1,631 0.5 293,567 28,445 17,440,217 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 1,054 0.3 231,213 22,606 21,448,275 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 707 0.2 207,995 18,415 26,046,902 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 542 0.2 174,505 15,781 29,116,928 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 438 0.1 163,589 14,122 32,242,332 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
[[Page 3261]]
Enterprises with receipts of 611 0.2 262,706 23,392 38,285,580 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 35, the first-year and annualized costs for
sponsors in the health care and social assistance industry are
estimated to have a significant economic impact (3 percent or more) on
small entities with receipts under $100,000, and those firms constitute
a substantial number of small entities in the health care and social
assistance industry (16.3 percent). The first-year costs are estimated
to be 5.9 percent of the average receipts per firm and the annualized
costs are estimated to be 5.6 percent of the average receipts per firm
for firms with revenue below $100,000.
Exhibit 35--Health Care and Social Assistance Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 105,782 16.3% 144,258 $6,090 $57,567 $3,420 5.9% $3,238 5.6%
$100,000.........................
Enterprises with receipts of 247,273 38.0 919,768 78,811 318,721 3,420 1.1 3,238 1.0
$100,000 to $499,999.............
Enterprises with receipts of 130,435 20.0 1,066,795 109,442 839,054 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 102,005 15.7 1,733,292 183,696 1,800,855 3,420 .2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 32,793 5.0 1,269,403 133,245 4,063,217 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 11,292 1.7 768,478 80,149 7,097,889 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 6,073 0.9 587,923 60,599 9,978,460 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 6,282 1.0 843,098 87,833 13,981,751 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 3,193 0.5 582,465 62,505 19,575,723 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 1,945 0.3 432,978 48,856 25,118,522 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 1,297 0.2 333,840 39,440 30,408,549 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 939 0.1 287,523 33,961 36,166,881 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 672 0.1 251,011 27,909 41,531,881 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 903 0.1%= 357,594 44,398 49,167,765 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 36, the first-year and annualized costs for
sponsors in the arts, entertainment, and recreation industry are
estimated to have a significant economic impact (3 percent or more) on
small entities with receipts under $100,000, and those firms constitute
a substantial number of small entities in the arts, entertainment, and
recreation industry (23.2 percent). The first-year costs are estimated
to be 6.0 percent of the average receipts per firm and the annualized
costs are estimated to be 5.7 percent of the average receipts per firm
for firms with revenue below $100,000.
[[Page 3262]]
Exhibit 36--Arts, Entertainment, and Recreation Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 29,950 23.2 38,970 $1,710 $57,104 $3,420 6.0 $3,238 5.7%
$100,000.........................
Enterprises with receipts of 54,053 41.8 191,639 15,997 295,945 3,420 1.2 3,238 1.1
$100,000 to $499,999.............
Enterprises with receipts of 18,957 14.7 170,222 15,699 828,112 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 15,336 11.9 289,189 27,685 1,805,199 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 5,663 4.4 216,533 22,802 4,026,410 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 1,969 1.5 125,098 13,719 6,967,317 3,420 0.0% 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 1,046 0.8% 91,555 $10,126 $9,680,550 $3,420 0.0% $3,238 0.0%
$7,500,000 to $9,999,999.........
Enterprises with receipts of 933 0.7% 107,964 12,372 13,260,079 3,420 0.0 3,238 0.0%
$10,000,000 to $14,999,999.......
Enterprises with receipts of 475 0.4 74,342 8,606 18,118,161 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 241 0.2 44,304 5,431 22,537,025 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 204 0.2 53,147 5,416 26,546,971 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 145 0.1 32,692 4,323 29,810,687 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 100 0.1 27,043 3,904 39,044,753 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 152 0.1 50,619 6,146 40,431,359 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 37, the first-year and annualized costs for
sponsors in the accommodation and food services industry are estimated
to have a significant economic impact (3 percent or more) on small
entities with receipts under $100,000, but those firms do not
constitute a substantial number of small entities in the accommodation
and food services industry (12.3 percent). The first-year costs are
estimated to be 5.7 percent of the average receipts per firm and the
annualized costs are estimated to be 5.4 percent of the average
receipts per firm for firms with revenue below $100,000.
Exhibit 37--Accommodation and Food Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $9.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 66,229 12.3 115,964 $3,963 $59,844 $3,420 5.7 $3,238 5.4
$100,000.........................
Enterprises with receipts of 217,687 40.5 1,118,632 70,085 321,951 3,420 1.1 3,238 1.0
$100,000 to $499,999.............
Enterprises with receipts of 114,796 21.3 1,443,882 96,296 838,842 3,420 0.4 3,238 0.4
$500,000 to $999,999.............
Enterprises with receipts of 98,061 18.2 2,532,598 175,384 1,788,516 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.........
Enterprises with receipts of 26,006 4.8 1,340,484 102,232 3,931,078 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 6,495 1.2 562,320 44,428 6,840,405 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 2,683 0.5 320,216 25,941 9,668,815 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 2,640 0.5 437,032 35,100 13,295,412 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 1,288 0.2 316,081 23,908 18,562,454 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 720 0.1 218,303 16,968 23,566,876 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 485 0.1 174,495 13,587 28,015,312 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 335 0.1 142,671 11,147 33,273,680 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999.......
[[Page 3263]]
Enterprises with receipts of 279 0.1 136,491 10,468 37,521,086 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 372 0.1 216,049 16,974 45,628,797 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
As shown in Exhibit 38, the first-year and annualized costs for
sponsors in the other services industry are estimated to have a
significant economic impact (3 percent or more) on small entities with
receipts under $100,000, and those firms constitute a substantial
number of small entities in the other services industry (24.6 percent).
The first-year costs are estimated to be 5.7 percent of the average
receipts per firm and the annualized costs are estimated to be 5.4
percent of the average receipts per firm for firms with revenue below
$100,000.
Exhibit 38--Other Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $8.0 million--$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
First-
Number of year cost Annualized
firms as Total Annual Average First-year per firm Annualized cost per
Number of percent number of receipts ($ receipts per cost per as cost per firm as
firms of small employees million) firm ($) firm with 7% percent firm with 7% percent of
firms in discounting of discounting receipts
industry receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 170,736 24.6 255,297 $10,216 $59,834 $3,420 5.7 $3,238 5.4
$100,000.............................
Enterprises with receipts of $100,000 317,048 45.7 1,077,568 93,232 294,062 3,420 1.2 3,238 1.1
to $499,999..........................
Enterprises with receipts of $500,000 102,517 14.8 754,571 84,777 826,958 3,420 0.4 3,238 0.4
to $999,999..........................
Enterprises with receipts of 68,210 9.8 955,461 121,839 1,786,227 3,420 0.2 3,238 0.2
$1,000,000 to $2,499,999.............
Enterprises with receipts of 20,419 2.9 564,101 81,799 4,006,027 3,420 0.1 3,238 0.1
$2,500,000 to $4,999,999.............
Enterprises with receipts of 6,414 0.9 280,574 44,403 6,922,817 3,420 0.0 3,238 0.0
$5,000,000 to $7,499,999.............
Enterprises with receipts of 2,783 0.4 161,164 27,025 9,710,570 3,420 0.0 3,238 0.0
$7,500,000 to $9,999,999.............
Enterprises with receipts of 2,571 0.4 195,893 34,100 13,263,323 3,420 0.0 3,238 0.0
$10,000,000 to $14,999,999...........
Enterprises with receipts of 1,264 0.2 119,626 22,846 18,074,474 3,420 0.0 3,238 0.0
$15,000,000 to $19,999,999...........
Enterprises with receipts of 692 0.1 72,568 15,534 22,448,389 3,420 0.0 3,238 0.0
$20,000,000 to $24,999,999...........
Enterprises with receipts of 506 0.1 63,532 13,471 26,622,602 3,420 0.0 3,238 0.0
$25,000,000 to $29,999,999...........
Enterprises with receipts of 325 0.0 42,921 9,987 30,729,615 3,420 0.0 3,238 0.0
$30,000,000 to $34,999,999...........
Enterprises with receipts of 292 0.0 37,383 10,032 34,357,693 3,420 0.0 3,238 0.0
$35,000,000 to $39,999,999...........
Enterprises with receipts of 326 0.0 49,042 12,512 38,381,273 3,420 0.0 3,238 0.0
$40,000,000 to $49,999,999...........
--------------------------------------------------------------------------------------------------------------------------------------------------------
b. Registered CTE Apprenticeship Program Sponsors
The Department used the same steps as in the analysis of registered
apprenticeship programs to estimate the cost of the proposed rule per
registered CTE apprenticeship program sponsor as a percentage of annual
receipts. The Department divided the estimated first-year cost and the
annualized cost per registered CTE apprenticeship program sponsors
(discounted at a 7-percent rate) by the average annual receipts per
firm in the educational services industry (NAICS 61) to determine
whether the proposed rule would have a significant economic impact on
registered CTE apprenticeship program sponsors in each size
category.\247\ Then, the Department divided the number of firms in each
size category by the total number of small firms in the educational
services industry to determine whether the proposed rule would have a
significant economic impact on a substantial number of small
entities.\248\ For registered CTE apprenticeship program sponsors, the
first-year cost or annualized cost per sponsor would have a significant
economic impact on a substantial number of small entities. As shown in
Exhibit 39, the first-year and annualized costs for sponsors in the
educational
[[Page 3264]]
services industry are estimated to have a significant economic impact
(3 percent or more) on small entities with receipts under $100,000, and
those firms constitute a substantial number of small entities in the
educational services industry (24.3 percent). The first-year costs are
estimated to be 6.2 percent of the average receipts per firm and the
annualized costs are estimated to be 4.2 percent of the average
receipts per firm for firms with revenue below $100,000. It should be
noted, however, that participation in CTE is voluntary; therefore, only
small entities that choose to continue to participate would experience
an economic impact--significant or otherwise.
---------------------------------------------------------------------------
\247\ For purposes of this analysis, the Department used a 3-
percent threshold for ``significant economic impact.'' The
Department has used a 3-percent threshold in prior rulemakings.
Ibid.
\248\ For purposes of this analysis, the Department used a 15-
percent threshold for ``substantial number of small entities.'' The
Department has used a 15-percent threshold in prior rulemakings.
Ibid.
Exhibit 39--Educational Services Industry
--------------------------------------------------------------------------------------------------------------------------------------------------------
Small Business Size Standard: $8.0 million-$47.0 million
---------------------------------------------------------------------------------------------------------------------------------------------------------
Number of First-year Annualized
firms as Total Annual Average First-year cost per Annualized cost per
Number percent of number of receipts ($ receipts per cost per firm as cost per firm as
of firms small firms employees million) firm ($) firm with 7% percent of firm with 7% percent of
in industry discounting receipts discounting receipts
--------------------------------------------------------------------------------------------------------------------------------------------------------
Enterprises with receipts below 22,439 24.3 42,944 $1,267 $56,457 $3,476 6.2 $2,398 4.2
$100,000.........................
Enterprises with receipts of 37,156 40.3 197,950 10,926 294,070 3,476 1.2 2,398 0.8
$100,000 to $499,999.............
Enterprises with receipts of 11,425 12.4 139,745 9,464 828,359 3,476 0.4 2,398 0.3
$500,000 to $999,999.............
Enterprises with receipts of 9,837 10.7 237,256 18,178 1,847,893 3,476 0.2 2,398 0.1
$1,000,000 to $2,499,999.........
Enterprises with receipts of 4,948 5.4 227,231 20,288 4,100,203 3,476 0.1 2,398 0.1
$2,500,000 to $4,999,999.........
Enterprises with receipts of 2,051 2.2 142,147 14,300 6,972,405 3,476 0.0 2,398 0.0
$5,000,000 to $7,499,999.........
Enterprises with receipts of 1,085 1.2 99,135 10,572 9,743,335 3,476 0.0 2,398 0.0
$7,500,000 to $9,999,999.........
Enterprises with receipts of 1,217 1.3 149,025 16,368 13,449,575 3,476 0.0 2,398 0.0
$10,000,000 to $14,999,999.......
Enterprises with receipts of 788 0.9 130,304 14,960 18,984,389 3,476 0.0 2,398 0.0
$15,000,000 to $19,999,999.......
Enterprises with receipts of 405 0.4 83,052 9,610 23,727,832 3,476 0.0 2,398 0.0
$20,000,000 to $24,999,999.......
Enterprises with receipts of 266 0.3 72,713 7,656 28,783,311 3,476 0.0 2,398 0.0
$25,000,000 to $29,999,999.......
Enterprises with receipts of 193 0.2 53,118 6,371 33,011,190 3,476 0.0 2,398 0.0
$30,000,000 to $34,999,999.......
Enterprises with receipts of 157 0.2 49,519 5,840 37,197,306 3,476 0.0 2,398 0.0
$35,000,000 to $39,999,999.......
Enterprises with receipts of 230 0.2 84,073 10,197 44,336,758 3,476 0.0 2,398 0.0
$40,000,000 to $49,999,999.......
--------------------------------------------------------------------------------------------------------------------------------------------------------
6. Relevant Federal Rules Duplicating, Overlapping, or Conflicting With
the Proposed Rule
The Department is not aware of any relevant Federal rules that may
duplicate, overlap, or conflict with the proposed rule.
7. Alternatives to the Proposed Rule
The RFA directs agencies to assess the impacts that various
regulatory alternatives would have on small entities and to consider
ways to minimize those impacts. Accordingly, the Department considered
two regulatory alternatives. Under the first alternative, end-point
assessments (proposed Sec. 29.16) would not be required under the
proposed rule. Under the second alternative, program reviews (proposed
Sec. 29.19) would only be conducted for cause.
For the first alternative the Department considered removing the
requirement for end-point assessments from the proposed rule. To
estimate the reduction in costs under this alternative, the Department
subtracted the estimated costs of end-point assessments from the total
costs estimated of the proposed rule. Exhibit 40 shows the estimated
cost per sponsor for each year of the analysis period. The first-year
cost per sponsor is estimated at $737 at a discount rate of 7 percent.
The annualized cost per sponsor is estimated at $468 at a discount rate
of 7 percent.
The Department decided not to pursue this alternative because end-
point assessments are a key method for sponsors to assess the skills
and knowledge acquired by the apprentice and to ensure the quality of
registered apprenticeship programs.
Exhibit 40--Alternative 1--Estimated Cost per Registered Apprenticeship Program Sponsors
[$ Millions unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Wage Number of
Rule On-the-job analysis Data Program registered Cost per
Year familiar- training and career collection Program standards End-point Recordkeeping Program Total apprenticeship sponsors
ization documentation development and registration adoption assessments reviews cost program ($)
profile reporting agreement sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1...................................... $10.92 $0.00 $0.05 $2.94 $0.28 $0.22 $0.00 $5.57 $0.89 $20.89 26,492 $788
2...................................... 1.17 0.00 0.05 3.07 0.29 0.22 0.00 5.77 0.92 11.50 27,434 419
3...................................... 1.20 0.00 0.05 3.20 0.30 0.22 0.00 5.97 0.96 11.89 28,376 419
4...................................... 1.23 0.00 0.05 3.33 0.31 0.22 0.00 6.17 0.99 12.29 29,318 419
5...................................... 1.26 0.00 0.05 3.46 0.32 0.22 0.00 6.37 1.02 12.69 30,260 419
[[Page 3265]]
6...................................... 1.29 0.00 0.05 3.59 0.32 0.22 0.00 6.56 1.05 13.08 31,202 419
7...................................... 1.32 0.00 0.05 3.72 0.33 0.22 0.00 6.76 1.08 13.48 32,144 419
8...................................... 1.35 0.00 0.05 3.85 0.34 0.22 0.00 6.96 1.11 13.88 33,086 419
9...................................... 1.38 0.00 0.05 3.98 0.35 0.22 0.00 7.16 1.15 14.27 34,028 419
10..................................... 1.41 0.00 0.05 4.10 0.35 0.22 0.00 7.36 1.18 14.67 34,970 420
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................ 737
Annualized cost ($), 7% discount rate, 10 years...................................................................................................................................... 468
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
For the second alternative, the Department considered conducting
program reviews only for cause, rather than for all sponsors every 5
years. To estimate the reduction in costs under this alternative, the
Department adjusted the calculations described in the subject-by-
subject analysis for program reviews (proposed Sec. 29.19). The
Department estimated that instead of all sponsors undergoing a program
review every 5 years, only 320 sponsors would receive program reviews
in each year. The Department maintained the assumption that 20 percent
of those program reviews would find noncompliance and require a
subsequent compliance action plan. The Department maintained the cost
estimates for all other provisions. Exhibit 41 shows the estimated cost
per sponsor for each year of the analysis period. The first-year cost
per sponsor is estimated at $3,164 at a discount rate of 7 percent. The
annualized cost per sponsor is estimated at $3,174 at a discount rate
of 7 percent.
The Department decided not to pursue this alternative because
conducting program reviews only for cause would miss a large number of
programs that may need reviews. The Department seeks public comment on
recommendations for additional lower cost alternatives that would still
allow the Department to meet the goals of the proposed rule. To ensure
high-quality registered apprenticeship programs, and that all programs
abide by the regulatory requirements of registered apprenticeship, the
Department believes that all registered apprenticeship programs should
be reviewed over a 5-year period as specified in the proposed rule.
This 5-year period ensures that the Department has the resources
available to conduct reviews and that the review is not overly
burdensome on programs undergoing the review. The Department seeks
public comment on other alternatives to the proposed rule that would
mitigate impacts on small businesses while maintaining the goals of the
revisions to registered apprenticeship requirements and creation of
registered CTE apprenticeship.
Exhibit 41--Alternative 2--Estimated Cost per Registered Apprenticeship Program Sponsors
[$ Millions unless otherwise noted]
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Wage Number of
Rule On-the-job analysis Data Program registered Cost per
Year familiar- training and career collection Program standards End-point Recordkeeping Program Total apprenticeship sponsors
ization documentation development and registration adoption assessments reviews cost program ($)
profile reporting agreement sponsors
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
1...................................... $10.92 $0.00 $0.05 $2.94 $0.28 $0.22 $69.65 $5.57 $0.05 $89.69 26,492 $3,386
2...................................... 1.17 0.00 0.05 3.07 0.29 0.22 73.00 5.77 0.05 83.63 27,434 3,048
3...................................... 1.20 0.00 0.05 3.20 0.30 0.22 76.35 5.97 0.05 87.34 28,376 3,078
4...................................... 1.23 0.00 0.05 3.33 0.31 0.22 79.70 6.17 0.05 91.06 29,318 3,106
5...................................... 1.26 0.00 0.05 3.46 0.32 0.22 83.05 6.37 0.05 94.78 30,260 3,132
6...................................... 1.29 0.00 0.05 3.59 0.32 0.22 86.41 6.56 0.05 98.49 31,202 3,157
7...................................... 1.32 0.00 0.05 3.72 0.33 0.22 89.76 6.76 0.05 102.21 32,144 3,180
8...................................... 1.35 0.00 0.05 3.85 0.34 0.22 93.11 6.96 0.05 105.93 33,086 3,202
9...................................... 1.38 0.00 0.05 3.98 0.35 0.22 96.46 7.16 0.05 109.64 34,028 3,222
10..................................... 1.41 0.00 0.05 4.10 0.35 0.22 99.81 7.36 0.05 113.36 34,970 3,242
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
First-year cost ($), 7% discount rate................................................................................................................................................ 3,164
Annualized cost ($), 7% discount rate, 10 years...................................................................................................................................... 3,174
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
C. Paperwork Reduction Act
The purposes of the Paperwork Reduction Act (PRA), 44 U.S.C. 3501
et seq., includes minimizing the paperwork burden on affected entities.
The PRA requires certain actions before an agency can adopt or revise a
collection of information, including publishing for public comment a
summary of the collection of information and a brief description of the
need for and proposed use of the information.
As part of its continuing effort to reduce paperwork and respondent
burden, the Department conducts a preclearance consultation program to
provide the general public and Federal agencies with an opportunity to
comment on proposed and continuing collections of information in
accordance with the PRA. See 44 U.S.C. 3506(C)(2)(A). Furthermore, the
PRA requires all Federal agencies to analyze proposed regulations for
potential time burdens on the regulated community created by provisions
in the proposed regulations that require any party to obtain, maintain,
retain, report, or
[[Page 3266]]
disclose information. The ICRs also must be submitted to OMB for
approval. Such submissions often accompany a proposed rulemaking that
seeks to modify an existing IC, introduce new ICs, or both.
A Federal agency may not conduct or sponsor a collection of
information unless it is approved by OMB under the PRA and displays a
currently valid OMB control number. The public also is not required to
respond to a collection of information unless it displays a currently
valid OMB control number. In addition, notwithstanding any other
provisions of law, no person will be subject to penalty for failing to
comply with a collection of information if the collection of
information does not display a currently valid OMB control number. See
44 U.S.C. 3512.
In this NPRM, the Department is proposing several new ICs that will
impact existing, and potentially new, registered apprenticeship
stakeholders, including those stakeholders involved in program
registration (i.e., program sponsors, participating employers,
Registration Agencies, and apprentices), the occupational suitability
process (e.g., potential program sponsors, industry groups, and trade
associations), National Apprenticeship System governance (e.g., SAAs
and State employees), and the proposed CTE apprenticeship model
(potential registered CTE apprenticeship program sponsors and
apprentices, State and Local Educational Agencies, institutions of
higher education, and other education and workforce development
representatives). Concurrent with the publication of this proposed
rule, the Department has submitted ICRs to OMB to request approval for
the ICs related to this proposal--one for revisions to the existing,
approved ICR for OA's current activities overseeing the National
Apprenticeship System (current OMB 1205-0223, form 671), and three new
ICRs to reflect the new IC elements in this proposed rule. These ICRs
align with the four areas below:
(1) Labor Standards and Equal Employment Opportunity for Registered
Apprenticeship Programs Registration and Reporting Requirements--
Revisions and additions to current Form 671
(2) Information Collection on Suitability of Occupations for
Registered Apprenticeship Programs and National Occupational Standard--
New
(3) SAA Governance (State Apprenticeship Plan)--New
(4) CTE Apprenticeship--New
Desired Focus of Comments
The Department is soliciting comments concerning the proposed IC
related to the below ICRs. The Department is particularly interested in
comments that:
Evaluate whether the collection of information is
necessary for the proper performance of the functions of the Agency,
including whether the information has practical utility;
Evaluate the accuracy of the Department's estimate of the
burden related to the IC, including the validity of the methodology and
assumptions used in the estimate;
Suggest methods to enhance the quality, utility, and
clarity of the information to be collected; and
Minimize the burden of the IC on those who are to respond,
including through the use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of IT (e.g., permitting electronic submission of responses).
Please see additional information regarding each ICR for context on
comments.
The ICs associated with this proposal are summarized as follows:
1. Labor Standards and Equal Employment Opportunity for Registered
Apprenticeship Programs--Registration and Reporting Requirements
Agency: DOL-ETA.
Title of Collection: Labor Standards and Equal Employment
Opportunity for Registered Apprenticeship Programs--Registration and
Reporting Requirements.
Type of Review: New.
OMB Control Number: 1205-0NEW.
Description: The Department is taking this opportunity to make
changes to the forms in OMB Control Number 1205-1223 (current form 671)
used in the registration and reporting process for registered
apprenticeship programs and other activities related to the
Department's oversight of the National Apprenticeship System. This
collection will eventually be included in OMB Control Number 1205-1223
and reflected in a new, updated form 671; however, the Department is
not submitting this ICR under that control number because the
reginfo.gov database (OMB's system for processing requests) allows only
one ICR per control number to be pending at OMB during any given
period. Because the Department's current ICR for form 671 (current OMB
Control Number 1205-0223) is set to expire in June 2024, and will
require a request for renewal, the Department is requesting approval
for a new ICR to avoid having two pending ICRs at OMB related to the
same IC. Once all outstanding actions are complete, the Department
intends to submit a nonmaterial change request to merge the collections
so that all the new requirements related to this proposal are added to
OMB Control Number 1205-0223.
The proposed changes are intended to increase the quality and
uniformity of data related to apprenticeship that are ultimately
reported to OA, provide clearer and more usable tools for registered
apprenticeship program sponsors, and cover the new or updated
apprenticeship labor standards in this proposal that are designed on
the basis of protecting and safeguarding the welfare of apprentices.
This ICR encompasses the information required from program sponsors to
meet the program registration, operation, recordkeeping, and reporting
requirements for registered apprenticeship programs. The ICR also
covers the information apprentices provide to sponsors (which in turn
provide apprentice information to OA via the RAPIDS system, which is
populated in part by the data from current form 671 that sponsors
submit, either by paper or electronically). The Department proposes to
further update ETA form 671, part I by adding part IA to incorporate
the newly proposed Group Program Participating Employer Tear-off, a
Program Standards Adoption Agreement, a Registered Apprenticeship
Individual Record Layout schema to operate a case management system and
for SAAs to accurately report data to the Department, additional
proposed elements for the complaints process. The Department is also
incorporating the IC elements related to National Program Standards for
Apprenticeship and National Guidelines for Apprenticeship Standards,
tools that were first introduced via DOL Circulars issued by OA (2022-
01 \249\ for National Program Standards for Apprenticeship, 2022-02
\250\ for National Guidelines for Apprenticeship Standards) and are now
proposed for incorporation into the part 29 regulations for registered
apprenticeship.
---------------------------------------------------------------------------
\249\ DOL, Circular 2022-01, ``Updated Guidance--Minimum
National Program Standards for Registered Apprenticeship Programs,''
2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-01.pdf.
\250\ DOL, Circular 2022-02, ``Guidance--National Guidelines for
Apprenticeship Standards,'' Feb. 16, 2022, https://www.apprenticeship.gov/sites/default/files/bulletins/Circular-2022-02.pdf.
---------------------------------------------------------------------------
Affected Public: State, Local, and Tribal Governments; Private
Sector; Individuals or Households.
Obligation to Respond: Required to Obtain or Retain Benefits.
[[Page 3267]]
Estimated Total Annual Respondents: 1,508,012 (reflecting FY 2022
data in the supporting statement for sponsors, employers, apprentices,
and SAAs).
Estimated Total Annual Responses: 1,893,367 (reflecting FY 2022
data in the supporting statement for sponsors, employers, apprentices,
and SAAs).
Estimated Total Annual Burden Hours: 1,313,437.
Estimated Total Annual Burden Costs: $44,755,449.
Estimated Total Annual Other Burden Costs: N/A.
Regulations Sections: Sec. Sec. 29.2, 29.8 through 29.11, 29.13
through 29.16, 29.17, 29.18, 29.19, 29.23, 29.25, 29.28, 30.3 through
30.10, 30.12, 30.14.
The Department invites the public to provide comments on this
proposed update to the existing form 671 and the additional elements
related to registered apprenticeship program registration and
operation. In particular, the Department is interested in comments
about the current form 671, its clarity and ease of use, and the
existing registration and reporting requirements for registered
apprenticeship programs, and whether the proposed updates to this form
are necessary, whether the new IC elements will have practical utility
for the Department's oversight of the National Apprenticeship System,
and any other feedback or suggestions related to form 671 and the
registration and reporting requirements for registered apprenticeship
programs. The Department is also interested in its proposed
introduction of the RAIR Layout, which would provide a schematic for
the development of a case management system, such as RAPIDS to collect
the information required in the proposed rule, as well as a schema for
SAAs that do not utilize RAPIDS to use when updating their case
management systems to align with the NPRM. In addition, the Department
is interested in comments about the accuracy of its burden estimates
related to this proposal, and whether any potentially impacted
stakeholders would be unduly burdened by the proposed changes to form
671 and registration and reporting requirements for registered
apprenticeship programs.
2. Occupational Suitability and National Occupational Standards
Agency: DOL-ETA.
Title of Collection: Occupational Suitability.
Type of Review: New.
OMB Control Number: 1205-0NEW.
Description: This IC is new and encompasses the information
exchange related to applications regarding an occupation's suitability
for registered apprenticeship training under the newly proposed process
in Sec. 29.7. This IC also encompasses the exchange of information
related to the development and National Occupational Standards for
Apprenticeship (including establishing and updating such Standards)
under the proposed process at Sec. 29.13. The Department expects that
both of these processes will involve the exchange of information
between industry stakeholders (including industry groups, leaders, and
representatives, trade associations, and labor organizations) and the
Administrator (the Department official responsible for making
determinations on occupational suitability and overseeing the process
of establishing National Occupational Standards for Apprenticeship).
Information exchanged under this collection is necessary to
determine if an occupation meets the criteria for occupational
suitability at proposed Sec. 29.7, including the critical element of
industry-vetting that underpins occupational suitability for registered
apprenticeship. In addition, it is necessary to collect information
from industry and the public related to the development of a set of
nationally applicable standards of apprenticeship for an occupation
(National Occupational Standards for Apprenticeship) to ensure these
standards are applicable and usable for quality registered
apprenticeship programs on a nationwide basis. The information under
this collection is also necessary to give other stakeholders and the
public the opportunity to provide feedback on a sponsor's submission
for either occupational suitability or a set of National Occupational
Standards for Apprenticeship.
Affected Public: Private Sector; Individuals or Households.
Obligation to Respond: Required to Obtain or Retain Benefits.
Estimated Total Annual Respondents: 45 (reflective of respondents
submitting suitability requests and submitting responses on a estimated
average of 15 new occupations per year and 220 revised occupations per
year, including National Occupational Standards).
Estimated Total Annual Responses: 2,365 (based on an estimated 10
responses per occupation or National Occupational Standard).
Estimated Total Annual Burden Hours: 2,646.
Estimated Total Annual Burden Costs: $79,854.
Estimated Total Annual Other Burden Costs: N/A.
Regulations Sections: Sec. Sec. 29.7, 29.13.
The Department is interested in comments from the public on all
elements of the ICs related to the proposed processes for making
determinations regarding occupational suitability for registered
apprenticeship training and for National Occupational Standards for
Apprenticeship development. In particular, the Department is interested
in hearing from existing stakeholders regarding the existing process
for making occupational suitability determinations, whether the
responsibility to make such determinations should rest with the
Administrator or should remain the purview of both OA and SAAs, and
what types of information would best inform the suitability
determination process. In addition, the Department is interested in
comments from industry representatives, particularly those from
industries new to registered apprenticeship that may have a vested
interest in the development of National Occupational Standards for
Apprenticeship for their industry, regarding the process for developing
National Occupational Standards, what types of information would best
inform such development, and other feedback or suggestions on how to
accelerate registered apprenticeship expansion into new industries
through frameworks, tools, and other resources.
3. State Apprenticeship Agency Governance and Planning
Agency: DOL-ETA.
Title of Collection: State Apprenticeship Agency Governance and
Planning.
Type of Review: New.
OMB Control Number: 1205-0NEW.
Description: This new IC reflects the Department's proposal to
update and refine the process for recognizing SAAs, and the information
contained in the collection is required for any State seeking initial
or continued recognition as an SAA State. The Department's proposal
includes a requirement for State Apprenticeship Plans that SAAs must
develop, and submit to OA for approval, in order to obtain or maintain
recognition as an SAA, and this IC contains all the required
information and documentation needed for a satisfactory State
Apprenticeship Plan. The IC also reflects the subsequent documentation
required if an SAA's State Apprenticeship Plan needs revisions (i.e.,
the corrective action plan introduced in the section-by-section
discussion of this NPRM), as well as any documentation related to the
withdrawal or derecognition of an SAA. Of the 57 States as defined in
proposed 29 CFR 29.2, there are currently 31
[[Page 3268]]
States with SAAs recognized to registered programs for Federal
purposes. These jurisdictions, should they seek to continue recognition
for Federal purposes, will submit an initial plan during 2026 (first
year that plans are required). After which, States are required to
submit a renewal every 4 years. SAAs may submit updates should they
need to modify their plan under proposed 29 CFR 29.27. No other
submissions are required unless a State without a recognized SAA seeks
recognition for Federal purposes.
The information requested in this IC is required to facilitate the
Department's examination of a State agency's fitness to serve in the
role of an SAA, including meeting the requirements and responsibilities
outlined in proposed Sec. 29.26 and the other SAA-related requirements
found in proposed Sec. Sec. 29.27 and 29.29, as applicable. The
Department has determined that its proposal for revamping the SAA
Governance framework will increase its ability to monitor and verify
States' operational and strategic capacity to serve in the important
role of an SAA within the National Apprenticeship System, including
assessing whether State laws conform to the minimum standards in the
parts 29 and 30 regulations, and whether States have a detailed,
actionable plan for advancing DEIA and EEO outcomes for the registered
apprenticeship programs in their State. The information will be
collected via an online form and by email, and the Department is
committed to providing substantial technical assistance to any SAAs
recognized at the time of this proposed rule's effective date, if
finalized, as well as any new States seeking recognition from the
Federal government as an SAA State.
Affected Public: State, Local, and Tribal Governments.
Obligation to Respond: Required to Obtain or Retain Benefits.
Estimated Total Respondents in 2026: 31 SAAs.
Estimated Total Responses in 2026: 31 SAAs.
Estimated Total Burden Hours in 2026: 86 hours.
Estimated Total Burden Costs in 2026: $197,948.
Estimated Total Annual Other Burden Costs: N/A.
The Department invites comments from the public, including State or
SAA representatives, State and local elected officials, and sponsors
and apprentices in SAA States, regarding the proposed updates to the
SAA Governance framework and the Department's IC plans related to such
framework. In particular, the Department is interested in comments or
feedback regarding the increased burden, if any, this revamped approach
to SAA Governance may introduce, and whether the benefits of the
proposal (as articulated above in the section-by-section discussion)
justify any increased burden. The Department is also interested in
receiving comments on the practical and strategic benefits of the State
planning process (such as that used for the WIOA model) and whether
this is appropriate or useful for the National Apprenticeship System.
4. Registered Career and Technical Education Apprenticeship
Agency: DOL-ETA.
Title of Collection: Career and Technical Education Apprenticeship.
Type of Review: New.
OMB Control Number: 1205-0NEW.
Description: This IC is new and encompasses the information
exchange related to registered CTE apprenticeship program sponsors--
primarily LEAs, institutions of higher education, or their designated
intermediaries--and CTE apprentice information under the Department's
proposed registered CTE apprenticeship model at proposed 29 CFR part
29, subpart B (proposed Sec. 29.24). This IC also encompasses the
exchange of information related to the development of industry skills
frameworks (including establishing and updating such Frameworks) under
proposed Sec. 29.24, wherein the Department would work with the public
and industry representatives to develop nationally applicable
frameworks to guide the on-the-job training and CTE apprenticeship-
related instruction of CTE apprentices in subject industry for proposed
registered CTE apprenticeships.
This ICR will cover sponsors' submission of information for
registered CTE apprenticeship program registration, operation,
recordkeeping, and reporting requirements (as proposed in Sec. 29.24),
including CTE program standards, a CTE apprenticeship agreement, an
employer adoption agreement (where applicable under proposed Sec.
29.24), a complaints form, and a voluntary attestation of disability.
The ICR also covers the information CTE apprentices provide to
sponsors, as populated through a CTE apprenticeship agreement, and
sponsors' subsequent provision of apprentice information, to the extent
feasible, to a Registration Agency via the RAPIDS or State sponsored
case management system (in accordance with FERPA and relevant State
laws for sharing information on students in secondary education). This
ICR is similar to the current IC practices under subpart A but tailored
to meet the requirements under subpart B. OA does not currently collect
this information, and doing so will require the development of an
applicable form. The ICR will also involve the exchange of information
between industry stakeholders (including industry groups, leaders, and
representatives, trade associations, labor organizations, and local
advisory councils) and the Administrator (the Department official
responsible for overseeing the process of developing and establishing
industry skills frameworks). Information exchanged under this
collection is necessary to collect information from industry and the
public related to the development of nationally applicable and locally
tailored industry skills frameworks that provide the basis for the paid
on-the-job component of a registered CTE apprenticeship.
Affected Public: State, Local, and Tribal Governments; Private
Sector; Individuals or Households.
Obligation to Respond: Required to Obtain or Retain Benefits.
Estimated Total Annual Respondents: 4,451 (all 2025 registered CTE
apprenticeship program sponsors [137], participating employers [210],
CTE apprentices [3210], and SAAs [1]) 8 industry leaders for ISF).
Estimated Total Annual Responses: 4,451 (all 2025 registered CTE
apprenticeship program sponsors [137], participating employers [210],
CTE apprentices [3210], and SAAs [1]) 8 industry skills framework
submissions, 80 industry skills framework responses by industry
leaders).
Estimated Total Annual Burden Hours: 5,141.
Estimated Total Annual Burden Costs: $225,031.
Estimated Total Annual Other Burden Costs: N/A.
Regulations Sections: Sec. 29.24.
The Department invites the public to provide comments on this
proposed IC for registered CTE apprenticeship program registration and
industry skills frameworks. In particular, the Department is interested
in comments about the ability for registered CTE apprenticeship program
sponsors or their designated intermediaries to provide valid and timely
information to meet applicable reporting requirements, such as the
submission of standards for program registration. The Department is
interested in comments about the potential barriers to reporting CTE
apprentice information to a Registration Agency and the types of
mechanisms that can facilitate sponsors' or States' ability to report
CTE apprentice information. In addition, the
[[Page 3269]]
Department is interested in comments about the accuracy of its burden
estimates related to this proposal, and whether any potentially
impacted stakeholders would be unduly burdened by the new registration
and reporting requirements for registered CTE apprenticeship programs.
In addition, the Department is interested in comments from industry
representatives, particularly those from industries that can provide a
broad base of skills and competencies in the development of industry
skills frameworks for their industry, regarding the process for
developing industry skills frameworks and what types of information
would best inform such development. The Department is also interested
in hearing from the CTE stakeholder community on the applicability and
alignment of industry skills frameworks with CTE programs within State-
identified Career Clusters.
D. Executive Order 13132 (Federalism)
The Department has reviewed this proposed rule in accordance with
E.O. 13132 and found that, if finalized as proposed, it will have
federalism implications because it will have substantial direct effects
on States, their registration of programs for Federal purposes, and the
relationship between the Federal Government and the States. Due to the
nature of OA's role overseeing the National Apprenticeship System per
its statutory mandate to protect the welfare of apprentices nationwide,
OA's enforcement of the parts 29 and 30 regulations, as well as OA's
development and promulgation of updates to such regulations, may have
such federalism implications if States are required to make any changes
or adjustments to apprenticeship policy, State apprenticeship laws, or
any procedures related to their respective roles in this Federally
administered apprenticeship system. OA regularly consults and
collaborates with State partners and organizations, including when
developing and promulgating proposed updates to part 29 or part 30
impacting the National Apprenticeship System (as described below). The
Department and OA will continue consulting and collaborating with State
partners, which the Department views as central to OA's role in
promoting and maintaining quality registered apprenticeship programs.
The Department invites comments from the public on the federalism
implications of this proposed rule and is interested in comments from
State partners regarding the quality and effectiveness of the
Department's ongoing consultations and collaborations and any
recommendations for improvement.
In particular, the proposed rule, if finalized, may affect internal
State organizational structures and processes with regard to new and
ongoing SAA recognition, strategic planning for the expansion of
registered apprenticeship, determining occupations' suitability for
registered apprenticeship training, and developing processes for
reciprocal approval of programs registered in other States. The
Department is proposing updates to the part 29 regulations concerning
National Apprenticeship System governance (with the most significant
changes to the relationship between the Federal government and the
States contained within proposed subpart C) based on analysis of the
functioning and efficacy of the current system, consultations with
State partners including representatives from SAAs and State partners
from OA States (i.e., States without an SAA recognized by the
Department), and recommendations from existing registered
apprenticeship stakeholders, advisory bodies (such as the ACA), and
other workforce development and education system partners.
Stakeholders, including State and local officials and other
National Apprenticeship System partners, have been a vital source of
both feedback regarding the efficacy of the current system and
suggestions and advice (based on their experiences and regional
perspectives registering, overseeing, participating, or analyzing
registered apprenticeship programs) regarding ways to improve the
system, including recommended adjustments to its governing regulations.
In the past 2 years, as an essential part of its planning for the
development and promulgation of this NPRM, the Department has been
engaged with stakeholders more specifically on the topic of updating
the regulatory framework (including whether updates were necessary, and
what issues should be prioritized in updating the regulations) and has
participated in or organized several forums for soliciting feedback and
advice from State partners and other apprenticeship stakeholders on
this topic. For example, the Department solicited and considered advice
from the most recent term of the ACA,\251\ and held listening sessions
and otherwise consulted with State partners specifically related to
systemwide governance and the relationship between OA and the States
(including officials from the National Association of State and
Territorial Apprenticeship Directors (NASTAD), the organization
representing apprenticeship officials from the District of Columbia, 28
States operating SAAs, and two Territories).
---------------------------------------------------------------------------
\251\ ACA, ``Interim Report to the Secretary of Labor,'' May 16,
2022, https://www.apprenticeship.gov/sites/default/files/aca-interim-report-may-2022.pdf.
---------------------------------------------------------------------------
The ACA, which includes representation from NASTAD, offered
specific suggestions on matters relating to SAA governance and the role
of States in the expansion and modernization of registered
apprenticeship that are relevant to this Federalism analysis. These
suggestions included aligning registered apprenticeship policies and
procedures among SAA and OA States to promote cohesiveness and
uniformity within the National Apprenticeship System, standardizing the
process for making determinations on occupations' suitability for
registered apprenticeship training, and enhancing data collection and
reporting requirements to develop a national repository of high-quality
apprenticeship data. The Department agrees with many of the ACA's
observations and recommendations and has incorporated these
recommendations throughout the proposed rule.
In addition to consulting during with the ACA during its most
recent term, the Department organized forums to intentionally engage
with State partners, such as SAAs and NASTAD, on the effectiveness of
the National Apprenticeship System and its existing regulations, the
Department's plans to pursue updates to the regulations, and State
partners' concerns, issues, or recommendations related to system
governance. In March and May 2023, OA held listening sessions to
discuss and obtain feedback from these important State partners. To
guide the discussions and generate feedback on topics related to the
Department's developing plans for updating the part 29 regulations, the
Department circulated guiding questions to stakeholders invited to
participate in the listening sessions. These questions asked about ways
to modernize the National Apprenticeship System, the characteristics of
high-quality registered apprenticeship programs, and strategies to
improve equitable access to registered apprenticeship programs and
promote the expansion of registered apprenticeship into new and
emerging industries.
During the listening sessions with State partners, several issues
emerged related to the relationship between the Federal Government (for
registered apprenticeship, OA) and the States (SAAs and other State
partners). For
[[Page 3270]]
example, State partners brought a meaningful perspective on the
forthcoming Federal funding for registered apprenticeship programs and
the need to safeguard quality throughout all registered apprenticeship
programs with new potential stakeholders coming into the system. Some
State partners stressed the need to maintain quality as registered
apprenticeship expands and new industries and occupations enter the
system, including through strong quality standards. Other State
partners discussed ways that some existing registered apprenticeship
programs fall short of quality standards, including through
consistently low completion rates, lack of adequate representation of
the diverse populations in the community, and the failure to provide
tools or training necessary for apprentices' success in an occupation
upon completing a program. In the Department's view, this proposed rule
is responsive to the discussion on maintaining quality as the National
Apprenticeship System expands. This proposal strengthens the labor
standards for registered apprenticeship programs at proposed Sec.
29.8, including through proposed provisions to improve assessment of an
apprentices' progress toward proficiency in an occupation. In response
to stakeholders' (including State partners) concerns about promoting
equitable access to registered apprenticeship programs and addressing
barriers to entry, the Department's strengthened labor standards
include a new proposed requirement that apprentices must not be charged
any unreasonable or unnecessary costs, expenses, or fees to participate
in a program, and that apprentices must be made aware of all costs,
expenses, or fees related to participation in a program. In the
Department's view, these and other strengthened labor standards will
promote and maintain program quality as the National Apprenticeship
System expands and incorporates new stakeholders, occupations, and
industries.
The proposal would also expand the collection of apprenticeship
data (at proposed Sec. 29.25) to include elements like interim,
secondary, or postsecondary credentials provided in registered
apprenticeship programs, additional information regarding apprentices'
progress through a program, and information about employers, workforce
systems, and other partners associated with a program and its ability
to place apprentices on a pathway to quality, sustainable careers. The
proposal's enhanced data collection measures also align with feedback
from State partners, which discussed the importance of measuring more
than just apprentices' entry into and exit from a registered
apprenticeship program for assessing program quality.
Many State partners and apprenticeship stakeholders discussed the
importance of standardization and uniformity throughout the National
Apprenticeship System. In the listening sessions, State partners also
discussed the value and effectiveness of existing tools to clarify and
facilitate administrative responsibilities (e.g., recordkeeping, data
reporting, and the RAPIDS system) and the potential value of robust
tools to inform, facilitate, and accelerate the development of new
registered apprenticeship programs (e.g., Standard Builder, National
Program Standards for Apprenticeship, and National Guidelines for
Apprenticeship Standards). The Department considered this input in
developing the proposed rule, and the NPRM includes several provisions
intended to promote uniformity and standardization throughout the
National Apprenticeship System. For example, the NPRM would formalize
the processes for development and intended uses of National
Occupational Standards for Apprenticeship, National Program Standards
for Apprenticeship, and National Guidelines for Apprenticeship
Standards. The Department will continue working with industry to refine
and develop these templates for new occupations and industries, and
expects that new programs will use such tools to more easily develop
new registered apprenticeship programs in in-demand occupations.
The Department's proposal would also increase standardization
throughout the system with respect to program registration,
recordkeeping and reporting requirements, and SAA recognition processes
to promote consistent performance accountability among registered
apprenticeship programs operating in all States. A key reform in this
proposal is the clarification of SAA roles and responsibilities at
proposed Sec. 29.26 and the State Apprenticeship Plan process outlined
at proposed Sec. 29.27. The Department expects that its proposed
reforms to the SAA governance framework, including establishing clearer
roles for SAAs and consultative bodies such as State Apprenticeship
Councils, aligning State policies via the required submission and
approval of a State Apprenticeship Plan, and standardizing data
collection processes, will promote uniformity and standardization
throughout the National Apprenticeship System to the benefit of
existing programs and any new stakeholders entering the system going
forward. The updated SAA recognition and reporting requirements
represent the most direct Federalism implication within this proposal,
and the Department invites comments from all registered apprenticeship
stakeholders and State partners regarding the benefits, feasibility,
potential challenges, and any undue burdens that may arise related to
the Department's proposal to reform SAA recognition and systemwide
governance.
Some State partners suggested that the Department should avoid
adding to or changing the regulations at all because some existing or
potential stakeholders have expressed that the current regulation, the
part 30 regulations and associated EEO responsibilities for States and
programs, and overall administrative requirements within the system
were too long, complicated, or burdensome. Other State partners
specifically pointed to EEO requirements, or efforts to improve DEIA
outcomes throughout the system, as a source of discomfort among some
stakeholders. The Department did not ultimately accept these
recommendations in this proposed update to the part 29 regulations
because, in the Department's view, the existing regulations need to be
strengthened and modernized to reflect the realities and needs of
stakeholders in the modern National Apprenticeship System. Further, in
the Department's view, the EEO requirements and intentional DEIA focus
of the part 30 regulations are important aspects of its goal to improve
inclusivity and equity in the National Apprenticeship System.
In addition to soliciting and considering recommendations from the
ACA and the facilitation of formal listening sessions, OA has
maintained (and will continue to maintain) an open line of
communication with SAA leadership that has created a consistent
feedback loop on matters related to registered apprenticeship. OA staff
at the national and regional levels regularly consult with SAAs, and as
stated earlier, OA views the provision of technical assistance as
central to its responsibility to oversee the National Apprenticeship
System. OA will continue to provide such technical assistance and plans
to develop robust tools to assist SAAs and all National Apprenticeship
System stakeholders with understanding and complying with this proposed
rule, including assistance related to the development of a State
Apprenticeship Plan, continuous improvement of the labor standards
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tools and templates for both existing and new programs' compliance with
the strengthened labor standards in this proposed rule, and resources
to support States' and programs' responsibilities and goals related to
improved DEIA outcomes and equitable access for apprentices.
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
rule that may result in $100 million or more in expenditures (adjusted
annually for inflation) in any 1 year by State, local, and Tribal
governments, in the aggregate, or by the private sector.
This proposed rule, if finalized, does not exceed the $100-million
expenditure in any 1 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.
G. Internet Address of NPRM Summary (5 U.S.C. 553(b)(4))
The Department has developed a summary of the proposed rule in
plain language in accordance with 5 U.S.C. 553(b)(4) and it is publicly
available at https://www.regulations.gov.
List of Subjects
29 CFR Part 29
Apprenticeship agreements and complaints, Apprenticeship programs,
Program standards, Registration and deregistration, Sponsor
eligibility, State Apprenticeship Agency recognition and derecognition,
Suitability for registered apprenticeship criteria.
29 CFR Part 30
Administrative practice and procedure, Apprenticeship, Employment,
Equal employment opportunity, Reporting and recordkeeping requirements,
Training.
For the reasons stated in the preamble, the Employment and Training
Administration proposes to amend 29 CFR parts 29 and 30 as follows:1.
Revise part 29 to read as follows:
PART 29--LABOR STANDARDS FOR THE REGISTRATION OF APPRENTICESHIP
PROGRAMS
Sec.
29.1 Purpose and scope.
29.2 Definitions.
29.3 Office of Apprenticeship.
29.4 Relation to other laws and agreements.
29.5 Severability.
29.6 Transition provisions.
Subpart A--Standards for Registered Apprenticeship Programs
Sec.
29.7 Occupations suitable for registered apprenticeship programs.
29.8 Standards of apprenticeship.
29.9 Apprenticeship agreements.
29.10 Program registration.
29.11 Program standards adoption agreement.
29.12 Qualifications of apprentice trainers and providers of related
instruction.
29.13 Development of National Occupational Standards for
Apprenticeship.
29.14 National Program Standards for Apprenticeship.
29.15 National Guidelines for Apprenticeship Standards.
29.16 End-point assessment and Certificate of Completion.
29.17 Complaints.
29.18 Recordkeeping by registered programs.
29.19 Program reviews.
29.20 Deregistration of a registered program.
29.21 Hearings on deregistration.
29.22 Reinstatement of program registration.
29.23 Exemptions.
Subpart B--Career and Technical Education Apprenticeship
Sec.
29.24 Registration of career and technical education apprenticeship
programs.
Subpart C--Administration and Coordination of the National
Apprenticeship System
Sec.
29.25 Collection of data and quality metrics concerning
apprenticeship.
29.26 Roles and responsibilities of State Apprenticeship Agencies.
29.27 Recognition of State Apprenticeship Agencies.
29.28 Reporting requirements for State Apprenticeship Agencies.
29.29 Denial of a State Apprenticeship Plan for recognition as a
State Apprenticeship Agency and derecognition of existing State
Apprenticeship Agencies.
29.30 Apprenticeship requirements in other laws.
Authority: 29 U.S.C. 50; 40 U.S.C. 3145; 5 U.S.C. 301; 5 U.S.C.
App. P. 534.
Sec. 29.1 Purpose and scope.
The purpose of this part is to set forth labor standards to
safeguard the welfare of apprentices, promote the formulation of
quality registered apprenticeship programs across a wide range of
industries, bring employers, labor, education partners, and other
intermediaries together for the formulation of such programs, ensuring
equitable apprenticeship opportunities for underserved communities, and
to extend the application of Federal standards of apprenticeship by
prescribing policies and procedures concerning the registration, for
Federal purposes, of registered apprenticeship programs with the U.S.
Department of Labor, Employment and Training Administration, Office of
Apprenticeship (OA). These labor standards, policies, and procedures
cover the registration, cancellation, and deregistration of registered
apprenticeship programs and of apprenticeship agreements; the
registration of career and technical education (CTE) apprenticeship
programs; the collection of apprenticeship-related data from programs;
the recognition of a State government agency as an authorized agency
for registering apprenticeship programs for certain Federal purposes;
the oversight and accountability of registered apprenticeship programs;
and matters relating thereto.
Sec. 29.2 Definitions.
For purposes of this part and part 30 of this title:
Administrator means the Administrator of OA, or any person
specifically designated by the Administrator or serving in the capacity
of the Administrator.
Annual completion rate means the percentage of apprentices during a
fiscal year who received a Certificate of Completion divided by the
total number of exiters during the fiscal year.
Apprentice means a worker at least 16 years of age, except where a
higher minimum age standard is otherwise fixed by law, who is
participating in a registered apprenticeship program under subpart A of
this part covered by the requirements of this part and part 30 of this
title.
Apprenticeship agreement means a written agreement executed between
an apprentice and either a program sponsor or participating employer at
the beginning of the apprenticeship that satisfies the requirements
herein at Sec. 29.9, and that describes the terms and
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conditions of the employment and training of the apprentice, as well as
any subsequent contractual provisions or agreements executed between
the apprentice and either a program sponsor or a participating employer
during the remainder of the apprenticeship term.
Apprenticeship committee (committee) means those persons designated
by the sponsor to administer the program. A committee may be either
joint or non-joint, as follows:
(1) A joint committee is composed of an equal number of
representatives of the employer(s) and of the employees represented by
a bona fide collective bargaining agent(s).
(2) A non-joint committee, which may also be known as a unilateral
committee or group non-joint committee (which may include employees),
has employer representatives but does not have a bona fide collective
bargaining agent as a participant.
Cancellation means the termination of the apprenticeship agreement
by either the apprentice or sponsor.
Career and technical education (CTE) means, as defined in sec. 3(5)
of the Carl D. Perkins Career and Technical Education Act of 2006, as
amended by the Strengthening Career and Technical Education for the
21st Century Act (20 U.S.C. 2302(5)) (Perkins), organized educational
activities that--
(1) Offer a sequence of courses that--
(i) Provide individuals with rigorous academic content and relevant
technical knowledge and skills needed to prepare for further education
and careers in current or emerging professions, which may include high-
skill, high-wage, or in-demand industry sectors or occupations, which
shall be, at the secondary level, aligned with the challenging State
academic standards adopted by a State under sec. 1111(b)(1) of the
Elementary and Secondary Education Act of 1965;
(ii) Provide technical skill proficiency or a recognized
postsecondary credential, which may include an industry-recognized
credential, a certificate, or an associate degree; and
(iii) May include prerequisite courses (other than a remedial
course) that meet the requirements of this paragraph;
(2) Include competency-based, work-based, or other applied learning
that support the development of academic knowledge, higher order
reasoning and problem-solving skills, work attitudes, employability
skills, technical skills, and occupation-specific skills, and knowledge
of all aspects of an industry, including entrepreneurship, of an
individual;
(3) To the extent practicable, coordinate between secondary and
postsecondary education programs through CTE programs, which may
include coordination through articulation agreements, early college
high school programs, dual or concurrent enrollment program
opportunities, or other credit transfer agreements that provide
postsecondary credit or advanced standing; and
(4) May include career exploration at the high school level or as
early as the middle grades (as such term is defined in sec. 8101 of the
Elementary and Secondary Education Act of 1965).
Career pathway means a combination of rigorous and high-quality
education, training, and other services that:
(1) Aligns with the skill needs of industries in the economy of the
State or regional economy involved;
(2) Prepares an individual to be successful in any of a full range
of secondary or postsecondary education options, including
apprenticeship programs registered under subpart A of this part;
(3) Includes counseling to support an individual in achieving the
individual's education and career goals;
(4) Includes, as appropriate, education offered concurrently with
and in the same context as workforce preparation activities and
training for a specific occupation or occupational cluster;
(5) Organizes education, training, and other services to meet the
particular needs of an individual in a manner that accelerates the
educational and career advancement of the individual to the extent
practicable;
(6) Enables an individual to attain a secondary school diploma or
its recognized equivalent, and at least one recognized postsecondary
credential; and
(7) Helps an individual enter or advance within a specific
occupation or occupational cluster.
Certificate of Completion means documentation that a Registration
Agency has determined that an individual has successfully completed a
registered apprenticeship program. Such documentation may be in a
secure digital format, in addition to or instead of a physical format.
Certificate of completion of registered CTE apprenticeship means
documentation that a Registration Agency has determined that an
individual has successfully completed a registered CTE apprenticeship
program. Such documentation may be in a secure digital format, in
addition to or instead of a physical format.
Certificate of Participation means documentation that an apprentice
has participated or is participating in a registered apprenticeship
program. Such documentation may be in a secure digital format, in
addition to or instead of a physical format.
Certificate of Recognition means documentation that the
Administrator has recognized National Guidelines for Apprenticeship
Standards for adoption or adaptation by a sponsor and the standards are
eligible for local registration by a Registration Agency. Such
documentation may be in a secure digital format, in addition to or
instead of a physical format.
Certificate of Registration means documentation that a Registration
Agency has registered an apprenticeship program. Such documentation may
be in a secure digital format, in addition to or instead of a physical
format.
Cohort completion rate means the percentage of an apprenticeship
cohort who receive a Certificate of Completion within 1 year of the
projected completion date. An apprenticeship cohort is the group of
individual apprentices registered to a specific program during a given
fiscal year. In calculating a registered apprenticeship program's
cohort completion rate, a Registration Agency must disregard any
cancellations of apprenticeship agreements by either the apprentice or
the program sponsor that occurred during the probationary period for
apprentices established in the program's standards of apprenticeship.
Collective bargaining agreement means a written agreement
negotiated between an employer (or a group of employers) and the
bargaining representative(s) of a labor union to which employees of the
employer(s) belong that addresses such topics as wages, hours,
workplace health and safety, employee benefits, and other terms and
conditions of employment.
Competency means the attainment of knowledge, skills, abilities,
and techniques, as specified in a work process schedule approved under
Sec. 29.7 and demonstrated by an appropriate on-the-job, industry-
based proficiency measurement.
Corrective action plan is a plan developed by a State
Apprenticeship Agency (SAA) in consultation with OA that identifies
actionable steps that a State must take to address unresolved findings
of noncompliance with this part or part 30 of this title. A corrective
action plan must list specific milestones for key corrective actions
and detail subsequent action to be taken by the Department in the event
of inaction by the State.
Credential rate means the percentage of an apprenticeship cohort
who receive an interim credential, as defined in this section, prior to
their completion of a
[[Page 3273]]
registered apprenticeship program. In calculating a registered
apprenticeship program's credential rate, a Registration Agency must
disregard any cancellations of apprenticeship agreements by either the
apprentice or the program sponsor that occurred during the probationary
period for apprentices established in the program's standards of
apprenticeship.
CTE apprentice means a participant at least 16 years of age, except
where a higher minimum age standard is otherwise required by Federal,
State, or local law, in a registered CTE apprenticeship program covered
by the requirements of subpart B of this part and part 30 of this
title. A CTE apprentice is not an apprentice for purposes of Sec. Sec.
4.6(p), 5.2, 5.5(a)(4), and 570.50(b) of this title.
CTE apprenticeship agreement means a written agreement that
complies with the requirements in Sec. 29.24, and that contains the
terms and conditions of the employment and training of the CTE
apprentice.
CTE apprenticeship-related instruction means an organized and
systematic form of instruction designed to provide the CTE apprentice
with the knowledge of the theoretical and technical subjects related to
the industry skills framework. CTE apprenticeship-related instruction
must involve the curriculum that is approved as part of a State-
approved CTE program and may include any additional coursework
prescribed by the sponsor. Such instruction may be given in a
classroom, through electronic media, or through other forms of study
approved by the State CTE Agency and Registration Agency.
Day means a calendar day.
Department means the U.S. Department of Labor.
Direct threat means a significant risk of substantial harm to the
health or safety of the individual or others that cannot be eliminated
or reduced by reasonable accommodation. The determination that an
individual poses a ``direct threat'' must be based on an individualized
assessment of the individual's present ability to safely perform the
essential functions of the job. This assessment must be based on a
reasonable medical judgment that relies on the most current medical
knowledge, the best available objective evidence, or both. In
determining whether an individual would pose a direct threat, the
factors to be considered include:
(1) The duration of the risk;
(2) The nature and severity of the potential harm;
(3) The likelihood that the potential harm will occur; and
(4) The imminence of the potential harm.
Disability means, with respect to an individual:
(1) A physical or mental impairment that substantially limits one
or more major life activities of such individual;
(2) A record of such an impairment; or
(3) Being regarded as having such an impairment.
EEO means equal employment opportunity.
Electronic media means media that utilize electronics or
electromechanical energy for the end user (audience) to access the
content.
Employer means any person or organization that employs workers,
and, when used in reference to employing apprentices under subparts A,
B, and C of this part, means any person or organization that employs an
apprentice during the on-the-job training component of an
apprenticeship program pursuant to a program sponsor's approved set of
standards of apprenticeship and the apprenticeship agreement.
Ethnicity, for purposes of recordkeeping and affirmative action,
has the same meaning as under the Office of Management and Budget's
Standards for the Classification of Federal Data on Race and Ethnicity,
or any successor standards. Ethnicity thus refers to the following
designations:
(1) Hispanic or Latino--A person of Cuban, Mexican, Puerto Rican,
Cuban, South or Central American, or other Spanish culture or origin,
regardless of race.
(2) Not Hispanic or Latino.
Exit is when an apprentice has ended their participation in a
registered apprenticeship program based on a completion, transfer, or
cancellation.
Federal purposes includes any Federal contract, grant, agreement,
or arrangement dealing with registered apprenticeship; and any Federal
financial or other assistance, benefit, privilege, contribution,
allowance, exemption, preference, or right pertaining to registered
apprenticeship.
Fiscal year means the accounting period of OA. It begins on October
1 and ends on September 30 of the next calendar year.
Genetic information means:
(1) Information about--
(i) An individual's genetic tests;
(ii) The genetic tests of that individual's family members;
(iii) The manifestation of disease or disorder in family members of
the individual (family medical history);
(iv) An individual's request for, or receipt of, genetic services,
or the participation in clinical research that includes genetic
services by the individual or a family member of the individual; or
(v) The genetic information of a fetus carried by an individual or
by a pregnant woman who is a family member of the individual and the
genetic information of any embryo legally held by the individual or
family member using an assisted reproductive technology.
(2) Genetic information does not include information about the sex
or age of the individual, the sex or age of family members, or
information about the race or ethnicity of the individual or family
members that is not derived from a genetic test.
Group program means an apprenticeship program established and
registered by a sponsoring organization in which one or more employers
have agreed to participate, usually pursuant to a collective bargaining
agreement or a program standards adoption agreement.
Industry skills framework means an on-the-job training outline of
nationally applicable, high-quality standards of registered CTE
apprenticeship validated by industry and detailing the required skills
and competencies to be attained through a CTE apprentice's
participation in a registered CTE apprenticeship program.
Institution of higher education (IHE) has the meaning given the
term in sec. 101(a) of the Higher Education Act of 1965.
Interim credential means a recognized postsecondary credential
issued in connection with participation in a registered apprenticeship
program. The interim credential may signify that an apprentice has
successfully attained competency milestones within an occupation deemed
suitable for registered apprenticeship training, usually as a part of a
career pathway, sequence, or progression towards the attainment of more
advanced competencies and credentials in that occupation.
Intermediary means an entity that assists in the provision,
coordination, or support of a registered apprenticeship program.
Journeyworker means an experienced worker who has attained
proficiency in the skills and competencies required in an industry or
occupation.
Local educational agency (LEA) has the meaning given the term in
section 8101 of the Elementary and Secondary Education Act of 1965.
[[Page 3274]]
Local registration means registration of an apprenticeship program
for Federal purposes by a Registration Agency within a particular
State.
Major life activities include, but are not limited to: Caring for
oneself, performing manual tasks, seeing, hearing, eating, sleeping,
walking, standing, sitting, reaching, lifting, bending, speaking,
breathing, learning, reading, concentrating, thinking, communicating,
interacting with others, and working. A major life activity also
includes the operation of a major bodily function, including but not
limited to: functions of the immune system, special sense organs and
skin; normal cell growth; and digestive, genitourinary, bowel, bladder,
neurological, brain, respiratory, circulatory, cardiovascular,
endocrine, hemic, lymphatic, musculoskeletal, and reproductive
functions. The operation of a major bodily function includes the
operation of an individual organ within a body system.
National Apprenticeship System means the coordinated efforts of OA,
of SAAs recognized by OA, of registered apprenticeship programs and
registered CTE apprenticeship programs that have been approved by
Registration Agencies, and of employers, labor unions, business
organizations, trade and industry groups, educational institutions,
intermediaries, pre-apprenticeship programs, and other stakeholders
across the United States in implementing the minimum labor standards
and EEO requirements for apprenticeship of this part and part 30 of
this title.
National Guidelines for Apprenticeship Standards means a template
of apprenticeship program standards developed by a labor union, trade
or industry association, or other organization with national scope and
industry expertise that are recognized by OA for the purposes of being
adapted by affiliated sponsors for local or national registration.
National Occupational Standards for Apprenticeship means a
universally available template of nationally applicable, high-quality
standards of apprenticeship (and related work process schedules)
developed by industry stakeholders convened by OA and approved by the
Administrator for occupations considered suitable for registered
apprenticeship training.
National Program Standards for Apprenticeship means a set of
standards of apprenticeship developed and adopted by a program sponsor
that are registered on a nationwide basis by OA and are entitled to
reciprocity of registration.
Non-compete provision means a term in the apprenticeship agreement
or other agreement between an employer or sponsor and an apprentice
that prohibits the apprentice from seeking or accepting employment with
another employer during the registered apprenticeship program or
registered CTE apprenticeship program.
Office of Apprenticeship (OA) means the office within the
Department's Employment and Training Administration that has been
designated by the Secretary to administer the National Apprenticeship
System or its successor organization.
On-the-job training means an organized and systematic form of
training conducted at a workplace or job site that is designed to
provide the apprentice with the hands-on knowledge, skills, techniques,
and competencies that are necessary to achieve proficiency in an
occupation.
Participating employer means an employer that employs at least one
apprentice and that either:
(1) Participates in a registered apprenticeship program sponsored
by a joint labor-management apprenticeship and training program
established pursuant to a collective bargaining agreement, and under
which the employer has adopted the sponsor's standards of
apprenticeship and serves as the employer of record for at least one
apprentice enrolled in the sponsor's program; or
(2) Is a party to a written program standards adoption agreement
with a registered apprenticeship program sponsor that is concluded
outside of a collective bargaining process, and under which the
employer has adopted the sponsor's standards of apprenticeship and
serves as the employer of record for apprentices enrolled in the
sponsor's program.
Physical or mental impairment means:
(1) Any physiological disorder or condition, cosmetic
disfigurement, or anatomical loss affecting one or more body systems,
such as neurological, musculoskeletal, special sense organs,
respiratory (including speech organs), cardiovascular, reproductive,
digestive, genitourinary, immune, circulatory, hemic, lymphatic, skin,
and endocrine; or
(2) Any mental or psychological disorder, such as intellectual
disability (formerly termed ``mental retardation''), organic brain
syndrome, emotional or mental illness, and specific learning
disabilities.
Pre-apprenticeship program means a structured education and
workplace training program that maintains a documented partnership with
at least one registered apprenticeship program, is designed to support
access and equitable participation in apprenticeship programs by
providing individuals who do not currently possess the minimum
qualifications for admission into a registered apprenticeship program
or registered CTE apprenticeship with the foundational knowledge and
skills needed to gain acceptance into, and succeed in, a registered
program, and provides participants with a hands-on introduction to the
competencies and techniques used in one or more occupations that are
suitable for registered apprenticeship training, with access to
educational and career counseling and other supportive services, and
may include opportunities to earn industry-recognized credentials.
Proficiency means, for purposes of subpart A of this part, the
demonstrated, measurable attainment by an apprentice of each of the
relevant job skills and competencies that are necessary to perform
successfully at the journeyworker level in a given occupation.
Program review means an administrative review of a registered
apprenticeship program that is conducted by a Registration Agency to
assess the program's compliance with the requirements of this part and
of part 30 of this title.
Program standards adoption agreement means a written agreement
executed outside of a collective bargaining process in which a
participating employer agrees to adopt and utilize a set of
apprenticeship program standards for the employment and training of
apprentices that were developed by a program sponsor and registered by
a Registration Agency.
Provisional registration means the initial provisional approval of
programs that meet the required standards for program registration,
after which the program approval may be made permanent, continued as
provisional, or deregistered following a program review by the
Registration Agency, as provided for in this part.
Qualified applicant or qualified apprentice, for purposes of part
30, is an individual who, with or without reasonable accommodation, can
perform the essential functions of the registered apprenticeship
program for which the individual applied or is enrolled.
Race, for purposes of recordkeeping and affirmative action, has the
same meaning as under the Office of Management and Budget's Standards
for the Classification of Federal Data on Race and Ethnicity, or any
successor
[[Page 3275]]
standards. Race thus refers to the following designations:
(1) White--A person having origins in any of the original peoples
of Europe, the Middle East, or North Africa.
(2) Black or African American--A person having origins in any of
the black racial groups of Africa.
(3) Native Hawaiian or Other Pacific Islander--A person having
origins in any of the peoples of Hawaii, Guam, Samoa, or other Pacific
Islands.
(4) Asian--A person having origins in any of the original peoples
of the Far East, Southeast Asia, or the Indian Subcontinent including,
for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam.
(5) American Indian or Alaska Native--A person having origins in
any of the original peoples of North and South America (including
Central America), and who maintains Tribal affiliation or community
attachment.
Reasonable accommodation--(1) The term reasonable accommodation
means:
(i) Modifications or adjustments to a job application process that
enable a qualified applicant with a disability to be considered for the
position such qualified applicant desires;
(ii) Modifications or adjustments to the work environment, or to
the manner or circumstances under which the position held or desired is
customarily performed, that enable a qualified individual with a
disability to perform the essential functions of that position; or
(iii) Modifications or adjustments that enable a sponsor's
apprentice with a disability to enjoy equal benefits and privileges of
apprenticeship as are enjoyed by the sponsor's other similarly situated
apprentices without disabilities.
(2) Reasonable accommodation may include but is not limited to:
(i) Making existing facilities used by apprentices readily
accessible to and usable by individuals with disabilities; and
(ii) Job restructuring; part-time or modified work schedules;
reassignment to a vacant position; acquisition or modifications of
equipment or devices; appropriate adjustment or modifications of
examinations, training materials, or policies; the provision of
qualified readers or interpreters; and other similar accommodations for
individuals with disabilities.
(3) To determine the appropriate reasonable accommodation, it may
be necessary for the sponsor to initiate an informal, interactive
process with the qualified individual in need of the accommodation.
This process should identify the precise limitations resulting from the
disability and potential reasonable accommodations that could overcome
those limitations.
Reciprocity of registration means the provision of local
registration status by an SAA in that State for an apprenticeship
program registered by another Registration Agency.
Recognized postsecondary credential means a credential consisting
of an industry-recognized certificate or certification, a license
recognized by the State involved or Federal Government, or an associate
or baccalaureate degree.
Registered apprenticeship program means a structured apprenticeship
program registered by a Registration Agency under subpart A of this
part that comprises a paid, supervised on-the-job training component
and a related instruction component conveying relevant theoretical and
technical knowledge, and may include a program that is eligible for
student assistance under title IV of the Higher Education Act of 1965,
as amended.
Registered CTE apprenticeship program means a structured,
integrated educational and career training program that admits students
who have signed a CTE apprenticeship agreement (or that a student's
parent or guardian has signed if the student is a minor) that is
approved by the Registration Agency under subpart B of this part. Such
a program integrates paid, on-the-job training in an industry or
occupation suitable for registered CTE apprenticeship training with CTE
apprenticeship-related instruction in subjects offered by an education
institution that is a Perkins-eligible recipient, and also provides
successful program completers with a certificate of completion of
registered CTE apprenticeship, credit hours towards a postsecondary
degree program, and as applicable a high school diploma or equivalency,
and advanced standing in a registered apprenticeship program under
subpart A.
Registration Agency means a governmental agency, which may be
either OA or an SAA recognized by OA, that has responsibility for
registering and overseeing apprenticeship programs and apprentices;
providing technical assistance; and conducting program reviews for
compliance with this part and part 30 of this title.
Related instruction means 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.
Secretary means the U.S. Secretary of Labor or any official of the
Department designated by the Secretary.
Selection procedure means any measure, combination of measures, or
procedure used as a basis for any decision in apprenticeship. Selection
procedures include the full range of assessment techniques, including:
traditional paper and pencil tests; performance tests; training
programs; probationary periods; physical, educational, and work
experience requirements; informal or casual interviews; and unscored
application forms.
Sponsor means any person, employer, association, committee,
intermediary, or organization that operates and administers an
apprenticeship program in whose name that program is registered by a
Registration Agency.
Standards of apprenticeship means an organized, written plan
embodying the terms and conditions of employment, training, and
supervision of one or more apprentices in a registered apprenticeship
program.
State means any of the 50 States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, or outlying area of the
United States as defined in the Workforce Innovation and Opportunity
Act (WIOA), Pub. L. 113-128, 128 Stat. 1425 (2014), sec. 3.
State Apprenticeship Agency (SAA) means an agency of a State
government that has responsibility and accountability for registered
apprenticeship programs within the State. Only a State government
agency may seek recognition by OA as an agency that has been properly
constituted under an applicable State legal authority and is authorized
by OA to register and oversee apprenticeship programs and agreements
for Federal purposes.
State Apprenticeship Council is an entity established to assist the
SAA. A State Apprenticeship Council is ineligible for recognition as
the State's Registration Agency and may only operate in an advisory
capacity. The State Apprenticeship Council provides nonbinding advice
and guidance to the SAA on the operation of the State's system of
registered apprenticeship.
State Apprenticeship Plan means a strategic and operational plan
that is a State's application for recognition as an SAA and 4-year
strategy for the State's system of registered apprenticeship.
State CTE Agency means a State board designated or created
consistent with
[[Page 3276]]
State law as the sole State government agency responsible for the
administration of CTE in the State or for the supervision of the
administration of CTE in the State pursuant to 20 U.S.C. 2302(18), or
another State government agency delegated the authority by such State
board to administer Perkins.
Supportive services means services such as transportation,
childcare, dependent care, housing, and needs-related payments that are
necessary to enable an individual to participate and succeed in
registered apprenticeship and CTE apprenticeship.
Technical assistance means guidance and support provided by
Registration Agency staff in the development, revision, amendment, or
processing of a potential or current program sponsor's standards of
apprenticeship or apprenticeship agreements, or advice or consultation
with a program sponsor to further compliance with this part or with
guidance from OA to an SAA on how to satisfy the requirements of this
part and part 30 of this title.
Transfer means a shift of apprenticeship registration from one
program to another or from one employer within a program to another
employer within that same program, where there is agreement between the
apprentice and the affected apprenticeship committee or program
sponsors.
Underserved communities means persons from historically
marginalized communities or populations, including geographic
communities, that have been adversely affected by persistent
discrimination, inequality, or poverty, including but not limited to:
women; persons of color (including Black, Latino, Indigenous and Native
American persons, and Asian Americans, Native Hawaiians, and Pacific
Islanders); individuals with disabilities; persons adhering to
particular religious beliefs or practices; veterans and military
spouses; lesbian, gay, bisexual, transgender, queer, gender
nonconforming, and nonbinary persons; and individuals with barriers to
employment, as defined in WIOA sec. 3(24).
Undue hardship--(1) In general. Undue hardship means, with respect
to the provision of an accommodation, significant difficulty or expense
incurred by a sponsor, when considered in light of the factors set
forth in paragraph (2) of this definition.
(2) Factors to be considered. In determining whether an
accommodation would impose an undue hardship on a sponsor, factors to
be considered include:
(i) The nature and net cost of the accommodation needed under this
part, taking into consideration the availability of tax credits and
deductions, outside funding, or both;
(ii) The overall financial resources of the facility or facilities
involved in the provision of the reasonable accommodation, the number
of persons employed at such facility, and the effect on expenses and
resources;
(iii) The overall financial resources of the sponsor, the overall
size of the registered apprenticeship program with respect to the
number of apprentices, and the number, type, and location of its
facilities;
(iv) The type of operation or operations of the sponsor, including
the composition, structure, and functions of the workforce of such
entity, and the geographic separateness and administrative or fiscal
relationship of the facility or facilities in question to the sponsor;
and
(v) The impact of the accommodation upon the operation of the
facility, including the impact on the ability of other apprentices to
perform their duties and the impact on the facility's ability to
conduct business.
Work process schedule means a training plan for the on-the-job
component of a registered apprenticeship program that outlines a
sequence of measurable competency benchmarks for the job-related skills
whose cumulative acquisition by an apprentice over the course of the
apprenticeship term leads to the attainment of occupational
proficiency.
Sec. 29.3 Office of Apprenticeship.
The Secretary will establish and maintain an Office of
Apprenticeship (or any successor office or agency so designated by the
Secretary) within the Department to facilitate the administration and
coordination of the National Apprenticeship System, including:
(a) Formulate and update regulations, subregulatory guidance,
policies, and procedures in connection with the implementation of the
National Apprenticeship Act of 1937 (29 U.S.C. 50);
(b) Register and provide oversight of apprenticeship programs and
standards that satisfy the requirements of this part and of part 30 of
this title;
(c) Promote the development of industry-validated standards,
including the determination of occupations suitable for registered
apprenticeship, the development and adoption of National Occupational
Standards for Apprenticeship, as well as industry skills frameworks;
(d) Recognize and oversee SAAs established under applicable State
laws and regulations that satisfy the requirements of this part and of
part 30 of this title;
(e) Maintain, utilize, and make publicly available National
Apprenticeship System data pertaining to apprentices and apprenticeship
programs that are registered by either OA or by SAAs and satisfy the
requirements of this part and of part 30 of this title;
(f) Promote diversity, equity, inclusion, and accessibility in
apprenticeship, including for those from underserved communities, and,
consistent with part 30 of this title, enforce equal opportunity
standards for apprentices and applicants;
(g) Provide technical assistance to apprenticeship program
sponsors, SAAs, and other key stakeholders in the development of
apprenticeship program standards and the operation of apprenticeship
programs to satisfy the requirements of this part and of part 30 of
this title;
(h) Engage in discussions with stakeholders, including multilateral
institutions, businesses, and nongovernmental organizations in order to
promote and facilitate the development and expansion of apprenticeships
in the United States; and develop partnerships with apprenticeship
stakeholders that can facilitate and accelerate the expansion of
quality apprenticeship programs across the National Apprenticeship
System in accordance with the requirements of this part and of part 30
of this title; and
(i) Conduct other activities that support the National
Apprenticeship System.
Sec. 29.4 Relation to other laws and agreements.
(a) Relation to other laws. No provision in this part will
supersede or invalidate any other Federal, State, or local law
establishing minimum labor standards of apprenticeship that are higher
or more protective of apprentices than those established in this part.
(b) Relation to other agreements. No provision in this part or in
any apprenticeship agreement will invalidate any apprenticeship
provision in any collective bargaining agreement between employers and
employees establishing minimum labor standards applicable to a
registered apprenticeship program that are higher or more protective of
apprentices than those established in this part.
[[Page 3277]]
Sec. 29.5 Severability.
Should a court of competent jurisdiction hold any portion of any
provision(s) of this part to be invalid, the provision will be
construed so as to continue to give the maximum effect to the provision
permitted by law, unless such holding is one of total invalidity or
unenforceability, in which event the provision or subprovision will be
severable from this part and will not affect the remainder thereof.
Sec. 29.6 Transition provisions.
(a) With respect to suitability of occupations for registered
apprenticeship:
(1) Section 29.7 is in effect for occupations not previously
determined suitable for registered apprenticeship by the Administrator
90 days following the effective date of this rule.
(2) Section 29.7 is in effect for occupations not previously
determined suitable for registered apprenticeship by an SAA upon the
effective date of this rule.
(3) Occupations recognized by OA as apprenticeable under former
Sec. 29.4 (Criteria for apprenticeable occupations) as of the day
before the effective date of this rule will be subject to the 5-year
review of all occupations pursuant to Sec. 29.7(h).
(b) Programs not previously registered by OA as of the day before
the effective date of this rule must seek registration based on the
requirements of subpart A of this part when an electronic submission
process is available to sponsors. Programs registered prior to the
development of an electronic submission process must meet all new
requirements before converting to permanent registration status.
(c) Programs registered by OA prior to the effective date of this
rule must comply with the requirements of subpart A of this part no
later than 2 years after the effective date of this rule.
(d) SAAs recognized by the Administrator as of the effective date
of this rule will continue to be recognized until December 31, 2026.
(1) SAAs must ensure any programs registered prior to the approval
of the State Apprenticeship Plan are registered consistent with the
approved State Apprenticeship Plan, within 2 years of the approval date
of the State Apprenticeship Plan. Programs registered after the
effective date of this rule should be registered provisionally and
remain in provisional status until the State Apprenticeship Plan is
approved and the program is compliant with its requirements.
(2) SAA-specific occupations must be determined suitable for
registered apprenticeship by the Administrator under Sec. 29.7 within
4 years of the effective date of this rule in order for registered
apprenticeship programs registered by the SAA to continue being
registered for Federal purposes.
(e) SAAs not previously recognized by the Administrator as of the
effective date of this rule must seek recognition under the procedures
of Sec. 29.27 upon the effective date of this rule.
Subpart A--Standards for Registered Apprenticeship Programs
Sec. 29.7 Occupations suitable for registered apprenticeship.
(a) Only the Administrator can determine whether an occupation is
suitable for registered apprenticeship. Occupations determined suitable
for registered apprenticeship will be eligible for local registration
for Federal purposes by a Registration Agency.
(b) The following minimum requirements must be met for the
Administrator to determine that an occupation is suitable:
(1) The occupation under consideration is commonly recognized or
accepted throughout a particular industry or sector as a standalone,
distinct occupation;
(2) The occupation leads to a sustainable career;
(3) A structured on-the-job apprenticeship training program will
enable an apprentice to be able to acquire the knowledge, skills,
techniques, and competencies necessary to become proficient in the
occupation; and
(4) The completion of at least 2,000 hours of on-the-job training
and not less than a minimum average of 144 hours of off-the-job related
instruction for every 2,000 hours of on-the-job training in order to
obtain proficiency in the occupation.
(c) A current or potential program sponsor, SAA, or other entity
seeking a new determination from the Administrator as to whether an
occupation is suitable for registered apprenticeship must submit
electronically the following information to the Administrator:
(1) Documentation sufficient to show that each of the requirements
at paragraphs (b)(1) through (4) of this section are met;
(2) A work process schedule and an explanation of how the skills,
techniques, and competencies detailed in the work process schedule will
lead to proficiency in the occupation through a structured on-the-job
apprenticeship training program;
(3) Documentation of the industry standard for the minimum number
of hours of on-the-job training needed in order to obtain proficiency
in the occupation under consideration. The minimum number of hours must
involve the completion of at least 2,000 hours of on-the-job training;
(4) A related instruction outline and an explanation based on
industry standards describing the proposed curriculum and the number of
hours of such instruction, which cannot be less than an average of 144
hours in duration for every 2,000 hours of on-the-job training
provided; and
(5) Documentation of any interim credentials, recognized
postsecondary credentials, or occupational licenses related to the
occupation and whether they are optional or may be required to be
obtained during an apprenticeship program in the occupation.
(d) The Administrator will solicit public comment to assess whether
the submission described in paragraph (c) of this section constitutes
an occupation suitable for registered apprenticeship. Such
solicitations will be made available for public comment for at least 30
days. A determination regarding the occupation will be made within 90
days after a complete application is received, though the Administrator
may extend this period by providing notice to the applicant. The
Administrator may also consider data or request additional information
from the applicant, at the Administrator's discretion. The
Administrator will maintain an up-to-date publicly available list of
all suitability determinations.
(e) An occupation will not be approved as suitable for registered
apprenticeship training in instances where the Administrator determines
that:
(1) The application is incomplete;
(2) Any of the requirements set forth at paragraphs (b)(1) through
(4) of this section are not met;
(3) The proposed scope of the apprenticeship training is confined
to a narrowly specialized subset of skills and competencies within an
existing occupation that are not readily transferable between employers
in the sector; or
(4) The occupation includes or replicates a significant proportion
of the work processes that are covered by another occupation that OA
previously approved as suitable for registered apprenticeship training,
but does not lead to a more advanced occupation.
(f) In instances where the Administrator determines, pursuant to
paragraph (c) of this section, that the occupation under consideration
is not one that is suitable for registered apprenticeship training, the
[[Page 3278]]
Administrator will provide to the applicant a written explanation for
the unfavorable decision.
(g) A current sponsor or potential sponsor, SAA, or other entity
must submit proposed adjustments to the existing scope, minimum
duration, or work processes of an occupation previously deemed suitable
for registered apprenticeship training by the Administrator. Such
adjustments may be accepted by the Administrator provided that they
satisfy the requirements established in this section.
(h) The Administrator will, consistent with the process described
in paragraph (d) of this section, periodically review the continued
suitability, relevance, and applicability of the work process schedule
and related instruction outline associated with an occupation
previously approved as suitable for registered apprenticeship training.
Based on its review the Administrator will determine whether the
occupation remains suitable for registered apprenticeship or requires
adjustments to the previously approved work process schedule and
related instruction outline. Such a review will occur at least every 5
years. If revisions to work process schedules or related instruction
outlines are made during this process, existing programs must update
their work process schedules or related instruction outlines to align
with the changes before the start of the next training cycle.
Sec. 29.8 Standards of apprenticeship.
(a) Each registered apprenticeship program must have a written set
of standards of apprenticeship that will govern the conduct and
operation of that program; such standards must include the following
provisions:
(1) The minimum eligibility requirements for entry into the
registered apprenticeship program, including a minimum starting age for
an apprentice of not less than 16 years except where a higher minimum
age requirement is otherwise required by Federal, State, or local law;
(2) The sponsor's procedures for the selection of apprentices,
which must comply with the requirements for the selection of
apprentices set forth in part 30 of this title;
(3) The sponsor's relevant recruitment area for the selection of
apprentices;
(4) The term of the apprenticeship program, which must be
sufficient for an apprentice to attain proficiency in all of the
knowledge, skills, techniques, and competencies that are relevant to
the covered occupation(s). The sponsor must include:
(i) A term of paid on-the-job training that reflects the customary
industry standard for acquiring technical proficiency in the
occupation, which in no instance can be less than 2,000 hours in
duration; and
(ii) A number of hours of related instruction that reflects the
customary industry standard, but is not less than a minimum average of
144 hours of related instruction for every 2,000 hours of on-the-job
training.
(5) The registered apprenticeship program's covered occupation(s),
work process schedule(s), and related instruction outline(s);
(6) The related instruction provider(s) and the instructional
methods used to deliver the related instruction;
(7) Documentation that the qualifications and experience of the
trainers and instructors that provide on-the-job training and related
instruction to apprentices satisfy the requirements described in Sec.
29.12;
(8) A description of:
(i) Any interim credential issued to an apprentice by the program
during the term of the apprenticeship;
(ii) Any industry-portable occupational qualification, license,
degree, or certification that the apprentice will receive, or will be
eligible to receive, upon the successful completion of the registered
apprenticeship program; and
(iii) Any postsecondary credit that an apprentice may receive, or
may be eligible to receive, upon their successful completion of the
related instruction and on-the-job training components of the
registered apprenticeship program.
(9) A statement as to whether time the apprentice spends in the
related instruction component of the apprenticeship training will be
counted as hours worked, and if so, what the wage rate and fringe
benefits will be for those hours;
(10) The process for regularly assessing and providing feedback to
the apprentice regarding the apprentice's acquisition of job-related
knowledge, skills, and competencies during the on-the-job training
component of the registered apprenticeship program. In those instances
where an apprentice attains such occupational skills and competencies
at an accelerated pace, the program may grant advanced standing to such
an individual pursuant to paragraph (a)(20) of this section;
(11) The end-point assessment process for certifying the
apprentice's successful attainment of all of the knowledge, skills, and
competencies necessary for proficiency in the occupation at the
conclusion of the term of the registered apprenticeship program;
(12) A probationary period that is reasonable in relation to the
program's full apprenticeship term and that must be credited toward the
completion of the registered apprenticeship program. However, in no
event will the duration of the probationary period exceed 25 percent of
the total length of the program, or 1 year, whichever is shorter;
(13) A statement that the registered apprenticeship program will be
conducted in accordance with all applicable Federal, State, or local
laws;
(14) A statement acknowledging that apprentices will be entitled to
the same worker allowances, rights, and protections that are afforded
by applicable Federal, State, or local laws to similarly situated, non-
apprentice employees, including but not limited to: family and medical
leave, workers' compensation, and health and retirement plan benefits;
(15) An attestation by the sponsor, supported by any available
documentation, that the program will provide adequate, safe, and
accessible facilities and equipment for the training and supervision of
apprentices that are compliant with all applicable Federal, State, and
local disability, occupational safety, and occupational health laws;
(16) An attestation by the sponsor that the program will provide
adequate, industry-recognized safety training for apprentices in both
their on-the-job training and related instruction;
(17) The wage(s) and fringe benefits that the apprentice will
receive from the employer sponsoring or participating in the registered
apprenticeship program, which must meet the following requirements:
(i) The entry wage is not less than the minimum wage prescribed by
the Fair Labor Standards Act, where applicable, unless a higher wage is
required by other applicable Federal law, State or local law, or by the
terms of an applicable collective bargaining agreement;
(ii) A graduated schedule of increasing wages, from the entry wage
to the journeyworker wage, that:
(A) Reflects the progressive and measurable acquisition of relevant
occupational skills and competencies by the apprentice, except where a
different graduated schedule of increasing wages is required by other
applicable Federal, State, or local laws (including those governing the
payment of prevailing wages), or by the terms of an applicable
collective bargaining agreement;
(B) Includes at least one incremental wage step increase during the
first 2,000 hours of the registered apprenticeship
[[Page 3279]]
program, with additional wage step increments scheduled at reasonable
intervals for program terms of longer duration designed to support
apprentices' progression and success throughout their apprenticeship,
except where a different schedule of incremental wage step increases is
required by the terms of an applicable collective bargaining agreement;
and
(C) The final wage in the program must be at least 75 percent of
the journeyworker wage paid by the employer for that occupation, except
where the graduated schedule of increasing wages is required by other
applicable Federal, State, or local laws or by the terms of an
applicable collective bargaining agreement.
(18) The approximate amount of any unreimbursed costs, expenses, or
fees that the apprentice may incur during the registered apprenticeship
program. Any such costs, expenses, or fees charged by the sponsor:
(i) Must be necessary and reasonable;
(ii) Must not impose substantial or inequitable financial barriers
to program enrollment or to completion of the program; and
(iii) Must comply with all applicable Federal, State, and local
wage laws and regulations, including but not limited to the Fair Labor
Standards Act, the Davis-Bacon and related Acts, and the McNamara-
O'Hara Service Contract Act, and the implementing regulations for such
laws.
(19) The program's specific numeric ratio of apprentices to
journeyworkers.
(i) The ratio must be consistent with the proper safety, health,
supervision, and training of the apprentice.
(ii) A sponsor must use a ratio that is:
(A) Consistent with the provisions of any applicable collective
bargaining agreements, as well as any applicable Federal and State laws
governing such ratios; and
(B) Specific and clearly described as to its application to a
particular workforce, workplace, worksite, job site, department, or
plant.
(20) The process by which the sponsor will reduce the usual term of
on-the-job training or related instruction as a result of an
apprentice's prior learning, training, or acquired experience, or as a
result of accelerated progress in the attainment of occupational
competencies that is made by an apprentice during their participation
in the registered apprenticeship program. Such process must:
(i) Involve a fair, transparent, and equitable process for
objectively identifying, assessing, and documenting an apprentice's
prior learning, training, or acquired experience, as well as for
measuring any accelerated progress in the attainment of occupational
competencies in the sponsor's registered apprenticeship program; and
(ii) Result in advanced standing or credit and an increased wage
for an apprentice that is commensurate with any progression granted by
the sponsor.
(21) If applicable, a provision for the transfer of apprentices
between registered apprenticeship programs involving the same
occupation. The transfer must be agreed to by the apprentice and the
affected program sponsors or apprenticeship committees, and must meet
the following requirements:
(i) Both the transferring apprentice and the program to which the
apprentice is transferring must be provided a documentation of the
apprentice's accrued related instruction and on-the-job training from
the originating program sponsor or committee;
(ii) The transfer must be to the same occupation; and
(iii) A new apprenticeship agreement between the apprentice and the
incoming program sponsor or committee must be executed after the
transfer is executed.
(22) A requirement that the program sponsor and any participating
employers create and maintain all records concerning apprenticeship
that are detailed at section Sec. 29.18;
(23) The sponsor's Equal Opportunity Pledge, pursuant to Sec.
30.3(c) of this title, as well as an attestation that the program will
be operated in accordance with the provisions of part 30 of this title
and, where applicable, an approved State EEO plan;
(24) An attestation that the program sponsor (as well as any
participating employers in the sponsor's program) will implement
effective measures to promote and maintain a safe and inclusive
workplace environment that is free from all forms of violence,
harassment, intimidation, and retaliation against apprentices;
(25) For apprenticeship programs that were registered on or after
September 22, 2020, an attestation that the program sponsor will
provide each of the written assurances required under section 2(b)(1)
of the Support for Veterans in Effective Apprenticeships Act of 2019
(Pub. L. 116-134, 134 Stat. 277, 29 U.S.C. 50c); and
(26) Contact information (name, address, telephone number, and
email address) for the appropriate individual with authority under the
program to receive, process, and make disposition of complaints.
(b) In instances where a registered apprenticeship program provides
training to apprentices who are employed by participating employers in
a group program (pursuant to a collective bargaining agreement, or to a
program standards adoption agreement described in Sec. 29.11), the
sponsor will be responsible for:
(1) Obtaining an attestation that the participating employer agrees
to abide by the requirements contained in this part and in part 30 of
this title prior to the admission of the participating employer to the
program;
(2) Obtaining a disclosure in writing of all instances where a
Federal, State, or local government agency has issued a final agency
determination that the participating employer (or any of its officers
or employees) has violated any applicable laws pertaining to
occupational safety and health, labor standards (including wage and
hour requirements), financial mismanagement or abuse, EEO, protections
for employees against harassment or assault, or other applicable laws
governing workplace practices or conduct, prior to the admission of the
participating employer to the program; such disclosure must include a
description of the violation, as well as the actions taken by the
employer to remedy the violation; and
(3) Actively monitoring each participating employer after their
admission to the group program to assess whether such an employer is
adhering to both the minimum standards of apprenticeship outlined in
this section and the applicable regulatory requirements for registered
apprenticeship programs set forth in this part and in part 30 of this
title.
Sec. 29.9 Apprenticeship agreements.
(a) All apprenticeship programs registered by a Registration Agency
must develop and establish a written apprenticeship agreement that
contains the terms and conditions of the employment and training of the
apprentice. Such agreement must be signed prior to the start of an
apprenticeship term by:
(1) The apprentice;
(2) The apprentice's parent or legal guardian, if the apprentice is
under 18 years of age;
(3) The program sponsor; and
(4) Any participating employers in the program that have adopted
the sponsor's standards of apprenticeship through a program standards
adoption agreement.
(b) Prior to signing the apprenticeship agreement, an apprentice
who has been admitted to the apprenticeship program must be furnished
by the program
[[Page 3280]]
sponsor with a copy of both the proposed apprenticeship agreement and
the program's standards of apprenticeship, and must also be provided
with a reasonable opportunity to inspect and review the content of
those documents. After the apprenticeship agreement has been signed by
the apprentice, the sponsor, and any other relevant parties, the
sponsor must transmit or deliver to the apprentice a copy of the
executed apprenticeship agreement and the program's standards of
apprenticeship not later than the starting date of the apprenticeship.
(c) At a minimum, the apprenticeship agreement must contain the
following:
(1) Contact information and identifying information for the
apprentice, including the apprentice's date of birth and, on a
voluntary basis, their Social Security number;
(2) Contact information for the Registration Agency, program
sponsor, and participating employer(s);
(3) An identification of the occupation in which the apprentice is
to be trained, as well as copies of the associated work process
schedule and related instruction outline;
(4) The incorporation, either directly or by reference, of the
program's standards of apprenticeship;
(5) A description of the respective roles, duties, and
responsibilities of the apprentice, the program sponsor, and the
participating employer, if applicable, during the registered
apprenticeship program. With respect to sponsors and participating
employers, these responsibilities must include providing information to
apprentices regarding their rights and protections under Federal,
State, and local laws, including their right to file complaints with
the applicable Registration Agency and the process for doing so;
(6) The term of the registered apprenticeship program, including
the beginning date and expected duration of the registered
apprenticeship program, the beginning date of the on-the-job training,
and the duration of the probationary period for the apprenticeship
program;
(7) A detailed statement of the entry wage, subsequent graduated
scale of increasing wages to be paid to the apprentice over the term of
the apprenticeship, the journeyworker wage, and any fringe benefits;
(8) A disclosure of the expected minimum number of hours that are
allocated by the program to the on-the-job training component during
the apprenticeship term, and to the related instruction component of
the apprenticeship during that term;
(9) A description of the methods used during the course of the
apprenticeship to measure progress on competency attainment and the
program's end-point assessment;
(10) A description of any supportive services that may be available
to the apprentice including childcare, transportation, equipment,
tools, or any other supportive service provided by the sponsor or a
partnering organization to address potential barriers to participation
or completion;
(11) The nature and amount of any unreimbursed costs, expenses, or
fees that the apprentice may incur during their participation in the
registered apprenticeship program;
(12) A description of any recognized postsecondary credits,
credentials, and occupational qualifications that the apprentice will
receive or be eligible to receive upon successful program completion,
as well as a description of any additional conditions or requirements
that the apprentice must fulfill to satisfy any applicable Federal,
State, or local qualification and licensure requirements to engage in
the occupation;
(13) A statement by the parties to the agreement that they will
adhere to the applicable requirements of part 30 of this title and,
where applicable, an approved State EEO plan;
(14) A statement addressing:
(i) Whether the apprentice is paid wages and fringe benefits during
the related instruction component of the program;
(ii) If wages are paid for related instruction, what the wage rate
is; and
(iii) Whether the related instruction is provided during work
hours.
(15) Contact information (name, address, phone, and email if
appropriate) of the appropriate authority designated under the program
to receive, process, and make disposition of controversies or disputes
arising out of the apprenticeship agreement when the controversies or
disputes cannot be addressed locally or resolved in accordance with the
established procedure or applicable collective bargaining provisions;
and
(16) A description of the processes and procedures for granting
advanced standing or credit consistent with the requirements of Sec.
29.8(a)(20).
(d) A registered apprenticeship program sponsor, or a participating
employer in the sponsor's program, cannot include in the apprenticeship
agreement or otherwise impose on apprentices a non-compete provision or
other provision restricting the apprentice's ability to compete
directly with the program sponsor or participating employer or to seek
or accept employment with another employer prior to the completion of
the registered apprenticeship program.
(e) A registered apprenticeship program sponsor, or a participating
employer in the sponsor's program, cannot include in the apprenticeship
agreement or otherwise impose on apprentices a non-disclosure provision
that prevents the worker from working in the same field after the
conclusion of the worker's employment with the employer, or that
restricts an apprentice's ability to file a complaint with a
Registration Agency or other governmental body concerning possible
violations of this part or of part 30 of this title. Subject to these
restrictions, a sponsor or participating employer may include a non-
disclosure provision that relates to the protection of the sponsor's or
participating employer's confidential business information or trade
secrets.
(f) The program sponsor must submit a completed copy of the
executed apprenticeship agreement for each apprentice registered, to
the program's Registration Agency within 30 days of execution.
(g) The apprenticeship agreement may be cancelled during the
probationary period specified in the agreement by either party without
cause.
(h) After the probationary period of the apprenticeship concludes,
the apprenticeship agreement:
(1) May be cancelled at the request of the apprentice at any time;
or
(2) May be suspended or cancelled by the program sponsor only for
good cause. When cancelling an agreement, the sponsor must provide
written notice to the apprentice explaining the cause for the
cancellation and must provide written notice to the Registration Agency
of the cancellation.
Sec. 29.10 Program registration.
(a) To apply for registration, a prospective program sponsor must
submit electronically to a Registration Agency an application that
includes:
(1) A work process schedule and related instruction outline that is
consistent with an occupation deemed suitable for registered
apprenticeship by the Administrator;
(2) Standards of apprenticeship for the proposed program;
(3) The apprenticeship agreement for the apprenticeship program;
(4) A written plan for the equitable recruitment and retention of
apprentices, including those from underserved communities;
(5) Information showing that the prospective program sponsor
possesses and can maintain the financial capacity
[[Page 3281]]
and other resources necessary to operate the proposed program;
(6) A disclosure in writing of all instances where a Federal,
State, or local government agency has issued a final agency
determination that the prospective sponsor (or any of its officers or
employees) has violated any applicable laws pertaining to occupational
safety and health, labor standards (including wage and hour
requirements), financial mismanagement or abuse, EEO, protections for
employees against harassment or assault, or other applicable laws
governing workplace practices or conduct. Such disclosure must include
a description of the violation, as well as the actions taken by the
prospective sponsor to remedy the violation;
(7) Union participation provisions, if applicable:
(i) In instances where an apprenticeship program is proposed for
registration by a sponsor, employer, or employers' association and the
standards of apprenticeship, collective bargaining agreement, or other
instrument provides for participation by a labor union in any manner in
the operation of the substantive matters of the apprenticeship program
(and where such participation is exercised), written acknowledgement of
union agreement or lack of objection to the registration is required.
(ii) Where no such participation is evidenced and practiced, the
sponsor, employer, or employers' association must simultaneously
furnish to an existing union, which is the collective bargaining agent
of the employees to be trained, a copy of its application for
registration and of the apprenticeship program. The Registration Agency
must provide for receipt of union comments, if any, within 45 days
before final action on the application for registration or approval.
(8) A description of how the sponsor will implement, upon
registration, the affirmative steps to provide EEO in apprenticeship
required by Sec. 30.3(b) of this title. This description must, at a
minimum:
(i) Identify the individual or individuals who will be responsible
and accountable for overseeing the sponsor's commitment to equal
opportunity in registered apprenticeship;
(ii) Identify the publications or other documents where the
sponsor's EEO pledge will be published and the physical or digital
locations where the sponsor's EEO pledge will be posted;
(iii) Describe the planned schedule for orientation and information
sessions for individuals connected with the administration or operation
of the apprenticeship program, including all apprentices and
journeyworkers who regularly work with apprentices, to inform and
remind such individuals of the sponsor's EEO policy with regard to
apprenticeship;
(iv) Provide a list of current recruitment sources that will
generate referrals from all demographic groups within the relevant
recruitment area, including the identity of a contact person, mailing
address, telephone number, and email address for each recruitment
source;
(v) Describe the sponsor's procedures to ensure that its
apprentices are not harassed or otherwise subjected to discrimination
because of their race, color, religion, national origin, sex, sexual
orientation, age (40 or older), genetic information, or disability and
to ensure that its apprenticeship program is free from intimidation and
retaliation. This description must specifically include:
(A) The planned schedule and content source for the required anti-
harassment training to all individuals connected with the
administration or operation of the apprenticeship program; and
(B) The sponsor's procedures for handling and resolving complaints
about harassment and intimidation.
(b) A complete electronic application for registration that
includes all of the requirements of paragraph (a) of this section will
be reviewed within 90 calendar days by the Registration Agency, which
will approve the application if:
(1) The occupation covered by the proposed program has been
determined by the Administrator to be suitable for registered
apprenticeship training pursuant to Sec. 29.7. The Administrator may,
in their sole discretion, determine that a work process schedule and
related instruction outline submitted for registration substantially
differs from those previously approved as suitable for registered
apprenticeship such that the application for registration must first
undergo a suitability determination pursuant to Sec. 29.7;
(2) The work process schedule proposed for that occupation has been
determined to provide training in the specific skills and competencies
associated with the approved occupation;
(3) The applicant's work process schedule and related instruction
outline would provide an apprentice with a portable set of occupational
skills and competencies that are readily transferable between employers
within the same industry or sector;
(4) The standards of apprenticeship submitted are consistent with
Sec. 29.8;
(5) The apprenticeship agreement adheres to the requirements of
Sec. 29.9;
(6) The sponsor possesses the financial capacity and other
resources necessary to operate the proposed program;
(7) The Registration Agency finds that any types of misconduct or
violations of law acknowledged by the applicant for registration
pursuant to paragraph (a)(6) of this section have been satisfactorily
addressed and cured by the applicant, and therefore would not pose a
significant ongoing risk to the welfare of apprentices who elect to
enroll in the program;
(8) If applicable, the union participation requirements of
paragraph (a)(7) of this section are satisfied; and
(9) The sponsor's submission is found by the Registration Agency to
be satisfactory under paragraphs (a)(4) and (8) of this section.
(c) Applications for new programs that the Registration Agency
determines meet the required standards for program registration will be
given a Certificate of Registration and provided provisional
registration. In instances where a Registration Agency declines to
register a program, the Registration Agency will provide a written
explanation of the reasons why it determined the application does not
meet the requirements of this subpart, and how any deficiencies could
be cured, to the applicant. Applicants denied approval may resubmit
consistent with the requirements of this subpart.
(d) The Registration Agency must review all provisionally
registered programs for compliance with the requirements of this part
and of part 30 of this title within 2 years of the program's
registration date or at the end of the first training cycle, whichever
is sooner. At that time:
(1) A program that is in compliance with the requirements of this
part and part 30 of this title:
(i) Will be made permanent if the program's first full training
cycle has been completed; or
(ii) Will, if the program's first full training cycle has not been
completed, continue to be provisionally registered through the
program's first full training cycle, upon which they will receive a
subsequent program review.
(2) A program that is not in compliance with this part and part 30
of this title during the provisional registration period will be
subject to the deregistration procedures at Sec. 29.20.
(3) After a program receives permanent registration, subsequent
program reviews are conducted by the
[[Page 3282]]
Registration Agency as provided in Sec. 29.19.
(e) If a registered apprenticeship program does not have at least
one apprentice enrolled and participating in the apprenticeship
program, and registered with the Registration Agency, the Registration
Agency may initiate deregistration proceedings as described in Sec.
29.20. This does not apply during the following periods of time, which
may not exceed 1 year:
(1) Between the date when a program is registered and the date of
registration for its first apprentice(s); or
(2) Between the date that a program graduates an apprentice and the
date of registration for the next apprentice(s) in the program.
(f) Any sponsor proposals for modification(s) or change(s) to
standards of apprenticeship or certified National Guidelines for
Apprenticeship Standards for a registered program must be submitted to
the Registration Agency. The Registration Agency must make a
determination on whether such submissions are consistent with the
requirements of this part and part 30 of this title and, if so, will
approve such submissions within 90 calendar days from the date of
receipt of a complete submission. If approved, the modification(s) or
change(s) will be recorded and acknowledged within calendar 90 days of
approval as an amendment to such program. If not approved, the sponsor
must be notified of the disapproval and the reasons therefore and
provided the appropriate technical assistance.
Sec. 29.11 Program standards adoption agreement.
(a) Program standards adoption agreements between sponsors and
participating employers. The terms and conditions of a program
standards adoption agreement must include a provision that the
participating employer will:
(1) Adopt and comply with the sponsor's registered standards of
apprenticeship;
(2) Comply with all other applicable requirements in this part; and
(3) Cooperate with, and provide assistance to, the program sponsor
to meet the program sponsor's obligations under this part and part 30
of this title, including by providing any apprenticeship-related data
and records necessary to assess compliance with these regulatory
provisions.
(b) Transmission of the adoption agreement to the Registration
Agency. Each executed program standards adoption agreement must be
transmitted to the Registration Agency by the program sponsor within 30
days of the execution of the agreement.
(c) Suspension or cancellation of adoption agreement. A program
standards adoption agreement:
(1) May be cancelled by the participating employer upon providing
30 days' written notice to the sponsor; or
(2) Must be suspended or cancelled by the program sponsor if the
program sponsor determines that the participating employer failed to
satisfy the program standards adoption agreement's provisions of this
section.
(i) The program sponsor must provide written notice of any
suspension or cancellation to the participating employer, all
apprentices affected by the suspension or cancellation, and to the
applicable Registration Agency. The notice must explain the reason for
the suspension or cancellation.
(ii) If the suspension or cancellation results in an interruption
or cessation of training for apprentices, the program sponsor must make
reasonable efforts to place such individuals with another of the
sponsor's participating employers or a different registered
apprenticeship program in the same occupation.
(iii) In instances where a program sponsor fails to suspend or
cancel a program standards adoption agreement as required by paragraph
(c)(2) of this section, the Registration Agency may initiate
deregistration proceedings against the sponsor pursuant to Sec. 29.20.
Sec. 29.12 Qualifications of apprentice trainers and providers of
related instruction.
(a) Registered apprenticeship program sponsors and participating
employers must ensure that any journeyworkers providing on-the-job
training to apprentices possess, at a minimum, the following
qualifications:
(1) A mastery of the relevant skills, techniques, and competencies
of the occupation;
(2) Up-to-date knowledge of the latest advances in technical
knowledge and skills necessary to maintain proficiency and expertise in
the occupation;
(3) Ability to effectively communicate and demonstrate the range of
specialized practical knowledge, work processes, skills, and techniques
necessary to acquire full proficiency in the occupation;
(4) Ability to apply industry-recognized methods for objectively
and fairly evaluating and monitoring the progress of the apprentice
during the apprenticeship term, including the ability to assess the
attainment of competencies of apprentices acquired during their on-the-
job training;
(5) Ability to relate the conceptual and theoretical knowledge
acquired by apprentices in their related instruction to the successful
performance of job-related tasks that are ordinarily performed by
workers in the covered occupation; and
(b) Registered apprenticeship program sponsors and participating
employers must further ensure that the trainer establishes a safe and
inclusive training environment that promotes the effective development
of apprentices from all backgrounds; in addition, the trainer must also
have completed all of the required anti-harassment training required
under part 30 of this title and must not have a record of substantiated
noncompliance with EEO requirements.
(c) Registered apprenticeship program sponsors must ensure that
providers of related instruction possess, at a minimum, the following
qualifications:
(1) Serve as a faculty member or instructor at an accredited
postsecondary institution, or meet the State's certification
requirements for a vocational-technical instructor in the State in
which the apprenticeship program is registered; or be a subject-matter
expert, which is an individual, such as a journeyworker, who is
recognized within an industry as having expertise in a specific
occupation; and
(2) Have received previous training in teaching techniques and
adaptable learning styles.
Sec. 29.13 Development of National Occupational Standards for
Apprenticeship.
(a) In general. To facilitate the growth of high-quality registered
apprenticeship programs, the Administrator will oversee the development
of and updates to industry-validated, portable, and rigorous National
Occupational Standards for Apprenticeship suitable for adoption by
program sponsors.
(b) Development and approval. Each set of new or updated National
Occupational Standards for Apprenticeship and related work process
schedules will be reviewed and approved by the Administrator to ensure
that each of the proposed National Occupational Standards satisfies the
following criteria:
(1) The associated occupation has been determined suitable for
registered apprenticeship training by the Administrator pursuant to
Sec. 29.7;
(2) The proposed work process schedule framework associated with
the occupation under consideration has been documented as nationally
applicable;
(3) The proposed standards include a nationally applicable
curriculum
[[Page 3283]]
framework for the provision of related instruction; and
(4) The proposed standards describe the nationally applicable
methods for conducting ongoing evaluations of apprentices to assess the
successful attainment of the skills and competencies required under the
framework, including the development of nationally applicable end-point
assessments.
(c) Approval. The Administrator will solicit public comment to
assist in evaluating that the National Occupation Standards for
Apprenticeship satisfy the criteria in paragraph (b) of this section.
Such solicitations will be made available for public comment for at
least 30 days. A determination regarding the National Occupations
Standards for Apprenticeship will be made within 90 days of its
submission for public comment, though the Administrator may extend this
period. The Administrator may also consider data and other relevant
information to assist in evaluating whether the requirements in Sec.
29.13(b) are satisfied. The Administrator will maintain an up-to-date
publicly available list of all National Occupational Standards for
Apprenticeship determinations.
Sec. 29.14 National Program Standards for Apprenticeship.
(a) In general. National Program Standards for Apprenticeship must:
(1) Train apprentices for an occupation that is not ordinarily
subject to Federal, State, or local licensing requirements;
(2) Be national or multistate in their design, suitability, and
scope; and
(3) Satisfy the applicable requirements of this part and part 30 of
this title.
(b) Scope of registration. National Program Standards for
Apprenticeship that meet the requirements in paragraph (a) of this
section will be approved and registered on a nationwide basis for
Federal purposes by the Administrator. In instances where the
Administrator declines to register a proposed set of National Program
Standards for Apprenticeship, the Administrator will provide a written
explanation of the reasons for the unfavorable determination.
(c) Reciprocity of registration. SAAs must accord reciprocal
approval and registration to National Program Standards for
Apprenticeship approved under this section.
(d) Alignment with National Occupational Standards for
Apprenticeship. For those occupations where National Occupational
Standards for Apprenticeship currently exist, a program sponsor seeking
registration of its National Program Standards for Apprenticeship must
use such National Occupational Standards. Sponsors are allowed to
modify the National Occupational Standards for Apprenticeship to meet
their needs provided that the Administrator determines that the
submission substantially aligns with the National Occupational
Standards.
Sec. 29.15 National Guidelines for Apprenticeship Standards.
(a) In general. National Guidelines for Apprenticeship Standards
must:
(1) Be national in their applicability and scope with respect to
the covered occupation;
(2) Be suitable for either adoption or adaptation by State or local
affiliates of the program sponsor, and
(3) Satisfy the applicable requirements of this part and of part 30
of this title.
(b) Recognition of National Guidelines for Apprenticeship
Standards. National Guidelines for Apprenticeship Standards that meet
the requirements in paragraph (a) of this section will be recognized by
the Administrator, which will issue a Certificate of Recognition to the
submitting organization. If the Administrator determines the National
Guidelines for Apprenticeship Standards do not satisfy the requirements
in paragraph (a) of this section, the Administrator will provide a
written explanation of the reasons for the unfavorable determination.
(c) Local registration required. National Guidelines for
Apprenticeship Standards recognized under this section may be used as
the basis for standards of apprenticeship submitted by a State or local
affiliate of the organization receiving recognition to the applicable
State Registration Agency for approval and registration of the
individual program in a given State.
(d) Resubmission of National Guidelines for Apprenticeship
Standards. National Guidelines for Apprenticeship Standards recognized
by the Administrator must be resubmitted for approval by the
Administrator:
(1) When the standards have been amended consistent with Sec.
29.8(b); and
(2) Every 5 years, beginning on the date of the most recent
approval by the Administrator.
(e) Alignment with National Occupational Standards for
Apprenticeship. For those occupations where National Occupational
Standards for Apprenticeship currently exist, a program sponsor seeking
certification of its National Guidelines for Apprenticeship Standards
must use such National Occupational Standards. Sponsors are allowed to
modify the National Occupational Standards for Apprenticeship to meet
their needs provided that the Administrator determines that the
submission substantially aligns with the National Occupational
Standards.
Sec. 29.16 End-point assessment and Certificate of Completion.
(a) Prior to an apprentice's completion of the registered
apprenticeship program, the program sponsor must arrange for an end-
point assessment to objectively measure the apprentice's acquisition of
the relevant knowledge, skills, and competencies necessary to
demonstrate proficiency in the occupation covered by the program.
(b) An apprentice who is not successful in completing the end-point
assessment must be offeredat least one additional opportunity to
complete the assessment at the apprentice's request.
(c) The sponsor must inform all apprentices of their right to
request a reasonable accommodation prior to the administration of the
assessment.
(d) Each apprentice whom the sponsor determines has successfully
met the on-the-job training and related instruction requirements of a
registered apprenticeship program and completes the end-point
assessment will be awarded a Certificate of Completion by the
appropriate Registration Agency.
Sec. 29.17 Complaints.
(a) This section is not applicable to any complaint concerning
discrimination or other EEO matters; all such complaints must be
submitted, processed, and resolved in accordance with applicable
provisions in part 30 of this title, or applicable provisions of a
State EEO plan adopted pursuant to part 30 of this title and approved
by the Department.
(b) Except for matters described in paragraph (a) of this section
and matters covered by a collective bargaining agreement, a complainant
or their authorized representative may submit a complaint regarding any
dispute arising under an apprenticeship agreement or alleging a
violation of this part to the sponsor or to the Registration Agency
that registered the apprenticeship program for review.
(c) A complaint must be filed with the Registration Agency within
300 calendar days after the conclusion of the events that gave rise to
the dispute or the alleged violation of this part. However, for good
cause shown, the Registration Agency may extend the filing time.
[[Page 3284]]
(d) All complaints must be submitted in writing by the complainant
or their authorized representative, and must describe the dispute,
including all relevant facts and documents. Each written complaint must
contain the following information:
(1) A means of contacting the complainant or the authorized
representative;
(2) The identity of the individual or entity that is alleged to be
responsible for the conduct giving rise to the complaint; and
(3) A short description of the events, facts, or circumstances
giving rise to the complaint, including a discussion of when the events
giving rise to the complaint took place.
(e) Requirements of the Registration Agency with respect to
complaints are as follows:
(1) The investigation of a complaint filed under this part will be
undertaken by the Registration Agency and will proceed as expeditiously
as possible. In conducting complaint investigations, the Registration
Agency must:
(i) Provide written notice to the complainant and the authorized
representative, if any, acknowledging receipt of the complaint;
(ii) Initiate an investigation upon receiving a complete complaint;
(iii) Complete a thorough investigation of the allegations of the
complaint and develop a complete case record that must contain, but is
not limited to, the name, address, and telephone number of each person
interviewed, the interview statements, copies, transcripts, or
summaries (where appropriate) of pertinent documents, and a narrative
report of the investigation with references to exhibits and other
evidence that relate to the alleged violations; and
(iv) Provide written notification of the Registration Agency's
findings to both the respondent and the complainant.
(2) The Registration Agency will protect the identity of the
complainant to the extent practicable.
(3) The Registration Agency will review all complaints. Where a
report of findings from a complaint investigation indicates a violation
of the requirements of this part or the apprenticeship agreement, the
Registration Agency will attempt to resolve the violation as
expeditiously as possible.
(f) Nothing in this section precludes an apprentice from pursuing
any other remedy authorized under another Federal, State, or local law.
(g) An SAA may adopt a complaint investigation procedure differing
in detail from that given in this section, provided that such a
procedure has previously been reviewed and approved, pursuant to Sec.
29.27, by the Administrator.
(h) A participant in a registered apprenticeship program may not be
intimidated, threatened, coerced, retaliated against, or discriminated
against because the individual has:
(1) Filed a complaint alleging a violation of this part or an
apprenticeship agreement;
(2) Opposed a practice prohibited by the provisions of this part or
an apprenticeship agreement;
(3) Furnished information to, or assisted or participated in any
manner in, any investigation, compliance review, proceeding, or hearing
under this part; or
(4) Otherwise exercised any rights and privileges under the
provisions of this part or an apprenticeship agreement.
(i) Any sponsor that permits such retaliation under paragraph (h)
of this section in its registered apprenticeship program, including by
participating employers, and fails to take appropriate steps to remedy
such activity will be subject to deregistration under Sec. 29.20(a)
and other appropriate remedies.
Sec. 29.18 Recordkeeping by registered programs.
(a) General obligation. The program sponsor, and any participating
employer, is responsible for maintaining any records that the
Registration Agency considers necessary to determine whether the
sponsor has complied or is complying with the requirements of this part
and any applicable Federal or State laws. Such records include, but are
not limited to, records relating to:
(1) Employment decisions, such as the hiring or placement,
promotion, demotion, transfer, layoff, termination, right of return
from layoff, and rehiring of apprentices;
(2) Information related to the operation of the registered
apprenticeship program, including but not limited to:
(i) Information related to the qualification, recruitment,
employment, and training of apprentices, such as the apprenticeship
program standards, apprenticeship agreements, completion records,
cancellation and suspension records, and compliance review files;
(ii) Records pertaining to each apprentice's performance and
progress in both the on-the-job training and related instruction
components of the registered apprenticeship program, and records
related to the apprentice end-point assessments;
(iii) If applicable, any records pertaining to an apprentice's
attainment of an interim credential, postsecondary academic credit, or
any other interim milestones attained during the course of an
apprentice's participation in the program;
(iv) For each apprentice, the number of hours of on-the-job
training, the number of hours of related instruction, the total number
of hours worked, and the wages and fringe benefits paid for all hours;
(v) Any records, including personnel records, applicable to non-EEO
complaints filed with the Registration Agency pursuant to Sec. 29.17;
(vi) All records related to the safety record of the sponsor and
all participating employers in the sponsor's program, where applicable,
including records relating to any safety and health training provided
to apprentices, incident logs required to be maintained under
applicable Federal or State occupational safety and health laws, as
well as current worker's compensation documentation;
(vii) Any records required to be maintained by a program sponsor
under part 30 of this title;
(viii) Any records required to be maintained under title 38, United
States Code, in order for veterans and other individuals eligible for
educational assistance under such title to use such assistance for
enrollment in registered apprenticeship programs; and
(ix) Any records demonstrating program compliance with registered
apprenticeship requirements to meet Federal purposes as defined in this
part.
(b) Maintenance of records.The records required by this part and
any other information relevant to compliance with these regulations by
a program sponsor (and any participating employer) must be maintained
for 5 years from the date of the making of the record or the personnel
action involved, whichever occurs later. Failure to preserve complete
and accurate records as required by paragraph (a) of this section
constitutes noncompliance with this part.
(c) Access to records.The program sponsor (and any participating
employer)must allow the Registration Agency access to the records
described in paragraph (a) of this section upon request for the purpose
of conducting program reviews and investigating complaints arising
under this part; such program reviews and investigations may involve
the inspecting and copying of books, accounts, records (including
electronic records), and any other material the Registration Agency
deems relevant to the review or investigation and pertinent to
compliance with this part. Upon request, the program sponsor (and any
participating employer) must
[[Page 3285]]
provide the Registration Agencyinformation about all format(s),
including specific electronic formats, in which its records and other
information are available. Information obtained in this manner will be
used only in connection with the administration of this part or other
applicablelaws.
(d) Format of records and other information. Forms, records, and
any other documents used and maintained by the program sponsor (and any
participating employer) in the administration of this part may exist in
paper or electronic form or a combination thereof. Regardless of the
medium, these records must be available and accessible as required
under paragraph (c) of this section for oversight and compliance
purposes.
Sec. 29.19 Program reviews.
(a) After an apprenticeship program has received permanent
registration status as described in Sec. 29.10, the Registration
Agency must conduct periodic reviews of the apprenticeship program
(which may include any participating employers in the sponsor's
program) not less frequently than every 5 years, except as described in
paragraph (b) of this section.
(b) The Registration Agency must conduct reviews of a program in
instances where the Registration Agency receives credible information
or allegations that the program is not being operated in accordance
with either its program standards or the requirements set forth in this
part or in part 30 of this title, or at the request of the
Administrator.
(c) In conducting program reviews, Registration Agencies may
consider all information and data that is relevant to any actual or
potential areas of noncompliance. As part of a review of data, the
Registration Agency must review the program's performance under Sec.
29.25(b).
(d) Sponsors and participating employers are required to cooperate
with requests for interviews or documentation from the Registration
Agency. Sponsors and participating employers must not impede a
Registration Agency's ability to interview prospective, current, or
former apprentices.
(e) Upon completion of a program review, the Registration Agency
must present a written Notice of Program Review Findings to the sponsor
using the contact information listed in the registered standards. If
the program review indicates a failure to comply with this part or with
part 30 of this title, the required notice will include:
(1) The deficiency or deficiencies identified;
(2) How to cure or remedy the deficiency or deficiencies;
(3) A requirement that the sponsor must develop and submit a
compliance action plan pursuant to paragraph (f) of this section; and
(4) A statement that the administrative actions described in Sec.
29.20 may be undertaken if compliance is not achieved within the
required timeframe.
(f)(1) When a sponsor receives a Notice of Program Review Findings
that indicates a failure to comply with this part, the sponsor must,
within 45 calendar days of notification, either develop and submit for
approval by the Registration Agency a compliance action plan that meets
the requirements of paragraph (f)(2) of this section or submit a
written rebuttal to the Findings. Registration Agencies may extend this
deadline one time by up to 45 calendar days for good cause upon request
of the sponsor.
(2) If the Registration Agency upholds the findings after
considering the sponsor's rebuttal, the Registration Agency must
provide the sponsor written notice of its determination, including the
reasons for the determination. Upon receipt, the sponsor must develop,
and submit to the Registration Agency for approval, a compliance action
plan within 45 calendar days of receiving the final notice. The
compliance action plan must include, at a minimum, the following
provisions:
(i) A specific commitment, in writing, to correct or remediate
identified deficiency(ies) and area(s) of noncompliance;
(ii) The precise actions to be taken for each deficiency
identified;
(iii) The time period within which each cited deficiency will be
remedied and any corrective program changes implemented; and
(iv) The name of the individual(s) responsible for correcting each
deficiency identified.
(g) The Registration Agency will evaluate the sponsor's compliance
action plan. The Registration Agency will elect one of the following of
three responses to the compliance action plan and will notify the
sponsor in writing accordingly.
(1) The Registration Agency may approve the compliance action plan,
determine that the Program is now in compliance, and terminate the
program review process.
(2) The Registration Agency may approve the compliance action plan
but continue the program review process until the compliance action
plan is appropriately implemented.
(3) The Registration Agency may reject the compliance action plan
and either work with the sponsor to revise the compliance action plan
or initiate deregistration under Sec. 29.20.
Sec. 29.20 Deregistration of a registered program.
(a) In general. Where the Registration Agency, as a result of a
program review or complaint investigation, or on any other basis,
determines that the sponsor, or any participating employer in the
sponsor's program, is not operating the registered apprenticeship
program in accordance with this part, the Registration Agency must
notify the program sponsor in writing of the specific violation(s)
identified and may proceed with any or a combination of the following:
(1) Offer the sponsor or participating employer technical
assistance to promote compliance with this part;
(2) Require the sponsor to submit a compliance action plan pursuant
to Sec. 29.19(f);
(3) Suspend the sponsor's right to register new apprentices for a
specified time period; or
(4) Deregister the program pursuant to paragraph (b) of this
section.
(b) Deregistration by the Registration Agency for cause. The
Registration Agency may deregister an apprenticeship program when the
apprenticeship program is not being operated in accordance with the
requirements of this part or of part 30 of this title, and the program
either has failed to correct specific violations identified by the
Registration Agency or has failed to submit or implement an approved
compliance action plan within the timeframes established in this part.
The Registration Agency will send a Notice of Deregistration to the
sponsor that includes the reasons for deregistration and the right to
request a hearing before the Office of Administrative Law Judges (OALJ)
or request review by the Administrator in accordance with this section.
(c) Voluntary deregistration at the request of the sponsor. The
Registration Agency will deregister an apprenticeship program, and
provide written confirmation to the sponsor of such deregistration,
after the Registration Agency has received a written request for
deregistration from the program sponsor that includes:
(1) The effective date of the requested deregistration; and
(2) A statement that within 15 calendar days of the date of the
written
[[Page 3286]]
request the sponsor will notify all apprentices:
(i) That sponsor has requested that their program be deregistered
and the effective date;
(ii) That deregistration automatically deprives the apprentice of
individual registration;
(iii) That the deregistration of the program removes the apprentice
from coverage for Federal purposes; and
(iv) That the apprentice will be referred to the Registration
Agency for information about potential transfer to other registered
apprenticeship programs.
(d) Review of deregistration by the Administrator, Office of
Apprenticeship.
(1) If a former sponsor wishes to request review by the
Administrator, the former sponsor must do so by submitting an
electronic request for review in writing within 30 calendar days from
the date of the Notice of Deregistration. The request for review must
include any additional relevant facts or documents that exist as of the
date of the request. Statements concerning interviews, meetings, and
conferences must include the time, date, place, and persons present.
(2) If the Registration Agency that issued the Notice of
Deregistration is an SAA, the former sponsor must simultaneously
furnish a copy of the request for review and all supporting facts and
documentation to the Administrator. The SAA must transmit to the
Administrator within 15 calendar days of receiving the request for
review copies of records containing all pertinent facts concerning the
deficiencies identified, including the Notice of Deregistration, and
copies of all relevant documents and records that were before the SAA
at the time of its decision. The Administrator may request additional
information from the former sponsor, the SAA, or both.
(3) If the Registration Agency that issued the Notice of
Deregistration is OA, OA will compile from within its own files records
of all pertinent facts concerning the deficiencies identified,
including the Notice of Deregistration and any new information provided
by the former sponsor. The Administrator may request additional
information from the sponsor.
(4) After reviewing a request for review, the Administrator will
issue a final decision that includes the reasons for the decision as
quickly as practicable after receipt of all information.
(5) Except as provided in paragraph (d)(6) of this section, the
sponsor may request a hearing before the Department's OALJ within 15
calendar days of receipt of the Administrator's final decision. If a
hearing is not requested within 15 calendar days, the Administrator's
decision is the final determination of the Department and no appeal to
OALJ will be considered.
(6) Where the basis for deregistration is a failure to respond to
multiple attempts by the Registration Agency to contact the sponsor or
failure to register at least one apprentice, the Administrator's
decision is the final determination of the Department and the sponsor
cannot request a hearing with OALJ.
(e) Requests for hearings.
(1) A request for a hearing must be sent to OALJ within 15 calendar
days of receiving a Notice of Deregistration from OA or receiving the
Administrator's final decision. Where an SAA is the Registration
Agency, a sponsor must request Review of Deregistration by the
Administrator and receive the Administrator's final decision before
requesting a hearing with OALJ.
(2) A copy of the request for a hearing must be simultaneously sent
to the Administrator and the Associate Solicitor for Employment and
Training Legal Services, Office of the Solicitor, U.S. Department of
Labor. The Administrator will promptly provide the OALJ with the
administrative file containing all documents relied on by the
Administrator.
(3) Hearings requested under paragraph (e)(1) of this section must
be conducted as set forth in Sec. 29.21.
Sec. 29.21 Hearings on deregistration.
(a) The procedures contained in part 18 of this title will apply to
the disposition of the request for hearing except that:
(1) The Administrative Law Judge will receive, and make part of the
record, documentary evidence offered by any party and accepted at the
hearing. Copies thereof will be made available by the party submitting
the documentary evidence to any party to the hearing upon request.
(2) Technical rules of evidence will not apply to hearings
conducted pursuant to this part, but rules or principles designed to
assure production of the most credible evidence available and to
subject testimony to test by cross-examination will be applied, where
reasonably necessary, by the Administrative Law Judge conducting the
hearing. The Administrative Law Judge may exclude irrelevant,
immaterial, or unduly repetitious evidence.
(3) The request for a hearing will not be considered to be a
complaint to which an answer is required.
(4) The Administrative Law Judge may authorize discovery and the
filing of pre-hearing motions, and so limit them to the types and
quantities that in the Administrative Law Judge's discretion will
contribute to a fair hearing without unduly burdening the parties.
(b) The Administrative Law Judge must issue a written decision
within 90 calendar days of the close of the hearing record. The
Administrative Law Judge must uphold the Administrator's decision
unless it is shown by the sponsor to be arbitrary, capricious, an abuse
of discretion, or otherwise not in accordance with the law. The
Administrative Law Judge's decision constitutes final agency action
unless, within 15 calendar days from receipt of the decision, a party
dissatisfied with the decision files a petition for review with the
Administrative Review Board (ARB) in accordance with part 26 of this
title, specifically identifying the procedure, fact, law, or policy to
which exception is taken. Any exception not specifically urged is
deemed to have been waived. A copy of the petition for review must be
served on the opposing party at the same time in accordance with part
26 of this title. Thereafter, the decision of the Administrative Law
Judge remains final agency action unless the ARB, within 30 calendar
days of the filing of the petition for review, notifies the parties
that it has accepted the case for review. The ARB may set a briefing
schedule or decide the matter on the record. The ARB must issue a
decision in any case it accepts for review within 180 calendar days of
the close of the record. If a decision is not so issued, the
Administrative Law Judge's decision constitutes final agency action.
Sec. 29.22 Reinstatement of program registration.
Any apprenticeship program deregistered under Sec. 29.20 may be
reinstated at any time upon presentation of adequate evidence to the
Registration Agency that the apprenticeship program is operating in
accordance with this part and part 30 of this title.
Sec. 29.23 Exemptions.
Requests for exemption from any provision of this subpart must be
made in writing to the Administrator and must contain a statement of
reasons supporting the request. The Administrator may only grant
exemptions for good cause and may not grant exemptions with respect to
requirements set forth outside of this subpart, including requirements
set forth in other applicable Federal, State, or local laws.
[[Page 3287]]
Subpart B--Career and Technical Education Apprenticeship
Sec. 29.24 Registration of career and technical education
apprenticeship programs.
(a) Required coordination.
(1) Coordination activities. The Registration Agency and the State
CTE Agency must coordinate on the overall administration of registered
CTE apprenticeship programs in each State, including the process of
program approvals, program reviews, data collection, technical
assistance, and compliance activities to ensure that both parties work
cooperatively to support LEAs, IHEs, and their intermediaries in the
coordination of registered CTE apprenticeship programs while ensuring
that programs meet the requirements of this part. Nothing in this
subpart alters the existing authorities of the State CTE Agency for
implementation and oversight of Perkins, which is not governed by these
regulations, and the Registration Agency for oversight of any
registered apprenticeship program.
(2) Written agreement. The State CTE Agency and Registration Agency
must enter into a written agreement for the Statewide coordination and
operation of registered CTE apprenticeship programs in the State. The
written agreement must describe the roles and responsibilities of each
agency. In order for an SAA to establish registered CTE apprenticeship
programs in its State, it must include such a written agreement as part
of the State Apprenticeship Plan it submits to OA for approval.
(b) Approval of industry skills frameworks.
(1) To facilitate the design and implementation of registered CTE
apprenticeship programs, the Administrator will oversee the development
of and updates to industry-validated, portable, and rigorous industry
skills frameworks, which will be used by States and sponsors. Each set
of new or updated industry skills frameworks must be reviewed by the
Administrator, and will be approved as suitable for use in registered
CTE apprenticeship programs if the industry skills framework:
(i) Provides a structure for developing the professional behaviors,
workplace competencies, and theoretical knowledge required by an
industry;
(ii) Describes skills and competencies that have been validated by
the industry under consideration as nationally applicable and widely
recognized across the industry;
(iii) Describes skills and competencies that are specified in an
on-the-job training outline and obtained through the attainment of at
least 900 hours of on-the-job training;
(iv) Aligns with a CTE program as approved by a State CTE Agency;
and
(v) Details industry-validated methods for ongoing evaluations to
assess the attainment of competency benchmarks by a CTE apprentice.
(2) The Administrator will solicit public comment to assist in
evaluating an industry skills framework's suitability for registered
CTE apprenticeship in paragraph (b)(1) of this section. Such
solicitations will be made available for public comment for at least 30
days. A determination regarding the industry skills framework will be
made within 90 days of its submission for public comment, though the
Administrator may extend this period. The Administrator may also
consider data and other relevant information to assist in evaluating an
industry skills framework's suitability for registered CTE
apprenticeship. The Administrator will maintain an up-to-date public
list of all industry skills frameworks and decisions.
(c) Standards of registered CTE apprenticeship. Each registered CTE
apprenticeship program must have a written set of standards of
registered CTE apprenticeship that will govern the conduct and
operation of that program; such standards must include the following
provisions:
(1) An on-the-job training outline that aligns with an approved
industry skills framework;
(2) A description of the CTE apprenticeship-related instruction
provided, including the approved CTE program associated with the
registered CTE apprenticeship program. This description must include a
statement as to whether time the apprentice spends in the CTE
apprenticeship-related instruction component of the apprenticeship
training will be counted as hours worked, and if so, what the wage rate
and fringe benefits will be for those hours. The CTE apprenticeship-
related instruction must also:
(i) Be a minimum of 540 hours in duration;
(ii) Result in the awarding of at least 12 postsecondary credit
hours; and
(iii) Lead to proficiency in the skills and competencies described
in the industry skills framework.
(3) A description of recognized postsecondary credit hours and
credentials that are awarded, including any associate or baccalaureate
degree associated with the program, and the name of the entity(ies)
issuing the credential(s) or certificate(s);
(4) A description of how completion of the program will result in
CTE apprentices' selection into an apprenticeship program registered
under subpart A of this part (including any advanced standing granted),
enrollment in a postsecondary educational program, or employment;
(5) A description of the employment in which CTE apprentices will
be employed in on-the-job training. The on-the-job training must:
(i) Be a minimum of 900 hours in duration; and
(ii) Lead to proficiency in the skills and competencies described
in the industry skills framework;
(6) The wage(s) that the CTE apprentice will receive from the
employer participating in the registered CTE apprenticeship program,
which must meet the following requirements:
(i) The CTE apprentice is paid a progressively increasing schedule
of wages that is consistent with the industry skills and competencies
required; and
(ii) The entry wage is not less than the minimum wage prescribed by
the Fair Labor Standards Act, where applicable, unless a higher wage is
required by other applicable Federal law, State or local law, or
respective regulations, or by the terms of an applicable collective
bargaining agreement.
(7) The program's specific numeric ratio of CTE apprentices to
journeyworkers.
(i) The ratio must be consistent with the proper safety, health,
supervision, and training of the CTE apprentice.
(ii) A sponsor must use a ratio that is:
(A) Consistent with the provisions of any applicable collective
bargaining agreements, as well as any applicable Federal and State laws
governing such ratios; and
(B) Specific and clearly described as to its application to a
particular workforce, workplace, worksite, job site, department, or
plant.
(8) A probationary period that may not exceed 30 days;
(9) An attestation by the sponsor, supported by any available
documentation, that the program will provide adequate, safe, and
accessible facilities and equipment for the training and supervision of
CTE apprentices that are compliant with all applicable Federal, State,
and local disability, occupational safety, and occupational health
laws;
(10) An attestation by the sponsor that the program will provide
adequate, industry-recognized safety training for CTE apprentices on
the job and in CTE apprenticeship-related instruction;
(11) The minimum qualifications, if any, required by a sponsor and
its participating employers for persons
[[Page 3288]]
entering the registered CTE apprenticeship program;
(12) The sponsor's procedures for the selection of CTE apprentices,
which must comply with the requirements for the selection of
apprentices set forth in part 30 of this title;
(13) A list of supportive services that may be available to the CTE
apprentice during their registered CTE apprenticeship program,
including whether the services are provided by the sponsor or partner
organization;
(14) The process by which the sponsor will reduce the usual term of
on-the-job training or CTE apprenticeship-related instruction as a
result of a registered CTE apprentice's prior learning, training, or
acquired experience, or as a result of accelerated progress in the
attainment of occupational competencies that is made by an apprentice
during their participation in the registered CTE apprenticeship
program. Such process must:
(i) Involve a fair, transparent, and equitable process for
objectively identifying, assessing, and documenting a registered CTE
apprentice's prior learning, training, or acquired experience, as well
as for measuring any accelerated progress in the attainment of
occupational competencies in the sponsor's registered CTE
apprenticeship program; and
(ii) Result in advanced standing or credit and an increased wage
for a CTE apprentice that is commensurate with any progression granted
by the sponsor.
(15) Documentation that the qualifications and experience of the
trainers and instructors that provide on-the-job training and CTE
apprenticeship-related instruction to CTE apprentices satisfy the
requirements of Sec. 29.12;
(16) The identity of the Registration Agency and the State CTE
Agency;
(17) The sponsor's equal opportunity pledge, pursuant to Sec.
30.3(c) of this title, as well as an attestation that the program will
be operated in accordance with the provisions of part 30 of this title,
and, where applicable, an approved State EEO plan; and
(18) Contact information (name, address, telephone number, and
email address) for the appropriate individual with authority under the
program to receive, process, and make disposition of complaints.
(d) Registered CTE apprenticeship program sponsors.
(1) Eligible registered CTE apprenticeship program sponsors. The
following organizations and entities are eligible to serve as a sponsor
of a registered CTE apprenticeship program:
(i) An LEA that is an eligible recipient as defined under Perkins;
(ii) An institution of higher education that is an eligible
institution as defined under Perkins;
(iii) A State CTE Agency or other State government agency that
shares responsibility for CTE in the State; and
(iv) An intermediary organization designated by the State CTE
Agency, State Educational Agency, LEA, or IHE, pursuant to an
agreement, that has expertise in organizing and coordinating registered
CTE apprenticeship programs or registered apprenticeship programs,
including:
(A) The local affiliate of a labor organization (such as a joint
apprenticeship and training committee);
(B) An employer;
(C) The local affiliate of a trade or industry organization;
(D) A local workforce development board;
(E) An IHE;
(F) An LEA; and
(H) Any other public, private, or not-for-profit entity that has
experience coordinating Perkins funding.
(2) Sponsor program registration. To apply for registration, a
prospective program sponsor must submit electronically to a
Registration Agency an application that includes:
(i) An on-the-job training outline that aligns with an associated
industry skills framework;
(ii) A CTE apprenticeship-related instruction outline;
(iii) Standards of registered CTE apprenticeship for the proposed
program;
(iv) The CTE apprenticeship agreement for the registered CTE
apprenticeship program;
(v) A written plan that includes the following:
(A) A description of how the program will ensure the students who
are selected to participate in the registered CTE apprenticeship
program reflect a diverse and inclusive cross-section of the current
student body enrollment of the participating secondary or postsecondary
school(s) consistent with the requirements of part 30 of this title;
(B) A description of how the CTE program's training and curriculum
align with an approved industry skills framework;
(C) A description of the secondary credits or recognized
postsecondary credit hours and credentials the program may provide,
including how the program confers such credits and credentials, and its
usefulness for CTE apprentices' entry into employment, a registered
apprenticeship program under subpart A, or a postsecondary educational
program;
(D) A description from the sponsor of how they will ensure each
employer has an established record of maintaining a safe and inclusive
workplace that is free from discrimination, violence, harassment,
intimidation, and retaliation against employees;
(E) A description of how the CTE apprentices participating in the
program will have access to a broad range of career services and
supportive services that enable participation in, and successful
completion of, the registered CTE apprenticeship program;
(F) A description of the routine monitoring and oversight conducted
by the sponsor of all aspects of the registered CTE apprenticeship
program; and
(G) A description of how the sponsor will implement, upon
registration, the affirmative steps to provide EEO in apprenticeship
required by Sec. 30.3(b) of this title. This description must at a
minimum:
(1) Identify the individual or individuals who will be responsible
and accountable for overseeing the sponsor's commitment to equal
opportunity in registered CTE apprenticeship;
(2) Identify the publications or other documents where the
sponsor's equal opportunity pledge will be published and the physical
or digital locations where the sponsor's equal opportunity pledge will
be posted;
(3) Describe the planned schedule for orientation and information
sessions for individuals connected with the administration or operation
of the registered CTE apprenticeship program, including all CTE
apprentices and journeyworkers who regularly work with CTE apprentices,
to inform and remind such individuals of the sponsor's EEO policy with
regard to registered CTE apprenticeship;
(4) Provide a list of current recruitment sources that will
generate referrals from all demographic groups within the relevant
recruitment area, including the identity of a contact person, mailing
address, telephone number, and email address for each recruitment
source; and
(5) Describe the sponsor's procedures to ensure that its CTE
apprentices are not harassed or otherwise subjected to discrimination
because of their race, color, religion, national origin, sex, sexual
orientation, age (40 or older), genetic information, or disability and
to ensure that its apprenticeship program is free from intimidation and
retaliation. This description must specifically include:
(i) The planned schedule and content source for the required anti-
harassment training to all individuals connected
[[Page 3289]]
with the administration or operation of the registered CTE
apprenticeship program; and
(ii) The sponsor's procedures for handling and resolving complaints
about harassment and intimidation.
(vi) An assurance that the specific commitments, roles, and
responsibilities assumed by employers, secondary schools, LEAs,
postsecondary educational institutions, intermediaries, and others with
respect to the operation of the registered CTE apprenticeship program
are formalized through memoranda of understanding or other written
agreements; and
(vii) An assurance that, consistent with Sec. 29.18, the sponsor
will maintain any required records that the Registration Agency
considers necessary to determine whether the sponsor has complied or is
complying with the requirements of this part and any applicable Federal
or State laws.
(3) Additional responsibilities for intermediaries serving as a
sponsor. If an intermediary is the sponsor pursuant to an agreement
with the State CTE Agency, State Educational Agency, LEA, or IHE, the
intermediary must ensure compliance with this subpart and coordinate
with the relevant LEAs, secondary school(s), postsecondary educational
institutions, community colleges, or CTE providers to ensure all
requirements above, as well as any additional requirements established
by the State CTE Agency, State Educational Agency, LEA or IHE, are met.
(4) Sponsor standards adoption agreements.
(i) Terms and conditions of adoption agreement. The registered CTE
apprenticeship program sponsor must ensure that the terms and
conditions of a sponsor standards adoption agreement include a
provision that each participating employer will:
(A) Adopt and comply with the sponsor's standards of registered CTE
apprenticeship;
(B) Comply with all other applicable requirements of this part; and
(C) Cooperate with, and provide assistance to, the program sponsor
to meet the sponsor's obligations under this part and part 30 of this
title, including by providing any apprenticeship-related data and
records necessary to assess compliance with these regulatory
provisions.
(ii) Transmission of adoption agreement to Registration Agency.
Each executed sponsor standards adoption agreement must be transmitted
to the Registration Agency by the program sponsor within 30 days of the
execution of the agreement.
(iii) Suspension or cancellation of adoption agreement.
(A) A sponsor standards adoption agreement:
(1) May be canceled by the participating employer upon providing 30
days' written notice to the sponsor; and
(2) Must be suspended or cancelled by the program sponsor if the
program sponsor determines that the participating employer failed to
satisfy the sponsor standards adoption agreement's provisions of this
section.
(B) The program sponsor must provide written notice of any
suspension or cancellation to the participating employer, all CTE
apprentices affected by the suspension or cancellation, and the
applicable Registration Agency. The notice must explain the reason for
the suspension or cancellation.
(C) If the suspension or cancellation results in an interruption or
cessation of training for CTE apprentices, the program sponsor must
make reasonable efforts to place such individuals with another of the
sponsor's participating employers.
(D) In instances where a program sponsor fails to suspend or cancel
a sponsor standards adoption agreement as required by paragraph
(d)(4)(iii)(A)(2) of this section, the Registration Agency may initiate
deregistration proceedings against the program pursuant to Sec. 29.20.
(e) CTE apprenticeship agreement.
(1) All CTE apprenticeship programs registered by a Registration
Agency must develop and establish a written CTE apprenticeship
agreement that contains the terms and conditions of the employment,
education, and training of the CTE apprentice. Such agreement must be
signed prior to the start of the registered CTE apprenticeship term by:
(i) The CTE apprentice;
(ii) The CTE apprentice's parent or legal guardian, if the CTE
apprentice is under 18 years of age;
(iii) The program sponsor;
(iv) The secondary or postsecondary institution in which the CTE
apprentice is enrolled as a student; and
(v) Any participating employers in the program that have adopted
the sponsor's standards adoption agreement.
(2) A copy of the signed CTE apprenticeship agreement and the
program's standards of registered CTE apprenticeship must be given to
the CTE apprentice, and their parent or legal guardian if applicable,
prior to the start date of the registered CTE apprenticeship term.
(3) At a minimum, the CTE apprenticeship agreement must contain the
following:
(i) Contact information and identifying information for the CTE
apprentice, including the apprentice's date of birth and, on a
voluntary basis, their Social Security number;
(ii) Contact information for the Registration Agency, program
sponsor, and participating employer(s);
(iii) An identification of the job or occupation the CTE apprentice
will be employed in, as well as copies of the associated industry
skills framework and CTE apprenticeship-related instruction outline;
(iv) The incorporation, either directly or by reference, of the
program's standards of CTE apprenticeship;
(v) A description of the respective roles, duties, and
responsibilities of the CTE apprentice, the program sponsor, and the
participating employer, during the registered CTE apprenticeship
program. With respect to sponsors and participating employers, these
responsibilities must include providing information to CTE apprentices
regarding their rights and protections under Federal, State, and local
laws, including their right to file complaints with the applicable
Registration Agency and the process for doing so;
(vi) The term of the registered CTE apprenticeship, including the
beginning date and expected duration of the registered CTE
apprenticeship program, the beginning date of the on-the-job training,
and a probationary period that does not exceed 30 days;
(vii) A detailed statement of the entry wage and the subsequent
graduated scale of increasing wages to be paid to the CTE apprentice
over the registered CTE apprenticeship term;
(viii) A disclosure of the expected minimum number of hours
allocated by the program to the on-the-job training component during
the registered CTE apprenticeship term, and to the CTE apprenticeship-
related instruction component of the registered CTE apprenticeship
program during that term;
(ix) A description of the methods used during the course of the
registered CTE apprenticeship program to measure progress on competency
attainment;
(x) A description of any supportive services that may be available
to the CTE apprentice including, childcare, transportation, equipment,
tools, or any other supportive service provided by the sponsor or a
partnering organization to address potential barriers to participation
or completion;
(xi) The nature and amount of any unreimbursed costs, expenses, or
fees that the CTE apprentice may incur during their participation in
the program;
[[Page 3290]]
(xii) A description of any secondary or postsecondary credits or
credentials that the CTE apprentice will receive upon successful
program completion;
(xiii) A statement by the parties to the agreement that they will
adhere to the requirements of part 30 of this title;
(xiv) A statement addressing:
(A) Whether the CTE apprentice is paid wages and fringe benefits
during the CTE apprenticeship-related instruction component of the
program;
(B) If wages are paid for CTE apprenticeship-related instruction,
what the wage rate is; and
(C) Whether the CTE apprenticeship-related instruction is provided
during work hours.
(xv) Contact information (name, address, phone, and email if
appropriate) of the appropriate authority designated under the program
to receive, process, and make disposition of controversies or disputes
arising out of the CTE apprenticeship agreement when the controversies
or disputes cannot be addressed locally or resolved in accordance with
the established procedure or applicable collective bargaining
provisions; and
(xvi) The consent of the CTE apprentice, or their parent or
guardian, if the CTE apprentice is under 18 and not in attendance at a
postsecondary institution, permitting the secondary or postsecondary
institution in which the CTE apprentice is enrolled as a student to
disclose individual apprentice level information to the program
sponsor, to the entity designating any intermediary organization as a
sponsor, to participating employers, to the Registration Agency and the
Department, if OA is not the Registration Agency, and to any other
institution involved in administering the registered CTE apprenticeship
program, as required under subpart B of this part.
(4) A registered CTE apprenticeship program sponsor, or a
participating employer in the sponsor's program, cannot include in the
CTE apprenticeship agreement or otherwise impose on CTE apprentices a
non-compete provision or other provision that restricts an apprentice's
labor market mobility, including a provision restricting the
apprentice's ability to seek or accept employment with another employer
prior to the completion of the registered CTE apprenticeship program.
(5) A registered CTE apprenticeship program sponsor, or a
participating employer in the sponsor's program, cannot include in the
CTE apprenticeship agreement or otherwise impose on CTE apprentices a
non-disclosure provision that prevents the worker from working in the
same field after the conclusion of the worker's employment with the
employer, or that restricts an apprentice's ability to file a complaint
with a Registration Agency or other governmental body concerning
possible violations of this part or of part 30 of this title. Subject
to these restrictions, a sponsor or participating employer may include
a non-disclosure provision that relates to the protection of the
sponsor's or participating employer's confidential commercial
information or trade secrets.
(6) The program sponsor must submit a completed copy of the
executed CTE apprenticeship agreement for each CTE apprentice
registered to the program's Registration Agency within 30 days of
execution.
(f) Certificate of completion of registered CTE apprenticeship. CTE
apprentices who are enrolled in the registered CTE apprenticeship
program and who are successful in meeting the CTE apprenticeship-
related instruction and the on-the-job training outlined in the
industry skills framework will receive a certificate of completion of
registered CTE apprenticeship from the Registration Agency.
(g) Administrative requirements of the Registration Agency.
(1) CTE apprenticeship program registration. The Registration
Agency will evaluate the written application submitted by a CTE
apprenticeship program sponsor.
(i) The Registration Agency must review an application submitted by
a sponsor consistent with paragraph (d)(2) of this section and provide
a determination on whether the program is eligible for program
registration within 90 days of receipt of a complete application.
(ii) The Registration Agency will inform applicants in writing of
all decisions regarding program registration.
(iii) If the Registration Agency denies the application, it must
explain in writing the reasons for the denial.
(2) Technical assistance and other support. The Registration Agency
is responsible for providing outreach, technical assistance, and any
other services to potential sponsors, participating employers, and
other potential partners to support the adoption of registered CTE
apprenticeship as well as to ensure compliance with the requirements of
this subpart.
(3) Complaints. The complaint investigation and anti-retaliation
provisions in Sec. 29.17 apply to this subpart, except that a
Registration Agency may refer complaints under this subsection to the
State CTE Agency as appropriate.
(4) Program reviews.
(i) For program reviews under this subpart, the process described
in Sec. 29.19 applies.
(ii) Program reviews should be done in coordination with the
relevant State CTE Agency pursuant to the written agreement described
in paragraph (a)(2) of this section.
(iii) The result of any program review conducted under paragraph
(g)(4) of this section will not impact an entity's eligibility for
funding under the Perkins program.
(5) Deregistration of a CTE apprenticeship program. The
deregistration process described in Sec. 29.20 will apply to this
subpart.
(6) Hearings on deregistration. The hearing process described in
Sec. 29.21 will apply to this subpart.
(7) Reinstatement of program registration. The reinstatement
process described in Sec. 29.22 will apply to this subpart.
(8) Recognition of Registration Agencies for CTE apprenticeship.
(i) OA may serve as the Registration Agency within States where the
Administrator has not recognized an SAA to register CTE apprenticeship
programs, provided a written agreement has been signed between OA and
the State's respective State CTE Agency as described in paragraph
(a)(2) of this section.
(ii) SAAs recognized or seeking recognition as a Registration
Agency under subpart C of this part will be recognized to register CTE
apprenticeship programs provided the following criteria are met:
(A) The State's proposed or current apprenticeship laws for CTE
apprenticeship meet or exceed the requirements for protecting the
safety and welfare of CTE apprentices set forth in this subpart;
(B) A written agreement has been signed between the SAA and the
State CTE Agency as described in paragraph (a)(2) of this section;
(C) The State has submitted its relevant apprenticeship laws and
CTE engagement strategies as described in its State Apprenticeship Plan
submission or a modification as described in subpart C of this part;
and
(D) The Administrator has approved the State Apprenticeship Plan
for both recognition as an SAA, and for recognition to register CTE
apprenticeship programs.
(9) Collection of data and quality metrics concerning CTE
apprenticeship.
(i) CTE apprentice information.
(A) Within 30 calendar days of the start of a CTE apprentice's
term, the
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program sponsor must submit to its Registration Agency in a format
prescribed by the Administrator:
(1) Individual apprentice record level information in accordance
with any applicable Federal laws, rules and regulations (which includes
sec. 444 of the General Education Provisions Act, as amended, commonly
known as the Family Educational Rights and Privacy Act (FERPA)),
including demographic information, education level, and veteran status;
(2) The industry skills framework and occupation, if applicable, in
which the CTE apprentice is to be trained;
(3) The beginning date and term (duration) of the registered CTE
apprenticeship program and the graduated schedule of wages; and
(4) Any additional CTE apprentice-related information that the
Administrator considers appropriate or necessary for the efficient
operation of the National Apprenticeship System.
(B) At the end of each academic semester, the program sponsor must
report a change in a CTE apprentice's status, including additional
receipt of services and attainment of outcomes, to its Registration
Agency in a manner prescribed by the Administrator regarding the
following apprentice outcomes and services:
(1) Change in registered CTE apprenticeship status (completion or
cancellation);
(2) Credentials attained during participation;
(3) Change in employment or education status after participation;
(4) Wage progression during participation;
(5) Supportive services provided; and
(6) Any additional outcomes or services information that the
Administrator considers appropriate or necessary for the efficient
operation of the National Apprenticeship System.
(ii) Program sponsor information and quality metrics.
(A) Within 30 days of the change in status and no less than on an
annual basis, for each registered CTE apprenticeship program and
industry skills framework in which CTE apprentices are being trained, a
program sponsor must report to the Registration Agency, in a manner
prescribed by the Administrator, the following information:
(1) Up-to-date contact information for each employer participating
in the registered CTE apprenticeship program and, if applicable, the
collective bargaining signatories;
(2) Up-to-date copies of any agreements the sponsor has with each
employer participating in the registered CTE apprenticeship program and
with each CTE apprentice;
(3) Information about which employers participating in the
registered CTE apprenticeship program have canceled their participation
in a program;
(4) Up-to-date information about the program's coordination with
credentialing agencies;
(5) Up-to-date contact information for those individual(s)
designated and authorized under the registered CTE apprenticeship
program to receive, process, and make disposition of complaints filed
by CTE apprentices under both this part and part 30 of this title;
(6) All unreimbursed costs to the CTE apprentice; and
(7) Any additional sponsor- or program-level information that the
Administrator considers appropriate or necessary for the efficient
operation of the National Apprenticeship System.
(B) On an annual basis, for each registered CTE apprenticeship
program and industry skills framework, the following quality metrics
will be calculated by the Registration Agency, in a format prescribed
by the Administrator:
(1) The total number of new and active CTE apprentices annually
training in the sponsor's program under a CTE apprenticeship agreement;
(2) The total number of CTE apprentices who successfully completed
the sponsor's program annually;
(3) The annual completion rate for CTE apprentices;
(4) The cohort completion rate for registered CTE apprentices,
which must be calculated by comparing the number of apprentices in a
designated apprenticeship cohort who successfully completed the
sponsor's requirements and attained a certificate of completion of
registered CTE apprenticeship with the number of apprentices in that
cohort who initially began training in the program;
(5) The placement rate of exiters in registered apprenticeship
programs under subpart A of this part, postsecondary educational
programs, or employment, at the time of program completion;
(6) The percentage of exiters that receive at least one recognized
postsecondary credential at time of exit;
(7) Wage at exit; and
(8) Any additional sponsor- or program-level information that the
Administrator considers appropriate or necessary for the efficient
operation of the National Apprenticeship System.
(iii) Information and reports to be made publicly available by the
Registration Agency.
(A) The Administrator will make on an annual basis general
information relating to registered CTE apprenticeship programs along
with the information described in paragraph (g)(9)(ii) of this section
publicly available. Upon request of the sponsor, the Administrator may
decide not to make the information described in paragraph (g)(9)(ii) of
this section publicly available for good cause.
(B) Unless otherwise prohibited by Federal law, the Administrator
will make publicly available a national summary report of CTE
apprentices and their outcomes, disaggregated by race, ethnicity, sex,
disability status, and other categories determined by the
Administrator.
(C) In addition to the metrics in paragraph (g)(9)(iii)(B) of this
section, the Registration Agency must use supplemental sources, such as
wage records and surveys, to calculate at a national or State level at
least the following additional metrics:
(1) The placement and retention rate in postsecondary educational
programs, registered apprenticeship programs, or employment, calculated
6 and 12 months after program completion;
(2) The annualized average and median earnings of a registered CTE
apprenticeship program's former apprentices, calculated over the 6-
month period after registered apprenticeship completion; and
(3) The percentage of all completers of a registered CTE
apprenticeship program who, at 1 year after program completion, are
earning an income that allows them to support themselves and their
families, or have been placed in a postsecondary educational program or
career pathway program.
(D) The Administrator may also conduct evaluations and longitudinal
studies to assess the impact and improve the effectiveness of
registered CTE apprenticeship programs.
(E) The Registration Agency may decide to withhold from publication
certain information contained in paragraphs (g)(9)(iii)(A), (B), and
(C) of this section for good cause.
(iv) Reporting. Sponsors must report the information described in
paragraphs (g)(9)(i) and (ii) of this section in a manner prescribed by
the Registration Agency.
(v) Reporting requirements for State Apprenticeship Agencies.
(A) SAAs with an approved State Apprenticeship Plan to serve as a
Registration Agency for CTE apprenticeship are required to collect
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the information from sponsors described in paragraphs (g)(9)(i) and
(ii) of this section.
(B) No less frequently than on a quarterly basis, SAAs must report
the information collected from sponsors discussed in paragraphs
(g)(9)(i) and (ii)(A) of this section.
(C) On an annual basis, the SAA will report the information
collected under paragraph (g)(9)(ii)(B) of this section to the
Administrator.
(D) The Administrator will make the information collected from
paragraph (g)(9)(iii) of this section publicly available.
(E) SAAs may meet these requirements by either:
(1) Utilizing a Department-provided case management system; or
(2) Maintaining a State system that is capable of reporting
individual apprentice record level information to OA in a manner
prescribed by the Administrator, and that meets minimum security
requirements as prescribed by the Administrator.
(10) Exemptions. Requests for exemption from any provision of this
subpart must be made in writing to the Administrator and must contain a
statement of reasons.
Subpart C--Administration and Coordination of the National
Apprenticeship System
Sec. 29.25 Collection of data and quality metrics concerning
apprenticeship.
(a) Apprentice information.
(1) Within 30 calendar days of the start of an apprentice's
participation in a registered apprenticeship program, the program
sponsor must submit to its Registration Agency, in a format prescribed
by the Administrator, the following information:
(i) Individual apprentice level information that includes
demographic information, education level, and veteran status;
(ii) Receipt of pre-apprenticeship services prior to participation
in apprenticeship, if applicable;
(iii) The occupation in which the apprentice is to be trained;
(iv) The date the individual became an apprentice;
(v) The beginning date and term (duration) of the apprenticeship,
the date of the beginning of on-the-job training, the full graduated
schedule of wages including the journeyworker wage, and the approximate
time to be spent in each work process in the occupation; and
(vi) Any additional apprentice-related information required by the
Administrator.
(2) Within 30 calendar days of a change in an apprentice's status,
the program sponsor must submit the following information to its
Registration Agency:
(i) Change in apprenticeship status (completion, transfer,
suspension, or cancellation);
(ii) Interim credentials attained;
(iii) Employment status;
(iv) Wage progression;
(v) Supportive services provided; and
(vi) Any additional apprentice outcomes or services information
required by the Administrator.
(b) Program sponsor information and quality metrics.
(1) Within 30 days of the change in status, for each registered
apprenticeship program and occupation, a program sponsor must report to
the Registration Agency, in a manner prescribed by the Administrator,
the following information:
(i) Up-to-date contact information for the program sponsor
(including headquarters);
(ii) Up-to-date contact information for each participating employer
in the program and, if applicable, the collective bargaining
signatories;
(iii) An up-to-date copy of the program standards adoption
agreement with the sponsor for each participating employer;
(iv) Information about which participating employers have canceled
their participation in a program;
(v) Up-to-date information about the program's coordination with
credentialing agencies;
(vi) Up-to-date contact information for those individual(s)
designated and authorized under the registered apprenticeship program
to receive, process, and make disposition of complaints filed by
apprentices under both this part and part 30 of this title;
(vii) All unreimbursed costs to the apprentice; and
(viii) Any additional sponsor or program level information required
by the Administrator.
(2) On an annual basis, for each registered apprenticeship program
and occupation, in a format prescribed by the Administrator, the
following quality metrics will be calculated:
(i) The total number of apprentices served annually in the
sponsor's program under an apprenticeship agreement;
(ii) The total number of apprentices who successfully completed the
sponsor's program annually;
(iii) The annual completion rate for apprentices.
(iv) The cohort completion rate for apprentices, which must be
calculated by comparing the number of apprentices in a designated
apprenticeship cohort who successfully completed the sponsor's
requirements and attained a Certificate of Completion with the number
of apprentices in that cohort who initially began training in the
program;
(v) The median length of time for program completion;
(vi) The employment retention rate at the time of exit;
(vii) The percentage of exiters that receive at least one interim
credential at time of exit;
(viii) The percentage of exiters that enter postsecondary education
or a career pathway program at time of exit;
(ix) Apprentice wage at time of exit;
(x) Information and data relating to any pre-apprenticeship
programs with which the sponsor has established a documented
partnership; and
(xi) Any additional sponsor or program level information required
by the Administrator.
(c) Information and reports to be made publicly available by the
Registration Agency.
(1) The Registration Agency will make publicly available on an
annual basis general information relating to registered apprenticeship
programs along with the information described in paragraph (b)(2) of
this section.
(2) The Registration Agency will make publicly available an annual
State or national summary report of apprentices and their outcomes,
disaggregated by race, ethnicity, sex, disability status, and other
categories determined by the Administrator.
(3) In addition to the metrics in paragraph (c)(2) of this section,
the Registration Agency must use supplemental sources, such as wage
records and surveys, to calculate at a national or State level, at
least the following additional metrics:
(i) The post-apprenticeship employment retention rate, calculated 6
and 12 months after program exit;
(ii) The annualized average and median earnings of a registered
apprenticeship program's former apprentices, calculated over the 6-
month period after program completion;
(iii) The percentage of all completers of a registered
apprenticeship program who, at 1 year after program completion, are
earning an income that allows them to support themselves and their
families, have been placed in a postsecondary educational program, or a
career pathway program; and
(iv) Registration Agency metrics including median time for
registration, number of programs approved and denied registration, and
post-
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registration customer satisfaction ratings of sponsors for technical
assistance and other services provided in relation to registration
activities from the Registration Agency.
(4) The Administrator may also conduct evaluations and longitudinal
studies to assess the impact and improve the effectiveness of
registered apprenticeship programs.
(5) The Registration Agency may decide to withhold from publication
certain information contained in paragraphs (c)(1), (2), and (3) of
this section for good cause.
Sec. 29.26 Roles and responsibilities of State Apprenticeship
Agencies.
(a) In general. An SAA, recognized by the Administrator pursuant to
Sec. 29.27(c), is authorized to undertake, for Federal purposes, the
following actions regarding registered apprenticeship programs within
that State:
(1) Implementing apprenticeship-related laws and policies, provided
that the Administrator has previously approved such laws pursuant to
Sec. 29.27(c)(1) or Sec. 29.27(c)(2);
(2) Reviewing, approving, disapproving, and amending standards of
apprenticeship submitted by potential or existing program sponsors, and
registering apprenticeship programs within 90 days of a complete
submission for Federal purposes in that State;
(3) Prescribing the content of apprenticeship agreements, and
registering apprentices who have signed valid apprenticeship agreements
with registered apprenticeship program sponsors and participating
employers;
(4) Providing technical assistance to registered apprenticeship
program sponsors, participating employers, registered apprentices,
intermediaries, and other apprenticeship stakeholders;
(5) Collecting and reporting to OA any apprenticeship-related data
from program sponsors, participating employers, and individual
apprentices described in Sec. Sec. 29.25 and 29.28;
(6) Conducting program reviews of approved registered
apprenticeship programs;
(7) Establishing policies and procedures to promote EEO for
apprentices and applicants for apprenticeship in registered
apprenticeship programs consistent with the requirements in part 30 of
this title;
(8) Establishing the basic standards, criteria, and requirements
for program registration, and providing for the suspension or
deregistration of programs;
(9) Establishing a process for the registration, suspension, or
cancellation of apprenticeship agreements;
(10) Investigating complaints filed under this part or part 30 of
this title; and
(11) Functioning as a Registration Agency for registered CTE
apprenticeship programs pursuant to Sec. 29.24.
(b) Nondelegable duties of State Apprenticeship Agencies. In order
for a State to be eligible to obtain or maintain full or provisional
recognition status as described in Sec. 29.27(c), a State cannot
delegate, assign, devolve, or relinquish any of the functions that are
the responsibility of the SAA under paragraph (a) of this section,
including any matters relating to the intake, evaluation, approval,
registration, monitoring, oversight, suspension, or deregistration of
apprenticeship programs and standards of apprenticeship within that
State, to any external third-party entity, including a State
Apprenticeship Council established pursuant to paragraph (c) of this
section.
(c) Requirement to establish State Apprenticeship Councils. An SAA
is required under this rule to establish and maintain a State
Apprenticeship Council, which must operate under the direction of the
SAA. The State Apprenticeship Council may provide the SAA with written,
nonbinding advice, recommendations, research, and reports concerning
apprenticeship-related matters, and on the submission of the State
Apprenticeship Plan.
(1) Composition. Members of the State Apprenticeship Council must
be individuals who are familiar with occupations suitable for
registered apprenticeship, apprenticeship programs, and opportunities
across a wide range of industries and sectors. A State Apprenticeship
Council must be fairly balanced and inclusive of underserved
communities, with an equal number of--
(i) Employers or representatives of employer organizations,
including from sectors and occupations where apprenticeship is not
currently widespread;
(ii) Representatives of labor organizations or joint labor-
management organizations, including from non-traditional apprenticeship
industries or occupations; and
(iii) Other members representing the general public, which must at
least include:
(A) One representative who represents the State's workforce
development system; and
(B) One representative of a secondary or postsecondary education
system who is familiar with registered apprenticeship.
(2) Limitations on State Apprenticeship Councils. A State
Apprenticeship Council is ineligible for recognition as an SAA under
this part and is prohibited under this part from assuming or
discharging the functions described in paragraph (a) of this section.
(d) Reciprocity of registration. An SAA must establish a process
for providing approval to apprentices, apprenticeship programs, and
standards of apprenticeship that are registered in other States by OA
or by an SAA for Federal purposes. Such a process must provide a timely
response to a request for reciprocity no later than 45 days after
receipt of a program sponsor's application for reciprocity. The
reciprocity process established by an SAA must:
(1) Ensure that the program sponsor meets the statutory and
regulatory wage and hour requirements and apprentice-to-journeyworker
ratios of the State in which reciprocal approval is sought;
(2) Ensure that the program and individual apprentices who will
work in the State are properly registered with the SAA; and
(3) Ensure that the program sponsor develop standards that prepare
apprentices to meet or exceed the minimum requirements of State or
local occupation licensure, if applicable.
Sec. 29.27 Recognition of State Apprenticeship Agencies.
(a) Application for recognition as a State Apprenticeship Agency.
To obtain recognition or seek renewal of recognition as an SAA for
Federal purposes, a State governmental entity must submit a State
Apprenticeship Plan addressing the requirements described in paragraph
(b) of this section.
(1) Timing. States seeking to obtain or renew recognition as an SAA
must submit a State Apprenticeship Plan beginning December 31, 2026.
Recognition, either full or provisional, will be granted for a period
of 4 years from the date of the Administrator's approval.
(i) State Apprenticeship Plans must be submitted to the
Administrator at least 120 days prior to the date when an SAA is
seeking recognition.
(ii) State governmental entities recognized by the Administrator as
an SAA prior to the effective date of this rule must submit a State
Apprenticeship Plan described in paragraph (b) of this section no later
than September 1, 2026,
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to be considered for recognition after December 31, 2026. The period of
recognition for this submission is for the time period covering January
1, 2027, through June 30, 2030.
(iii) Subsequent State Apprenticeship Plan submissions are for 4-
year periods beginning July 1, 2030.
(iv) State Apprenticeship Plans submitted and approved outside of
the time periods described in paragraphs (a)(1)(ii) and (iii) of this
section must still submit a State Apprenticeship Plan to the
Administrator consistent with the timing described in either paragraph
(a)(1)(ii) or (iii) of this section.
(2) Modifications to approved State Apprenticeship Plans.
(i) An approved State Apprenticeship Plan requires modification and
resubmission:
(A) When changes in Federal or State law or policy substantially
affect the roles and responsibilities of the SAA described in Sec.
29.26;
(B) When proposed State laws may affect an SAA's compliance with
the requirements of paragraph (b) of this section;
(C) When there are significant changes in the strategies, goals,
and priorities upon which the State Apprenticeship Plan is based; and
(D) When there are significant changes in the statewide vision,
strategies, policies, operational procedures, or organizational
structure of the SAA.
(ii) Modifications may be requested by the SAA for any other reason
at any time during the 4-year period of the plan, including:
(A) When the SAA is seeking to change its plan status from
provisional to full approval;
(B) When the SAA seeks recognition as a Registration Agency for the
purposes of subpart B of this part; or
(C) For any other reason at the discretion of the SAA.
(iii) Modifications to an approved State Apprenticeship Plan must
be submitted to the Administrator at least 120 days prior to the
requested effective date of the modification.
(iv) Modified State Apprenticeship Plans remain approved until the
end of the original cycle of the Plan.
(b) State Apprenticeship Plan contents. The State Apprenticeship
Plan described in paragraph (a) of this section must include the
following:
(1) Apprenticeship laws. The State's proposed or current
apprenticeship laws, which must include provisions that:
(i) Allow registration for Federal purposes for only those
occupations that have been determined suitable for registered
apprenticeship pursuant to Sec. 29.7;
(ii) Meet or exceed the requirements for protecting the safety and
welfare of apprentices set forth at the following regulatory
provisions:
(A) The standards of apprenticeship enumerated at section Sec.
29.8;
(B) The apprenticeship agreement elements identified in Sec. 29.9;
(C) The program registration requirements of Sec. 29.10;
(D) The program standards adoption agreement requirements of Sec.
29.11;
(E) The qualifications of apprentice trainers and providers of
related instruction requirements of Sec. 29.12;
(F) The end-point assessment and certification of program
completion requirements of Sec. 29.16;
(G) The complaints requirements of Sec. 29.17;
(H) The recordkeeping requirements of Sec. 29.18;
(I) The procedural requirements of Sec. Sec. 29.19 through 29.22;
(J) The SAA requirements of Sec. 29.26;
(K) The reporting requirements for SAAs of Sec. 29.28; and
(L) The EEO requirements at part 30 of this title.
(2) Strategic planning elements:
(i) Goals for expansion. A narrative summary of the State's
strategic vision and strategy for expanding registered apprenticeship
programs, promoting program quality, and for meeting the skilled
workforce needs of employers through apprenticeship, including both
existing and emerging high-growth industries and occupations as
identified by the State. The narrative must include any goals or
metrics the State will use to achieve its vision.
(ii) Promoting registered apprenticeship programs for underserved
communities. A narrative description that addresses the State's
strategic plan for increasing access to and support within registered
apprenticeship for individuals from underserved communities, which must
include:
(A) The current apprentice participants in the State by race,
ethnicity, sex, disability status, and veteran status;
(B) The goals and milestones the State will utilize to track
progress towards the strategic plan.
(iii) Aligning education and workforce development activities. The
State must provide a narrative of the strategic alignment of workforce
development activities in the State with the SAA, including--
(A) A description of any coordination or leveraging of State
planning and registered apprenticeship programs under WIOA and any
milestones the State will use to track progress;
(B) A description of any efforts or processes the SAA has developed
with the State Workforce Agency to enhance or increase the leveraging
of registered apprenticeship programs on the State list of eligible
providers of training services under section 122(d) of WIOA;
(C) An assessment of how registered apprenticeship programs in the
State meet employers' workforce needs as identified by the State
workforce development board or State Workforce Agency;
(D) A description of current activities to coordinate with the
State's education system, including institutions of higher education,
LEAs, State CTE and Educational Agencies, and other educational
entities that support CTE programs and career pathways;
(E) A description of current activities and goals in coordinating
with economic development entities in the State; and
(F) A description of the State's strategy for engaging and
leveraging intermediaries as defined in Sec. 29.2.
(G) A description of any efforts to align and leverage
apprenticeship-related data with education system and workforce
development system data.
(3) Operational planning elements. States must submit the following
information to OA:
(i) State EEO plan. In conformity with part 30 of this title,
provide a plan that describes how the SAA will promote EEO for
apprentices and applicants for apprenticeship in registered
apprenticeship programs.
(ii) Technical assistance. Describe the State's technical
assistance strategies for the period covered in the State
Apprenticeship Plan.
(iii) Data reporting. Describe the process for meeting quarterly
and annual reporting requirements at Sec. Sec. 29.25 and 29.28,
including a description of how the SAA will collect and report
apprentice and sponsor records to the Department.
(iv) Program reviews. Describe the SAA's plan for conducting
program reviews for the period covered in the State Apprenticeship
Plan.
(v) Registration standards. Describe how the SAA plans to
operationalize its policy regarding: establishing the basic standards,
criteria, and requirements for program registration; and providing for
the temporary suspension, cancellation, or deregistration of programs.
(vi) Reciprocity. Describe how the State will operationalize its
policy for providing reciprocity for registered apprenticeship programs
in accordance with Sec. 29.26(d).
[[Page 3295]]
(vii) State Apprenticeship Council. Describe how the State
Apprenticeship Council is structured consistent with the requirement of
Sec. 29.26(b) and (c).
(4) Assurances. The State must provide the following assurances and
any applicable statutory or regulatory citations:
(i) That the State will provide a process for local registration of
National Guidelines for Apprenticeship Standards recognized by the
Administrator pursuant to Sec. 29.15.
(ii) That the State has sufficient resources to carry out the
functions of an SAA, including outreach and education; registration of
programs and apprentices; provision of technical assistance, and
monitoring of programs as required to fulfill the requirements of this
part.
(iii) That the State will make available on a publicly available
website a description of any laws (including regulations), policies,
and operational procedures relating to the process of reviewing,
registering, and assessing registered apprenticeship programs under the
State's apprenticeship system, including those that impose requirements
in addition to this rule, as well as any approved State Apprenticeship
Plans.
(iv) That the State requires a written assurance from any sponsors
registered by the State that they are complying with the requirements
of the Support for Veterans in Effective Apprenticeships Act of 2019
(Pub. L. 116-134, 134 Stat. 277, 29 U.S.C. 50c).
(5) Optional recognition of an SAA for registered CTE
apprenticeship. An SAA seeking recognition to serve as a Registration
Agency for registered CTE apprenticeship must submit the following
elements:
(i) The State's proposed or current registered CTE apprenticeship
laws as described in Sec. 29.24(g)(8).
(ii) A written agreement between the State entity seeking
recognition and the State's CTE Agency as described in Sec.
29.24(a)(2).
(iii) A narrative summary of the State's strategic vision and
strategy for expanding registered CTE apprenticeship programs under
subpart B of this part.
(c) State apprenticeship recognition designations. After review of
the State Apprenticeship Plan described in paragraph (a) of this
section, OA will convey, in writing from the Administrator, one of
three designations for Federal purposes:
(1) Full recognition if the Administrator has determined:
(i) The State's apprenticeship laws meet or exceed the minimum
standards as described in paragraph (b)(1) of this section.
(ii) The State's Plan includes all strategic planning elements that
are complete and responsive to the requirements in paragraph (b)(2) of
this section.
(iii) The State's Plan includes all operational elements that are
complete and responsive to the requirements in paragraph (b)(3) of this
section.
(iv) The State's Plan includes all of the assurances as required in
paragraph (b)(4) of this section.
(2) Provisional recognition if the Administrator has determined
that the State's apprenticeship laws meet or exceed the minimum
standards described in paragraph (b)(1) of this section and that the
State's Plan includes all of the assurances described in paragraph
(b)(4) of this section, but further determines that:
(i) The strategic planning elements described in paragraph (b)(2)
of this section or the operational elements described in paragraph
(b)(3) of this section are either incomplete or nonresponsive; and
(ii) Any deficiencies identified in paragraph (c)(2)(i) of this
section are resolvable with technical assistance provided by OA and a
corrective action plan is submitted by the State and approved by the
Administrator. A State may be provisionally recognized for no more than
one full planning cycle.
(3) Denial of recognition if the Administrator determines:
(i) That the State's apprenticeship laws do not meet the minimum
standards described in paragraph (b)(1) of this section; or
(ii) That the SAA is unable to be fully approved within one full
planning cycle after having been provisionally recognized, as described
in paragraph (c)(2) of this section.
(iii) The process and procedures for such denial of recognition are
described in Sec. 29.29.
(d) Retention of registration authority of the Office of
Apprenticeship. Notwithstanding any approval of a State Apprenticeship
Plan providing recognition to an SAA under this section, the
Administrator will retain the authority to register apprenticeship
programs and apprentices on both a local and nationwide basis for
Federal purposes in any State when the Administrator determines that a
sponsor seeking registration has satisfied the requirements for
registration described in this part and where such action would further
the interests of the National Apprenticeship System.
(e) Periodic reviews. OA will monitor and review the compliance of
an SAA to ensure that it is operating consistent with its approved
State Apprenticeship Plan, in instances where the Administrator
determines that such a review is warranted.
(f) Derecognition of State Apprenticeship Agency's full or
provisional recognition status. The Administrator may derecognize an
SAA with full or provisional recognition when the Administrator
determines that the SAA is not operating consistent with its approved
State Apprenticeship Plan. The processes and procedures for such
derecognition are described in Sec. 29.29.
(g) Suspension of provisionally approved State Apprenticeship
Agency. The Administrator may suspend the authority of a provisionally
approved SAA to register new apprenticeship programs for failure to
submit, and receive OA's approval of, a corrective action plan as
required in paragraph (c)(2) of this section. The Administrator will
provide written notice to the provisionally approved SAA of the
suspension, which will take effect 30 calendar days after the date of
the written notice. The suspension will end upon the State's submission
of a corrective action plan.
(h) Limitation of State activities without recognition. If OA
denies a State Apprenticeship Plan pursuant to paragraph (c)(3) of this
section, or derecognizes an SAA pursuant to paragraph (f) of this
section, the State must not conduct the activities specified in Sec.
29.26(a) until OA conveys full recognition, as described in paragraph
(c)(1) of this section, or provisional recognition, as described in
paragraph (c)(2) of this section.
Sec. 29.28 Reporting requirements for State Apprenticeship Agencies.
(a) SAAs are required to collect the information from sponsors
described in Sec. 29.25(a) and (b).
(b) On at least a quarterly basis, SAAs must report the information
collected from sponsors described in paragraphs (a) and (b)(1) of Sec.
29.25 to OA.
(c) On an annual basis, the SAA will report the information
collected underSec. 29.25(b)(2) to the Administrator.
(d) The Administrator will make the information described in
paragraph (c) of this section publicly available.
(e) SAAs may meet the requirements in paragraphs (a) through (c) of
this section by either:
(1) Utilizing a Department-provided case management system; or
(2) Maintaining a State system that is capable of reporting
individual apprentice record level information to OA in a manner
prescribed by the Administrator, and that meets minimum
[[Page 3296]]
security requirements prescribed by the Administrator.
Sec. 29.29 Denial of a State Apprenticeship Plan for recognition as a
State Apprenticeship Agency and derecognition of existing State
Apprenticeship Agencies.
(a) Process and procedures.
(1) If the Administrator denies a State Apprenticeship Plan
pursuant to Sec. 29.27(c)(3) or derecognizes an SAA pursuant to Sec.
29.27(f), the Administrator will issue a written notice that includes:
(i) The reason(s) for the denial or derecognition;
(ii) The needed remedial measure(s); and
(iii) The timeframe for addressing those measures, which will be no
longer than 12 months from the date of the written notice.
(2) If the State has failed to take adequate remedial measures in
the timeframe provided in the written notice, the Administrator may
issue a final determination that will include the reason(s) for the
denial or derecognition and state in the final determination that the
State may request a hearing with OALJ within 30 calendar days of the
date of the final determination.
(3) Requests for a hearing must be sent to OALJ within 30 calendar
days from the date of a final determination from the Administrator. A
copy of the request for a hearing must be simultaneously sent to the
Administrator, who must transmit it to the Associate Solicitor for
Employment and Training Legal Services, Office of the Solicitor, U.S.
Department of Labor. The Administrator will promptly provide OALJ with
the administrative file containing all documents relied on by the
Administrator or designee to deregister the program or to issue the
Administrator's final determination.
(4) The procedures contained in part 18 of this title will apply to
the disposition of the request for review except that:
(i) The Administrative Law Judge will receive, and make part of the
record, documentary evidence offered by any party and accepted at the
hearing. Copies thereof will be made available by the party submitting
the documentary evidence to any party to the hearing upon request.
(ii) Technical rules of evidence will not apply to hearings
conducted under this part, but rules or principles designed to assure
the production of the most credible evidence available and to subject
testimony to test by cross-examination will be applied, where
reasonably necessary, by the Administrative Law Judge conducting the
hearing. The Administrative Law Judge may exclude irrelevant,
immaterial, or unduly repetitious evidence.
(iii) The request for a hearing will not be considered to be a
complaint to which an answer is required.
(iv) The Administrative Law Judge may authorize discovery and the
filing of pre-hearing motions, and so limit them to the types and
quantities in the Administrative Law Judge's discretion will contribute
to a fair hearing without unduly burdening the parties.
(5) The Administrative Law Judge must issue a written decision
within 90 calendar days of the close of the hearing record. The
Administrative Law Judge must uphold the Administrator's decision
unless it is shown by the sponsor to be arbitrary, capricious, an abuse
of discretion, or otherwise not in accordance with the law. The
Administrative Law Judge's decision constitutes final agency action of
the Department unless, within 15 calendar days from receipt of the
decision, a party dissatisfied with the decision files a petition for
review with the ARB in accordance with part 26 of this title,
specifically identifying the procedure, fact, law, or policy to which
exception is taken. Any exception not specifically urged is deemed to
have been waived. A copy of the petition for review must be served on
OA at the same time in accordance with part 26 of this title.
Thereafter, the decision of the Administrative Law Judge remains final
agency action unless the ARB, within 30 calendar days of the filing of
the petition for review, notifies the parties that it has accepted the
case for review. The ARB may set a briefing schedule or decide the
matter on the record. The ARB must issue a decision in any case it
accepts for review within 180 calendars of the close of the record. If
a decision is not so issued, the Administrative Law Judge's decision
constitutes final agency action.
(6) An SAA may request voluntary withdrawal from its recognition
status for Federal purposes at any time. The Administrator will
derecognize the SAA after the State sends a formal notice of withdrawal
to the Administrator.
(b) Administrator actions after derecognition. When an existing SAA
has been denied recognition pursuant to Sec. 29.27(c)(3), has been
derecognized by OA pursuant to Sec. 29.27(f), or when an SAA voluntary
withdraws from recognition as described in paragraph (a)(6) of this
section, the Administrator must:
(1) Notify the sponsors in the State of the derecognition and
effect public notice of such derecognition.
(2) Notify the sponsors that, 45 calendar days after the date of
the determination to derecognize the SAA, the Department will cease to
recognize, for Federal purposes, each apprenticeship program previously
registered with the SAA, unless within that time, the sponsor submits
an application for registration with OA, pursuant to the following:
(i) Within 90 days of receiving the application for registration,
the Office of the Apprenticeship will review the application to
determine if it meets the requirements for registration described in
Sec. 29.10(a).
(ii) OA will approve an application for registration in accordance
with the procedures and requirements described in Sec. 29.10(b).
(iii) OA will deny an application for registration if the
application does not meet the requirements in Sec. 29.10(b). The
procedures described in Sec. 29.10(c) apply to any applications for
registration that are declined.
(c) State obligations after derecognition. Where an existing SAA
has been denied recognition, has been derecognized by OA, or has
voluntarily withdrawn from recognition, the State must:
(1) Provide all apprenticeship program standards, apprenticeship
agreements, completion records, cancellation and suspension records,
EEO compliance review files, and any other documents relating to the
State's registered apprenticeship programs, to the Department;
(2) Within 15 calendar days of receiving a final determination,
unless the State requests a hearing as described in paragraph (a)(3) of
this section, advise all sponsors that any benefits of registration for
Federal purposes are no longer available to the apprentices in its
apprenticeship program as of 45 calendar days after the date of the
Administrator's final determination. The communication from the State
must direct that all apprentices are referred to OA for information
about potential transfer to other registered apprenticeship programs;
and
(3) Cooperate fully with the Administrator during a transition
period.
Sec. 29.30 Apprenticeship requirements in other laws.
The Administrator or recognized SAA may provide a Certificate of
Participation to employers and government agencies to demonstrate a
program sponsor's or participating employer's compliance with any
Federal purpose or State benefit associated with a program's or
[[Page 3297]]
apprentice's participation in a registered apprenticeship program.
Disclosure of information in accordance with this section must comply
with applicable Federal or State information and privacy laws.
PART 30--EQUAL EMPLOYMENT OPPORTUNITY IN APPRENTICESHIP
0
2. The authority citation for part 30 continues to read as follows:
Authority: Sec. 1, 50 Stat. 664, as amended (29 U.S.C. 50; 40
U.S.C. 276c; 5 U.S.C. 301); Reorganization Plan No. 14 of 1950, 64
Stat. 1267, 3 CFR 1949-53 Comp. p. 1007.
0
3. Revise Sec. 30.2 to read as follows:
Sec. 30.2 Definitions.
The definitions in Sec. 29.2 also apply to this part.
0
4. Amend Sec. 30.3 by revising paragraph (b)(2)(i) to read as follows:
Sec. 30.3 Equal opportunity standards applicable to all sponsors.
* * * * *
(b) * * *
(2) * * *
(i) Publish its equal opportunity pledge--set forth in paragraph
(c) of this section--in the standards of apprenticeship required under
part 29 of this title, and in appropriate publications, such as
apprentice and employee handbooks, policy manuals, newsletters, or
other documents disseminated by the sponsor or that otherwise describe
the nature of the sponsorship;
* * * * *
0
5. Amend Sec. 30.5 by revising paragraphs (b)(2) and (c)(6) to read as
follows:
Sec. 30.5 Utilization analysis for race, sex, and ethnicity.
* * * * *
(b) * * *
(2) Schedule of analyses. Each sponsor is required to conduct an
apprenticeship program workforce analysis at each program review, and
again if and when 3 years have passed without a program review. This
updated workforce analysis should be compared to the utilization goal
established at the sponsor's most recent program review to determine if
the sponsor is underutilized, according to the process in paragraph (d)
of this section.
* * * * *
(c) * * *
(6) Sponsors, working with the Registration Agency, will conduct
availability analyses at each program review.
* * * * *
0
6. Amend Sec. 30.7 by revising paragraph (d)(2)(ii) to read as
follows:
Sec. 30.7 Utilization goals for individuals with disabilities.
* * * * *
(d) * * *
(2) * * *
(ii) Schedule of evaluation. The sponsor must conduct its
apprentice workforce analysis at each program review, and again if and
when 3 years have passed without a program review. This updated
workforce analysis, grouped according to major occupation group, should
then be compared to the utilization goal established under paragraph
(a) of this section.
* * * * *
0
7. Amend Sec. 30.10 by revising paragraph (a) to read as follows:
Sec. 30.10 Selection of apprentices.
(a) A sponsor's procedures for selection of apprentices must be
included in the written plan for standards of apprenticeship submitted
to and approved by the Registration Agency, as required under part 29
of this title.
* * * * *
0
8. Amend Sec. 30.12 by revising paragraphs (a)(3) and (f) to read as
follows:
Sec. 30.12 Recordkeeping.
(a) * * *
(3) Information relative to the operation of the apprenticeship
program, including but not limited to job assignments in all components
of the occupation as required under part 29 of this title, promotion,
demotion, transfer, layoff, termination, rates of pay, other forms of
compensation, conditions of work, hours of work, hours of training
provided, and any other personnel records relevant to EEO complaints
filed with the Registration Agency under Sec. 30.14 or with other
enforcement agencies;
* * * * *
(f) Access to records. Each sponsor must permit access during
normal business hours to its places of business for the purpose of
conducting on-site program reviews and complaint investigations and
inspecting and copying such books, accounts, and records, including
electronic records, and any other material the Registration Agency
deems relevant to the matter under investigation and pertinent to
compliance with this part. The sponsor must also provide the
Registration Agency access to these materials, including electronic
records, off site for purposes of conducting program reviews and
complaint investigations. Upon request, the sponsor must provide the
Registration Agency information about all format(s), including specific
electronic formats, in which its records and other information are
available. Information obtained in this manner will be used only in
connection with the administration of this part or other applicable EEO
laws.
0
9. Amend Sec. 30.13 by revising the section heading, paragraph (a),
the introductory text of paragraph (b) and paragraph (c) to read as
follows:
Sec. 30.13 Program reviews.
(a) Conduct of program reviews. The Registration Agency will
regularly conduct program reviews to determine if the sponsor maintains
compliance with the EEO requirements contained in this part, and will
also conduct such reviews when circumstances so warrant. A program
review under this part may consist of, but is not limited to,
comprehensive analyses and evaluations of each aspect of the
apprenticeship program through off-site reviews, such as desk audits of
records submitted to the Registration Agency, and on-site reviews
conducted at the sponsor's establishment that may involve examination
of records required under this part; inspection and copying of
documents related to recordkeeping requirements of this part; and
interviews with employees, apprentices, journeyworkers, supervisors,
managers, and hiring officials.
(b) Notification of program review findings. Within 45 days of
completing a program review, the Registration Agency must present a
written Notice of Program Review Findings to the sponsor's contact
person through registered or certified mail, with return receipt
requested. If the program review indicates a failure to comply with
this part, the Registration Agency will so inform the sponsor in the
Notice and will set forth in the Notice the following:
* * * * *
(c) Compliance. (1) When a sponsor receives a Notice of Program
Review Findings that indicates a failure to comply with this part, the
sponsor must, within 45 days of notification, either implement a
compliance action plan and notify the Registration Agency of that plan
or submit a written rebuttal to the Findings.
* * * * *
0
10. Amend Sec. 30.14 by revising paragraphs (c)(1)(iv) and (v) and
adding paragraph (vi) to read as follows:
Sec. 30.14 Complaints.
* * * * *
(c) * * *
(1) * * *
[[Page 3298]]
(iv) Complete a thorough investigation of the allegations of the
complaint and develop a complete case record that must contain, but is
not limited to, the name, address, and telephone number of each person
interviewed, the interview statements, copies, transcripts, or
summaries (where appropriate) of pertinent documents, and a narrative
report of the investigation with references to exhibits and other
evidence that relate to the alleged violations;
(v) Provide written notification of the Registration Agency's
findings to both the respondent and the complainant; and
(vi) Protect the identity of the complainant to the extent
practicable.
* * * * *
0
11. Amend Sec. 30.15 by revising the introductory text and paragraph
(b) to read as follows:
Sec. 30.15 Enforcement actions.
Where the Registration Agency, as a result of a program review,
complaint investigation, or other reason, determines that the sponsor
is not operating its apprenticeship program in accordance with this
part, the Registration Agency must notify the sponsor in writing of the
specific violation(s) identified and may:
* * * * *
(b) Suspend the sponsor's right to register new apprentices if the
sponsor fails to implement a compliance action plan to correct the
specific violation(s) identified within 45 days from the date the
sponsor is so notified of the violation(s), or, if the sponsor submits
a written response to the findings of noncompliance, fails to implement
a compliance action plan within 45 days of receiving the Registration
Agency's notice upholding its initial noncompliance findings. If the
sponsor has not implemented a compliance action plan within 45 days of
notification of suspension, the Registration Agency may institute
proceedings to deregister the program in accordance with the
deregistration proceedings set forth in part 29 of this title.
* * * * *
0
12. Amend Sec. 30.17 by revising paragraph (a)(3) to read as follows:
Sec. 30.17 Intimidation and retaliation prohibited.
(a) * * *
(3) Furnished information to, or assisted or participated in any
manner, in any investigation, program review, proceeding, or hearing
under this part or any Federal or State equal opportunity law; or
* * * * *
0
13. Amend Sec. 30.18 by revising paragraphs (a)(1), (3), and (4), (b),
(c)(1) and (3), and (d) to read as follows:
Sec. 30.18 State Apprenticeship Agencies.
(a) State EEO plan. (1) Within 1 year of January 18, 2017, unless
an extension for good cause is sought and granted by the Administrator,
an SAA that seeks to obtain or maintain recognition under part 29 of
this title must submit to OA a State EEO plan that:
* * * * *
(3) If the State does not submit a revised State EEO plan that
addresses identified nonconformities within 90 days from the date that
OA provides the SAA with written notification of the areas of
nonconformity, OA will begin the process set forth in part 29 of this
title to rescind recognition of the SAA.
(4) An SAA that seeks to obtain or maintain recognition must obtain
the Administrator's written concurrence in any proposed State EEO plan,
as well as any subsequent modification to that plan, as provided in
part 29 of this title.
(b) Recordkeeping requirements. A recognized SAA must keep all
records pertaining to program reviews, complaint investigations, and
any other records pertinent to a determination of compliance with this
part. These records must be maintained for 5 years from the date of
their creation.
(c) Retention of authority. As provided in part 29 of this title,
OA retains the full authority to:
(1) Conduct program reviews of all registered apprenticeship
programs;
* * * * *
(3) Deregister for Federal purposes an apprenticeship program
registered with a recognized SAA as provided in part 29 of this title;
and
* * * * *
(d) Derecognition. A recognized SAA that fails to comply with the
requirements of this section will be subject to derecognition
proceedings, as provided in part 29 of this title.
0
14. Add Sec. 30.20 to read as follows:
Sec. 30.20 Severability.
Should a court of competent jurisdiction hold any portion of any
provision(s) of this part to be invalid, the provision will be
construed so as to continue to give the maximum effect to the provision
permitted by law, unless such holding is one of total invalidity or
unenforceability, in which event the provision or subprovision will be
severable from this part and will not affect the remainder thereof.
Brent Parton,
Principal Deputy Assistant Secretary for Employment and Training,
Labor.
[FR Doc. 2023-27851 Filed 1-16-24; 8:45 am]
BILLING CODE 4510-FR-P
