DOL Proposes Major Changes to Registered Apprenticeship Programs
The U.S. Department of Labor (DOL) has proposed significant changes to registered apprentice programs. The new rules aim to enhance apprentices' protections, boost transparency, and clarify federal and state roles in the National Apprenticeship System.
The DOL proposes to modify the criteria and processes for determining the suitability of new and existing registered apprenticeships. The Office of Apprenticeship (OA) will now handle these determinations. Apprentice programs, sponsors, employers, and other stakeholders have until March 18, 2024, to comment on the proposal.
The proposed rule introduces stringent recordkeeping and reporting requirements for apprentice programs. It also mandates that apprentice and training plans include details about related instruction, apprentices' credentials, wages, and program costs.
The DOL aims to increase labor market mobility for apprentices by prohibiting non-compete clauses and non-disclosure provisions in apprentice agreements. Additionally, the proposal modifies governance provisions, expanding the OA's role and clarifying State Apprenticeship Agencies' (SAAs') responsibilities.
The rule also introduces a unitary approach for on-the-job training (OJT) and related instruction. It requires at least 2,000 hours of OJT and 144 related instruction hours for each 2,000 hours on the job. A graduated wage increase schedule is proposed, with the final wage step being no less than 75% of the journey-worker wages.
The DOL's proposed rules, if finalized, will significantly reshape registered apprentice programs. They aim to better protect apprentices, promote transparency, and clarify federal and state roles in the National Apprenticeship System.
