National Apprenticeship System Enhancements

Federal RegisterJan 17, 2024

Ask Donna

What actually matters in this document.

Text

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:

OIRA_submission@omb.eop.gov.

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

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

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

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 § 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

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,

as amended by the Strengthening Career and Technical Education for the 21st Century Act

(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.

Public Law 109-270, 120 Stat. 683 (2006).

Public Law 115-224, 132 Stat. 1563 (2018).

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.

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,

as amended by the Workforce Innovation and

Opportunity Act

(as codified at 29 U.S.C. ch. 32) (WIOA)); and educational institutions that prepare students for quality careers.

In registered apprenticeships, such training plans are referred to as “work process schedules.”

Public Law 105-220, 112 Stat. 936 (1998).

Public Law 113-128, 128 Stat. 1425 (2014).

Apprenticeship is an international workforce development strategy that provides high-quality training for desirable careers in many countries.

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.

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).

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.

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.

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.

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.

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).

OA, “Explore Registered Apprenticeship,” Aug. 2022,

https://www.apprenticeship.gov/sites/default/files/dol-industry-factsheet-apprenticeship101-v10.pdf.

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.

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.

81 FR 92026 (Jan 18, 2017) (2016 EEO final rule).

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.

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.

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)

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

projects to pay apprentices participating in a registered apprenticeship program at less than the prevailing wage.

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.

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,

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.

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.

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).

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.

DOL, “The Good Jobs Initiative Impact,”

https://www.dol.gov/general/good-jobs/gji-impact

(last visited Oct. 2, 2023).

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).

In 2022, there were 599,246 active apprentices participating in 24,400 active programs (of which, 2,343 were new).

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.

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).

Apprenticeship data by fiscal year is accessible at OA, “About Apprenticeship,”

https://www.dol.gov/agencies/eta/apprenticeship/about

(last visited July 20, 2023).

Ibid.

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.

Working with stakeholders like the ACA,

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.

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.

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

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

of the ACA and its 2023 Biennial Report,

which incorporates the ACA's 2022 Interim Report recommendations and includes additional guideposts for OA to consider related to registered apprenticeship;

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, “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.

• 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;

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.

• 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;

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).

• 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;

and

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.

• 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

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.

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.

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.

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,

investments to support registered apprenticeship intermediaries focused on specific industries or equity,

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.

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,

$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.

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

grants.

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.

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.

Additionally, the principles have been reflected or referenced in funding opportunities implementing infrastructure investments through the Bipartisan Infrastructure Law and the IRA.

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).

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.

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)

DOL, WANTO Grant Program,

https://www.dol.gov/agencies/wb/grants/wanto

(last visited Oct. 23, 2023).

See

“H-1B Skills Training Grants,”

https://www.dol.gov/agencies/eta/skills-grants/h1-b-skills-training

(last visited July 20, 2023).

ETA, “State Apprenticeship Expansion Formula,” FOA-ETA-23-09, Mar. 17, 2023,

https://www.grants.gov/web/grants/view-opportunity.html?oppId=345785.

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).

See

DOL, “The Good Jobs Initiative,”

https://www.dol.gov/general/good-jobs/principles

(last visited July 20, 2023).

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.

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.

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.

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).

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.

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

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.

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.

ETA, “State Apprenticeship Expansion Formula,” FOA-ETA-23-09, Mar. 17, 2023,

https://www.grants.gov/web/grants/view-opportunity.html?oppId=345785.

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.

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.

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.

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,

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.

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.

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

), 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).

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).

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,

technology,

and clean energy

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

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.

Infrastructure Investment and Jobs Act, Public Law 117-58, 135 Stat. 429 (2021).

Creating Helpful Incentives to Produce Semiconductors Act of 2022 (CHIPS Act), div. A of Public Law 117-167, 136 Stat. 1366 (2022).

IRA, Public Law 117-169, 136 Stat. 1818 (2022).

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,

invest and encourage participation in workforce readiness and pre-apprenticeship programs,

and pursue opportunities for collaboration with other sectors (such as education) to promote awareness and uptake of pre-apprenticeships and registered apprenticeships.

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.

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.

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.

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.

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

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

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.

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.

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 §§ 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

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.”

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.

72 FR 71019 (Dec. 13, 2007) (NPRM and request for comments).

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.

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.”

26 U.S.C. 45(b)(8)(E)(ii);

see

Public Law 117-169 sec. 13101(f)(8)(E)(ii).

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 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

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 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.

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.

Strengthening Career and Technical Education for the 21st Century Act, Public Law 115-224, 132 Stat. 1563 (2018).

Proposed § 29.2 would add the existing definition of “career pathway” from WIOA.

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.

29 U.S.C. 3102(7); WIOA sec. 3(7).

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 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

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.

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.

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.

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,

and competency-based occupational frameworks,

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.

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).

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).

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 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

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 § 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.

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 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 § 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 § 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.”

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 on-the-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.

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.

20 U.S.C. 1001

et seq.

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 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.

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.

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 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 § 29.8(a)(8).

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.

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.

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

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.

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.

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).

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).

Proposed § 29.2 would revise the definition of “journeyworker” to simplify the definition and clarify that

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 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.

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.

20 U.S.C. 8101

et seq.

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. 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

Standards.

The Department proposes to add this definition here in conjunction with the proposed addition at § 29.15.

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.

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 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,

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.

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.

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 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 § 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.

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 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).

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.

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.

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 § 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

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 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 § 29.25.

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.

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.

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

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 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 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 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

postsecondary education classes; payments and fees for employment and training-related applications, tests, and certifications; needs-related payments; and legal aid services.

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.

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.

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 § 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

This text is long and has been trimmed here. Open the source document for the complete record.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.