On October 29, 2008, The U.S. Department of Labor (DOL) issued its final rule revising the federal regulations (29 CFR part 29) that implement the National Apprenticeship Act. AGC submitted comments in March 2008, generally in support of the revisions as proposed. Many AGC comments were taken into account in the final rule.
This is the first overhaul of the regulations in 30 years and substantially changes both how an apprentice can become a journeyworker and how the system is managed. The final rule takes effect December 29, 2008, but State Apprenticeship Agencies have up to an additional two years from that date to implement the changes.
Among the changes requested by AGC that were incorporated into the final rule:
- The definition of a “competency-based program” was changed to make it clear that apprenticeship programs using this approach must still require an on-the-job component and that the program standards must “Identify an appropriate means of testing and evaluation for such competencies;”
- An apprenticeship program may go for up to one year without any apprentices, to give small programs that may to go for short periods of time with no apprentices the ability to maintain their status;
- The section on program performance evaluation was amended to add that any “tools and factors” must adhere to goals and policies as outlined by the U.S. Department of Labor. As originally proposed registration agencies were free to add any “tools and factors” to the three items listed by the federal government; and
- The definition of “completion rates” was changed so that programs will be compared to a “national standard” for that occupation and industry instead of compared to other programs in the same geographic area.
- Adds two methods – competency-based and a hybrid approach – to the traditional, time-based method for an apprentice to obtain journeyworker status;
- Allows for the inclusion of technology-based and distance learning;
- Gives registration agencies the option to issue interim credentials;
- Establishes a 90-day timeframe for registration agencies to process sponsor requests for registering and modifying program standards and 45-day timeframes for sponsors to notify registration agencies regarding other employment and apprenticeship agreement changes;
- Provides for reciprocal approval, for federal purposes, of apprentices, apprenticeship programs, and standards that are registered in other states for all industries and occupations. The rule requires apprenticeship program sponsors seeking reciprocal approval to meet the wage and hour provisions and apprentice ratio standards of the reciprocal state;
- Introduces provisional, one-year approval for newly registered programs. After one year, programs meeting the regulatory standards either may be permanently approved or have their provisional registration extended through the end of the first training cycle;
- Limits a registration agency to a State Apprenticeship Agency. State Apprenticeship Councils will continue to be required for advisory or regulatory purposes but can no longer be a registration agency; and
- Includes a new section, 29.6, on performance standards. Programs will be evaluated on the basis of completion rates, the use of quality assurance assessments, and Equal Employment Opportunity Compliance Reviews. Programs with completion rates below the national average for that industry and occupation will be provided with technical assistance to help them meet the national average.