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The regulations at 29 CFR part 29 addressing labor standards of apprenticeship and the governance of the National Apprenticeship System were last updated in October 2008 to increase administrative flexibility, ensure program quality, and promote registered apprenticeship opportunity.  The Department plans to revise these regulations to strengthen, expand, modernize, and diversify the National Apprenticeship System by enhancing worker protections and equity, improving the quality of registered apprenticeships, revising the state governance provisions, and more clearly establishing critical pipelines to registered apprenticeships such as pre-apprenticeships so that the National Apprenticeship System is more responsive to current worker and employer needs.  The Department will also make technical and conforming adjustments to the current text of 29 CFR part 30 (governing equal employment opportunity in apprenticeships) as appropriate. For additional information, please see the Department’s regulatory plan narrative statement.

Statement of Need:

The regulations governing the minimum labor standards for the registration of apprenticeship programs at Title 29 of the Code of Federal Regulations (CFR) part 29 have not been updated since 2008.  With this action, the Department seeks to ensure that the regulatory framework for the Registered Apprenticeship System remains current with a range of emerging apprenticeship practices and program structures that have developed since that time. The proposed revisions will enable the Registered Apprenticeship System to continue its vital role in developing a skilled, competitive American workforce.  

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, 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:

 Alternatives are described in the text of the NPRM, and the public will be provided an opportunity to comment upon them.

Anticipated Costs and Benefits:

Registered apprenticeships provide individuals with valuable training and skill development, and provide businesses with a structure for developing a diverse pool of skilled workers. Although the Department is unable to quantify the anticipated benefits due to data limitations, the proposed rule is expected to result in annualized costs of $152 million during the first 10 years (2025-2034) at a discount rate of 7 percent based on preliminary estimates.  

Risks:

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