Apprenticeship Program Regulations

Wednesday,
October 29, 2008

Part II

Department of Labor
Employment and Training Administration

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29 CFR Part 29
Apprenticeship Programs, Labor
Standards for Registration, Amendment of
Regulations; Final Rule

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Federal Register / Vol. 73, No. 210 / Wednesday, October 29, 2008 / Rules and Regulations

DEPARTMENT OF LABOR
Employment and Training
Administration
29 CFR Part 29
RIN 1205–AB50

Apprenticeship Programs, Labor
Standards for Registration,
Amendment of Regulations
Employment and Training
Administration, Labor.
ACTION: Final rule.
AGENCY:

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SUMMARY: The Department of Labor
(DOL or Department) is issuing this final
rule to update regulations that
implement the National Apprenticeship
Act of 1937. 29 U.S.C. 50. DOL issued
a notice of proposed rulemaking
(NPRM) on December 13, 2007,
outlining proposed updates to labor
standards, policies and procedures for
the registration, cancellation and
deregistration of apprenticeship
programs, apprenticeship agreements,
and administration of the National
Apprenticeship System. 72 FR 71020,
Dec. 13, 2007.
DATES: Effective date: The final rule will
become effective December 29, 2008.
FOR FURTHER INFORMATION CONTACT: John
Ladd, Administrator, Office of
Apprenticeship, 200 Constitution
Avenue, NW., Room N5311,
Washington, DC 20210, e-mail
[email protected]; Telephone (202)
693–2796 (this is not a toll-free number)
or (877) 889–5627 (TTY/TDD).
SUPPLEMENTARY INFORMATION: This
preamble is divided into three sections.
Section I provides general background
information on the development of the
final rule. Section II discusses the
comments and regulatory changes in the
final rule. Section III covers the
administrative requirements for this
final rule as mandated by statute and
executive order.

I. Background
On December 13, 2007, the
Department published an NPRM (72 FR
71020, Dec. 13, 2007) proposing to
revise the regulations that implement
the National Apprenticeship Act of
1937. We initially invited comments for
a 60-day period through February 12,
2008. Several commenters submitted
requests for an extension of the
comment period. In response, we
published a notice (73 FR 7693, Feb. 11,
2008) extending the comment period by
30 days. The comment period closed on
March 12, 2008.
Unique, individual comments
received during the comment period

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following publication of the NPRM have
been posted on www.regulations.gov.
Although we considered all comments,
duplicate copies of comments were not
posted.
The National Apprenticeship Act of
1937 authorized DOL 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 their inclusion 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.
The Department promulgated
regulations for implementing the
National Apprenticeship Act in 1977.
The regulations govern the National
Apprenticeship System in which the
Department, State agencies, industry
leaders, employers, employer
associations, labor-management
organizations (primarily consisting of
labor organizations and employers), and
educational institutions collaborate,
develop, operate, and oversee
apprenticeship programs that draw on
the skills and knowledge that business
and industry needs from its employees,
to ensure that apprentices develop upto-date and relevant skills. In the 30
years since, the Department and its
partners in the National Apprenticeship
System have recognized that
technological advances, demographic
changes, and globalization have
significantly altered the context in
which apprenticeship programs operate.
The Department and its partners
recognize that for registered
apprenticeship to keep pace with these
changes, and to continue
apprenticeship’s vital role in developing
a skilled, competitive workforce, the
regulatory framework for registration of
apprenticeship programs and
administration of the National
Apprenticeship System must be
updated. For example, many program
sponsors have requested more flexibility
in the requirements for provision of
related technical instruction. Other
program sponsors, particularly in
industries that have not traditionally
used registered apprenticeship, have
sought flexibility in the requirements for
length of time in the on-the-job learning
component so that apprentices could
progress toward program completion
based on demonstration of
competencies. The Government
Accountability Office’s August 2005
report, ‘‘Registered Apprenticeship
Programs: Labor Can Better Use Data to
Target Oversight,’’ and the Office of

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Management and Budget’s Program
Assessment Rating Tool (PART) review
of Registered Apprenticeship, have
emphasized the need to improve
program quality and accountability in
the National Apprenticeship System.
The December 13, 2007 NPRM
proposed to revise 29 CFR part 29 based
on these developments and in
consultation with the Advisory
Committee on Apprenticeship (ACA),
the National Association of State and
Territorial Apprenticeship Directors
(NASTAD), and State Apprenticeship
Agencies. This final rule implements
changes to 29 CFR part 29 that will
increase flexibility, enhance program
quality and accountability, and promote
apprenticeship opportunity in the 21st
century, while continuing to safeguard
the welfare of apprentices. In addition
to the specific changes discussed below,
we have made minor editorial changes
throughout the final rule.
The final rule takes effect on
December 29, 2008. However, States
will have up to a 2-year period in which
to make the changes to State law,
regulation and/or policy needed to come
into compliance with this final rule
before having to apply for continued
recognition under § 29.13(c). The
Department will work with States to
make as seamless as possible the
transition from State laws recognized
under current regulations to State laws
recognized under the final rule.
II. Discussion of the Comments and
Regulatory Changes
Summary of Comments
The Department received 2,660
submissions commenting on the NPRM
by the close of the comment period. All
comments were carefully reviewed. We
found 2,437 to be cover letters, form
letters or duplicates, a preponderance of
which were from members of a single
employer association supporting the
proposed regulatory changes. Of the 223
non-duplicative comments, the majority
were from labor organizations and
employer associations that sponsor
registered apprenticeship programs, and
state government entities. All relevant
comments are discussed below. In
response to these comments we made
several substantive changes which are
discussed below.
Twenty-five commenters expressed
general support for the NPRM and
agreed that the proposed changes will
update, improve, and advance the
mission of the National Apprenticeship
System to meet the needs of today’s
industry and economy. Other
commenters generally commended the
Department for improving and

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promoting registered apprenticeship
and the National Apprenticeship
System.
Twenty-five commenters generally
preferred the current regulatory
framework for registered apprenticeship
over the proposed changes, stating that
the current regulations work well and
that the proposed changes are
unnecessary. We also received
comments indicating disapproval of the
proposed changes due to concerns over
the potential impact on State agencies.
Additional commenters suggested that
the proposed changes may impact
certain apprenticeship programs more
than others. A few commenters
disapproved of the proposed changes
due to the potential implications for
apprentices.
Discussion of Comments
Purpose and Scope (§ 29.1)
A few commenters agreed with the
addition to the Purpose and Scope of
the phrase ‘‘promote apprenticeship
opportunity.’’ They noted that this
addition is a fundamental objective of
the National Apprenticeship Act and
should be expressly included in DOL
regulations.
Response: After review of the
comments we will promulgate the rule
as proposed.

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Definitions (§ 29.2)
Section 29.2 clarifies and redesignates
existing definitions and establishes new
definitions for certain terms used in the
registration of apprenticeship programs
and in the ongoing operations of the
National Apprenticeship System. We
proposed to carry forward the following
existing definitions for terms defined in
the original regulations:
‘‘administrator,’’ ‘‘apprentice,’’
‘‘apprenticeship program,’’
‘‘cancellation,’’ ‘‘Department,’’
‘‘employer,’’ ‘‘Federal purposes,’’
‘‘registration of an apprenticeship
agreement,’’ ‘‘registration of an
apprenticeship program,’’ ‘‘sponsor,’’
and ‘‘State.’’ Accordingly, we did not
invite comments on these terms.
Similarly, the final rule carries forward
the definitions for these terms, as
contained in the existing regulations. Of
the proposed new and amended
definitions, we did not receive
comments on the definitions for ‘‘Office
of Apprenticeship,’’ ‘‘Registration
Agency,’’ ‘‘technical assistance,’’ and
‘‘State office.’’ We made no changes to
the proposed definitions of these terms.
We received one comment about the
definitions in general. The commenter
argued that the definitions in § 29.2
would require State Apprenticeship

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Agencies to control and direct State
Apprenticeship Councils, thus reversing
traditional authority without any clear
explanation of why the Department
wants to change the council-agency
relationship. The commenter also
asserted that the definitions are an
unauthorized intrusion on a State’s
legislative rights and priorities.
Response: We have determined that
State Apprenticeship Agencies are the
appropriate entities to receive the
Department’s grant of authority to
register apprenticeship programs and
apprentices for Federal purposes. For
reasons enumerated below, we require
the State Apprenticeship Agency to
determine the role of the State
Apprenticeship Council. Under the
existing regulatory scheme, the
Department’s oversight of the National
Apprenticeship System has been
complicated by the fact that States in
which the Registration Agencies are
State Apprenticeship Councils vary
considerably in their policies and
procedures for the administration of
registered apprenticeship for Federal
purposes. For example, we have found
it difficult to hold State Apprenticeship
Councils accountable for conformity
with the requirements of part 29
because the Councils are sometimes
comprised of independent, appointed
individuals, who may not be answerable
to the State government agency that
actually operates the daily functions of
registered apprenticeship for Federal
purposes in the State. In another case,
the State Apprenticeship Council’s
limited involvement in the full time
operations of the State’s registered
apprenticeship operations has impeded
the Department’s working relationship
with the State Apprenticeship Council.
In other instances, State Apprenticeship
Councils have not made determinations
about approval of apprenticeship
program standards in a timely manner.
In order to achieve consistency within
the National Apprenticeship System for
the promotion of registered
apprenticeship opportunities and for the
registration of apprenticeship standards
that meet the requirements of this part,
we have determined that the
relationship between the Federal
government and the entities that act on
our behalf must be between two
government agencies: DOL and the
cabinet-level government agency in each
State’s government that operates and
manages the functions of registered
apprenticeship in that State. At the
same time, we recognize the
considerable value that State
Apprenticeship Councils provide for the
promotion and establishment of

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apprenticeship programs. State
Apprenticeship Council members are
often closely associated with
apprenticeship program sponsors and
can directly facilitate linkages between
apprentices and program sponsors. As
explained below in the discussion of
§ 29.13(a)(2), States seeking recognition
from the Department are still required to
establish State Apprenticeship Councils
for advisory and or regulatory purposes.
Under the revised regulatory framework,
where a State has been ‘‘recognized,’’
the State Apprenticeship Council must
operate at the direction of the State
Apprenticeship Agency. Having given
full consideration to the general
comment about the impact of the
proposed definitions on the relationship
between State Apprenticeship Councils
and State Apprenticeship Agencies, we
are promulgating the definitions for
State Apprenticeship Agency and State
Apprenticeship Council as proposed.
‘‘Apprenticeship Committee
(Committee)’’
Five commenters addressed the
proposed definition of ‘‘apprenticeship
committee,’’ which clarified that an
apprenticeship agreement is between an
apprentice and either the apprentice’s
program sponsor, or an apprenticeship
committee acting as an agent for the
program sponsor. One commenter
supported the definition as proposed.
Other commenters noted that use of the
term ‘‘worker’’ may be confusing in the
parenthetical notation in paragraph (b),
which defines a non-joint committee as
‘‘a unilateral or group non-joint (may
include workers) committee [which] has
employer representatives but does not
have a bona fide collective bargaining
agent as a participant.’’ The commenter
suggested that for consistency, the term
‘‘employee’’ should replace the term
‘‘worker.’’ Another commenter
suggested that the incumbent workforce
of a program sponsor is a stakeholder
that should be included in the
definition of ‘‘apprenticeship
committee,’’ regardless of the status of a
collective bargaining agreement in a
program sponsor’s workplace. Another
commenter recommended removing the
terms ‘‘non-joint,’’ in paragraph (b), and
‘‘joint’’ in paragraph (a), which specifies
that ‘‘a joint committee is composed of
equal number of representatives of the
employer(s) and of the employees
represented by a bona fide collective
bargaining agent.’’ The commenter
suggested the phrase, ‘‘unilateral or
group, which shall include equal
numbers from employer(s) and
employees.’’ Another commenter
suggested that the proposed change in
which an apprenticeship committee acts

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as an agent of the apprenticeship
program sponsor, is not the
apprenticeship program sponsor, and is
to be subordinate to the apprenticeship
program sponsor, appears to be
inconsistent with the core concepts of
the Employee Retirement Income
Security Act of 1974 (ERISA).
Response: We agree with the
suggestion that the use of the term
‘‘workers,’’ in place of ‘‘employees,’’
may cause confusion, and so we have
changed the definition by replacing
‘‘workers’’ with ‘‘employees’’ in
paragraph (2). We do not agree with the
suggestion to delete the terms ‘‘joint and
non-joint.’’ The commenters suggested
replacement wording does not
adequately provide the flexibility
needed to address the variety of
circumstances faced by apprenticeship
committees across the nation. Nor are
we convinced that the terms ‘‘joint and
non-joint’’ are problematic. These terms
are well-recognized and used
throughout the National Apprenticeship
System. Accordingly, we have kept the
terms ‘‘joint and non-joint.’’ We also do
not agree with the suggestion that a
program sponsor’s incumbent workforce
should be required members of an
apprenticeship committee. The
determination to include employees on
an apprenticeship committee is most
appropriately addressed by the program
sponsor, not DOL. As mentioned, one
comment noted that the definition of
‘‘apprenticeship committee’’ may be
inconsistent with ERISA because it
might be read as requiring the
apprenticeship committee to always act
in the sponsor’s interest, rather than in
the interest of the participants when the
committee is carrying out fiduciary
responsibilities. Although we do not
agree with this reading of the definition,
we have modified the definition to
avoid confusion on this point.
‘‘Certification or Certificate’’
Three commenters expressed concern
over the potential effect of paragraph (a)
of the proposed definition of
‘‘certification or certificate’’ on
individual programs that are currently
using State-approved industry
standards. Paragraph (a) provides that in
order to receive certification from the
Office of Apprenticeship, national
guidelines for apprenticeship standards
which are developed by a national
committee or organization for policy or
guideline use by local affiliates must
conform to the standards of
apprenticeship set forth in § 29.5.
Commenters stated that standards
approved by State Apprenticeship
Agencies are more trade-specific and
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any proposed national guidelines for
apprenticeship standards. They also
stated that it would be problematic to
allow an outside ‘‘national committee or
organization’’ to dictate the direction of
individual programs and concluded that
national guidelines for apprenticeship
standards will ‘‘erode apprenticeship
standards by trade, and blend multiple
trades into one standard.’’ In addition,
a few commenters questioned who
would set the standards used in national
guidelines for apprenticeship standards.
Response: These comments appear to
reflect a misunderstanding of the
current definitions of ‘‘certification or
certificate.’’ The purpose of national
guidelines for apprenticeship standards,
as established by the definition of
‘‘certification’’ in the existing
regulations, is to provide policy and
guidance to local affiliates of national
organizations in developing standards
for approval and registration. National
Guideline Standards are developed by
national committees or organizations,
joint or unilateral, and are certified by
DOL’s Office of Apprenticeship as
substantially conforming to the
requirements of 29 CFR parts 29 and 30.
When local affiliates develop local
standards for registration, even though
the local standards may be based upon
the organizations’ National Guideline
Standards, they must meet all the
requirements of and be approved by the
Registration Agency in that State. Thus,
the approval of national guidelines for
apprenticeship standards in no way
precludes a State Apprenticeship
Agency or a local sponsor from
developing apprenticeship standards
that are more trade-specific or
protective. This flexibility does not,
however, authorize a State
Apprenticeship Agency to develop or
approve standards that improperly
restrict registered apprenticeship
opportunities. Therefore, we are
promulgating the definition of
‘‘certification or certificate’’ as
proposed.
‘‘Competency’’
Sixteen commenters weighed in on
the proposed definition of
‘‘competency,’’ which means ‘‘the
attainment of manual or technical skills
and knowledge, as specified by an
occupational standard.’’ Many
expressed apprehension over the
implications of the definition,
suggesting that it does not clearly
articulate how competency will be
measured (e.g., on a set of validated
industry and trade-specific standards).
Others noted that the definition does
not mandate specific types of training
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often critical to meet industry accepted
guidelines for journey-level status.
Finally, others raised concerns that with
this definition, journeyworker status
will be determined in a subjective
manner, without strict standards for
objective program administration.
Response: We agree that the definition
needs to address the measurement of
competency with greater specificity.
Therefore, we have revised the proposed
definition to provide for the ‘‘attainment
of manual, mechanical or technical
skills and knowledge, as specified by an
occupational standard and
demonstrated by an appropriate written
and hands-on measurement of
proficiency.’’ To align with the criteria
for apprenticeable occupations
established under § 29.4(c), the final
rule adds the term ‘‘mechanical’’ as a
descriptor of the skills and knowledge
that are attained.
Regarding concerns that the definition
does not require specific types of
training and that journeyworker status
will be determined in a subjective
manner, we have concluded that
apprenticeship programs need
flexibility when setting the
requirements for training and the
attainment of journeyworker status, so
that the program standards can take into
account the circumstances of particular
occupations and programs.
Additionally, we note that the
requirement for an apprenticeable
occupation to include on-the-job
learning as specified in § 29.4(c), and
the requirements for apprenticeship
program standards to include on-the-job
learning as specified in § 29.5(b)(2) and
related instruction specified in
§ 29.5(b)(4), address concerns regarding
specific training. Therefore, we do not
adopt the comments that favor a more
prescriptive approach to those matters
in the definition of ‘‘competency.’’
‘‘Completion Rate’’
Several commenters requested a
formal definition of the term
‘‘completion rate,’’ stating that further
guidance was necessary for evaluating
program performance based on a
completion rate.
Response: We agree that a definition
of ‘‘completion rate’’ is necessary to
facilitate compliance with the
requirement in § 29.6 to evaluate the
performance of apprenticeship
programs, which is a critical component
of strengthening accountability for
program outcomes. The final rule adds
a definition for the term ‘‘completion
rate’’ to mean ‘‘the percentage of an
apprenticeship cohort who receive a
certificate of apprenticeship completion
within 1 year of the projected

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completion date. An apprenticeship
cohort is the group of individual
apprentices registered to a specific
program during a 1 year time frame.’’
This definition is consistent with the
methodology used by other Federal
employment and training programs,
which measure program outcomes by
calculating rates of program participants
who successfully achieve a specific
outcome such as entering employment
or retaining employment. Consistency
in methodology will minimize the
implementation burden on Registration
Agencies and will further align
registered apprenticeship with other
workforce investment programs.

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‘‘Electronic Media’’
Although commenters did not provide
any comments specific to the proposed
definition for ‘‘electronic media,’’ many
raised concerns that the use of
electronic media in the proposed
revision to related instruction could
supplant, reduce, or eliminate an
apprentice’s interface with an instructor
in a lab or classroom setting. They
emphasized the importance of
classroom and hands-on learning for the
successful acquisition of skills and
knowledge necessary for completion of
an apprenticeship program.
Response: We recognize the validity
of this concern, as addressed further in
the discussion of § 29.5(b)(4). However,
we have determined that the inclusion
of electronic media in the definition of
‘‘related instruction’’ is necessary to
align the National Apprenticeship
System with technological advances in
the delivery of related instruction. We
have made no change to the proposed
definition of ‘‘electronic media.’’
‘‘Interim Credential’’
Some commenters suggested that the
proposed definition for ‘‘interim
credential,’’ which is ‘‘a credential
issued by the Registration Agency, upon
the request of the sponsor, as
certification of competency attainment
by an apprentice,’’ does not sufficiently
include requirements for the recipient to
meet an objective, external standard
associated with the subject matter for
which an interim credential is issued.
Others asserted that the definition of
‘‘interim credential’’ could diminish the
meaning and significance of the status
of ‘‘journeyworker’’, and that the use of
interim credentials in the National
Apprenticeship System may serve as a
disincentive to completing an
apprenticeship program.
Response: We recognize these
concerns and address them below in our
discussion of the requirements for
program standards in § 29.5(b). We have

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made no change to the proposed
definition of ‘‘interim credential.’’
Issuance of interim credentials will be
determined by the program sponsor’s
choice of approach for an apprentice’s
progression through an apprenticeship
program: Competency-based, timebased, or hybrid. Program sponsors
must identify and define all interim
credentials in the program standards
that are registered with the Registration
Agency. Interim credentials may be
issued only for industry-recognized
components of an apprenticeable
occupation. Therefore, if an
apprenticeship program’s standards do
not include provisions for issuance of
interim credentials for specific
components of an apprenticeable
occupation, the Registration Agency
with which the program is registered
may not issue interim credentials to
apprentices registered with that
program.
We reiterate that interim credentials
are issued by the Registration Agency,
upon request of the appropriate sponsor,
as certification of an apprentice’s
attainment of competency. Further, the
regulations do not require program
sponsors to include interim credentials
in their program standards, nor do they
require sponsors to request that a
Registration Agency issue interim
credentials to apprentices registered in
their apprenticeship programs. The
Department also recognizes that some
Registration Agencies may find the
issuance of interim credentials to be
unduly burdensome and beyond their
capabilities. Therefore, Registration
Agencies, other than the Office of
Apprenticeship, may opt not to offer
this additional service.
We have concluded that the revised
regulatory framework does not detract
from the overall goal of the National
Apprenticeship System to support and
enable apprentices to complete an
apprenticeship program. Through the
authorization of interim credentials, the
National Apprenticeship System
recognizes that some industries and
occupations are more amenable to an
incremental recognition of an
apprentice’s increasing skills,
knowledge, and abilities. In such
industries the use of interim credentials
can, thereby, afford multiple
opportunities for apprentices to grow
and expand their knowledge and their
capacity to meet current, new, and
emerging industry advances. Use of
interim credentials also recognizes the
fact that not all apprentices will
complete their apprenticeship programs
and offers opportunities for recognition
of what these individuals have learned.
Therefore, interim credentials will also

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enable apprentices to obtain portable
credentials commensurate with the
skills and competencies acquired and
demonstrated throughout an
apprenticeship. Notwithstanding the
value of interim credentials, the
issuance of a certificate of completion of
apprenticeship, and the associated
‘‘journeyworker’’ status, remains the
ultimate goal for the National
Apprenticeship System.
‘‘Journeyworker’’
Ten comments were submitted on the
proposed definition of ‘‘journeyworker.’’
One commenter requested inserting the
word ‘‘abilities’’ to the definition to read
‘‘a worker who has attained a level of
skills, abilities, and competencies
recognized within an industry,’’
asserting that use of the term ‘‘abilities’’
provided a more thorough recognition of
a journeyworker’s qualifications.
Multiple commenters recommended
using industry standard definitions for
‘‘journeyworker,’’ asserting that
permitting employers to recognize other
definitions would leave the National
Apprenticeship System open to abuse.
Others asserted that by expanding the
term to refer to a mentor, technician,
specialist or other skilled worker gives
the employer the authority to determine
journeyworker status. One commenter
argued for retention of the term
‘‘journeyman,’’ because in the
traditional sense it is not and has not
been gender-specific, and that it refers
to rank or status in a skilled trade.
Response: We agree with the
suggestion to expand the definition to
include ‘‘abilities,’’ and have revised the
definition accordingly. We disagree
with the assertion that by granting
individual employers the authority to
designate journeyworker status, the term
‘‘journeyworker’’ will be subject to
abuse in the National Apprenticeship
System. Currently, program sponsors
designate an individual as a
journeyworker when that individual has
sufficient skills, abilities, and
competencies to be recognized by the
employer as a journeyworker. The
revised regulatory framework carries
forward this approach currently used in
the National Apprenticeship System.
With regard to the use of the term
‘‘journeyworker,’’ the Department of
Labor is committed to avoiding the use
of terms that are or may appear to be
gender-specific, even if the historic
usage of the term has not been so. We
disagree with the assertion that the term
journeyman is not gender-specific.
Accordingly, the final rule retains the
term ‘‘journeyworker.’’

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‘‘Provisional Registration’’
Several comments on proposed
revisions to § 29.3(g) and § 29.3(h)
regarding provisional registration
indicate that the proposed definition of
‘‘provisional registration’’ did not
adequately specify the process by which
a provisionally registered program
would receive permanent registration,
continuance of provisional registration,
or rescission of registration.
Response: We agree with these
comments and have clarified the
requirements by expanding the
definition of ‘‘provisional registration’’
to refer to the relevant criteria in
§ 29.3(g) and § 29.3(h), which provide
for provisional registration and review
of provisionally registered programs.
These additions will avoid any
ambiguity between the proposed
definition of provisional registration in
§ 29.2, and the subsequent opportunity
for additional review and/or removal of
the provisional status after the first full
training cycle. Accordingly, in the final
rule ‘‘provisional registration’’ is
defined to mean, ‘‘the 1-year initial
approval of newly registered programs
that meet the required standards for
program registration, after which
program approval may be made
permanent, continued as provisional, or
rescinded following a review by the
Registration Agency, as provided for in
the criteria described in § 29.3(g) and
§ 29.3(h).’’

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‘‘Quality Assurance Assessment’’
In their discussion of program
performance standards in proposed
§ 29.6, some commenters recommended
establishing a clear definition of
‘‘quality assurance assessment.’’
Response: We agree that § 29.6 will be
improved by adding a formal definition
for ‘‘quality assurance assessment,’’ so
that programs are assessed consistently
and fairly across the National
Apprenticeship System. Accordingly, in
the final rule ‘‘quality assurance
assessment’’ means, ‘‘a comprehensive
review conducted by a Registration
Agency regarding all aspects of an
apprenticeship program’s performance,
including but not limited to determining
if apprentices are receiving: On-the-job
training in all phases of the
apprenticeable occupation; scheduled
wage increases consistent with the
registered standards; related instruction
through appropriate curriculum and
delivery systems; and that the
Registration Agency is receiving
notification of all new registrations,
cancellations, and completions as
required in this part.’’ This definition
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existing practice of reviewing programs
for quality based on the factors
described above.
‘‘Registration Agency’’
A commenter asserted that by
expanding the definition of
‘‘Registration Agency’’ to include
registration of apprentices and
programs, providing technical
assistance, and conducting reviews for
compliance with parts 29 and 30, and
quality assurance assessments, the
Department is attempting to retain the
services of a State Apprenticeship
Agency without Federal funding or
State legislative approval.
Response: We disagree with these
assertions. The definition of
‘‘Registration Agency’’ codifies existing
practice in the National Apprenticeship
System in which a Registration Agency,
whether it is the Office of
Apprenticeship or a recognized State
Apprenticeship Agency, provides
guidance and assistance to help program
sponsors comply with this part; reviews
registered programs; and registers
apprentices and programs. We view
these functions as necessary to properly
administer the National Apprenticeship
System. Further, the definition is
intended to emphasize consistency
across the National Apprenticeship
System regarding the types of support
and assistance that registered
apprenticeship program sponsors
should receive from a Registration
Agency, regardless of their geographic
location. It should also be noted that
State Apprenticeship Agency
recognition as a Registration Agency, for
Federal purposes, is voluntary. We have
made no change to the proposed
definition of ‘‘Registration Agency.’’
‘‘Related Instruction’’
Several commenters noted that the
proposed separation of apprenticeship’s
theoretical instruction into two terms,
‘‘related technical instruction’’ and
‘‘supplemental instruction,’’ creates
undue complications. On the other
hand, a commenter praised the addition
of ‘‘supplemental instruction,’’ stating
that such instruction will increase
opportunities for learning, as well as
provide additional opportunities to
create and ensure equitable classroom
and worksite environments. Other
commenters asserted that ‘‘related
instruction’’ should not be limited to
‘‘core’’ requirements. Further, the
commenters noted that safety processes
like CPR/first-aid training may be part of
a related training for many
apprenticeable occupations and
expressed concern that valuable training
would be marginalized.

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Response: We agree that the
commenters have raised valid concerns
and we have therefore deleted the
proposed definition of ‘‘supplemental
instruction.’’ Our intent in separating
the two terms was to clarify that
instruction specific to a particular
occupation is ‘‘related instruction,’’ and
instruction that is relevant but not
necessarily occupationally-specific is
‘‘supplemental instruction.’’ However,
we recognize that the proposed
elements of supplemental instruction,
such as job site management,
leadership, communications, first-aid/
CPR, field trips, and new technologies/
processes, and in particular those
pertaining to health and safety, have
been long-standing facets of the term
‘‘related instruction.’’ The final rule
retains the existing term ‘‘related
instruction’’ and thus carries forward
existing practice in the National
Apprenticeship System which
incorporates the components of the
proposed definition of ‘‘supplemental
instruction.’’ We have also deleted the
term ‘‘core’’ from the definition of
‘‘related instruction,’’ to indicate that all
components of related instruction that
are related to the occupation are
important to an apprenticeship program,
whether or not they are occupationspecific. We have also added a comma
after the phrase ‘‘such instruction may
be given in a classroom,’’ to make the
definition consistent with the
substantive provisions in § 29.5(b)(4).
Therefore, in the final rule, ‘‘related
instruction’’ means, ‘‘an organized and
systematic form of instruction designed
to provide the apprentice with the
knowledge of the theoretical and
technical subjects related to the
apprentice’s occupation. Such
instruction 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.’’
‘‘State Apprenticeship Agency’’
We received two comments on the
definition of ‘‘State Apprenticeship
Agency.’’ One commenter stated that the
proposed definition of ‘‘State
Apprenticeship Agency’’ would allow
for the State Apprenticeship Agency to
assume the powers of the State
Apprenticeship Council. The other
commenter sought clarification on the
proposed definition.
Response: The proposed definition of
‘‘State Apprenticeship Agency’’ as ‘‘an
agency of a State government that has
responsibility and accountability for
apprenticeship within the State,’’
reflects the Department’s determination

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that only State government entities
should be recognized as Registration
Agencies, in order to ensure
accountability for oversight and
management of a State’s apprenticeship
system for Federal purposes. As
discussed above, where a State
Apprenticeship Agency has been
‘‘recognized,’’ the State Apprenticeship
Agency must establish and maintain a
State Apprenticeship Council.
Additionally, as explained in the
discussion of § 29.13(a)(2), we have
clarified that the Council operates at the
direction of the State Apprenticeship
Agency. Therefore, we have made no
changes to the proposed definition of
‘‘State Apprenticeship Agency’’ nor to
the State Apprenticeship Agency’s role
as the only entity authorized to register
and oversee apprenticeship programs
and agreements for Federal purposes.
‘‘State Apprenticeship Council’’
Two commenters questioned if the
definition of ‘‘State Apprenticeship
Council’’ would mean that the Council
would only serve an advisory role rather
than a regulatory role.
Response: Our intent in the proposed
rule was to provide that the State
Apprenticeship Council could serve in
either an advisory role or regulatory
role. As explained further in the
discussion of § 29.13(a)(2), we have
clarified that a State Apprenticeship
Council operates at the direction of the
State Apprenticeship Agency.
Depending on how this direction is
exercised, a State Apprenticeship
Council could serve either a regulatory
or an advisory role. The requirements
for operation of a State Apprenticeship
Council are set forth in §§ 29.13(a)(2)
and (b)(3). We have made no change to
the proposed definition of ‘‘State
Apprenticeship Council.’’

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‘‘Transfer’’
Several commenters noted that the
proposed revisions regarding apprentice
transfers in § 29.5(b) and the proposed
new definition of ‘‘transfer’’ in § 29.2
raise questions about approval and
consent for transfer and the potential
impact on apprenticeship program
sponsors. Several commenters
questioned the need for apprentices to
initiate requests for transfers, asserting
that such latitude could enable
apprentices to transfer registration
without regard to negative impact on
program sponsors. Other commenters
suggested that program sponsors could
use the provisions of this definition to
transfer an apprentice to another
program or to another employer without
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potentially negatively impacting the
safety and welfare of the apprentice.
Response: We do not foresee that the
transfer of apprenticeship registration
from one program to another or from
one employer to another would occur
frequently or on a regular basis. The
intent of this provision is to provide
flexibility for an apprentice to continue
his or her apprenticeship in changing
circumstances, such as the need for
geographic relocation for personal
reasons. However, we agree that all
parties to the transfer must be in
agreement in order to avoid potential
negative impacts. Accordingly, we have
revised the definition to clarify that in
order for a transfer to occur, the affected
parties (i.e., the apprentice and each
apprenticeship committee or program
sponsor) must reach agreement
regarding the shift of the apprentice’s
registration from one program to another
or from one employer within a program
to another employer within that same
program.
Eligibility and Procedure for
Registration of an Apprenticeship
Program (§ 29.3)
This section addresses the criteria and
process used by a Registration Agency
to register apprenticeship programs. In
general, the comments we received
supported the proposed changes which
were designed to ensure high quality for
registered apprenticeship programs,
assist program sponsors through early
intervention and technical assistance,
and foster closer working relationships
between the apprenticeship sponsors
and Registration Agencies.
Resources
Several commenters raised concerns
about the adequacy of the resources
available to the DOL and the Office of
Apprenticeship for follow through
requirements pertaining to provisional
registration. Two commenters asked
who would pay for technical assistance
provided to new programs.
Response: As under current
regulations, the resources necessary to
carry out the requirements of § 29.3
would be the responsibility of the
Registration Agency, including
provision of technical assistance. States
seeking registration authority for
Federal purposes must be prepared to
provide resources necessary for these
responsibilities.
Provisional Registration
Proposed § 29.3(g) is a new provision
which establishes provisional approval
for 1 year of new programs that the
Registration Agency preliminarily
determines comply with part 29. Most

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commenters supported the concept of
provisional registration for new
programs, but expressed concern that
DOL currently appears to be
understaffed and would not have
adequate resources to perform the
reviews required at the end of a
program’s first year to determine if the
program should receive full recognition.
Some commenters asserted that the
determination to grant provisional
program approval, regardless of length,
belongs to State Apprenticeship
Agencies.
Response: As discussed in the NPRM,
the ‘‘provisional registration’’ concept
was added to enhance monitoring of the
performance of apprenticeship programs
registered for Federal purposes by the
Office of Apprenticeship and recognized
State Apprenticeship Agencies (i.e., the
Registration Agencies). As we have
repeatedly emphasized, the States
derive any authority they exercise, for
Federal purposes, from the recognition
accorded by the Department. Therefore,
provisional program approval does not
impinge on State authority.
We recognize that adequate resources
are required to successfully address the
additional workload associated with
provisional registration procedures.
Accordingly, we are realigning
resources to provide these services in
States where the Office of
Apprenticeship serves as the
Registration Agency. As discussed
below under § 29.13, Recognition of
State Apprenticeship Agencies, States
seeking registration authority for
Federal purposes must provide
sufficient resources to perform all the
functions of a Registration Agency. We
have revised § 29.3(g) to clarify that the
Registration Agency is responsible for
reviewing programs for quality and
conformity with the requirements of this
part at the end of the first year after
registration. A program that conforms to
the requirements of part 29 may be
permanently approved, or the
provisional approval may be extended
through the end of the first training
cycle. A program not in operation or not
conforming to the regulations during the
provisional approval period must be
recommended for deregistration
procedures.
Program Reviews
Proposed § 29.3(h) provides that a
satisfactory review at the end of the first
full training cycle will result in removal
of provisional approval, and provides
that subsequent reviews will be
conducted no less frequently than on a
five-year cycle. A few commenters
questioned how this five-year cycle of
program reviews, which generally

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corresponds to the completion of the
first full training cycle, aligns with
competency-based or hybrid programs
that may have training cycles of
different lengths. Other commenters
questioned if the five-year cycle
provided in § 29.3(h) would conflict
with a State Apprenticeship Agency’s
program review cycle that might occur
more frequently.
Response: Competency-based and
hybrid programs also have requirements
for on-the-job work experience
associated with program completion,
but the cycles of each may vary in
length from traditional apprenticeship
programs. To address this, § 29.3(h) of
the final rule clarifies that subsequent
reviews will be completed after a
satisfactory review at the end of the first
full training cycle, and must be
conducted no less frequently than every
5 years. Section 29.3(h) does not
preclude a State Apprenticeship Agency
from conducting reviews more
frequently than prescribed. If a review
demonstrates that a provisionally
registered program has satisfactorily met
the requirements of this part in a
timeframe shorter than the typical 5
years, provisional registration may be
transformed to permanent registration.
Timeframe for Approval of Proposals
and Modifications
A few commenters questioned the
requirement in § 29.3(i) for a
Registration Agency to make a
determination on whether to approve
sponsor proposals or applications for
modifications to registered programs
within 45 days from the date of receipt.
Existing regulations simply provide for
‘‘prompt’’ submission of requests for
modification and set no timeframe for a
Registration Agency and provide no
guidance on what the Registration
Agency must do to process the
application or modification.
Commenters asserted that 45 days does
not provide sufficient time for review
and comment. In particular, this
proposed requirement would not align
with schedules for State Apprenticeship
Councils that only meet quarterly or
every 90 days, to review proposals and
modifications for registered
apprenticeship programs. Other
commenters did support the proposed
45-day timeframe for the Registration
Agency to make a determination
whether to approve such submissions.
Response: In light of the quarterly
meeting schedule used by many State
Apprenticeship Councils and State
Apprenticeship Agencies for review of
proposals and modifications, a 90-day
timeframe is more appropriate for the
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determinations whether to approve such
submissions. We have also clarified that
if approved, the Registration Agency
will record and acknowledge the
modifications within 90 days of
approval. Final § 29.3(i) also clarifies
that if the modifications are not
approved, the Registration Agency will
notify the sponsor of the disapproval,
and provide reasons therefore. Final
§ 29.3(i) has been changed accordingly.
Criteria for Apprenticeable Occupations
(§ 29.4)
Section 29.4 revises the criteria for
determining when an occupation
qualifies as apprenticeable. The
revisions proposed in the NPRM align
§ 29.4 with changes to ways to progress
through an apprenticeship program, as
discussed further in the discussion of
§ 29.5(b)(2). Some commenters raised
questions and concerns about deletion
of the term ‘‘skilled trade’’ and
inconsistency between an
apprenticeable occupation’s
requirement for hours of on-the-job
learning and the competency-based
approach for completion of an
apprenticeship program, provided by
final § 29.5(b)(2).
Deletion of ‘‘Skilled Trade’’
A few commenters raised concerns
about the deletion of the term ‘‘skilled
trade’’ in describing an apprenticeable
occupation, asserting that the term is
recognized nationally in the
construction industry, and is commonly
used.
Response: We acknowledge that the
term ‘‘skilled trade’’ is a nationally
recognized term in the construction
industry, and emphasize that deletion of
this term in the regulations for the
National Apprenticeship System is not
meant to discourage continued use of
this term. However, as apprenticeship
expands into new industries, we have
determined that more generic approach
better reflects the terminology used by
a variety of industries. Accordingly, we
have not added ‘‘skilled trade’’ to the
final rule.
Hours of On-The-Job Learning
Some commenters suggested that
requiring at least 2,000 hours of on-thejob work experience in § 29.4(c)
conflicts with the competency-based
approach outlined in § 29.5(b)(2).
Response: The 2000 hour standard in
§ 29.4(c) is solely for the purpose of
helping to define an apprenticeable
occupation. In order for an occupation
to be considered apprenticeable it must
be an occupation which, if learning
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2,000 hours of on-the-job learning. As is
discussed more fully in the next section
on standards of apprenticeship, only
‘‘time-based’’ apprenticeship programs
will be required to provide for at least
2000 hours of actual on-the-job learning.
‘‘Competency-based’’ and ‘‘hybrid’’
programs also will be required to
provide for on-the-job learning, but the
required hours will vary by program.
The comments on this section have
brought to light an inconsistent and
interchangeable use of the terms ‘‘onthe-job training’’ and ‘‘work experience’’
throughout the proposed rule to refer to
the on-the-job learning component of
registered apprenticeship, as required in
§ 29.4(c) and § 29.5(b)(2). We have
replaced the terms ‘‘on-the-job training’’
and ‘‘on-the-job work experience’’ with
the term ‘‘on-the-job learning’’
throughout the final rule.
Standards of Apprenticeship (§ 29.5)
Proposed changes to § 29.5 regarding
standards of apprenticeship received
many comments; over 132 comments
pertained to the use of a competencybased approach to progression through
an apprenticeship. Other significant
areas of interest centered on related
instruction, apprentice instructor
certification, advanced standing or
credit, transfers, interim credentials,
and cancellation rate.
Three Approaches to Completion of
Apprenticeship
Section 29.5(b)(2), which is based on
the existing requirement that on-the-job
learning must be consistent with
industry practice, presents three
methods by which an individual
apprentice may progress toward the
industry standard for work experience.
These methods are: (i) A time-based
approach involving completion of at
least 2,000 of hours of on-the-job work
experience; (ii) a competency-based
approach involving successful
demonstration of acquired skills and
knowledge by an apprentice, as verified
by the program sponsor, plus an on-thejob learning component; and (iii) a
hybrid approach involving completion
of a specified minimum number of
hours plus the successful demonstration
of competency.
Many commenters raised questions
and asked for clarification about the
proposed three approaches. Many
commenters questioned whether the
competency-based model would require
on-the-job learning. Most commenters
expressed concern that the proposed
terms were not adequately defined, that
industries should be equipped to
monitor validity and achieve
standardization, and that existing

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minimum standards would be
compromised. A community-based
organization praised the proposed three
approaches, citing studies that indicate
that nontraditional apprentices, such as
women, are more likely to complete
programs if such requisites as preapprenticeship training programs were
recognized in a competency-based or
hybrid approach. Several commenters
expressed concern that the competencybased and the hybrid methods for
completion of an apprenticeship would
allow apprentices to circumvent on-thejob learning and related technical
instruction with a demonstration of
acquired skills and knowledge. Other
commenters expressed apprehension
over the potential for safety
compromise, particularly in the
construction industry, and the need to
‘‘safeguard the welfare of apprentices.’’
One commenter asserted that a
competency-based apprenticeship
program would not require an
apprentice to demonstrate competency
in a ‘‘real time, distracting, sometimes
noisy, sometimes dirty, and often
unpredictable environment.’’ Many
commenters interpreted proposed
§ 29.5(b)(2) to mean that all program
sponsors would have to adopt all three
approaches for completion of
apprenticeship.
Response: This rule carries forward
the traditional model because it has
worked well in many occupations that
have used a time-based approach for
registered apprenticeship; we expect
that most program sponsors in those
occupations will continue using this
approach. However, as part of the
Department’s strategic emphasis on
meeting the training needs of business
and workers, and our policy of
expanding apprenticeship, it has
become clear that the traditional timebased approach to training does not fit
the norms of all industries or
occupations seeking to use the
registered apprenticeship model. The
final rule acknowledges the needs of
industries that prefer to continue to use
a time-based approach for registered
apprenticeship, as well as those
industries that require more flexibility
in how an apprentice can attain the
journeyworker level of proficiency.
We agree that clarifying language is
required for all three approaches to
ensure that on-the-job learning is a
required component of all
apprenticeship programs. Paragraph (ii)
of § 29.5(b)(2) has been revised to
include additional language specifying
that programs using the competencybased approach must still require an
apprentice to complete the on-the-job
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apprenticeship. We emphasize that onthe-job learning remains the primary
method by which apprentices gain the
competencies necessary for successful
completion of a competency-based or
hybrid apprenticeship program. An
apprenticeship program’s use of a
competency-based or hybrid approach
does not exempt apprentices from
participating in the fundamental
elements of registered apprenticeship:
on-the-job learning and related
instruction.
The Office of Apprenticeship
guidance on competency-based and
hybrid apprenticeship in Circular 2005–
03 describes how program sponsors and
apprentices can comply with the
requirements for minimum on-the-job
learning for each major work process
using the competency-based or hybrid
approach outlined in § 29.5(b)(2).
Additionally, materials available on the
CareerOneStop Web site (http://
www.careeronestop.org/
competencymodel) provide examples of
recently approved competency-based
apprenticeship programs in the
advanced manufacturing and health
care industries. These examples
showcase the depth and breadth of the
information required to define a
‘‘competency,’’ establish a proficiency
level for that competency, and develop
a test and evaluation for said
competency. This guidance reinforces
that the competency-based model does
not negate requirements for on-the-job
learning and related instruction. Such
requirements will ensure that all
apprentices are exposed to workplace
conditions and properly trained in the
safety requirements essential to the
industry.
Neither the proposed nor the final
rule requires program sponsors or
Registration Agencies to adopt all three
approaches. A new paragraph (iv) has
been added to § 29.5(b)(2) to clarify that
the determination of the appropriate
approach for the program standards is
made by the program sponsor, subject to
approval by the Registration Agency of
the determination as appropriate to the
apprenticeable occupation for which the
program standards are registered.
We seek to provide a variety of
industries with greater flexibility and
options for approaches to addressing
their talent-development needs through
apprenticeship. As discussed in the
NPRM, business, industry, and labor
have requested a more flexible and
accountable National Apprenticeship
System that meets their workforce
development needs. Through pilot
programs in which sponsors measured
apprentices’ attainment of certain skills
and competencies rather than using the

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traditional, time-based approach, many
new business, labor, and industry
partners in National Apprenticeship
System have found that competencybased apprenticeship provides the
flexibility and accountability necessary
to use registered apprenticeship in their
respective industries and occupations.
Final § 29.5(b)(2) provides greater
flexibility for registered apprenticeship
programs to address career development
plans of registered apprentices. As we
emphasized in the NPRM, the three
approaches reflect the experience of the
traditional building and construction
trades and industrial sectors’ use of
time-based apprenticeship, while
addressing the needs of new and
emerging industries seeking to
participate in the National
Apprenticeship System. Therefore, we
anticipate that program sponsors will
use the approach that best meets the
needs of their particular industry. We
do not intend to discourage the use of
the time-based approach in those
occupations in which it has proven
successful nor for any new occupations
that lend themselves to that approach.
Related Instruction
The majority of comments on
provisions for related and supplemental
instruction stated that training through
the use of electronic media as proposed
in § 29.5(b)(4) should not supplant or
replace an apprentice’s ongoing, face-toface interaction and classroom time
with an instructor. Some commenters
suggested that the Department clarify
that electronic media can be used to
supplement classroom instruction, but
that it is not a substitute for instructor/
apprentice interaction. Many suggested
that electronic media should not be
allowed as the sole method for related
technical instruction, as it would be
open to widespread misuse and
mismanagement. Others suggested that
the regulations require that a majority
of, or a significant portion of related
instruction should be provided through
in-person instruction. Other
commenters supported the use of
electronic media in related instruction,
because it enhances flexibility in
registered apprenticeship and
recognizes new training methods and
technologies.
Response: The inclusion of electronic
media for related instruction is critical
to aligning the National Apprenticeship
System with technological advances and
appropriate industry application of such
advances. Section 29.5(b)(4) does not
require that all industries and
apprenticeship programs must use
electronic media; rather, it permits use
of electronic media as a tool to support

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industry learning styles. Section
29.5(b)(4) retains other methods of
related instruction such as classroom,
occupation, or industry courses, or other
instruction approved by the Registration
Agency. The extent to which an
apprenticeship program incorporates
electronic media into the provision of
related instruction depends on the
learning objectives for the particular
occupation associated with that
program. Therefore, the regulatory
framework for apprenticeship should
not specify how related technical
instruction will be delivered. Such
decisions are most appropriately
determined by program sponsors,
subject to approval by the Registration
Agency. Through the provisional
registration process and the review of
modifications to registered programs
established in § 29.3(g), (h), and (i),
Registration Agencies will coordinate
with program sponsors to identify the
appropriate method(s) of providing
related technical instruction. The
Registration Agency’s evaluation of
program performance in the quality
assurance assessment process, as
established in § 29.6(b), will identify
and assess any changes in related
technical instruction and its effect on
the overall operation and quality of the
program. To further address concerns
regarding inappropriate, ineffective use
of electronic media in the provision of
related technical instruction, the Office
of Apprenticeship will consult with
State Apprenticeship Agencies to
develop and issue further guidance
illustrating the appropriate use of
electronic media.
Apprenticeship Instructor
Qualifications
Proposed requirements for an
apprenticeship instructor would be
similar to States’ requirements such as
meeting the State Department of
Education’s requirements for a
vocational-technical instructor, and/or
being recognized as a subject matter
expert, and would require that
instructors have training in teaching
techniques and adult learning styles. A
few commenters generally supported
the proposed qualifications for
apprenticeship instructors in
§ 29.5(b)(4) because they would raise the
quality of apprenticeship instruction.
Some commenters stated the proposed
changes did not adequately define
‘‘subject matter expert’’ or provide
guidance on how an apprenticeship
program or Registration Agency should
make a determination of who may be
considered a ‘‘subject matter expert.’’
Others agreed with the concept of
improving the quality of apprenticeship

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instructors, but stated the proposed
changes would be overly restrictive by
requiring all instructors to be certified
as having met the state vocational
education instructor requirements.
Other commenters questioned whether
journeyworkers would have to be
certified by the State vocational
education entity in order to teach the
related instruction component of
registered apprenticeship. Some
commenters asserted that the proposed
text would eliminate the use of
journeyworkers as subject matter
experts or technical experts. Some
commenters supported the proposed
requirement in § 29.5(b)(4) that
apprenticeship instructors have training
in teaching techniques and adult
learning styles. Others requested
clarification on this requirement.
Response: We agree that the proposed
rule did not provide adequate guidance
and flexibility for instruction
qualifications. Accordingly, we have
revised § 29.5(b)(4) to clarify that an
apprenticeship instructor must either
meet the State Department of
Education’s requirements for a
vocational-technical instructor or be a
subject matter expert. The rule also
clarifies that subject matter experts are
individuals who are recognized within
an industry as having expertise in a
specific occupation. Journeyworkers can
be considered subject matter experts,
and therefore may be appropriate
instructors of related technical
instruction. Provisions in § 29.5(b)(4)
requiring instructors to have training in
teaching techniques and adult learning
styles will further ensure quality of
instruction in the National
Apprenticeship System. Training in and
an understanding of teaching techniques
and adult learning styles will enhance
instructors’ effectiveness, thereby
improving the learning experiences of
individual apprentices and the overall
National Apprenticeship System. Such
training may be provided by the
apprenticeship program, or through an
accredited institution of higher learning,
and may occur before or after the
apprenticeship instructor has started to
provide the related technical
instruction.
Probationary Period
Seventeen commenters expressed
concern that the length of the
probationary period was not defined in
proposed § 29.5(b)(19), which provided
simply that cancellations during an
apprentice’s probationary period will
not adversely impact the sponsor’s
completion rate. The completion rate is
a new factor for evaluation of program
performance proposed in §§ 29.6(b) and

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(c). Several commenters suggested
defining a specific ‘‘not to exceed’’ time
for probationary periods, such as 15
percent or 20 percent of a program’s
length. Many commenters were
concerned that without a time limit on
the probationary period, the proposed
regulations could permit an
apprenticeship program to leave
apprentices in probationary status for an
extended period of time in an effort to
improve the program’s performance
ratings or conceal the program’s
deficiencies.
Response: We agree that without a
limit to the probationary period, the
regulation could allow the information
used in calculating completion rates to
be skewed, thereby impacting the
evaluation of program performance. In
recognition of the concerns of the
commenters, we have added language to
§ 29.5(b)(8) limiting the length of the
probationary period. Historically,
national guidelines for apprenticeship
standards recognized by the Office of
Apprenticeship have used 25 percent of
the length of the program as the
benchmark. Accordingly, the final rule
provides that the probationary period
cannot exceed 25 percent of the length
of the program, or one year, whichever
is shorter.
Advanced Standing or Credit
Two commenters discussed
§ 29.5(b)(12), which provides for
granting an apprentice advanced
standing or credit to take into account
demonstrated competencies. One
commenter asserted that the proposed
rule could reduce on-the-job learning,
possibly compromising safety and
health. The other commenter expressed
concerns about how sponsors would
evaluate competencies.
Response: The provisions for granting
an apprentice advanced standing or
credit would not negatively impact
safety and health because, as discussed
above, apprentices are still required to
have on-the-job learning and related
instruction that enable the apprentices
to recognize and protect themselves
from safety and health hazards. With
regard to evaluating competency,
sponsors would use the definition of
‘‘competency’’ in § 29.2, which provides
that sponsors use an appropriate written
or hands-on proficiency measurement.
Provisions of final § 29.5(b)(12) are
necessary to support the flexible
approach to progression through
apprenticeship identified in § 29.5(b)(2).
Accordingly, no changes have been
made to the provisions for granting
advanced standing or credit.

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Transfer
Twenty-seven commenters raised
questions about the proposed changes to
§ 29.5(b)(13) which require program
sponsors or committees to: Provide the
transferring apprentice with a transcript
of related training and on-the-job
learning completed; permit transfers to
either the same or a related occupation;
allow an apprentice, the employer or the
program sponsor to initiate the transfer;
and stipulate that a transfer must occur
without adverse impact on the
apprentice, the employer, or the
program.
Many commenters raised concerns
about how a transfer would be initiated
and the process for executing the
transaction. Commenters questioned
whether the proposed provisions would
permit an apprentice to unilaterally
transfer from one program to another
without the consent of program
sponsors. Two commenters suggested
that transfers should be amicable for all
sides and that transferring apprentices
should be tested to ensure proper
placement in the new apprenticeship
program. Other commenters asserted
that an involuntary transfer could
adversely impact the affected apprentice
and the affected apprenticeship program
sponsors or committees. Another
commenter questioned whether the
proposed rule requires acceptance of
transfers. Three commenters stated that
modifying this section of the rule
should be solely a State and sponsor
responsibility.
Response: We agree that the
commenters have valid concerns about
unilateral decisions for apprentices to
transfer and the potential for an adverse
impact on one of the affected parties.
Accordingly, we have revised
§ 29.5(b)(13) to provide that a transfer
must be based on agreement between
the apprentice and the affected
apprenticeship committees or program
sponsors. An apprentice cannot
unilaterally transfer from one program
to another or from one employer to
another employer in the same program,
without the consent of the affected
apprenticeship committees or program
sponsors.
We disagree that modifications to
§ 29.5(b)(13) should be solely a State
and sponsor responsibility. The
regulatory framework for the National
Apprenticeship System, established by
this part, must address the issue of
transfer to ensure that all apprentices
regardless of geographic location and
program sponsor have equal and
uniform access to the same provisions
for transfer. However, procedural and
administrative issues associated with

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the transfer of apprentices, such as
testing and determination of appropriate
placement of the apprentice and the
means of reaching agreement among
affected parties, are more appropriately
addressed in policy guidance to be
issued by the Office of Apprenticeship,
rather than in the regulatory framework
for the National Apprenticeship System.
Accordingly, the Office of
Apprenticeship will consult with
apprenticeship program sponsors and
State Apprenticeship Agencies to
develop and issue guidance that
effectively addresses these concerns.
Several commenters said provisions
in proposed § 29.5(b)(13)(ii) which
would permit transfer to a related
occupation or within the same
occupation would not benefit
apprentices, especially if a program
sponsor or employer were to shift
apprentices between jobs and tasks
without ensuring proper skills and
knowledge development. Three
commenters suggested that transfers
must be within the same occupation or
trade. One commenter noted that many
apprenticeship programs in the building
and construction industries have
provisions in their standards for transfer
of apprentices to other programs within
their occupations.
Response: The proposed revisions to
the requirements for transfers were
intended to benefit the apprentice by
providing greater flexibility should he
or she demonstrate that transferring to
another apprenticeship program was
necessary to accommodate variations in
his or her career development plans.
The proposed changes were not
intended to provide program sponsors
with unlimited latitude to move
apprentices among different
occupations to accommodate the
sponsors’ workforce needs. We have
been persuaded by commenters’
assertions that an apprentice does not
become a journeyworker in a skilled
trade by transferring from skilled trade
to skilled trade; such as an operating
engineer working as a carpenter,
electrician or painter. Also, there is
some validity to the concern that
reference to a ‘‘related occupation’’
could be ambiguous and overly broad
and could result in transfers to different
trades or occupations for which the
apprentice has no training under the
guise of being ‘‘related.’’ Further it
would be unreasonable to expect an
employer to pay a transferring
apprentice commensurate period wages
without appropriate occupational
experience. Therefore, the final rule
carries forward existing provisions
which limit transfer to the same
occupation.

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Other commenters suggested that
provisions in proposed § 29.5(b)(13)(i)
requiring that the committee or program
provide a transferring apprentice a
transcript of related instruction and onthe-job learning would encourage
recruitment between apprenticeship
programs instead of focusing on greater
outreach.
Response: We have not changed the
requirement that the transferring
apprentice must be provided a
transcript. The requirement for a
program sponsor or committee to
provide a transferring apprentice a
transcript of related instruction and onthe-job learning is necessary to further
align the National Apprenticeship
System with post-secondary training
and education systems, and
credentialing systems. Those systems
provide participants with
documentation of what they have
learned through a particular course,
series of instructions, or training
program. Additionally, the provisions in
the final rule requiring agreement
among the apprentice and the affected
apprenticeship committees or program
sponsors for a transfer will mitigate the
potential for program sponsors to focus
on recruitment between programs. As
discussed above, the program with
which the apprentice is originally
registered must agree to the transfer.
In addition, the final rule continues to
serve the purpose of existing
§ 29.5(b)(13), which allows an employer
to transfer its training obligation to
another employer, with the consent of
the apprentice and the apprenticeship
committee or program sponsor. As
discussed above, the Department does
not foresee that transfers of
apprenticeship registration from one
program to another or from one
employer to another would occur
frequently or with regularity. The intent
of this provision is to provide flexibility
for an apprentice to continue his or her
apprenticeship in changing
circumstances.
Interim Credentials
Changes to proposed § 29.5(b)(15)
would add a provision for issuance of
an interim credential in recognition that
an apprentices has attained skills or
satisfied certain requirements as he or
she progresses through a competencybased or hybrid apprenticeship
program. The proposed revision also
carries forward the existing requirement
for issuance of a certificate of
completion in recognition of successful
completion of an apprenticeship
program. We received 93 comments on
proposed § 29.5(b)(15). Some
commenters expressed support for

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interim credentials. Several commenters
questioned the need for provisions on
interim credentials, while others noted
that program sponsors, employers, and
others, already issue such credentials.
Response: Section 29.5(b)(15)
continues to provide, as does the
existing rule, for a certificate that
documents the successful completion of
an apprenticeship program. However,
the commenters have raised some valid
concerns as to the proposed
requirements for interim credentials. To
address these issues and to further
clarify the requirement for interim
credentials, the final rule separates
requirements for interim credentials
into a new, discrete paragraph,
§ 29.5(b)(16), and renumbers all
subsequent paragraphs in § 29.5(b) as
final § 29.5(b)(17) through final
§ 29.5(b)(23).
The proposed provisions for interim
credentials were not intended to require
all program sponsors to issue interim
credentials, nor even to require that all
sponsors choosing to use the
competency-based approach or hybrid
approach issue interim credentials.
Final § 29.5(b)(16) clarifies that program
standards for apprenticeship program
sponsors that choose to use the
competency-based or the hybrid
approach for completion of an
apprenticeship and that choose to issue
interim credentials must clearly identify
the interim credentials, demonstrate
how these credentials link to the
components of the apprenticeable
occupations, and establish the process
for assessing an individual apprentice’s
demonstration of competency associated
with the particular interim credential.
Further, interim credentials must only
be issued for recognized components of
an apprenticeable occupation, thereby
linking interim credentials specifically
to the knowledge, skills, and abilities
associated with those components of the
apprenticeable occupation.
Commenters expressed concern that
the use of interim credentials would
redefine what journeyworker status
means. Over twenty commenters
asserted that provisions for interim
credentials would diminish the value of
or deter trainees from obtaining
journeyworker status. Other
commenters misinterpreted the
provisions for interim credentials as
permitting program sponsors to reduce
requirements for on-the-job learning
necessary to achieve particular skills
and abilities, thereby producing
inadequately trained journeyworkers.
Some commenters stated that these
provisions could weaken the workforce
by producing workers with specialized,
rather than comprehensive, training for

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parts of an occupation. Other
commenters asserted that ultimately,
issuance of interim credentials could
lead to a segment of the workforce
working for lower wages, with less job
security.
Response: We disagree with the
assertions that interim credentials may
potentially negatively impact the
workforce and the value of
journeyworker status. As discussed
above, in some industries program
sponsors in pilots of competency-based
apprenticeship programs already are
using interim credentials, having
determined that some apprenticeable
occupations are capable of being
segregated into discrete competencies or
levels of skill attainment which can
serve as discrete milestones on the path
to journeyworker status. Providing an
interim credential to show that an
apprentice has reached those milestones
merely acknowledges that fact.
Therefore, interim credentials are not
intended to narrow the breadth and
depth of the training component of
registered apprenticeship. Rather, they
provide opportunities for apprentices to
obtain portable credentials
commensurate with the skills and
competencies acquired and
demonstrated throughout an
apprenticeship. Therefore, attainment of
an interim credential may provide the
apprentice who must leave the program
with the means to obtain a better job
than he or she could without the
credential.
As discussed above in the discussion
of the definition of interim credentials,
the issuance of a certificate of
completion of apprenticeship, and the
associated ‘‘journeyworker’’ level status,
remain the ultimate goal for the
National Apprenticeship System.
Interim credentials do not indicate that
the apprentice has met all of the
requirements of the apprenticeship, nor
that he or she has successfully mastered
the full range of skills and competencies
required for an occupation. The
certificate of completion is the only
credential that properly conveys that the
apprentice has successfully met the
requirements of the apprenticeship
program. Therefore, designation of
‘‘journeyworker’’ and the associated
status will not be affected by use of
interim credentials. However, in
recognition of stakeholders concerns
over the impact of interim credentials,
the Department will establish a process
to assess implementation of interim
credentials. Initially, Registration
Agencies and program sponsors will use
the quality assurance assessment
process to identify and assess any
impact of interim credentials on

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program operations and outcomes.
Following consultation with
stakeholders of the National
Apprenticeship System, the Office of
Apprenticeship intends to issue policy
guidance on the review of interim
credentials.
Thirty commenters expressed concern
about potential negative impacts for the
National Apprenticeship System if
interim credentials are based on sponsor
standards instead of industry standards.
These commenters asserted that
national standards are necessary so that
the credential can be portable and
meaningful to employers across
different regions.
Response: In the National
Apprenticeship System, a sponsor can
only register standards for
apprenticeship programs that train and
employ an apprentice in occupations
that have been determined
‘‘apprenticeable.’’ The Office of
Apprenticeship has established criteria
and procedures for recognizing an
apprenticeable occupation that require
industry verification and validation of
the skills and knowledge necessary for
the occupation. This process
intentionally incorporates industry
participation so that the credentials
associated with progression through an
apprenticeship program for an
apprenticeable occupation will be
portable and have meaning to employers
nationwide. As discussed above, new
§ 29.5(b)(16) clarifies that interim
credentials must only be issued for
recognized components of an
apprenticeship occupation. Therefore,
the interim credentials associated with
the specific skills and knowledge for an
apprenticeable occupation are verified
and validated by industry through the
process of approving the apprenticeable
occupation.
Numerous commenters suggested that
provisions on interim credentials would
place additional resource (e.g., time and
documentation) burdens on Registration
Agencies with no apparent provisions
for verification of the credential’s
validity. Some commenters
recommended that the use of interim
credentials should not be mandated or
should be left to the discretion of States
to mandate.
Response: While we consider interim
credentials to be a valuable tool for
furthering apprenticeship, we
emphasize that program sponsors are
not required to develop and register
standards of apprenticeship that include
interim credentials, nor are recognized
State Apprenticeship Agencies required
to issue interim credentials. We
anticipate that such credentials will be
used most frequently by programs that

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take the competency-based or hybrid
approach to progression through
apprenticeship. Further, in the
Department’s pilots with competencybased apprenticeship programs,
Registration Agencies have provided
technical assistance to sponsors to help
identify the appropriate procedures and
criteria for determining if and when an
apprentice merits receiving an interim
credential. The Department anticipates
that Registration Agencies will continue
to provide such technical assistance in
the development of competency-based
and hybrid apprenticeship programs,
and issuance of interim credentials
associated with these programs. As with
certificates of completion, Registration
Agencies are the entities responsible for
issuing interim credentials, at the
request of a program sponsor.
The Department acknowledges that
instituting a process for the issuance of
interim credentials would constitute an
additional burden for those State
Apprenticeship Agencies that currently
do not issue such certifications. Based
on comments expressing concern about
potential time and documentation
burdens, we agree that State
Apprenticeship Agencies should not be
required to issue interim credentials as
a pre-condition for recognition.
Accordingly, while recognized State
Apprenticeship Agencies may choose to
issue interim credentials using their
own procedures in compliance with this
part, the final rule does not require them
to do so. However, in order to maintain
uniformity across the National
Apprenticeship System and further
apprentices’ progression through
apprenticeship, the Department has
determined that opportunities must be
available nationwide for program
sponsors to register program standards
that use a competency-based or hybrid
approach for completion of
apprenticeship and that issue interim
credentials. Therefore, the Office of
Apprenticeship will offer to issue
interim credentials, nationwide, where
the prerequisites are met. If a recognized
State Apprenticeship Agency registers
program standards that use a
competency-based or hybrid approach,
but does not issue interim credentials,
the program sponsor may request that
the Office of Apprenticeship issue
interim credentials to apprentices who
have successfully met the requirements
of an interim credential established in
the program standards for their
respective apprenticeship programs. If a
recognized State Apprenticeship
Agency does not register program
standards that use a competency-based
or hybrid approach, then a program

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sponsor can petition to register the
apprenticeship standards with the
Office of Apprenticeship for Federal
purposes, and the Office of
Apprenticeship will issue interim
credentials, when prerequisites are met.
Two commenters maintained that
mandating the use of interim credentials
would cause apprenticeship programs to
incur the enormous costs of developing
testing to determine whether
apprentices are entitled to interim
credentials.
Response: As discussed above, the
final rule does not mandate use of
interim credentials. Program sponsors
that chose to register standards for
competency-based or hybrid programs
that provide for the issuance of interim
credentials would bear the costs
associated with developing and
operating these apprenticeship
programs. All registered apprenticeship
program sponsors voluntarily operate
apprentice programs and choose to
incur the costs associated with the
programs
Cancellation Rate
Seventeen commenters expressed
concern that the length of the
probationary period was not defined in
proposed § 29.5(b)(19), which provided
simply that cancellations during an
apprentice’s probationary period will
not adversely impact the sponsor’s
completion rate. The completion rate is
a new factor for evaluation of program
performance proposed in §§ 29.6(b) and
(c). Several commenters suggested
defining a specific ‘‘not to exceed’’ time
for probationary periods, such as 15
percent or 20 percent of a program’s
length. Many commenters were
concerned that without a time limit on
the probationary period, the proposed
regulations could permit an
apprenticeship program to leave
apprentices in probationary status for an
extended period of time in an effort to
improve the program’s performance
ratings or conceal the program’s
deficiencies.
Twelve commenters believed that not
counting cancellations during the
probationary period, or allowing
programs to adjust the length of the
probationary period, could artificially
improve completion rates. Others felt
that cancellation rates during the
probationary period, if properly
categorized, can be used to evaluate
program performance. Some
commenters stated that it would be
important to monitor programs that
have a high rate of attrition during
probationary period to check for abuses.
Others advocated that only
cancellations that were due to failure to

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provide training in accordance with the
sponsor’s approved standards should be
counted in completion rates, asserting
that the proposed rule’s inclusion of
cancellation rates after the probationary
period in calculation of completion
rates did not distinguish between those
cancellations that were the fault of the
program and those over which the
program has little if any control.
Response: We agree that it is
important to monitor programs with a
high cancellation rate during
probationary periods. For many years
the Office of Apprenticeship has
included cancellation rates as a factor
for consideration when staff members
conduct quality assurance assessments,
and if appropriate, has used this
information in the provision of
technical assistance to program
sponsors. Although the final rule does
not provide for inclusion of
cancellations that occur during
probationary periods in the calculation
of completion rates, this important
information is reviewed, evaluated, and
addressed through the quality assurance
assessment process.
We also agree that without a limit to
the probationary period, the regulation
could allow the information used in
calculating completion rates to be
skewed, thereby impacting the
evaluation of program performance. In
recognition of the concerns of the
commenters, we have added language to
§ 29.5(b)(8) limiting the length of the
probationary period. Historically,
National Guideline for Apprenticeship
Standards recognized by the Office of
Apprenticeship have used 25 percent of
the length of the program as the
benchmark. Accordingly, the final rule
provides that the probationary period
cannot exceed 25 percent of the length
of the program, or one year, whichever
is shorter.
We disagree that only cancellations
due to the failure to provide training in
accordance with the sponsor’s approved
standards should be counted in
completion rates. Program sponsors’
policies and administrative procedures
such as not providing steady work
experience reduce the apprentices’
opportunities to earn wages, and
thereby can impact an apprentice’s
ability to remain registered in a
program. Therefore, analysis of a
program’s cancellations rates can
provide important indications of the
need to further evaluate a program’s
operations, policies, and procedures,
and if needed provide technical
assistance. As discussed further in the
discussion of program performance
standards, we emphasize that a
Registration Agency’s evaluation of

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completion rates will include analysis
of mitigating factors. No substantive
changes have been made to proposed
§ 29.5(b)(19); which will be promulgated
as § 29.5(b)(20).
Program Performance Sandards (§ 29.6)
Section 29.6 is a new section that
focuses on the quality and performance
of registered apprenticeship programs.
A few commenters generally supported
the proposed changes to this section,
but questioned the Office of
Apprenticeship’s ability to successfully
evaluate all of the registered programs,
given current budget and staffing levels.
Response: The Department agrees that
a Registration Agency requires adequate
resources to successfully evaluate all
registered programs under the
provisions of this section. The Office of
Apprenticeship staff has been
conducting quality assurance
assessments and Equal Employment
Opportunity Compliance Reviews as
part of their normal responsibilities for
helping to ensure that program sponsors
comply with the requirements of these
regulations and part 30. The processes
for conducting these reviews currently
include assessing a program’s
performance against key indicators
including completion and cancellations
rates. Therefore, the functions of
calculating completion rates,
conducting quality assurance
assessments and Employment
Opportunity Compliance Reviews, and
providing technical assistance, as
required by final § 29.6 have effectively
been a part of the Office of
Apprenticeship’s current practices for
evaluating and monitoring programs. To
the extent that the Office of
Apprenticeship’s current resources may
become constrained by requirements of
this section, we may realign resources
internally to effectively and efficiently
conduct these activities.

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At Least One Registered Apprentice
Section 29.6(a) provides that every
program must have at least one
registered apprentice in order to be
designated and retain designation as a
registered apprenticeship program for
Federal purposes. Commenters observed
concern that there may be times when
a program is between training cycles
and has no apprentices for a short
period of time. Other commenters
asserted that this provision does not
adequately address apprenticeship
programs with one or a few apprentices
who never graduate. Some commenters
suggested establishing time frames for
determining if programs have an active
apprentice or apprentices.

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Response: We agree that there may be
times when a sponsor may have a lag
between training cycles and be without
a registered apprentice for a short period
of time. However, when a program lies
dormant for a substantial period of time,
it is appropriate to consider the program
as no longer viable. Therefore, we agree
with the suggestion to establish time
frames for determining if a program has
an active apprentice to account for the
short lag times mentioned in the
comment and other reasonable periods
of inactivity that may occur in otherwise
active programs. We consider a period
of up to 1 year to be a reasonable period
of inactivity. We have determined that
the time frame for a program to not have
an apprentice registered with a
Registration Agency should not exceed
1 year. We have revised § 29.6(a)
accordingly.
With regard to commenters assertion
that this provision does not adequately
address programs that never graduate an
apprentice, the requirements set forth in
29.6(b) will hold those programs
accountable.
Evaluation of Program Performance
Twenty-eight comments addressed
§ 29.6(b), which provides a nonexclusive list of tools and factors that
must be considered in evaluating the
performance of a registered
apprenticeship program. Nine
commenters expressed concern that
there is no proposed definition of
‘‘quality assurance assessment,’’ one of
the tools and factors to be considered in
evaluating performance. Many
requested a definition of ‘‘completion
rate.’’ Other commenters requested that
the Department clarify the intended
purpose of each of the performance
tools and factors and how they are to be
used. One commenter suggested adding
a requirement that the ‘‘tools and
factors’’ be consistent with Federal
standards and goals so that States could
not add factors that conflicted with this
part, 29 CFR part 30, or the National
Apprenticeship Act.
Response: We agree that definitions
for the terms ‘‘completion rate’’ and
‘‘quality assurance assessment’’ would
provide greater clarity to the proposed
performance accountability framework
established by the final rule.
Accordingly, as discussed above, we
have added definitions for the terms
‘‘completion rate’’ and ‘‘quality
assurance assessment’’ to § 29.2.
The three performance factors
specifically required are quality
assurance assessments, Equal
Employment Opportunity Compliance
Reviews, and completion rates. As
discussed above in the discussion of the

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definitions in § 29.2, quality assurance
assessments are comprehensive reviews
conducted by a Registration Agency to
determine if an apprenticeship program
is addressing its program standards and
meeting the requirements of this part.
Equal Employment Opportunity
Compliance Reviews are required under
part 30. Data on a program’s completion
rates are intended to provide
Registration Agencies with information
useful to support technical assistance
efforts to improve program performance.
We emphasize that any additional tools
and factors used by Registration
Agencies in evaluating program
performance must adhere to the goals
and policies of the Department
articulated in this part and in guidance
issued by the Office of Apprenticeship.
Completion Rate
A Registration Agency’s use of
completion rates in evaluating program
performance, provided by proposed
§§ 29.6(b) and (c), received mixed
reviews. One commenter asserted that
the proposed rule will likely result in an
annual effect on the economy of $100
million or more, and therefore the
proposed rule qualifies as a major rule
under Executive Order 12866 and the
Small Business Regulatory Enforcement
Act (SBREFA). The commenter asserted
that State and local governments are
including bid provisions that require
contractors to have apprentices who
have successfully completed an
apprenticeship program approved by
the Department or a recognized State
Apprenticeship Agency as a condition
of bidding and participating on a
project. The commenter asserted that
such bid requirements will likely
foreclose unilateral apprenticeship
program sponsors from being able to bid
on, and be awarded State and local
construction projects, which will likely
have an annual adverse impact on the
economy exceeding $100 million.
Although the comment did not mention
a particular section of the rule, we have
determined that the commenter’s
estimate of anticipated impact was
primarily based on the expected costs of
compliance with §§ 29.6 (b) and (c). The
commenter recommended that the
Department withdraw the proposed
provisions for completion rates, so that
the Office of Apprenticeship can
conduct further study and discussion
with interested stakeholders.
Many commenters noted that
evaluating apprenticeship programs on
the basis of completion rates would
align the National Apprenticeship
System with other Federal education
programs that make eligibility for
receipt of Federal funding dependent, in

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part, on the program’s achievement of
minimal graduation rates. Others stated
that the evaluation would improve
program accountability, ensure highquality training, or reflect the
effectiveness of programs. However,
another commenter asserted that
reference to completion rates could
unfairly penalize programs that make an
affirmative effort to recruit apprentices
from non-traditional pools, as the dropout rate for those recruited from riskier
groups may be higher than normal.
Other commenters stated that use of
completion rates could also penalize
small programs, whose completion rates
could be affected dramatically by the
cancellation of only one or two
apprenticeship agreements.
Some commenters opposed
provisions of proposed § 29.6(c) that
provide for evaluation of completion
rates of programs located in the same
geographical areas, and as necessary,
further review and provision of
technical assistance to maintain and
improve program performance. One
commenter asserted that it was onerous
and short-sighted to compare programs,
rather than individually evaluate
programs based on their merits. Another
commenter characterized this particular
proposed provision as highly subjective
and ambiguous, suggesting that the
standard should set a minimum
completion rate above which a
program’s completion rate will not be
deemed a negative factor. Another
remarked on the absence of firm
standards in this proposed regulation.
Others asserted that this proposed
requirement would favor unionoperated programs and do nothing to
improve apprenticeship programs.
Response: The Department does not
agree that evaluating completion rates as
an indicator of program quality would
unfairly penalize programs that recruit
from non-traditional applicant pools,
nor do we agree that completion rates
would penalize small programs whose
completion rates could be affected
dramatically by cancellation of one or
two apprenticeship agreements. The
primary purpose of the completion rate
evaluation is not to penalize programs.
As described below, our goal is to
establish an assessment mechanism to
identify programs that will benefit from
technical assistance to become high
performing programs. Only when
programs demonstrate a persistent and
significant failure to perform
successfully will poor completion rates
factor into potential deregistration
proceedings.
We agree that comparing like
programs, particularly when there may
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geographical are, may not be a feasible,
effective approach for the evaluation of
completion rates. We also agree with the
suggestion to establish a minimum
completion rate above which a
program’s completion rate will not be
deemed a negative factor. We have
determined that the national average for
apprenticeship completions would be a
reasonable benchmark to use in
evaluating the performance of registered
apprenticeship programs for purposes of
identifying programs in need of
technical assistance. Accordingly, we
have revised § 29.6(c) to require that a
Registration Agency review a program’s
completion rates in comparison to the
national average for completion rates.
Programs with completion rates lower
than the national average will receive
technical assistance from a Registration
Agency. As stated in the NPRM, the use
of completion rates in program reviews
is not intended to limit or terminate
existing apprenticeship programs that
are receiving technical assistance from a
Registration Agency and demonstrating
improved program performance, or to
impede prospective apprenticeship
program sponsors. Rather, the use of
completion rates is intended to
strengthen the program outcomes and
quality in the National Apprenticeship
System by setting a benchmark that
identifies programs that could benefit
from technical assistance.
In order to reflect the focus on
technical assistance for programs with
completion rates below that national
average, we have dropped the reference
that appeared in proposed § 29.6(c) for
the Registration Agency to ‘‘take other
appropriate action’’ against such
programs. Deletion of this phrase is
meant to clarify that simply falling
below that national average for
completion rates does not lead to
deregistration procedures. Completion
rates may potentially factor into
deregistration procedures only when
they demonstrate an ongoing pattern of
very low completion rates over a period
of several years (see discussion of
‘‘persistent and significant failure to
perform’’ below).
Rather than specifying the details for
implementation of program performance
standards in registered apprenticeship,
we believe the best use of § 29.6 is to
establish a regulatory framework that
provides the basis for the Office of
Apprenticeship to issue more detailed
guidance. The Office of Apprenticeship
will consult with apprenticeship
program sponsors and recognized State
Apprenticeship Agencies to develop
and issue guidance regarding program
performance standards and
accountability in the National

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Apprenticeship System. This
consultation process would also be
responsive to a commenter’s
recommendation to further discuss
provisions for completion rates with
interested stakeholders. This approach
is similar to the Department’s regulatory
framework and performance
management system established for the
programs under the Workforce
Investment Act.
The Department disagrees with
assertions that there is a relationship
between bid requirements for State and
local construction projects and
provisions for completion rates in
§§ 29.6(b) and (c) which will likely have
an annual impact on the economy
exceeding $100 million. None of the
provisions in final § 29.6 nor any other
provision in the final rule provide for or
relate to the establishment bid
requirements for State and local
construction projects.
Cancellation of Apprenticeship
Agreements During Probationary Period
Many commenters opposed
provisions of § 29.6(d) which provided
that the cancellation of apprenticeship
agreements during the probationary
period would not have an adverse
impact on a sponsor’s completion rate.
One commenter stated that all
cancellations should be considered in
program reviews, particularly to deter
program sponsors who register programs
primarily to meet contract requirements
for Federal works projects under the
Davis-Bacon Act.
Response: Existing regulations
provide for a probationary period, in
recognition that both the apprenticeship
sponsor and the apprentice should have
sufficient time to determine if the
apprenticeship agreement is beneficial.
During the probationary period,
apprentices may have many reasons for
cancelling their agreements, which may
have nothing to do with the program.
Including apprenticeship agreement
cancellations during the probationary
period in the calculation of completion
rates may inadvertently cause program
sponsors to adopt more stringent
selection requirements, in an effort to
minimize being penalized. More
stringent selection requirements could
reduce or limit apprenticeship
opportunities that would otherwise
have been available. We seek to avoid a
regulatory framework that would
unintentionally reduce apprenticeship
opportunities. However, Registration
Agencies do include cancellation rates
as important information in their
oversight of registered apprenticeship
programs. Cancellation rates, including
those that occur during the probationary

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period, are reviewed in conjunction
with the Equal Employment
Opportunity compliance reviews. If
appropriate, Registration Agencies use
this information for the provision of
technical assistance. Therefore, we have
determined that the proposal for the
cancellation of an apprenticeship
agreement not to have an adverse
impact on a sponsor’s completion rate if
the cancellation occurs during the
apprentice’s probationary period is an
appropriate balance between the need to
hold program sponsors accountable and
the need to promote apprenticeship
opportunities. We have made no
changes to § 29.6(d).
Apprenticeship Agreement (§ 29.7)
We received three comments on
proposed § 29.7, regarding requirements
for apprenticeship agreements, none of
which advocated for major changes to
the proposed provisions. The proposed
changes update terminology, align the
apprenticeship agreement with the three
approaches to apprenticeship
progression (time-based, competencybased, or hybrid), and add space on the
agreement in which apprentices would
voluntarily provide their Social Security
Number. The Registration Agency will
use apprentices’ Social Security
Numbers for performance management
and Davis-Bacon Act purposes; in
particular, for use in calculating
employment outcomes of the National
Apprenticeship System as defined in
the Department’s common measures for
Federal job training programs. The
Department has an approved
information collection request for the
use of Social Security Number
information on an apprenticeship
agreement (OMB Control Number 1205–
0223). One commenter suggested that
the proposed changes will result in an
undue time and financial burden for
State Apprenticeship Agencies. Two
commenters suggested additional
requirements for collection of equal
employment opportunity information,
which are beyond the scope of revisions
to part 29.
Response: While revising forms will
require the expenditure of resources, the
changes and resulting revisions to the
form will be minimal. Moreover, the
changes are necessary for the National
Apprenticeship System to continue to
align with changes in approaches to onthe-job learning, as well as the broader
environment in which apprenticeship
programs operate.
We note that the non-discrimination
provisions in § 29.7 are limited to the
prohibitions that are applicable under
part 30, regulations for Equal
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Apprenticeship and Training, and do
not describe the full range of Equal
Employment Opportunity protections
that may be applicable to registered
apprenticeship programs. Registered
apprenticeship programs are subject to
other Federal, State and local laws and
regulations regarding Equal
Employment Opportunity in
employment and training, such as the
Americans with Disabilities Act, the
Age Discrimination in Employment Act,
and Title VII of the Civil Rights Act of
1964.
Upon further review, we have
determined that there are three minor
changes necessary to align this section
with revisions to the definitions and
standards of apprenticeship discussed
above. With the deletion of the
definition for ‘‘supplemental
instruction,’’ as discussed above in the
discussion of definitions, this term is no
longer appropriate for requirements in
§ 29.7(e)(2) regarding number of hours
in related instruction. We have revised
§ 29.7(e)(2) accordingly. For consistency
with final § 29.5(b)(2)(ii), which
specifies that competency-based
programs must still require an
apprentice to complete the on-the-job
learning component of registered
apprenticeship, we have revised the
requirement in § 29.7(e) for competencybased programs to include statements
about on-the-job learning. We have also
replaced the term ‘‘school time’’ in
29.7(g) with a more appropriate term,
‘‘related instruction,’’ to describe
whether or not the apprentice is
compensated during the related
instruction component of registered
apprenticeship.
Deregistration of a Registered Program
(§ 29.8)
Section 29.8 clarifies the provisions
for deregistration of registered
apprenticeship programs. We have
corrected a mistake in proposed
§ 29.8(b)(1) by replacing ‘‘and’’ with
‘‘or’’ to clarify that the Registration
Agency may undertake deregistration
proceedings when a program is not
conducted, operated or administered in
accordance with the program’s
registered provisions or with the
requirements of 29 CFR part 29.
Five commenters addressed proposed
changes in § 29.8, which clarifies
existing § 29.7 provisions for
deregistration of registered
apprenticeship programs. One
commenter requested clarification as to
whether a program would automatically
enter the deregistration process if it is
without an apprentice for 15 or more
days. Two comments expressed concern
about the Department’s ability to

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sufficiently address the burdens
associated with deregistration
procedures, emphasizing that
deregistration should be conducted at
the local level rather than the Federal
level. Three commenters asserted that
the proposed rule would usurp power
from State Apprenticeship Agencies.
Response: A program that is without
an apprentice for 15 days is not subject
to deregistration. As discussed with
regard to Program Performance
Standards above, revised § 29.6(a)
allows for a time lag of up to 1 year
between training cycles, during which a
program could be without a registered
apprentice. To address ambiguity
regarding a relationship between failure
to meet the new program performance
standards established in § 29.6 and
requirements for deregistration of a
registered program established in § 29.8,
we have also revised in the final rule
§ 29.8(b)(1) to clarify the circumstances
in which deregistration proceedings
may be undertaken for failure to
conduct, operate or administer the
program in accordance with the
requirements of part 29. These
circumstances include: the failure to
meet longstanding standards of the
National Apprenticeship System, such
as failure to provide on-the-job learning,
failure to provide related instruction,
and failure to pay the apprentice a
progressively increasing schedule of
wages consistent with the apprentice’s
skills. In addition, the persistent and
significant failure to perform
successfully under the new performance
standards established in section 29.6
may also lead to deregistration.
However, a persistent and significant
failure to perform successfully does not
occur simply when a program’s
completion rate falls below the national
average. Deregistration proceedings
apply to programs with severe
performance problems. A persistent and
significant failure to perform
successfully occurs when a program
sponsor consistently fails to register at
least one apprentice, shows a pattern of
poor quality assessment results over a
period of several years, demonstrates an
ongoing pattern of very low completion
rates over a period of several years, or
shows no indication of improvement in
the areas identified by the Registration
Agency during a review process as
requiring corrective action.
With regard to concerns about
burdens associated with deregistration
procedures and usurping power from
the State Apprenticeship Agency, § 29.8
deletes the term ‘‘Bureau (Office of
Apprenticeship) registered programs’’
and uses the term ‘‘Registration
Agency’’ to clarify that program

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deregistration procedures outlined in
§§ 29.8(a) and (b) are conducted at the
State level, by the Registration Agency.
In States where the State
Apprenticeship Agency is the
Registration Agency, deregistration
proceedings will be conducted by the
State Apprenticeship Agency. Any such
proceeding would be required to
comply with § 29.8.
We emphasize that final § 29.8 carries
forward existing practice that has
evolved under current regulations, in
which the Department has deferred to
recognized State Apprenticeship
Agency authority in matters of program
deregistration. Therefore, the
Department anticipates having sufficient
resources to address any burdens
associated with deregistration
procedures, as these matters will
primarily pertain to deregistration
proceedings in States where the
Department is the Registration Agency.
Final § 29.8(b)(7) clarifies that if a
sponsor requests a hearing, the
Administrator refers the matter to an
Administrative Law Judge, who will
convene a hearing and issue a decision
in accordance with § 29.10(c). This
clarification aligns the final rule with
Secretary’s Order 1–2002, 67 FR 64272,
Oct. 17, 2002, which provides that an
Administrative Law Judge’s decision in
a program deregistration is only subject
to discretionary review by the
Administrative Review Board.

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Reinstatement of Program Registration
(§ 29.9)
The Department received one
comment on this section. The
commenter agreed with the proposed
text on reinstatement of program
registration.
Response: We are promulgating final
§ 29.9 as proposed.
Hearings for Deregistration (§ 29.10)
Four commenters addressed proposed
changes to § 29.10, which sets the
requirements for deregistration hearings.
One commenter agreed with the
proposed changes. Another commenter
opposed the provisions in this section
on the basis that hearings for
deregistration should be kept at the
State level. A third commenter asked if
this section applies to programs
registered with State Apprenticeship
Agencies. Another commenter indicated
that the public had not been allowed
sufficient time to review the Office of
Administrative Law Judges hearing
rules at 29 CFR part 18, which will
apply to deregistration hearings. This
commenter also suggested that the
proposed changes to the method of
appeal in existing § 29.9 would reduce

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access to due process of law. The
commenter suggested that a hearing
before an Administrative Law Judge, as
established in § 29.10, differs
considerably from proceedings before a
hearing officer or a trial by jury.
Response: We disagree with the
commenter’s assertions that the
Administrative Law Judge procedures
would reduce access to due process and
that the public has not been allowed
sufficient time to review the Office of
Administrative Law Judges hearing
rules at 29 CFR part 18. The applicable
rules of procedure at 29 CFR part 18
provide uniform rules for the conduct of
hearings for a wide range of Department
of Labor programs. These rules are
consistent with the Administrative
Procedure Act’s requirements for the
conduct of agency adjudications.
However, upon review further, we have
determined that it is more appropriate
for the notice from the Administrative
Law Judge to refer to the request as a
request for a hearing, rather than a
request for a review, as proposed in the
NPRM. We have revised 29.10(b)
accordingly.
We disagree with the commenter’s
assertion that hearings for reinstatement
of program registration should be kept at
the State level. Under existing § 29.9
such hearings are conducted at the
Federal level. Final § 29.10 merely
changes the Federal official conducting
the hearing.
We note that the requirements for
hearings for deregistration apply to all
programs that have been registered for
Federal purposes, regardless of whether
the program is registered with the Office
of Apprenticeship or for Federal
purposes with a recognized State
Apprenticeship Agency.
Except as noted, we will promulgate
final § 29.10 as proposed.
Limitations (§ 29.11) and Complaints
(§ 29.12)
One comment was received on each of
these two proposed provisions, both
expressing support.
The Department will promulgate
§ 29.11 and § 29.12 as proposed.
Recognition of State Apprenticeship
Agencies (§ 29.13)
Proposed § 29.13 revises the
provisions in existing § 29.12 that
address the recognition of State
Apprenticeship Agencies for Federal
purposes and clarifies how the Office of
Apprenticeship oversees the National
Apprenticeship System. We received
125 comments on this section overall,
110 of which addressed specific
provisions, including limiting
recognition to the State Apprenticeship

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Agency; role of the State Apprenticeship
Council; linkages with economic
development and workforce investment
systems; location of a State
Apprenticeship Agency; requirements
for resources to carry out the functions
of a Registration Agency; reciprocal
approval of programs and standards in
the building and construction
industries; Departmental review and
approval of State apprenticeship
legislation, regulations, policies, and
operational procedures; application for
recognition; and renewal and
maintenance of recognition. Several
commenters strongly opposed the
revisions, asserting that the proposed
changes were overly prescriptive and
would significantly limit a State’s
authority to oversee registered
apprenticeship functions within its
jurisdiction. It is our responsibility to
ensure that States recognized as having
such authority continue to conform to
the Federal requirements on which the
recognition is based. As described
below, the Department’s recognition of
a State Apprenticeship Agency pertains
to granting Federal-State partnership in
which the Department grants the State
authority to act on our behalf as a
Registration Agency. The provisions of
parts 29 and 30 set the conditions for a
State to obtain and maintain that
authority; these provisions are not
meant to impact State authority to
regulate apprenticeship for State
purposes.
Roles of State Apprenticeship Agencies
Twelve comments focused on
proposed § 29.13(a), which provides for
‘‘recognition’’ only of a State
Apprenticeship Agency, and not a State
Apprenticeship Council, and provides
that the Department’s recognition of the
State Apprenticeship Agency confers
‘‘non-exclusive authority’’ to determine
whether an apprenticeship program
meets published standards and is
eligible for those Federal purposes
which require such a determination.
Some commenters asserted that these
changes conflict with their States’
current law, whereby a State
Apprenticeship Council oversees the
State’s apprenticeship system or
promulgates regulations that oversee a
State Apprenticeship Agency’s work.
Thus, the proposed changes would
require revisions to State apprenticeship
law and regulation. Another suggested
that the Department should not dictate
to the States the nature and structure of
their government.
Response: Our experience has shown
that a government-to-government
relationship with a State
Apprenticeship Agency facilitates the

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smooth functioning of the National
Apprenticeship System, thus best
protecting apprentices’ interests.
Although the members of a State
Apprenticeship Council represent
diverse employer, labor, and public
interests and have knowledge and
experience that enables them to be
strong advocates for apprenticeship,
many of them are not State officials.
Therefore, members of the State
Apprenticeship Council are not,
ultimately, accountable to the State or to
the Department for their actions. Such
accountability is essential to the
functioning of the National
Apprenticeship System, especially
where it comes to safeguarding the
welfare of apprentices and promoting
apprenticeship opportunity. State
officials represent the interests of the
entire State and are accountable for their
actions. Accordingly, our proposal to
extend recognition only to State
Apprenticeship Agencies is necessary to
ensure that the entity that is held
accountable for conformity with part 29
is clearly identified. This proposal does
not dictate the nature and structure of
State government; it merely identifies
the State government entity to which
the Department will grant authority to
act on our behalf as a Registration
Agency. The existing regulations do not
specify that a recognized Registration
Agency must be a government cabinetlevel agency. Changes to § 29.13(a)
clarify this requirement and further
align the proposed regulations for the
National Apprenticeship System with
the National Apprenticeship Act, which
states that the Department is to
‘‘cooperate with State agencies engaged
in the formulation and promotion of
standards of apprenticeship.’’ Therefore,
we have made no changes to
§ 29.13(a)(1).
Role of State Apprenticeship Councils
We received twenty (20) comments
regarding proposed § 29.13(a)(2), which
consolidates the provisions on State
Apprenticeship Councils. Several
commenters asserted that the current
roles and responsibilities of State
Apprenticeship Councils and State
Apprenticeship Agencies work well,
and questioned the need to adjust this
system. Many expressed concern that
we are eliminating State Apprenticeship
Councils. One commenter suggested
that removing a State Apprenticeship
Council’s decision-making role would
significantly reduce the level of
participation from key stakeholders,
potentially creating far-reaching
negative effects for apprenticeship
programs. Another commenter
questioned why the proposed

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regulations do not identify acceptable
State Apprenticeship Council
membership, as provided in existing
part 29.
Response: As described above, we
have determined that the effective
functioning of the Federal-State
partnership in the registered
apprenticeship system requires a direct
relationship between Federal and State
agencies. However, while we no longer
recognize State Apprenticeship
Councils for registration purposes, we
are not eliminating the requirement to
establish a State Apprenticeship
Council for regulatory or advisory
purposes. Members of State
Apprenticeship Councils will continue
to be critical stakeholders, whose active
participation is essential for the
successful operation of registered
apprenticeship programs in their States.
Based on the new organizational system,
we are limiting our direct regulation to
requirements applicable to recognized
State Apprenticeship Agencies. Given
that the final rule makes recognized
State Apprenticeship Agencies
responsible for registered
apprenticeship for Federal purposes in
their States, we have determined that it
is appropriate for such Registration
Agencies to direct the operations of the
corresponding State Apprenticeship
Councils. Accordingly, we have revised
§ 29.13(a)(2) to clarify that a State
Apprenticeship Council operates under
the direction of the State
Apprenticeship Agency. We reiterate
that §§ 29.13(a)(2)(i) and (ii) carry
forward provisions from the existing
regulations pertaining to State
Apprenticeship Council membership
criteria. Except as noted, we are
promulgating § 29.13(a)(2) as proposed.
Linkages With Economic Development
and Workforce Investment
Two commenters asserted that the
Department lacked statutory authority to
require or mandate that the State
Apprenticeship Agency integrate with
the State’s economic development
strategies and public workforce
investment system, as provided in
§ 29.13(a)(6). Another commenter
expressed support for this provision,
and suggested that the Department also
should encourage registered
apprenticeship programs to develop
agreements with community colleges.
Response: The National
Apprenticeship Act’s broad mandate to
safeguard the welfare of apprentices
fully authorizes the proposed
requirement for integration of registered
apprenticeship into economic and
workforce development efforts. This
requirement is part of a broader trend

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among Federal and State workforce
development programs to increase
coordination across programs in an
effort to more effectively meet the needs
of businesses, workers, and regional
areas. As part of the workforce
investment system, registered
apprenticeship programs should align
closely with regionally coordinated
talent development strategies aimed at
providing workers with the 21st century
skills that businesses and industries
demand. However, upon review, we
have concluded that the terms of
proposed § 29.13(a)(6) regarding
linkages and coordination with
economic development and the
workforce investment system fit within
proposed § 29.13(a)(4), which pertains
to basic standards, criteria, and
requirements for program registration
and/or approval. Therefore, proposed
§ 29.13(a)(6) has been consolidated into
§ 29.13(a)(4). Further, we have revised
terminology that refers to the workforce
system so it includes the phrase
‘‘publicly-funded workforce investment
system,’’ to clarify that public funding
can support these linkages and
coordination across State
Apprenticeship Agencies and the States’
workforce investment and economic
development strategies. This revision
aligns with efforts to expand
apprenticeship into high-growth, highdemand occupations.
Location of State Apprenticeship
Agency
We received ten comments opposing
the proposed deletion of existing
§ 29.12(b)(1), which sets requirements
for the location of the State
Apprenticeship Agency in the State
Department of Labor or in the agency of
State government having jurisdiction of
laws and regulations governing wages,
hours, and working conditions. Eight
commenters suggested that relocating a
State Apprenticeship Agency would
likely diminish the safety, health, and
welfare of apprentices in the workplace.
One commenter stated that as a result of
the rule change, the apprenticeship
program could be placed within a
department or division of State
government that is not familiar with or
qualified to address issues pertaining to
registered apprenticeship. Another
commenter stated that the rule change is
counter to the integration of
apprenticeship into the public
workforce development system and
would interfere with seamless
integration of worker protection
considerations. One commenter stated
that as a result of the rule change, the
apprenticeship program could be placed
within a department or division of State

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government that is not familiar with or
qualified to address issues pertaining to
registered apprenticeship.
Response: We disagree that the
proposed deletion of regulatory
provisions specifying the location of a
State Apprenticeship Agency will
negatively impact the welfare of
apprentices, and that it counters efforts
to integrate registered apprenticeship
with the public workforce development
system. Historically, registered
apprenticeship functions have resided
in the area of State government that
oversees wage and hour functions, and
this approach has functioned very well
for most States. However, many State
governments have reorganized, and the
various State governments function
differently. In light of these
organizational changes, the final rule
affords the flexibility necessary for
States to determine the most appropriate
location for registered apprenticeship,
based on their organizational
configuration. Regardless of that
location, a recognized State
Apprenticeship Agency still must meet
the requirements of this part, including
provisions in § 29.5 that safeguard the
welfare of the apprentice, and
provisions in § 29.13(a)(4) requiring
demonstration of linkages with the
State’s economic development strategies
and public workforce system. Further,
the effective functioning of the FederalState partnership for registered
apprenticeship does not require
specificity for the organizational
location of the State government agency.
Resources
Proposed § 29.13(b)(2), which
required that State Apprenticeship
Agencies provide sufficient budget and
staff to carry out the functions of a
Registration Agency, also generated
considerable opposition. Four
commenters stated that the proposed
requirements in § 29.13(b)(2) are
worthwhile guidelines for Registration
Agencies, but asserted that the
Department does not allocate sufficient
staff and budget to carry out its
responsibilities in the twenty-five States
where the Office of Apprenticeship is
the Registration Agency. Four
commenters indicated that the
Department does not have the authority
to dictate budget mandates to the States.
Response: The Department is
currently the Registration Agency in 25
States, and provides dedicated staff and
resources sufficient to fulfill its
responsibilities for registered
apprenticeship for Federal purposes in
those States. In the other 25 States,
where we have conferred recognition to
States to register apprentices and

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apprenticeship programs for Federal
purposes under the current regulations,
it is our responsibility to ensure that we
provide recognition to States that have
dedicated the necessary resources for
such functions. The proposed rule’s
provisions for sufficient resources do
not dictate budget mandates; the
responsibility for establishing budget
mandates remains with State
governments. However, we have been
persuaded by comments that it is more
appropriate to use language that is less
prescriptive than ‘‘allocate sufficient
budget and staff’’ to describe how a
Registration Agency will address these
functions. Therefore, we have revised
final rule § 29.13(b)(2) to require simply
that the State provide ‘‘sufficient
resources’’ to carry out the functions of
a Registration Agency. In the final rule,
provisions establishing that the
functions of a Registration Agency,
which include outreach and education,
registration of programs and
apprentices, provision of technical
assistance, and monitoring, as required
to fulfill the requirements of this part
are unchanged.
Reciprocal Approval
We received thirty-eight comments
about proposed § 29.13(b)(7), which
would expand current provisions for
reciprocal approval by eliminating the
exception for programs and standards in
the building and construction
industries. The majority of comments
opposed the proposal, and many
requested that DOL reinstate the
exception for building and construction
industries. Two commenters asked DOL
to clarify why the exemption was
originally granted, why the proposed
revisions would eliminate the
exemption, and how this action will
impact other related regulations, such as
those pertaining to Federal works
projects subject to the Davis-Bacon Act.
More than a dozen commenters raised
issues associated with variations among
State Apprenticeship Agency
requirements for program registration.
One set of commenters addressed
variations in wage rates, asserting that it
is unfair and economically disruptive to
allow trades from one State to use the
pay scale from their own State to bid on
work in other States, particularly for
apprentices employed on projects
subject to the Davis-Bacon Act. Other
commenters asserted that States have
different quality (e.g., training hours)
and licensing standards, which the
proposed rule fails to recognize. A
commenter stated that the proposed rule
lacks language that would require a
visiting sponsor registered in another
State to meet or exceed existing local

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requirements for apprenticeship
registration. A State asked DOL to
clarify whether the host State’s laws or
the home State’s laws would apply to
the apprentice.
Response: The exemption for
reciprocal approval for apprenticeship
programs in the construction industry in
the current regulations was based on the
view that the seasonality of construction
work could potentially interrupt an
apprentice’s on-the-job learning, require
that an apprentice be supervised by
several employers, and require
provision of related instruction in
several places, rather than one location,
thereby negatively impacting the quality
of apprenticeship programs in the
construction industry. With advances in
technology to assist in the provision of
related instruction and supervision of
apprentices, the Department believes
that these arguments for exempting
construction industry programs from
reciprocal approval are no longer valid.
In particular, the use of electronic media
in related instruction, as permitted by
final § 29.2, will provide construction
apprenticeship programs with the
ability to ensure consistency in related
technical instruction across the country,
regardless of geographic location. High
quality standards for apprenticeship
programs can be attained in the
construction industry, regardless of the
seasonal nature of construction work.
Therefore, the extension of reciprocal
approval to construction industry
programs, as well as to non-construction
programs, will enable the National
Apprenticeship System to further
address the apprenticeship needs of
businesses and labor.
We acknowledge that commenters
have raised important concerns about
differences between the home States’
and the host States’ requirements.
Revisions to § 29.13(b)(7) were intended
to provide program sponsors registered
for Federal purposes in one State with
fairness in contractor bidding on
Federal public works projects in another
State that are subject to the Davis-Bacon
Act, while still safeguarding the welfare
of registered apprentices. We agree that
the application of a home State’s wage
and hour and apprentice ratios in a host
State could confer an unfair advantage
to an out-of-state contractor bidding on
a Federal public works project. Such an
outcome would be unacceptable. That is
why, in all instances where we have
negotiated memoranda of understanding
with recognized States to arrange for
reciprocal approval of apprenticeship
programs in the building and
construction trades, we have
consistently required that the wage and
hour and apprenticeship ratio

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requirements of the host State apply. As
stated in the Federalism section of the
Administrative Requirements
discussion in the NPRM, the extension
of reciprocal approval to the
construction industry programs allows a
State Registration Agency to retain
authority to enforce its State labor law,
such as provisions covering apprentice
wage rates and ratios. For further
explanation, we have added language to
the final rule to clarify that the program
sponsor seeking reciprocal approval
must comply with the host State’s wage
and hour and apprentice ratio
standards. With this clarification, final
§ 29.13(b)(7) prohibits an out-of-state
program sponsor seeking reciprocal
approval from a host State from gaining
a competitive advantage in registering
and operating apprenticeship programs
for Federal purposes. Extension of
reciprocal approval in final § 29.13(b)(7)
will not impact a State’s
implementation of regulations
pertaining to Federal works projects
subject to the Davis Bacon Act. We
further emphasize that final
§ 29.13(b)(7) does not address other
aspects of a host State’s legislative,
regulatory, or procedural requirements
for registered apprenticeship for State or
local purposes because part 29 pertains
to registered apprenticeship for Federal
purposes. Issues such as licensure
requirements and contributions to a
State apprenticeship training fund are
State matters and are not covered by the
requirements for reciprocal approval for
Federal purposes in final § 29.13(b)(7).

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State Apprenticeship Legislation,
Regulations, Policies, and Operational
Procedures
Twenty-seven commenters expressed
concerns about proposed § 29.13(b)(9),
which explicitly requires State
Apprenticeship Agencies to submit
proposed modifications in the State’s
apprenticeship legislation, regulations,
policies, and/or operational procedures
for Departmental review and approval,
prior to implementation, for conformity
with the National Apprenticeship Act
and the implementing regulations in 29
CFR parts 29 and 30.
Many comments expressed concern
that proposed § 29.13(b)(9) ignores a
State’s authority to set policy and
establish law to meet the unique needs
of its industry and citizens. One
commenter asserted that this change
usurps States’ authority and exceeds the
authority granted by the National
Apprenticeship Act. Other commenters
asserted that the Office of
Apprenticeship’s required review will
inhibit the State regulatory process and

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decrease State government’s
responsiveness to the public.
Response: Given the National
Apprenticeship Act’s broad mandate for
the Department to safeguard the welfare
of apprentices, the proposed
requirement for Departmental review,
prior to implementation, of a State’s
revision to an approved apprenticeship
law is within our authority under the
Act.
Further, the requirement is necessary
for the Department’s management of the
National Apprenticeship System. Before
it is permitted to register apprentices
and apprenticeship programs, for
Federal purposes, a State wishing to
participate in the National
Apprenticeship System must submit its
apprenticeship law and other
information (§§ 29.13(a) and (b)) to the
Department for a determination that
they conform to the requirements of
Federal apprenticeship law. But, the
State Apprenticeship Agency’s
responsibility to follow Federal law
does not end there. Rather, a recognized
State Apprenticeship Agency must
continue to conform with the
requirements of Federal law,
particularly when the Agency wants to
make changes to is own laws or
regulations. Recent experience with
reviews of recognized State
Apprenticeship Agencies has
underscored the need for the
Department to monitor States’ efforts to
modify their apprenticeship laws, as
they pertain to registered apprenticeship
for Federal purposes. The Office of
Apprenticeship’s reviews have
repeatedly identified provisions of State
laws and regulations that were not
consistent with Federal apprenticeship
law; this has led to our requiring State
Apprenticeship Agencies to take the
corrective action necessary for them to
attain conformity with parts 29 and 30
and with the National Apprenticeship
Act.
Notice to the Office of Apprenticeship
and an opportunity to review proposed
changes to a State’s apprenticeship law,
regulation, and policies are necessary
for Departmental oversight. However,
the effect of purpose of proposed
§ 29.13(b)(9) will be to facilitate the
Department’s management of the
National Apprenticeship System, not to
usurp State authority to establish State
law and policy. Accordingly, and in
recognition of the concerns raised by
commenters, we have revised
§ 29.13(b)(9) to provide that a State must
submit all proposed modifications in
apprenticeship legislation, regulations,
policies and/or operational procedures
for Office of Apprenticeship review and
concurrence, rather than approval. The

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Office of Apprenticeship’s
‘‘concurrence’’ will simply reflect a
finding that the proposed modification
conforms to part 29 and that
implementation of the proposal will not
affect the State’s recognition status. If
the Office of Apprenticeship finds that
a proposed modification does not
conform to part 29, it will notify the
State of its concerns and work with the
State to resolve them, providing
technical assistance as appropriate. This
will provide the State and Office of
Apprenticeship with an opportunity to
identify and work out issues that
potentially affect a State’s recognition
status before the proposals take effect
and must be undone to preserve
recognition. The State will be notified of
the Office of Apprenticeship’s findings
as to conformity within 45 days from
the date that the Office of
Apprenticeship receives the proposed
modification, as provided by
§ 29.13(e)(4).
Although the process for Office of
Apprenticeship review and concurrence
of a State’s apprenticeship legislation,
regulations, policies, and/or operational
procedures may extend the time
necessary for modifications, the
potential imposition of additional time
is justified by the need to ensure that
revisions to State apprentice law,
regulations, policies, and procedures
conform to parts 29 and 30 and the
National Apprenticeship Act.
Registration Agencies can help to
maximize the efficiency of the process
by notifying the Department of any
modifications under consideration at
the earliest opportunity. Further, States
that proceed with revisions prior to
completion of the Department’s review
and concurrence process can minimize
the disruption that would result from
subsequent Departmental nonconcurrence through the inclusion of a
saving clause. Such a clause could, for
example, revive the text which was
superseded by a modification to which
the Department did not concur, or place
the reader on notice that the revision
would take effect only if or when the
Department concurred with the change.
Application for Recognition
Three commenters raised concerns
about proposed § 29.13(c), which
establishes requirements for State
Apprenticeship Agencies to apply for
recognition from the Department. One
commenter suggested that State
Apprenticeship Agencies recognized by
the Department under the current
regulations should only be required to
renew their status, not reapply for
recognition. Another commenter
asserted that requiring State

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Apprenticeship Agencies to reapply for
recognition diverts resources from
program implementation and would
interfere with funding and budget
planning. Another stated that DOL
currently has the authority to withdraw
its recognition of State Apprenticeship
Agencies for failure to conform to this
part, and there is no need to place
further reporting and oversight
requirements on State Apprenticeship
Agencies to reapply for recognition
within 1 year of the effective date of the
rule.
Response: This rulemaking
significantly revises the substantive
provisions of part 29. Although the
reapplication process for recognition
will require use of resources to prepare
and submit materials specified in
§ 29.13(c), we have determined that it is
absolutely essential to ensure that State
Apprenticeship Agencies
comprehensively conform to the new
requirements of part 29, as a precondition for recognition. However, we
acknowledge that an adequate and
reasonable response to these new
requirements will likely require more
than the 1 year provided by the NPRM.
Therefore, final § 29.13(c) establishes a
2-year time frame from the effective date
of the final rule for currently recognized
States seeking continued recognition to
submit required documentation to the
Office of Apprenticeship. This means
that States seeking continued
recognition will have 2 years from the
effective date of this final rule to make
any changes necessary for compliance
with this part. We also recognize that
circumstances may arise which provide
good cause for extension of this 2 year
time frame. Final § 29.13(c) carries
forward a proposed provision that
allows States to submit written requests
for extension of time within which to
comply with the requirements of this
part. Except as noted, final § 29.13(c) is
promulgated as proposed.
Renewal and Maintenance of
Recognition
Five commenters addressed proposed
§ 29.13(d), which establishes a 5 year
period for recognition of a State
Apprenticeship Agency by the
Department and provides a process for
renewal and maintenance of
recognition. Four commenters stated
that DOL currently has the authority to
withdraw recognition of a State
Apprenticeship Agency for failure to
conform to part 29 so there is no need
to place further requirements on State
Apprenticeship Agencies to renew their
recognition every 5 years. One
commenter asserted that requiring State
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recognition diverts resources from
program implementation and would
interfere with funding and budget
planning.
Response: Existing regulations confer
open-ended recognition on State
Apprenticeship Agencies for Federal
purposes and do not clearly specify that
a State Apprenticeship Agency must
continue to meet regulatory
requirements for continued recognition.
When the Department confers
recognition on a State Apprenticeship
Agency to register apprenticeship
programs for Federal purposes, it is our
responsibility to ensure that the basis
for recognition, State apprenticeship
law, regulation, policies, plans, and
procedures, continues to conform to
Federal requirements. We anticipate
periodic change, as State
Apprenticeship Agencies respond to the
changing workforce needs of business,
industry, and labor. Section 29.13(d)
establishes requirements for renewal
and maintenance of recognition to
ensure that the Department has the
opportunity to review and determine if
the State apprenticeship laws,
regulations, policies, plans, and
procedures continue to conform to
Federal requirements.
In the Department’s view, a 5 year
period provides a reasonable level of
continuity for State Apprenticeship
Agencies, while providing an efficient
way to ensure that State Apprenticeship
Agencies remain in conformity with
Federal requirements. As discussed in
the NPRM, the monitoring and reviews
outlined in § 29.13(e) will form the basis
for the Office of Apprenticeship’s
decision whether to continue
recognition every 5 years. Therefore, the
burden on State Apprenticeship
Agencies for this 5 year renewal and
maintenance of recognition will be
minimal. We have revised final
§ 29.13(d) to clarify that the notification
to States regarding conformity with this
part will be based on the Office of
Apprenticeship’s monitoring of a State
Registration Agency’s compliance, as
provided by § 29.13(e). We have revised
§ 29.13(d) accordingly.
Compliance
No comments were received on
proposed § 29.13(e), which is a new
provision that provides for on-site
review, self-assessment, and monitoring
of the State’s apprenticeship law and
procedures, and is based on the
Department’s existing procedures for
determining if State Apprenticeship
Agencies are complying with part 29.
However, upon further review we noted
two non-substantive changes were
necessary to correct grammatical errors,

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and we have revised final § 29.13(e)
accordingly.
Accountability/Remedies for Nonconformity
One comment was received on
proposed § 29.13(f), a new provision
which provides for the steps to be taken
if a State Apprenticeship Agency is
found to be out of compliance with part
29. Those steps, which are based on the
Department’s current practice of
compliance assistance, include the
provision of technical assistance, and,
where problems are found, conferral of
‘‘Conditional Recognition’’ for 45 days
during which the State Apprenticeship
Agency must submit a corrective action
plan to remedy the conforming activity
for failure to maintain compliance. The
commenter suggested extending the
period of ‘‘Conditional Recognition’’ to
90 days, asserting that additional time
might be necessary to change State law
that was found to be out of conformity
with 29 CFR part 29.
Response: We disagree with the
recommendation to extend the period of
Conditional Recognition to 90 days. The
period of Conditional Recognition
established by 29.13(f)(ii) pertains to the
time frame during which the State
Apprenticeship Agency must submit its
corrective action plan. Paragraph (f)(ii)
does not establish the time frame in
which a State must actually remedy the
non-conforming activity. The 45 day
period is consistent with current
practice, and provides sufficient time to
submit a corrective action plan.
However, upon further review we have
noted that the requirements for
submission of a corrective action plan
did not specify where the corrective
action plan should be submitted.
Therefore, we have revised § 29.13(f) to
clarify that a State Apprenticeship
Agency that was placed on Conditional
Recognition must submit a corrective
action plan to the Office of
Apprenticeship.
Denial of State Apprenticeship Agency
Recognition
No comments were received on
proposed § 29.13(g), which is based on
existing § 29.12(d) and simplifies and
clarifies the process for determining
whether to deny a State Apprenticeship
Agency recognition and provides the
procedures for appeal of that decision.
However, upon further review we have
determined that further clarification was
needed with regard to informing a State
Apprenticeship Agency about a request
for administrative review of a denial of
recognition. We have revised § 29.13(g)
to clarify that the written notice to a
State Apprenticeship Agency denying

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recognition must also specify that a
request for administrative review of a
denial of recognition may be made
within 30 calendar days of receipt of a
notice of denial from the Department.
We have also added provisions to
paragraph (4) to clarify that the
Administrative Review Board must
decide any case it accepts for review
within 180 days of the close of the
record and that, if not so decided, the
Administrative Law Judge’s decision
constitutes final agency action. This
clarification aligns final § 29.13(g) with
provisions for administrative review in
final § 29.10(c).

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State Apprenticeship Programs
No comments were received on
proposed § 29.13(h), which carried
forward provisions for registration with
the Office of Apprenticeship in the
event that a State Apprenticeship
Agency is not recognized by the Office
of Apprenticeship for Federal purposes,
that such recognition has been
withdrawn, or that no State
Apprenticeship Agency exists. Section
29.14(e) also establishes requirements
for registration with the Office of
Apprenticeship for program sponsors
affected by derecognition of a State
Apprenticeship Agency. To avoid
duplication in the final rule, we have
deleted proposed § 29.13(h)(2) and
revised final § 29.14(e) to incorporate
provisions from proposed § 29.13(h)(2)
that provide opportunities for a program
sponsor to request registration with the
Office of Apprenticeship where a State
Apprenticeship Agency does not exist
or a State Apprenticeship Agency is not
recognized by the Office of
Apprenticeship for Federal purposes.
No comments were received on
proposed § 29.13(i) and § 29.13(j).
Therefore, we are promulgating 29.13(i)
and 29.13(j) as proposed.
Derecognition of State Agencies
(§ 29.14)
The Department received one
comment on proposed revisions to the
rules on derecognition of State
Apprenticeship Agencies (existing
§ 29.13, proposed § 29.14). The
commenter generally supported the
Department’s proposed changes to
§ 29.14, but suggested new penalties
such as clarification that Federal funds
will be withheld from State
Apprenticeship Agencies that unfairly
restrict apprenticeship opportunities in
a manner inconsistent with parts 29 and
30 and the National Apprenticeship Act.
Response: The commenter did not
provide sufficient justification for the
establishment of an additional penalty
beyond derecognition. Further, since the

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Department provides no funds to State
Apprenticeship Agencies, the
Department does not have the statutory
authority to withhold Federal funds
from State Apprenticeship Agencies.
Upon further review, we have also
added provisions to § 29.14(c)(3)(i) to
clarify that the Administrative Review
Board must decide any case it accepts
for review within 180 days of the close
of the record and that, if not so decided,
the Administrative Law Judge’s decision
constitutes final agency action. This
clarification aligns final § 29.14(c) with
provisions for administrative review in
final § 29.10(c).
Also, as discussed above § 29.14(e)
has been revised to incorporate
provisions for a program sponsor to
request registration with the Office of
Apprenticeship where a State
Apprenticeship Agency does not exist
or a State Apprenticeship Agency is not
recognized by the Office of
Apprenticeship for Federal purposes.
III. Administrative Requirements for
the Rule
Executive Order (E.O.) 12866
This final rule to revise 29 CFR part
29 is a significant regulatory action
under § 3(f) of Executive Order 12866
because it raises ‘‘novel legal or policy
issues arising out of legal mandates, the
President’s priorities, or the principles’’
set forth in the E.O. Accordingly,
pursuant to the Executive Order, it was
reviewed by OMB. Revisions to 29 CFR
part 29 pertain to the terms and
conditions for an apprenticeship
program sponsor to register program
standards and apprentices for Federal
purposes, and for the Department to
grant authority to a State Registration
Agency to act on behalf of the
Department to register apprenticeship
programs and standards for Federal
purposes. The benefits of recognition of
an apprenticeship program and
apprentices for Federal purposes are to
meet requirements of a Federal contract,
grant, agreement or arrangement dealing
with apprenticeship; and requirements
for any Federal financial or other
assistance, benefit, privilege,
contribution, allowance, exemption,
preference or right pertaining to
apprenticeship. Since this final rule is
the first revision to regulations for the
National Apprenticeship System since
the Department first promulgated the
rule in 1977, it raises novel policy
issues. However, the Department has
determined that the costs to program
sponsors and State Registration
Agencies associated with registering
apprenticeship programs and
apprentices under these revised terms

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and conditions are only minimally
different from those pertaining to the
current requirements of the current 29
CFR part 29. These revisions will not
have an annual effect on the economy
of $100 million or more nor will they
adversely affect the economy, a sector of
the economy, productivity, competition,
jobs, the environment, public health or
safety, or State, local, or tribal
governments or communities in any
material way. Therefore, we conclude
that this final rule is not economically
significant and it is not subject to
§ 6(a)(3)(C) of the Executive Order.
Paperwork Reduction Act
This final rule requires Registered
Apprenticeship Program Sponsors and
apprentices to submit Apprenticeship
Agreement forms to DOL or to the
appropriate State Registration Agency.
These requirements were previously
reviewed and approved for use by OMB
under 29 U.S.C. 50 and 29 CFR 29.1,
and assigned OMB control number
1205–0223 under the provisions of the
Paperwork Reduction Act of 1995, 44
U.S.C. 3501 (PRA). Additionally, OMB
previously approved the Department’s
information collection request for the
Apprenticeship Agreement in § 29.7,
including collection of the apprentice’s
Social Security Number (OMB Control
Number 1205–0223, expiration date of
October 31, 2008. The Department is in
the process of obtaining an extension of
this form for three additional years). The
Department has determined that this
final rule contains no new information
collection requirements, nor that any of
these requirements are substantively or
materially modified by the changes
contained herein.
Executive Order 13132: Federalism
The Department has reviewed the
final rule in accordance with E.O. 13132
and has determined that it has
Federalism implications because it has
substantial direct effects on States and
the relationship between the National
government and the States. As noted in
the NPRM, the Department developed
the proposed rule based upon advice
from the Advisory Committee on
Apprenticeship (ACA), and in
consultation with State Apprenticeship
Agencies and the National Association
of State and Territorial Apprenticeship
Directors (NASTAD), the organization
representing apprenticeship officials
from the District of Columbia, 27 States,
and three Territories. The ACA, which
contains representatives of two
associations of State labor and
apprenticeship officials (including
NASTAD), offered specific suggestions
on matters relating to apprenticeship

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program standards, and registration and
deregistration of apprenticeship
programs. The proposed rule
incorporated the ACA’s
recommendations, and as discussed
above in the comments and regulatory
changes, the final rule carries forward
these recommendations.
Although NASTAD and State
Apprenticeship Agencies did not have
direct input into the development of
sections in the proposed and final rule
that directly affect States and the
relationship between the National
government and the States, the
Department gave thorough
consideration to NASTAD’s
recommendations on existing
regulations submitted in a letter from
the President of NASTAD in December
2006, in response to a request from the
Office of Apprenticeship. NASTAD’s
recommendations for the proposed rule
pertained to the roles of State
Apprenticeship Councils and State
Apprenticeship Agencies, composition
of State Apprenticeship Councils,
requirements for reciprocal approval for
programs registered in one State seeking
recognition in another State, the final
rule’s effect on recognition status for
currently recognized States Registration
Agencies, and the name of the DOL
entity responsible for oversight of the
National Apprenticeship System.
As stated in the NPRM and discussed
further below, we considered this input
and adopted most of NASTAD’s
recommendations in developing the
proposed and final rule. Additionally,
in our review of comments submitted by
NASTAD and States on the proposed
rule, we have identified six areas of
concern for States, some of which are
consistent with NASTAD’s
recommendations for revisions. The
areas are: increased administrative
burdens on States; impact on a State’s
internal organizational structure;
requirements for linkages with the
workforce investment system;
expansion of reciprocal approval for
programs and standards in the building
and construction industries;
Departmental review of State
apprenticeship laws, regulations,
policies and procedures; and
recognition status of currently
recognized States Registration Agencies.
Where appropriate and feasible for the
effective functioning of the FederalState partnership over registered
apprenticeship for Federal purposes, we
have revised the final rule to ease the
administrative burdens on States. For
other issues pertaining to this FederalState partnership, we have determined
that proposed requirements in the final
rule are necessary to ensure conformity

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with Federal law, and consistency
across the National Apprenticeship
System.
As noted in the NPRM and in
discussions above, the final rule affects
internal State organizational structures
with regard to State Apprenticeship
Agencies and State Apprenticeship
Councils. Although no changes have
been made to the final rule regarding
limiting recognition to State
Apprenticeship Agencies, we have set
forth further explanation for this
requirement. We have determined that
because a direct relationship between
Federal and State agencies is necessary
for the smooth functioning of the
National Apprenticeships System, the
Department will only grant recognition
to a State Apprenticeship Agency to act
as a Registration Agency for registered
apprenticeship for Federal purposes.
The final rule requires recognized States
to establish and continue to use a State
Apprenticeship Council, which may
serve either an advisory or a regulatory
role. Accordingly, compliance with the
final rule may require a State seeking
recognition as a Registration Agency to
modify its internal organizational
structures pertaining to its State
Apprenticeship Agency and its State
Apprenticeship Council.
We recognize that the National
Apprenticeship Act and the Workforce
Investment Act do not authorize the
Department to mandate that a State’s
workforce investment system and
economic development strategies
include registered apprenticeship.
Although the Department encourages
integration, and a State Apprenticeship
Agency may seek such integration, the
authority for internal State
organizational issues remains with the
State. Therefore, the final rule simply
requires a State Apprenticeship Agency
seeking recognition to demonstrate how
it is pursuing linkages and coordination
with the State’s publicly funded
workforce investment system and
economic development strategies. As
discussed in the NPRM, through
increased coordination, State
Apprenticeship Agencies can promote
registered apprenticeship to a broader
audience and further expand
apprenticeship into high growth, high
demand occupations.
The NPRM also noted that the
proposed extension of requirements for
reciprocal approval of programs in
building and construction industries
registered in other States may also raise
questions regarding which States’
registration requirements would apply.
As discussed above, the final rule
clarifies that program sponsors seeking
reciprocal approval from a ‘‘host’’ State

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must meet the host State’s wage and
hour provisions and apprenticeship
ratio standards. Therefore, State
Registration Agencies retain the
authority to enforce wage and hour
provisions and apprenticeship ratio
standards in their respective State’s
labor law.
Commenters asserted that the
requirement for Office of
Apprenticeship review and approval of
proposed modifications to State
apprenticeship legislation, regulation,
policies and procedures prior to
implementation usurps State authority.
The final rule clarifies that the National
Apprenticeship Act’s broad mandate for
the Department to safeguard the welfare
of apprentices provides the Department
with authority to ensure that a
recognized State Apprenticeship
Agency remains accountable for its
conformity with Federal law. However,
we recognize that a State has sovereign
power and authority to establish State
law and policy. To balance the interests
of these two authorities (State authority
to promulgate State law and policy,
with the Department’s authority to
ensure that a recognized State remains
accountable for conformity with Federal
law), the final rule provides for the
Office of Apprenticeship’s concurrence
on proposed modifications to State
apprenticeship legislation, regulation,
policies and procedures for Federal
purposes. Provisions for review and
concurrence are intended to provide a
reasonable opportunity for the
Department to inform recognized States
of areas of nonconformity; the
provisions are not intended to diminish
or restrict a State’s authority to establish
State law and policy. A State’s decision
to establish State law or policy that does
not conform to requirements of Federal
apprenticeship law or regulations has
consequences, which may include the
derecognition of the State
Apprenticeship Agency as the
Registration Agency authorized to
register apprenticeship programs and
standards for Federal purposes.
However, such recognition does not
affect the State’s authority to register
apprenticeship programs and standards
for State purposes.
We have also extended the time frame
for States seeking new or continued
recognition as a Registration Agency to
submit documentation specified in
§ 29.13(a). The NPRM provided 1 year
from the effective date of the final rule;
the final rule provides 2 years from the
effective date of the final rule in
recognition of the burdens associated
with transition period.
Finally, we reiterate that the final rule
pertains to registered apprenticeship for

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Federal purposes. As with existing
regulations, the final rule remains silent
on matters pertaining to a State’s
registration and oversight of
apprenticeship programs and
apprentices for State or local purposes.
The distinction between registered
apprenticeship for Federal purposes and
registered apprenticeship for State and
local purposes serves to limit the scope
of the Federal government’s role in State
government functions.
Unfunded Mandates Reform Act of 1995
This regulatory action has been
reviewed in accordance with the
Unfunded Mandates Reform Act of
1995, 2 U.S.C. 1531, and E.O. 12875.
The Department has determined that
this rule does not include any Federal
mandate that may result in increased
expenditures by State, local or tribal
governments, in the aggregate, or by the
private sector, of $100 million or more
in any one year, adjusted by the rate of
inflation between 1995 and 2008 ($130
million). Accordingly, the Department
has not included a budgetary impact
estimate.

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Assessment of Federal Regulations and
Policies on Families
The Department certifies that this
final rule has been assessed according to
§ 654 of Public Law 105–277, 112 Stat.
2681, for its effect on family well-being.
The Department concludes that the rule
will not adversely affect the well-being
of the Nation’s families. Rather, it
should have a positive effect by
safeguarding the welfare of registered
apprentices.
Regulatory Flexibility Act (RFA)/ Small
Business Regulatory Enforcement
Fairness Act of 1996 (SBREFA)
The Department has notified the Chief
Counsel for Advocacy, Small Business
Administration, and made the
certification pursuant to the RFA at 5
U.S.C. 605(b), that this final rule will
not have a significant economic impact
on a substantial number of small
entities. Under the RFA, no regulatory
flexibility analysis is required where the
rule will not have a significant
economic impact on a substantial
number of small entities. A small entity
is defined as a small business, small
not-for-profit organization, or small
governmental jurisdiction. 5 U.S.C.
601(3)–(5). The definition of the term
‘‘small entity’’ does not include States
or individuals. This rule revises and
updates procedures for labor standards
for registered apprenticeship programs
administered by the States and the
Department, and not by small
governmental jurisdictions. There are

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approximately 250,000 separate
employers who participate in roughly
29,000 registered apprenticeship
programs. There are an estimated
468,000 apprentices in the National
Apprenticeship System.
Although there may be a substantial
number of small businesses impacted by
this rulemaking (at the most 250,000
employers), the Department does not
believe that there will be a significant
economic impact to these entities. Small
businesses will not incur additional
incremental costs from this rulemaking
because the aspect of the rule most
likely to impact small entities, program
oversight, primarily applies to the
responsibilities of Registration Agencies
to monitor registered apprenticeship
programs rather than imposing
requirements on the registered
apprenticeship programs. For example,
final § 29.5 carries forward current
program oversight requirements for
program sponsors to comply with 29
CFR part 30, Equal Employment
Opportunity regulations, which
includes compliance reviews conducted
by Registration Agencies. Final § 29.6
imposes on Registration Agencies a new
regulatory requirement to perform
quality assurance assessments on
registered apprenticeship programs as
part of the Agencies’ performance
accountability responsibilities. While
this is a new provision in part 29, the
requirement to perform quality
assurance assessments is long-standing.
Pursuant to Circular 92–02, the Office of
Apprenticeship guidance on quality
assurance assessments issued in 1991,
Registration Agencies have assessed
apprenticeship program performance to
identify areas of strength and
opportunities for improvement. The
final rule’s provisions for Equal
Employment Opportunity Compliance
Reviews and quality assurance
assessments impose no assessment
responsibilities on small programs or
other programs. Compliance costs to
program sponsors associated with
program oversight will be the same as
under current regulations.
However, through comments on the
NPRM, it has come to our attention that
the program performance provisions in
§ 29.6 may place an unintended burden
on small apprenticeship program
sponsors such as small businesses by
potentially increasing the cost of
maintaining conformity with this part or
by potentially leading to deregistration
of small apprenticeship programs. In
particular, we are aware of concerns that
the requirement in § 29.6(c) that
Registration Agencies evaluate program
performance by comparing completion
rates of programs in like industries,

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occupations, and geographic areas could
possibly unfairly penalize programs
operated by small businesses. We are
also aware of concerns that the
proposed § 29.6(a) requirement that
every program must have at least one
registered apprentice could unfairly
impact small apprenticeship programs
that may experience short periods of
time without any apprentices. To avoid
such unintended consequences, the
Department has made changes to these
provisions in the final rule discussed
below.
As discussed above in the definitions
in § 29.2, program performance
standards in § 29.6, and program
deregistration in § 29.8, the Department
has clarified the relevant provisions in
the final rule to address concerns about
compliance costs and burdens on small
entities potentially associated with a
Registration Agency’s evaluation of
programs’ performance. In § 29.6(a), the
NPRM provided that every program
must have at least one registered
apprentice in order to be designated and
retain designation as a registered
apprenticeship program for Federal
purposes. We are persuaded that there
may be times when a sponsor may have
a lag between training cycles and be
without a registered apprentice for a
short period of time and we recognize
that small programs with fewer
apprentices may encounter such
situations more frequently than larger
programs. Therefore, the final rule
establishes a 1 year time frame during
which a program sponsor may be
without a registered apprentice so that
normal program cycles will not lead to
deregistration of small apprenticeship
programs. By providing a period of up
to one year so that the rule will not
affect small programs that are without
apprentices during the periods between
training cycles, the revised § 29.6(a)
reduces administrative costs and
burdens associated with small program
sponsors potentially having to reregister their program(s) that could have
otherwise been cancelled for
nonconformity with proposed § 29.6(a).
We have revised § 29.6(c) to address
potential concerns that the requirement
that Registration Agencies evaluate
program performance by comparing
completion rates of programs in like
industries, occupations, and geographic
areas could negatively impact small
apprenticeship programs if Registration
Agencies used these comparisons of
completion rates to unfairly penalize
programs operated by small businesses.
To address these concerns and to
minimize any potential unfair impact
from the performance accountability
provisions on small apprenticeship

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programs, final § 29.6(c) removes
comparisons of completion rates across
geographic areas, industries, and
occupations; drops the reference that
appeared in proposed § 29.6(c) for the
Registration Agency to ‘‘take other
appropriate action’’ against such
programs; and provides for evaluation of
performance of registered
apprenticeship programs based on
comparison to the national average for
completion rates. The preamble
discussion of these provisions clearly
explains that completion rate
information is intended for a
Registration Agency’s use in identifying
programs that may benefit from
technical assistance and will not
automatically lead to program
deregistration. The final rule clarifies
that completion rates may potentially
factor into deregistration procedures
only when the program demonstrates an
ongoing pattern of very low completion
rates over several years. The function of
calculating completion rates and the
provision of technical assistance by
discussing ways to improve a program’s
completion rates has effectively been a
part of a Registration Agency’s oversight
operations. These requirements will not
create new compliance costs to program
sponsors and the changes made to the
final rule minimize burdens on
programs sponsored by small entities by
eliminating the risk of unnecessary
program deregistration proceedings that
may have been possible under proposed
§ 29.6(c).
With the addition of definitions for
quality assurance assessment and
completion rate in the definitions in
final § 29.2; and clarifications and
revisions to program performance in
final § 29.6 and program deregistration
in final § 29.8, the final rule minimizes
compliance costs and reduces any
potential burdens on small entities that
may have resulted from the NPRM.
Therefore, the Department certifies that
this proposed rule will not have a
significant impact on a substantial
number of small entities, and as a result
no regulatory flexibility analysis is
required.
As discussed above with regard to
program performance standards in final
§ 29.6, one commenter asserted the
impact of the provisions for evaluation
of apprenticeship programs qualifies the
rule as a major rule under E.O. 12866
and SBREFA. The Department
disagrees. As noted above, provisions
for evaluation of program performance
are necessary to ensure program quality
and accountability in the National
Apprenticeship System, and do not
pertain to the establishment bid
requirements for State and local

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construction projects. Therefore, the
Department certifies that this final rule
is not a major rule as defined by § 804
of the SBREFA. 5 U.S.C. 804.
Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
The Department has reviewed this
final rule in accordance with E.O. 13175
and has determined that it does not
have ‘‘tribal implications.’’ The
proposed rule does not ‘‘have
substantial direct effects on one or more
Indian tribes, on the relationship
between the Federal government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal government and Indian tribes.’’
Executive Order 12988: Civil Justice
This final rule has been drafted and
reviewed in accordance with E.O.
12988, Civil Justice Reform, and will not
unduly burden the Federal court
system. The rule has been written so as
to minimize litigation and provide a
clear legal standard for affected conduct,
and has been reviewed carefully to
eliminate drafting errors and
ambiguities.
Plain Language
The Department drafted this Final
Rule in plain language.
Catalogue of Federal Domestic
Assistance Number
This program is listed in the Catalog
of Federal Domestic Assistance at
Number 17.201.
List of Subjects in 29 CFR Part 29
Apprentice agreement and
complaints, Apprenticeability criteria,
Program standards, registration and
deregistration, Sponsor eligibility, State
Apprenticeship Agency recognition and
derecognition.
Signed at Washington, DC, on October 15,
2008.
Brent R. Orrell,
Deputy Assistant Secretary, Employment and
Training Administration.

For reasons stated in the preamble, the
Department of Labor revises 29 CFR part
29 to read as follows:

■

PART 29—LABOR STANDARDS FOR
THE REGISTRATION OF
APPRENTICESHIP PROGRAMS
Sec.
29.1
29.2
29.3

Purpose and scope.
Definitions.
Eligibility and procedure for
registration of an apprenticeship
program.
29.4 Criteria for apprenticeable
occupations.

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29.5 Standards of apprenticeship.
29.6 Program performance standards.
29.7 Apprenticeship agreement.
29.8 Deregistration of a registered program.
29.9 Reinstatement of program registration.
29.10 Hearings for deregistration.
29.11 Limitations.
29.12 Complaints.
29.13 Recognition of State apprenticeship
agencies.
29.14 Derecognition of State apprenticeship
agencies.
Authority: Section 1, 50 Stat. 664, as
amended (29 U.S.C. 50; 40 U.S.C. 276c; 5
U.S.C. 301) Reorganization Plan No. 14 of
1950, 64 Stat. 1267 (5 U.S.C. App. P. 534).
§ 29.1

Purpose and scope.

(a) The National Apprenticeship Act
of 1937, section 1 (29 U.S.C. 50),
authorizes and directs the Secretary of
Labor ‘‘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 Office of Education under the
Department of Health, Education, and
Welfare * * *.’’ Section 2 of the Act
authorizes the Secretary of Labor to
‘‘publish information relating to existing
and proposed labor standards of
apprenticeship,’’ and to ‘‘appoint
national advisory committees * * *.’’
(29 U.S.C. 50a).
(b) The purpose of this part is to set
forth labor standards to safeguard the
welfare of apprentices, promote
apprenticeship opportunity, and to
extend the application of such standards
by prescribing policies and procedures
concerning the registration, for certain
Federal purposes, of acceptable
apprenticeship programs with the U.S.
Department of Labor, Employment and
Training Administration, Office of
Apprenticeship. These labor standards,
policies and procedures cover the
registration, cancellation and
deregistration of apprenticeship
programs and of apprenticeship
agreements; the recognition of a State
agency as an authorized agency for
registering apprenticeship programs for
certain Federal purposes; and matters
relating thereto.
§ 29.2

Definitions.

Administrator means the
Administrator of the Office of
Apprenticeship, or any person
specifically designated by the
Administrator.

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Apprentice means a worker at least 16
years of age, except where a higher
minimum age standard is otherwise
fixed by law, who is employed to learn
an apprenticeable occupation as
provided in § 29.4 under standards of
apprenticeship fulfilling the
requirements of § 29.5.
Apprenticeship Agreement means a
written agreement, complying with
§ 29.7, between an apprentice and either
the apprentice’s program sponsor, or an
apprenticeship committee acting as
agent for the program sponsor(s), which
contains the terms and conditions of the
employment and training of the
apprentice.
Apprenticeship Committee
(Committee) means those persons
designated by the sponsor to administer
the program. A committee may be either
joint or non-joint, as follows:
(1) A joint committee is composed of
an equal number of representatives of
the employer(s) and of the employees
represented by a bona fide collective
bargaining agent(s).
(2) A non-joint committee, which may
also be known as a unilateral or group
non-joint (which may include
employees) committee, has employer
representatives but does not have a bona
fide collective bargaining agent as a
participant.
Apprenticeship Program means a plan
containing all terms and conditions for
the qualification, recruitment, selection,
employment and training of
apprentices, as required under 29 CFR
parts 29 and 30, including such matters
as the requirement for a written
apprenticeship agreement.
Cancellation means the termination of
the registration or approval status of a
program at the request of the sponsor, or
termination of an Apprenticeship
Agreement at the request of the
apprentice.
Certification or Certificate means
documentary evidence that:
(1) The Office of Apprenticeship has
approved a set of National Guidelines
for Apprenticeship Standards developed
by a national committee or organization,
joint or unilateral, for policy or
guideline use by local affiliates, as
conforming to the standards of
apprenticeship set forth in § 29.5;
(2) A Registration Agency has
established that an individual is eligible
for probationary employment as an
apprentice under a registered
apprenticeship program;
(3) A Registration Agency has
registered an apprenticeship program as
evidenced by a Certificate of
Registration or other written indicia;
(4) A Registration Agency has
determined that an apprentice has

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successfully met the requirements to
receive an interim credential; or
(5) A Registration Agency has
determined that an individual has
successfully completed apprenticeship.
Competency means the attainment of
manual, mechanical or technical skills
and knowledge, as specified by an
occupational standard and
demonstrated by an appropriate written
and hands-on proficiency measurement.
Completion rate means the percentage
of an apprenticeship cohort who receive
a certificate of apprenticeship
completion within 1 year of the
projected completion date. An
apprenticeship cohort is the group of
individual apprentices registered to a
specific program during a 1 year time
frame, except that a cohort does not
include the apprentices whose
apprenticeship agreement has been
cancelled during the probationary
period.
Department means the U.S.
Department of Labor.
Electronic media means media that
utilize electronics or electromechanical
energy for the end user (audience) to
access the content; and includes, but is
not limited to, electronic storage media,
transmission media, the Internet,
extranet, lease lines, dial-up lines,
private networks, and the physical
movement of removable/transportable
electronic media and/or interactive
distance learning.
Employer means any person or
organization employing an apprentice
whether or not such person or
organization is a party to an
Apprenticeship Agreement with the
apprentice.
Federal Purposes includes any
Federal contract, grant, agreement or
arrangement dealing with
apprenticeship; and any Federal
financial or other assistance, benefit,
privilege, contribution, allowance,
exemption, preference or right
pertaining to apprenticeship.
Interim credential means a credential
issued by the Registration Agency, upon
request of the appropriate sponsor, as
certification of competency attainment
by an apprentice.
Journeyworker means a worker who
has attained a level of skill, abilities and
competencies recognized within an
industry as having mastered the skills
and competencies required for the
occupation. (Use of the term may also
refer to a mentor, technician, specialist
or other skilled worker who has
documented sufficient skills and
knowledge of an occupation, either
through formal apprenticeship or
through practical on-the-job experience
and formal training.)

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Office of Apprenticeship means the
office designated by the Employment
and Training Administration to
administer the National Apprenticeship
System or its successor organization.
Provisional registration means the
1-year initial provisional approval of
newly registered programs that meet the
required standards for program
registration, after which program
approval may be made permanent,
continued as provisional, or rescinded
following a review by the Registration
Agency, as provided for in the criteria
described in § 29.3(g) and (h).
Quality Assurance Assessment means
a comprehensive review conducted by a
Registration Agency regarding all
aspects of an apprenticeship program’s
performance, including but not limited
to, determining if apprentices are
receiving: on-the-job training in all
phases of the apprenticeable
occupation; scheduled wage increases
consistent with the registered standards;
related instruction through appropriate
curriculum and delivery systems; and
that the registration agency is receiving
notification of all new registrations,
cancellations, and completions as
required in this part.
Registration Agency means the Office
of Apprenticeship or a recognized State
Apprenticeship Agency that has
responsibility for registering
apprenticeship programs and
apprentices; providing technical
assistance; conducting reviews for
compliance with 29 CFR parts 29 and 30
and quality assurance assessments.
Registration of an apprenticeship
agreement means the acceptance and
recording of an apprenticeship
agreement by the Office of
Apprenticeship or a recognized State
Apprenticeship Agency as evidence of
the apprentice’s participation in a
particular registered apprenticeship
program.
Registration of an apprenticeship
program means the acceptance and
recording of such program by the Office
of Apprenticeship, or registration and/or
approval by a recognized State
Apprenticeship Agency, as meeting the
basic standards and requirements of the
Department for approval of such
program for Federal purposes. Approval
is evidenced by a Certificate of
Registration or other written indicia.
Related instruction means an
organized and systematic form of
instruction designed to provide the
apprentice with the knowledge of the
theoretical and technical subjects
related to the apprentice’s occupation.
Such instruction may be given in a
classroom, through occupational or
industrial courses, or by correspondence

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courses of equivalent value, electronic
media, or other forms of self-study
approved by the Registration Agency.
Secretary means the Secretary of
Labor or any person designated by the
Secretary.
Sponsor means any person,
association, committee, or organization
operating an apprenticeship program
and in whose name the program is (or
is to be) registered or approved.
State means any of the 50 States of the
United States, District of Columbia, or
any Territory or possession of the
United States.
State Apprenticeship Agency means
an agency of a State government that has
responsibility and accountability for
apprenticeship within the State. Only a
State Apprenticeship Agency may seek
recognition by the Office of
Apprenticeship as an agency which has
been properly constituted under an
acceptable law or Executive Order, and
authorized by the Office of
Apprenticeship to register and oversee
apprenticeship programs and
agreements for Federal purposes.
State Apprenticeship Council is an
entity established to assist the State
Apprenticeship Agency. A State
Apprenticeship Council is ineligible for
recognition as the State’s Registration
Agency. A regulatory State
Apprenticeship Council may
promulgate apprenticeship law at the
direction of the State Apprenticeship
Agency. An advisory State
Apprenticeship Council provides advice
and guidance to the State
Apprenticeship Agency on the
operation of the State’s apprenticeship
system.
State office means that individual
office or division of State government
designated as the point of contact for the
State Apprenticeship Agency.
Technical assistance means guidance
provided by Registration Agency staff in
the development, revision, amendment,
or processing of a potential or current
program sponsor’s Standards of
Apprenticeship, Apprenticeship
Agreements, or advice or consultation
with a program sponsor to further
compliance with this part or guidance
from the Office of Apprenticeship to a
State Apprenticeship Agency on how to
remedy nonconformity with this part.
Transfer means a shift of
apprenticeship registration from one
program to another or from one
employer within a program to another
employer within that same program,
where there is agreement between the
apprentice and the affected
apprenticeship committees or program
sponsors.

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§ 29.3 Eligibility and procedure for
registration of an apprenticeship program.

(a) Eligibility for registration of an
apprenticeship program for various
Federal purposes is conditioned upon a
program’s conformity with the
apprenticeship program standards
published in this part. For a program to
be determined by the Secretary as being
in conformity with these published
standards, the program must apply for
registration and be registered with the
Office of Apprenticeship or with a State
Apprenticeship Agency recognized by
the Office of Apprenticeship. The
determination by the Secretary that the
program meets the apprenticeship
program standards is effectuated only
through such registration.
(b) Only an apprenticeship program or
agreement that meets the following
criteria is eligible for Office of
Apprenticeship or State Apprenticeship
Agency registration:
(1) It is in conformity with the
requirements of this part and the
training is in an apprenticeable
occupation having the characteristics set
forth in § 29.4 of this part; and
(2) It is in conformity with the
requirements of the Department’s
regulation on Equal Employment
Opportunity in Apprenticeship and
Training in 29 CFR part 30, as amended.
(c) Except as provided under
paragraph (d) of this section,
apprentices must be individually
registered under a registered program.
Such individual registration may be
affected:
(1) By filing copies of each individual
apprenticeship agreement with the
Registration Agency; or
(2) Subject to prior Office of
Apprenticeship or recognized State
Apprenticeship Agency approval, by
filing a master copy of such agreement
followed by a listing of the name, and
other required data, of each individual
when apprenticed.
(d) The names of persons in
probationary employment as an
apprentice under an apprenticeship
program registered by the Office of
Apprenticeship or a recognized State
Apprenticeship Agency, if not
individually registered under such
program, must be submitted within 45
days of employment to the Office of
Apprenticeship or State Apprenticeship
Agency for certification to establish the
apprentice as eligible for such
probationary employment.
(e) The appropriate Registration
Agency must be notified within 45 days
of persons who have successfully
completed apprenticeship programs;
and of transfers, suspensions, and
cancellations of apprenticeship

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agreements and a statement of the
reasons therefore.
(f) Operating apprenticeship
programs, when approved by the Office
of Apprenticeship, are accorded
registration evidenced by a Certificate of
Registration. Programs approved by
recognized State Apprenticeship
Agencies must be accorded registration
and/or approval evidenced by a similar
certificate or other written indicia.
When approved by the Office of
Apprenticeship, National
Apprenticeship Guideline Standards for
policy or guidance will be accorded a
certificate.
(g) Applications for new programs
that the Registration Agency determines
meet the required standards for program
registration must be given provisional
approval for a period of 1 year. The
Registration Agency must review all
new programs for quality and for
conformity with the requirements of this
part at the end of the first year after
registration. At that time:
(1) a program that conforms with the
requirements of this part:
(i) may be made permanent; or
(ii) may continue to be provisionally
approved through the first full training
cycle.
(2) a program not in operation or not
conforming to the regulations during the
provisional approval period must be
recommended for deregistration
procedures.
(h) The Registration Agency must
review all programs for quality and for
conformity with the requirements of this
part at the end of the first full training
cycle. A satisfactory review of a
provisionally approved program will
result in conversion of provisional
approval to permanent registration.
Subsequent reviews must be conducted
no less frequently than every five years.
Programs not in operation or not
conforming to the regulations must be
recommended for deregistration
procedures.
(i) Any sponsor proposals or
applications for modification(s) or
change(s) to registered programs or
certified National Guidelines for
Apprenticeship Standards must be
submitted to the Registration Agency.
The Registration Agency must make a
determination on whether to approve
such submissions within 90 days from
the date of receipt. If approved, the
modification(s) or change(s) will be
recorded and acknowledged within 90
days of approval as an amendment to
such program. If not approved, the
sponsor must be notified of the
disapproval and the reasons therefore
and provided the appropriate technical
assistance.

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(j) Under a program proposed for
registration by an employer or
employers’ association, where the
standards, collective bargaining
agreement or other instrument provides
for participation by a union in any
manner in the operation of the
substantive matters of the
apprenticeship program, and such
participation is exercised, written
acknowledgement of union agreement
or no objection to the registration is
required. Where no such participation is
evidenced and practiced, the employer
or employers’ association must
simultaneously furnish to an existing
union, which is the collective
bargaining agent of the employees to be
trained, a copy of its application for
registration and of the apprenticeship
program. The Registration Agency must
provide for receipt of union comments,
if any, within 45 days before final action
on the application for registration and/
or approval.
(k) Where the employees to be trained
have no collective bargaining
agreement, an apprenticeship program
may be proposed for registration by an
employer or group of employers, or an
employer association.
§ 29.4 Criteria for apprenticeable
occupations.

An apprenticeable occupation is one
which is specified by industry and
which must:
(a) Involve skills that are customarily
learned in a practical way through a
structured, systematic program of onthe-job supervised learning;
(b) Be clearly identified and
commonly recognized throughout an
industry;
(c) Involve the progressive attainment
of manual, mechanical or technical
skills and knowledge which, in
accordance with the industry standard
for the occupation, would require the
completion of at least 2,000 hours of onthe-job learning to attain; and
(d) Require related instruction to
supplement the on-the-job learning.

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§ 29.5

Standards of apprenticeship.

An apprenticeship program, to be
eligible for approval and registration by
a Registration Agency, must conform to
the following standards:
(a) The program must have an
organized, written plan (program
standards) embodying the terms and
conditions of employment, training, and
supervision of one or more apprentices
in an apprenticeable occupation, as
defined in this part, and subscribed to
by a sponsor who has undertaken to
carry out the apprentice training
program.

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(b) The program standards must
contain provisions that address:
(1) The employment and training of
the apprentice in a skilled occupation.
(2) The term of apprenticeship, which
for an individual apprentice may be
measured either through the completion
of the industry standard for on-the-job
learning (at least 2,000 hours) (timebased approach), the attainment of
competency (competency-based
approach), or a blend of the time-based
and competency-based approaches
(hybrid approach).
(i) The time-based approach measures
skill acquisition through the individual
apprentice’s completion of at least 2,000
hours of on-the-job learning as
described in a work process schedule.
(ii) The competency-based approach
measures skill acquisition through the
individual apprentice’s successful
demonstration of acquired skills and
knowledge, as verified by the program
sponsor. Programs utilizing this
approach must still require apprentices
to complete an on-the-job learning
component of Registered
Apprenticeship. The program standards
must address how on-the-job learning
will be integrated into the program,
describe competencies, and identify an
appropriate means of testing and
evaluation for such competencies.
(iii) The hybrid approach measures
the individual apprentice’s skill
acquisition through a combination of
specified minimum number of hours of
on-the-job learning and the successful
demonstration of competency as
described in a work process schedule.
(iv) The determination of the
appropriate approach for the program
standards is made by the program
sponsor, subject to approval by the
Registration Agency of the
determination as appropriate to the
apprenticeable occupation for which the
program standards are registered.
(3) An outline of the work processes
in which the apprentice will receive
supervised work experience and
training on the job, and the allocation of
the approximate amount of time to be
spent in each major process.
(4) Provision for organized, related
instruction in technical subjects related
to the occupation. A minimum of 144
hours for each year of apprenticeship is
recommended. This instruction in
technical subjects may be accomplished
through media such as classroom,
occupational or industry courses,
electronic media, or other instruction
approved by the Registration Agency.
Every apprenticeship instructor must:
(i) Meet the State Department of
Education’s requirements for a
vocational-technical instructor in the

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State of registration, or be a subject
matter expert, which is an individual,
such as a journeyworker, who is
recognized within an industry as having
expertise in a specific occupation; and
(ii) Have training in teaching
techniques and adult learning styles,
which may occur before or after the
apprenticeship instructor has started to
provide the related technical
instruction.
(5) A progressively increasing
schedule of wages to be paid to the
apprentice consistent with the skill
acquired. The entry wage must not be
less than the minimum wage prescribed
by the Fair Labor Standards Act, where
applicable, unless a higher wage is
required by other applicable Federal
law, State law, respective regulations, or
by collective bargaining agreement.
(6) Periodic review and evaluation of
the apprentice’s performance on the job
and in related instruction; and the
maintenance of appropriate progress
records.
(7) A numeric ratio of apprentices to
journeyworkers consistent with proper
supervision, training, safety, and
continuity of employment, and
applicable provisions in collective
bargaining agreements, except where
such ratios are expressly prohibited by
the collective bargaining agreements.
The ratio language must be specific and
clearly described as to its application to
the job site, workforce, department or
plant.
(8) A probationary period reasonable
in relation to the full apprenticeship
term, with full credit given for such
period toward completion of
apprenticeship. The probationary period
cannot exceed 25 percent of the length
of the program, or 1 year, whichever is
shorter.
(9) Adequate and safe equipment and
facilities for training and supervision,
and safety training for apprentices on
the job and in related instruction.
(10) The minimum qualifications
required by a sponsor for persons
entering the apprenticeship program,
with an eligible starting age not less
than 16 years.
(11) The placement of an apprentice
under a written Apprenticeship
Agreement that meets the requirements
of § 29.7 or the State apprenticeship law
of a recognized Registration Agency.
The agreement must directly, or by
reference, incorporate the standards of
the program as part of the agreement.
(12) The granting of advanced
standing or credit for demonstrated
competency, acquired experience,
training, or skills for all applicants
equally, with commensurate wages for
any progression step so granted.

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(13) The transfer of an apprentice
between apprenticeship programs and
within an apprenticeship program must
be based on agreement between the
apprentice and the affected
apprenticeship committees or program
sponsors, and must comply with the
following requirements:
(i) The transferring apprentice must
be provided a transcript of related
instruction and on-the-job learning by
the committee or program sponsor;
(ii) Transfer must be to the same
occupation; and
(iii) A new apprenticeship agreement
must be executed when the transfer
occurs between program sponsors.
(14) Assurance of qualified training
personnel and adequate supervision on
the job.
(15) Recognition for successful
completion of apprenticeship evidenced
by an appropriate certificate issued by
the Registration Agency.
(16) Program standards that utilize the
competency-based or hybrid approach
for progression through an
apprenticeship and that choose to issue
interim credentials must clearly identify
the interim credentials, demonstrate
how these credentials link to the
components of the apprenticeable
occupation, and establish the process
for assessing an individual apprentice’s
demonstration of competency associated
with the particular interim credential.
Further, interim credentials must only
be issued for recognized components of
an apprenticeable occupation, thereby
linking interim credentials specifically
to the knowledge, skills, and abilities
associated with those components of the
apprenticeable occupation.
(17) Identification of the Registration
Agency.
(18) Provision for the registration,
cancellation and deregistration of the
program; and for the prompt submission
of any program standard modification or
amendment to the Registration Agency
for approval.
(19) Provision for registration of
apprenticeship agreements,
modifications, and amendments; notice
to the Registration Agency of persons
who have successfully completed
apprenticeship programs; and notice of
transfers, suspensions, and
cancellations of apprenticeship
agreements and a statement of the
reasons therefore.
(20) Authority for the cancellation of
an apprenticeship agreement during the
probationary period by either party
without stated cause; cancellation
during the probationary period will not
have an adverse impact on the sponsor’s
completion rate.

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(21) Compliance with 29 CFR part 30,
including the equal opportunity pledge
prescribed in 29 CFR 30.3(b); an
affirmative action plan complying with
29 CFR 30.4; and a method for the
selection of apprentices authorized by
29 CFR 30.5, or compliance with
parallel requirements contained in a
State plan for equal opportunity in
apprenticeship adopted under 29 CFR
part 30 and approved by the
Department. The apprenticeship
standards must also include a statement
that the program will be conducted,
operated and administered in
conformity with applicable provisions
of 29 CFR part 30, as amended, or, if
applicable, an approved State plan for
equal opportunity in apprenticeship.
(22) Contact information (name,
address, telephone number, and e-mail
address if appropriate) for the
appropriate individual with authority
under the program to receive, process
and make disposition of complaints.
(23) Recording and maintenance of all
records concerning apprenticeship as
may be required by the Office of
Apprenticeship or recognized State
Apprenticeship Agency and other
applicable law.
§ 29.6

Program performance standards.

(a) Every registered apprenticeship
program must have at least one
registered apprentice, except for the
following specified periods of time,
which may not exceed 1 year:
(1) Between the date when a program
is registered and the date of registration
for its first apprentice(s); or
(2) Between the date that a program
graduates an apprentice and the date of
registration for the next apprentice(s) in
the program.
(b) Registration Agencies must
evaluate performance of registered
apprenticeship programs.
(1) The tools and factors to be used
must include, but are not limited to:
(i) Quality assurance assessments;
(ii) Equal Employment Opportunity
(EEO) Compliance Reviews; and
(iii) Completion rates.
(2) Any additional tools and factors
used by the Registration Agency in
evaluating program performance must
adhere to the goals and policies of the
Department articulated in this part and
in guidance issued by the Office of
Apprenticeship.
(c) In order to evaluate completion
rates, the Registration Agency must
review a program’s completion rates in
comparison to the national average for
completion rates. Based on the review,
the Registration Agency must provide
technical assistance to programs with

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completion rates lower than the national
average.
(d) Cancellation of apprenticeship
agreements during the probationary
period will not have an adverse impact
on a sponsor’s completion rate.
§ 29.7

Apprenticeship agreement.

The apprenticeship agreement must
contain, explicitly or by reference:
(a) Names and signatures of the
contracting parties (apprentice, and the
program sponsor or employer), and the
signature of a parent or guardian if the
apprentice is a minor.
(b) The date of birth and, on a
voluntary basis, Social Security number
of the apprentice.
(c) Contact information of the Program
Sponsor and Registration Agency.
(d) A statement of the occupation in
which the apprentice is to be trained,
and the beginning date and term
(duration) of apprenticeship.
(e) A statement showing:
(1) The number of hours to be spent
by the apprentice in work on the job in
a time-based program; or a description
of the skill sets to be attained by
completion of a competency-based
program, including the on-the-job
learning component; or the minimum
number of hours to be spent by the
apprentice and a description of the skill
sets to be attained by completion of
hybrid program; and
(2) The number of hours to be spent
in related instruction in technical
subjects related to the occupation,
which is recommended to be not less
than 144 hours per year.
(f) A statement setting forth a
schedule of the work processes in the
occupation or industry divisions in
which the apprentice is to be trained
and the approximate time to be spent at
each process.
(g) A statement of the graduated scale
of wages to be paid to the apprentice
and whether or not the required related
instruction is compensated.
(h) Statements providing:
(1) For a specific period of probation
during which the apprenticeship
agreement may be cancelled by either
party to the agreement upon written
notice to the registration agency,
without adverse impact on the sponsor.
(2) That, after the probationary period,
the agreement may be:
(i) Cancelled at the request of the
apprentice, or
(ii) Suspended or cancelled by the
sponsor, for good cause, with due notice
to the apprentice and a reasonable
opportunity for corrective action, and
with written notice to the apprentice
and to the Registration Agency of the
final action taken.

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(i) A reference incorporating as part of
the agreement the standards of the
apprenticeship program as they exist on
the date of the agreement and as they
may be amended during the period of
the agreement.
(j) A statement that the apprentice
will be accorded equal opportunity in
all phases of apprenticeship
employment and training, without
discrimination because of race, color,
religion, national origin, or sex.
(k) Contact information (name,
address, phone, and e-mail if
appropriate) of the appropriate authority
designated under the program to
receive, process and make disposition of
controversies or differences arising out
of the apprenticeship agreement when
the controversies or differences cannot
be adjusted locally or resolved in
accordance with the established
procedure or applicable collective
bargaining provisions.

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§ 29.8 Deregistration of a registered
program.

Deregistration of a program may be
effected upon the voluntary action of
the sponsor by submitting a request for
cancellation of the registration in
accordance with paragraph (a) of this
section, or upon reasonable cause, by
the Registration Agency instituting
formal deregistration proceedings in
accordance with paragraph (b) of this
section.
(a) Deregistration at the request of the
sponsor. The Registration Agency may
cancel the registration of an
apprenticeship program by written
acknowledgment of such request stating
the following:
(1) The registration is cancelled at the
sponsor’s request, and the effective date
thereof;
(2) That, within 15 days of the date of
the acknowledgment, the sponsor will
notify all apprentices of such
cancellation and the effective date; that
such cancellation automatically
deprives the apprentice of individual
registration; that the deregistration of
the program removes the apprentice
from coverage for Federal purposes
which require the Secretary of Labor’s
approval of an apprenticeship program,
and that all apprentices are referred to
the Registration Agency for information
about potential transfer to other
registered apprenticeship programs.
(b) Deregistration by the Registration
Agency upon reasonable cause.
(1)(i) Deregistration proceedings may
be undertaken when the apprenticeship
program is not conducted, operated, or
administered in accordance with the
program’s registered provisions or with
the requirements of this part, including

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not but limited to: failure to provide onthe-job learning; failure to provide
related instruction; failure to pay the
apprentice a progressively increasing
schedule of wages consistent with the
apprentices skills acquired; or persistent
and significant failure to perform
successfully. Deregistration proceedings
for violation of equal opportunity
requirements must be processed in
accordance with the provisions under
29 CFR part 30.
(ii) For purposes of this section,
persistent and significant failure to
perform successfully occurs when a
program sponsor consistently fails to
register at least one apprentice, shows a
pattern of poor quality assessment
results over a period of several years,
demonstrates an ongoing pattern of very
low completion rates over a period of
several years, or shows no indication of
improvement in the areas identified by
the Registration Agency during a review
process as requiring corrective action.
(2) Where it appears the program is
not being operated in accordance with
the registered standards or with
requirements of this part, the
Registration Agency must notify the
program sponsor in writing.
(3) The notice sent to the program
sponsor’s contact person must:
(i) Be sent by registered or certified
mail, with return receipt requested;
(ii) State the shortcoming(s) and the
remedy required; and
(iii) State that a determination of
reasonable cause for deregistration will
be made unless corrective action is
effected within 30 days.
(4) Upon request by the sponsor for
good cause, the 30-day term may be
extended for another 30 days. During
the period for corrective action, the
Registration Agency must assist the
sponsor in every reasonable way to
achieve conformity.
(5) If the required correction is not
effected within the allotted time, the
Registration Agency must send a notice
to the sponsor, by registered or certified
mail, return receipt requested, stating
the following:
(i) The notice is sent under this
paragraph;
(ii) Certain deficiencies were called to
the sponsor’s attention (enumerating
them and the remedial measures
requested, with the dates of such
occasions and letters), and that the
sponsor has failed or refused to effect
correction;
(iii) Based upon the stated
deficiencies and failure to remedy them,
a determination has been made that
there is reasonable cause to deregister
the program and the program may be
deregistered unless, within 15 days of

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the receipt of this notice, the sponsor
requests a hearing with the applicable
Registration Agency; and
(iv) If the sponsor does not request a
hearing, the entire matter will be
submitted to the Administrator, Office
of Apprenticeship, for a decision on the
record with respect to deregistration.
(6) If the sponsor does not request a
hearing, the Registration Agency will
transmit to the Administrator a report
containing all pertinent facts and
circumstances concerning the
nonconformity, including the findings
and recommendation for deregistration,
and copies of all relevant documents
and records. Statements concerning
interviews, meetings and conferences
will include the time, date, place, and
persons present. The Administrator will
make a final order on the basis of the
record presented.
(7) If the sponsor requests a hearing,
the Registration Agency will transmit to
the Administrator a report containing all
the data listed in paragraph (b)(6) of this
section, and the Administrator will refer
the matter to the Office of
Administrative Law Judges. An
Administrative Law Judge will convene
a hearing in accordance with § 29.10,
and issue a decision as required in
§ 29.10(c).
(8) Every order of deregistration must
contain a provision that the sponsor
must, within 15 days of the effective
date of the order, notify all registered
apprentices of the deregistration of the
program; the effective date thereof; that
such cancellation automatically
deprives the apprentice of individual
registration; that the deregistration
removes the apprentice from coverage
for Federal purposes which require the
Secretary of Labor’s approval of an
apprenticeship program; and that all
apprentices are referred to the
Registration Agency for information
about potential transfer to other
registered apprenticeship programs.
§ 29.9 Reinstatement of program
registration.

Any apprenticeship program
deregistered under § 29.8 may be
reinstated upon presentation of
adequate evidence that the
apprenticeship program is operating in
accordance with this part. Such
evidence must be presented to the
Registration Agency.
§ 29.10

Hearings for deregistration.

(a) Within 10 days of receipt of a
request for a hearing, the Administrator
of the Office of Apprenticeship must
contact the Department’s Office of
Administrative Law Judges to request
the designation of an Administrative

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Law Judge to preside over the hearing.
The Administrative Law Judge shall
give reasonable notice of such hearing
by registered mail, return receipt
requested, to the appropriate sponsor.
Such notice will include:
(1) A reasonable time and place of
hearing;
(2) A statement of the provisions of
this part pursuant to which the hearing
is to be held; and
(3) A concise statement of the matters
pursuant to which the action forming
the basis of the hearing is proposed to
be taken.
(b) The procedures contained in 29
CFR part 18 will apply to the
disposition of the request for hearing
except that:
(1) The Administrative Law Judge will
receive, and make part of the record,
documentary evidence offered by any
party and accepted at the hearing.
Copies thereof will be made available by
the party submitting the documentary
evidence to any party to the hearing
upon request.
(2) Technical rules of evidence will
not apply to hearings conducted
pursuant to this part, but rules or
principles designed to assure
production of the most credible
evidence available and to subject
testimony to test by cross-examination
will be applied, where reasonably
necessary, by the Administrative Law
Judge conducting the hearing. The
Administrative Law Judge may exclude
irrelevant, immaterial, or unduly
repetitious evidence.
(c) The Administrative Law Judge
should issue a written decision within
90 days of the close of the hearing
record. The Administrative Law Judge’s
decision constitutes final agency action
unless, within 15 days from receipt of
the decision, a party dissatisfied with
the decision files a petition for review
with the Administrative Review Board,
specifically identifying the procedure,
fact, law or policy to which exception
is taken. Any exception not specifically
urged is deemed to have been waived.
A copy of the petition for review must
be sent to the opposing party at the
same time. Thereafter, the decision of
the Administrative Law Judge remains
final agency action unless the
Administrative Review Board, within 30
days of the filing of the petition for
review, notifies the parties that it has
accepted the case for review. The
Administrative Review Board may set a
briefing schedule or decide the matter
on the record. The Administrative
Review Board must decide any case it
accepts for review within 180 days of
the close of the record. If not so decided,

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the Administrative Law Judge’s decision
constitutes final agency action.
§ 29.11

Limitations.

Nothing in this part or in any
apprenticeship agreement will operate
to invalidate:
(a) Any apprenticeship provision in
any collective bargaining agreement
between employers and employees
establishing higher apprenticeship
standards; or
(b) Any special provision for veterans,
minority persons, or women in the
standards, apprentice qualifications or
operation of the program, or in the
apprenticeship agreement, which is not
otherwise prohibited by law, Executive
Order, or authorized regulation.
§ 29.12

Complaints.

(a) This section is not applicable to
any complaint concerning
discrimination or other equal
opportunity matters; all such
complaints must be submitted,
processed and resolved in accordance
with applicable provisions in 29 CFR
part 30, or applicable provisions of a
State Plan for Equal Employment
Opportunity in Apprenticeship adopted
pursuant to 29 CFR part 30 and
approved by the Department.
(b) Except for matters described in
paragraph (a) of this section, any
controversy or difference arising under
an apprenticeship agreement which
cannot be adjusted locally and which is
not covered by a collective bargaining
agreement, may be submitted by an
apprentice, or the apprentice’s
authorized representative, to the
appropriate Registration Authority,
either Federal or State, which has
registered and/or approved the program
in which the apprentice is enrolled, for
review. Matters covered by a collective
bargaining agreement are not subject to
such review.
(c) The complaint must be in writing
and signed by the complainant, or
authorized representative, and must be
submitted within 60 days of the final
local decision. It must set forth the
specific matter(s) complained of,
together with relevant facts and
circumstances. Copies of pertinent
documents and correspondence must
accompany the complaint.
(d) The Office of Apprenticeship or
recognized State Apprenticeship
Agency, as appropriate, will render an
opinion within 90 days after receipt of
the complaint, based upon such
investigation of the matters submitted as
may be found necessary, and the record
before it. During the 90-day period, the
Office of Apprenticeship or recognized
State Apprenticeship Agency will make

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reasonable efforts to effect a satisfactory
resolution between the parties involved.
If so resolved, the parties will be
notified that the case is closed. Where
an opinion is rendered, copies will be
sent to all interested parties.
(e) Nothing in this section precludes
an apprentice from pursuing any other
remedy authorized under another
Federal, State, or local law.
(f) A State Apprenticeship Agency
may adopt a complaint review
procedure differing in detail from that
given in this section provided it is
submitted for review and approval by
the Office of Apprenticeship.
§ 29.13 Recognition of State
apprenticeship agencies.

(a) Recognition. The Department may
exercise its authority to grant
recognition to a State Apprenticeship
Agency. Recognition confers nonexclusive authority to determine
whether an apprenticeship program
conforms to the published standards
and whether the program is, therefore,
eligible for those Federal purposes
which require such a determination by
the Department. Such recognition shall
be accorded upon the State’s submission
of, the Department’s approval of, and
the State’s compliance with the
following:
(1) The State Apprenticeship Agency
must submit a State apprenticeship law,
whether instituted through statute,
Executive Order, regulation, or other
means, that conforms to the
requirements of 29 CFR parts 29 and 30;
(2) The State Apprenticeship Agency
must establish and continue to use a
State Apprenticeship Council, which
operates under the direction of the State
Apprenticeship Agency. The State
Apprenticeship Council may be either
regulatory or advisory and must meet
the following requirements:
(i) It must be composed of persons
familiar with apprenticeable
occupations, and
(ii) It must include an equal number
of representatives of employer and of
employee organizations and include
public members who shall not number
in excess of the number named to
represent either employer or employee
organizations;
(3) The State Apprenticeship Agency
must submit a State Plan for Equal
Employment Opportunity in
Apprenticeship that conforms to the
requirements published in 29 CFR part
30;
(4) The State Apprenticeship
Agency’s submission must include a
description of the basic standards,
criteria, and requirements for program
registration and/or approval, and

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demonstrate linkages and coordination
with the State’s economic development
strategies and publicly-funded
workforce investment system; and
(5) The State Apprenticeship
Agency’s submission must include a
description of policies and operating
procedures which depart from or
impose requirements in addition to
those prescribed in this part.
(b) Basic requirements. In order to
obtain and maintain recognition as
provided under paragraph (a) of this
section, the State Apprenticeship
Agency must conform to the
requirements of this part. To accomplish
this, the State must:
(1) Establish and maintain an
administrative entity (the State
Apprenticeship Agency) that is capable
of performing the functions of a
Registration Agency under 29 CFR part
29;
(2) Provide sufficient resources to
carry out the functions of a Registration
Agency, including: Outreach and
education; registration of programs and
apprentices; provision of technical
assistance, and monitoring as required
to fulfill the requirements of this part;
(3) Clearly delineate the respective
powers and duties of the State office,
the State Apprenticeship Agency, and
the State Apprenticeship Council;
(4) Establish policies and procedures
to promote equality of opportunity in
apprenticeship programs pursuant to a
State Plan for Equal Employment
Opportunity in Apprenticeship which
adopts and implements the
requirements of 29 CFR part 30, and to
require apprenticeship programs to
operate in conformity with such State
Plan and 29 CFR part 30;
(5) Prescribe the contents of
apprenticeship agreements, in
conformity with § 29.7;
(6) Ensure that the registration of
apprenticeship programs occurs only in
apprenticeable occupations, as provided
in § 29.4, including occupations in high
growth and high demand industries;
(7) Accord reciprocal approval for
Federal purposes to apprentices,
apprenticeship programs and standards
that are registered in other States by the
Office of Apprenticeship or a
Registration Agency if such reciprocity
is requested by the apprenticeship
program sponsor. Program sponsors
seeking reciprocal approval must meet
the wage and hour provisions and
apprentice ratio standards of the
reciprocal State;
(8) Provide for the cancellation and/
or deregistration of programs, and for
temporary suspension, cancellation,
and/or deregistration of apprenticeship
agreements; and

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(9) Submit all proposed modifications
in legislation, regulations, policies and/
or operational procedures planned or
anticipated by a State Apprenticeship
Agency, either at the time of application
for recognition or subsequently, to the
Office of Apprenticeship for review and
obtain the Office of Apprenticeship’s
concurrence prior to implementation.
(c) Application for recognition. A
State Apprenticeship Agency desiring
new or continued recognition as a
Registration Agency must submit to the
Administrator of the Office of
Apprenticeship the documentation
specified in paragraph (a) of this
section. A currently recognized State
desiring continued recognition by the
Office of Apprenticeship must submit to
the Administrator of the Office of
Apprenticeship the documentation
specified in paragraph (a) of this section
within 2 years of the effective date of
the final rule. The recognition of a
currently recognized State shall
continue for up to 2 years from the
effective date of this regulation and
during any extension period granted by
the Administrator. An extension of time
within which to comply with the
requirements of this part may be granted
by the Administrator for good cause
upon written request by the State, but
the Administrator shall not extend the
time for submission of the
documentation required by paragraph
(a) of this section. Upon approval of the
State Apprenticeship Agency’s
application for recognition and any
subsequent modifications to this
application as required under paragraph
(b)(9) of this section, the Administrator
shall so notify the State Apprenticeship
Agency in writing.
(d) Duration of recognition. The
recognition of a State Apprenticeship
Agency shall last for 5 years from the
date recognition is granted under
paragraph (c) of this section. The
Administrator shall notify each State
Registration Agency at least 180 days
prior to the expiration of the 5-year
period whether the Registration Agency
is in conformity with this part, based on
reviews conducted by the Office of
Apprenticeship, as required by
paragraph (e) of this section. If the
notification states that the State
Apprenticeship Agency is in
conformity, recognition will be renewed
for an additional 5-year period. If the
notification states that the State
Apprenticeship Agency is not in
conformity, the notification shall
specify the areas of non-conformity,
require corrective action, and offer
technical assistance. After the
Administrator determines that a State
Apprenticeship Agency has corrected

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the identified non-conformities,
recognition will be renewed for an
additional 5-year period.
(e) Compliance. The Office of
Apprenticeship will monitor a State
Registration Agency for compliance
with the recognition requirements of
this part through:
(1) On-site reviews conducted by
Office of Apprenticeship staff.
(2) Self-assessment reports, as
required by the Office of
Apprenticeship.
(3) Review of State Apprenticeship
Agency legislation, regulations, policies,
and/or operating procedures required to
be submitted under paragraphs (a)(1),
(a)(5) and (b)(9) of this section for
review and approval as required under
§ 29.13(a).
(4) Determination whether, based on
the review performed under paragraphs
(e)(1), (2), and (3) of this section, the
State Registration Agency is in
compliance with part 29. Notice to the
State Registration Agency of the
determination will be given within 45
days of receipt of proposed
modifications to legislation, regulations,
policies, and/or operational procedures
required to be submitted under
paragraphs (a)(1), (a)(5) and (b)(9) of this
section.
(f) Accountability/Remedies for nonconformity. (1) State Registration
Agencies that fail to maintain
compliance with the requirements of
this part, as provided under paragraph
(e) of this section, will:
(i) Receive technical assistance from
the Office of Apprenticeship in an effort
to remedy the non-conforming activity;
and
(ii) Be placed on ‘‘Conditional
Recognition’’ for a period of 45 days
during which the State Apprenticeship
Agency must submit a corrective action
plan to remedy the non-conforming
activity to the Office of Apprenticeship.
Upon request from the State
Apprenticeship Agency, for good cause,
the 45-day period may be extended.
(2) Failure to comply with these
requirements will result in rescission of
recognition, for Federal Purposes as
provided under § 29.14.
(g) Denial of State Apprenticeship
Agency Recognition. A denial by the
Office of Apprenticeship of a State
Apprenticeship Agency’s application for
new or continued recognition must be
in writing and must set forth the reasons
for denial. The notice must be sent by
certified mail, return receipt requested.
In addition to the reasons stated for the
denial, the notice must specify the
remedies which must be undertaken
prior to consideration of a resubmitted
request, and must state that a request for

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administrative review of a denial of
recognition may be made within 30
calendar days of receipt of the notice of
denial from the Department. Such
request must be made by mail and
addressed to the Chief Administrative
Law Judge for the Department. The
mailing address is Office of
Administrative Law Judges, U.S.
Department of Labor, Suite 400 North,
800 K Street, NW., Washington, DC
20001–8002. Within 30 calendar days of
the filing of the request for review, the
Administrator must prepare an
administrative record for submission to
the Administrative Law Judge
designated by the Chief Administrative
Law Judge.
(1) The procedures contained in 29
CFR part 18 will apply to the
disposition of the request for review
except that:
(i) The Administrative Law Judge will
receive, and make part of the record,
documentary evidence offered by any
party and accepted at the hearing.
Copies thereof will be made available by
the party submitting the documentary
evidence to any party to the hearing
upon request.
(ii) Technical rules of evidence will
not apply to hearings conducted under
this part, but rules or principles
designed to assure production of the
most credible evidence available and to
subject testimony to test by crossexamination will be applied, where
reasonably necessary, by the
Administrative Law Judge conducting
the hearing. The Administrative Law
Judge may exclude irrelevant,
immaterial, or unduly repetitious
evidence.
(2) The Administrative Law Judge
should submit proposed findings, a
recommended decision, and a certified
record of the proceedings to the
Administrative Review Board within 90
calendar days after the close of the
record.
(3) Within 20 days of the receipt of
the recommended decision, any party
may file exceptions. Any party may file
a response to the exceptions filed by
another party within 10 days of receipt
of the exceptions. All exceptions and
responses must be filed with the
Administrative Review Board with
copies served on all parties and amici
curiae.
(4) After the close of the period for
filing exceptions and responses, the
Administrative Review Board may issue
a briefing schedule or may decide the
matter on the record before it. The
Administrative Review Board must
decide any case it accepts for review
within 180 days of the close of the
record. If not so decided, the

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Administrative Law Judge’s decision
constitutes final agency action. The
decision of the Administrative Review
Board constitutes final action by the
Department.
(h) Withdrawal from recognition.
Where a State Apprenticeship Agency
voluntarily relinquishes its recognition
for Federal purposes, the State must:
(1) Send a formal notice of intent to
the Administrator of the Office of
Apprenticeship;
(2) Provide all apprenticeship
program standards, apprenticeship
agreements, completion records,
cancellation and suspension records,
Equal Employment Opportunity
Compliance Review files and any other
documents relating to the State’s
apprenticeship programs, to the
Department; and
(3) Cooperate fully during a transition
period.
(i) Retention of authority.
Notwithstanding any grant of
recognition to a State Apprenticeship
Agency under this section, the Office of
Apprenticeship retains the full authority
to register apprenticeship programs and
apprentices in all States and Territories
where the Office of Apprenticeship
determines that such action is necessary
to further the interests of the National
Apprenticeship System.
(j) State apprenticeship programs. (1)
An apprenticeship program submitted
to a State Registration Agency for
registration must, for Federal purposes,
be in conformity with the State
apprenticeship law, regulations, and
with the State Plan for Equal
Employment Opportunity in
Apprenticeship as submitted to and
approved by the Office of
Apprenticeship pursuant to 29 CFR part
30.
(2) In the event that a State
Apprenticeship Agency is not
recognized by the Office of
Apprenticeship for Federal purposes or
that such recognition has been
withdrawn, or if no State
Apprenticeship Agency exists,
registration with the Office of
Apprenticeship may be requested. Such
registration must be granted if the
program is conducted, administered and
operated in accordance with the
requirements of this part and the equal
opportunity regulation in 29 CFR part
30, as amended.
§ 29.14 Derecognition of State
Apprenticeship Agencies.

The recognition for Federal purposes
of a State Apprenticeship Agency may
be withdrawn for the failure to fulfill, or
operate in conformity with, the
requirements of parts 29 and 30.

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Derecognition proceedings for
reasonable cause will be instituted in
accordance with the following:
(a) Derecognition proceedings for
failure to adopt or properly enforce a
State Plan for Equal Employment
Opportunity in Apprenticeship must be
processed in accordance with the
procedures prescribed in 29 CFR part
30.
(b) For causes other than those under
paragraph (a) of this section, the Office
of Apprenticeship must notify the
respondent and appropriate State
sponsors in writing, by certified mail,
with return receipt requested. The
notice must set forth the following:
(1) That reasonable cause exists to
believe that the respondent has failed to
fulfill or operate in conformity with the
requirements of this part;
(2) The specific areas of
nonconformity;
(3) The needed remedial measures;
and
(4) That the Office of Apprenticeship
proposes to withdraw recognition for
Federal purposes unless corrective
action is taken, or a hearing request
mailed, within 30 days of the receipt of
the notice.
(c) If, within the 30-day period, the
State Apprenticeship Agency:
(1) Acknowledges that the State is out
of conformity, specifies its proposed
remedial action and commits itself to
remedying the identified deficiencies,
the Office of Apprenticeship will
suspend the derecognition process to
allow a reasonable period of time for the
State Apprenticeship Agency to
implement its corrective action plan.
(i) If the Office of Apprenticeship
determines that the State’s corrective
action has addressed the identified
concerns, the Office of Apprenticeship
must so notify the State and the
derecognition proceedings shall be
terminated.
(ii) If the Office of Apprenticeship
determines that the State has not
addressed or failed to remedy the
identified concerns, the Administrator
must notify the State, in writing, of its
failure, specifying the reasons therefore,
and offer the State an opportunity to
request a hearing within 30 days.
(2) Fails to comply or to request a
hearing, the Office of Apprenticeship
shall decide whether recognition should
be withdrawn. If the decision is in the
affirmative, the Administrator must
begin the process of transferring
registrations in paragraph (d).
(3) Requests a hearing. The
Administrator shall refer the matter to
the Office of Administrative Law Judges.
An Administrative Law Judge will
convene a hearing in accordance with

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§ 29.13(g) and submit proposed findings
and a recommended decision to the
Administrative Review Board for final
agency action. The Administrative
Review Board must decide any case it
accepts for review within 180 days of
the close of the record. If not so decided,
the Administrative Law Judge’s decision
constitutes final agency action.
(d) If the Administrative Review
Board determines to withdraw
recognition for Federal purposes or if
the Office of Apprenticeship has
decided that recognition should be
withdrawn under paragraph (c)(2) of
this section, the Administrator must:
(1) Notify the registration agency and
the State sponsors of such withdrawal
and effect public notice of such
withdrawal.
(2) Notify the sponsors that, 30 days
after the date of the order withdrawing
recognition of the State’s registration
agency, the Department shall cease to
recognize, for Federal purposes, each
apprenticeship program registered with
the State Apprenticeship Agency, unless
within that time, the sponsor requests
registration with the Office of
Apprenticeship.
(e) In the event that a State
Apprenticeship Agency is not
recognized by the Office of
Apprenticeship for Federal purposes or
that such recognition has been
withdrawn, or if no State
Apprenticeship Agency exists,
apprenticeship program sponsors may
request registration with the Office of
Apprenticeship in accordance with the
following:

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(1) The Office of Apprenticeship may
grant the request for registration on an
interim basis. Continued recognition
will be contingent upon its finding that
the State apprenticeship program is
operating in accordance with the
requirements of this part and of 29 CFR
part 30.
(2) The Office of Apprenticeship must
make a finding on this issue within 30
days of receipt of the request.
(3) If the finding is in the negative, the
State sponsor must be notified in
writing that the interim registration with
the Office of Apprenticeship has been
revoked and that the program will be
deregistered unless the sponsor requests
a hearing within 15 days of the receipt
of the notice. If a hearing is requested,
the matter will be forwarded to the
Office of Administrative Law Judges for
a hearing in accordance with § 29.10.
(4) If the finding is in the affirmative,
the State sponsor must be notified in
writing that the interim registration with
the Office of Apprenticeship has been
made permanent based upon
compliance with the requirements of
this part.
(f) If the sponsor fails to request
registration with the Office of
Apprenticeship, the written notice to
such State sponsor must further advise
the recipient that any actions or benefits
applicable to recognition for Federal
purposes are no longer available to the
participants in its apprenticeship
program as of the date 30 days after the
date of the order withdrawing
recognition.
(g) Such notice must also direct the
State sponsor to notify, within 15 days,

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all its registered apprentices of the
withdrawal of recognition for Federal
purposes; the effective date thereof; and
that such withdrawal removes the
apprentice from coverage under any
Federal provision applicable to their
individual registration under a program
recognized or registered by the Secretary
of Labor for Federal purposes. Such
notice must direct that all apprentices
are referred to the Office of
Apprenticeship for information about
potential transfer to other registered
apprenticeship programs.
(h) Where a State Apprenticeship
Agency’s recognition for Federal
purposes has been withdrawn; the State
must:
(1) Provide all apprenticeship
program standards, apprenticeship
agreements, completion records,
cancellation and suspension records,
Equal Employment Opportunity
Compliance Review files and any other
documents relating to the State’s
apprenticeship programs, to the
Department; and
(2) Cooperate fully during a transition
period.
(i) A State Apprenticeship Agency
whose recognition has been withdrawn
under this part may have its recognition
reinstated upon presentation of
adequate evidence that it has fulfilled
the requirements established in
§ 29.13(i) and § 29.14(g) and (h) and is
operating in conformity with the
requirements of this part.
[FR Doc. E8–24917 Filed 10–28–08; 8:45 am]
BILLING CODE 4510–FR–P

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