View Rule

The Department is revising title 29 CFR part 29, Labor Standards for the Registration of Apprenticeship Programs to establish a process for recognizing Standards Recognition Entities which will in turn recognize high-quality, industry-recognized apprenticeship programs, and other conforming updates.

Statement of Need:

Executive Order 13801 (82 FR 28229), issued by the President on June 15, 2017, directed the Secretary of Labor (in consultation with the Secretaries of Education and Commerce) to consider proposing regulations under 29 U.S.C. 50 that would promote the development of apprenticeship programs by third parties.  These third parties may include trade and industry groups, companies, non-profit organizations, unions, joint labor-management organizations, and other organizations. The Secretary has determined that the Department will issue new apprenticeship regulations to address the directives of the Executive Order.

Summary of the Legal Basis:

The National Apprenticeship Act of 1937 (also known as the Fitzgerald Act), 29 U.S.C. 50, gives the Secretary broad power to promote, help create, and set standards for apprenticeship programs.  The Act authorizes and directs 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, to cooperate with State agencies engaged in the formulation and promotion of standards of apprenticeship, and to cooperate with the Secretary of Education in accordance with section 17 of title 20.

Alternatives:

The Department considered two regulatory alternatives related to paragraph 29.22 (j).  Under the first alternative, SREs would be required to make performance data publicly available every five years rather than annually.  Under the second alternative, SREs would be required to make performance data publicly available every quarter rather than annually.

Anticipated Costs and Benefits:

The Department estimates an anticipated cost of $7,256,096 annually for this regulatory action.  When the Department uses a perpetual time horizon to allow for cost comparisons under E.O. 13771, the perpetual annualized costs are $7,256,096 (with a present value of $103,658,516) at a discount rate of 7 percent in 2016 dollars.

Risks:

This action does not affect public health, safety, or the environment.