Vol. 80 Friday, 

No. 215 November 6, 2015 

Part II 

Department of Labor 

29 CFR Parts 29 and 30 

Apprenticeship Programs; Equal Employment Opportunity; Proposed Rules 

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68908 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

DEPARTMENT OF LABOR 

29 CFR Parts 29 and 30 

RIN 1205–AB59 

Apprenticeship Programs; Equal 

Employment Opportunity 

AGENCY: Employment and Training 

Administration, Labor. 

ACTION: Notice of proposed rulemaking; 

request for comments. 

SUMMARY: The U.S. Department of Labor 

(DOL or Department) is issuing a Notice 

of Proposed Rulemaking (NPRM) to 

update the equal opportunity 

regulations that implement the National 

Apprenticeship Act of 1937. These 

regulations prohibit discrimination in 

registered apprenticeship on the basis of 

race, color, religion, national origin, and 

sex, and require that sponsors of 

registered apprenticeship programs take 

affirmative action to provide equal 

opportunity in such programs. The 

proposed rule would revise regulations 

to reflect changes made in October 2008 

to Labor Standards for Registration of 

Apprenticeship Programs; update equal 

opportunity standards to include age (40 

or older), genetic information, sexual 

orientation, and disability among the 

list of protected bases upon which a 

sponsor must not discriminate; 

strengthen the affirmative action 

provisions for sponsors by detailing 

mandatory actions a sponsor must take 

to satisfy its affirmative action 

obligations, and by requiring affirmative 

action for individuals with disabilities; 

and improve the overall readability of 

through restructuring and clarification 

of the text. In addition, the proposed 

rule would make technical, conforming 

amendments to current regulations. 

DATES: Comments must be submitted by 

January 5, 2016. 

ADDRESSES: You may submit comments, 

identified by Regulatory Information 

Number (RIN) 1205–AB59, by any one 

of the following methods: 

• Federal e-Rulemaking Portal 

www.regulations.gov. Follow the Web 

site instructions for submitting 

comments. 

• Mail: Please address all written 

comments (including disk and CD–ROM 

submissions) to Adele Gagliardi,, 

Administrator, Office of Policy 

Development and Research, 

Employment and Training 

Administration, U.S. Department of 

Labor, 200 Constitution Avenue NW., 

Room N–5641, Washington, DC 20210. 

• Hand Delivery/Courier: Adele 

Gagliardi, Administrator, Office of 

Policy Development and Research, 

Employment and Training 

Administration, U.S. Department of 

Labor, 200 Constitution Avenue NW., 

Room N–5641, Washington, DC 20210. 

Please submit your comments by only 

one method. The Department will post 

all comments received on http://

www.regulations.gov without making 

any change to the comments, including 

any personal information provided. The 

http://www.regulations.gov Web site is 

the Federal e-rulemaking portal and all 

comments posted there are available 

and accessible to the public. The 

Department cautions commenters not to 

include their personal information such 

as Social Security Numbers, personal 

addresses, telephone numbers, and 

email addresses in their comments as 

such submitted information will become 

viewable by the public via the http://

www.regulations.gov Web site. It is the 

responsibility of the commenter to 

safeguard his or her information. 

Comments submitted through http://

www.regulations.gov will not include 

the commenter’s email address unless 

the commenter chooses to include that 

information as part of his or her 

comment. 

Postal delivery in Washington, DC, 

may be delayed due to security 

concerns. Therefore, the Department 

encourages the public to submit 

comments via the Web site indicated 

above. 

Docket: For access to the docket to 

read background documents or 

comments received, go to the Federal 

eRulemaking portal at http://

www.regulations.gov. The Department 

will also make all the comments it 

receives available for public inspection 

during normal business hours at the 

Office of Policy Development and 

Research (OPDR) at the above address. 

If you need assistance to review the 

comments, the Department will provide 

you with appropriate aids such as 

readers or print magnifiers. The 

Department will make copies of the rule 

available, upon request, in large print 

and as an electronic file on computer 

disk. The Department will consider 

providing the proposed rule in other 

formats upon request. To schedule an 

appointment to review the comments 

and/or obtain the rule in an alternate 

format, contact OPDR at (202) 693–3700 

(VOICE) (this is not a toll-free number) 

or 1–800–877–8339 (TTY/ASCII). 

FOR FURTHER INFORMATION CONTACT: 

Adele Gagliardi, Administrator, Office 

of Policy Development and Research, 

Employment and Training 

Administration, U.S. Department of 

Labor, 200 Constitution Avenue NW., 

Room N–5641, Washington, DC 20210, 

gagliardi.adele@dol.gov, (202) 693–3700 

(this is not a toll-free number). 

Individuals with hearing or speech 

impairments may access this telephone 

number via TTY by calling the toll-free 

Federal Information Relay Service at 1– 

800–877–8339. 

SUPPLEMENTARY INFORMATION: This 

preamble is divided into three sections. 

Section I provides general background 

information on the development of the 

proposed revisions to 29 CFR parts 29 

and 30 (part 29 and part 30, 

respectively). Section II is a section-bysection analysis of the proposed 

regulatory text. Section III covers the 

administrative requirements for this 

proposed rulemaking as mandated by 

statute and Executive Order. 

I. Background 

A. General Overview of Registered 

Apprenticeship 

The National Apprenticeship Act of 

1937 authorizes the Department to 

formulate and promote the furtherance 

of labor standards necessary to 

safeguard the welfare of apprentices. 29 

U.S.C. 50. The responsibility for 

formulating and promoting these labor 

standards lies with the Department’s 

Employment and Training 

Administration’s (ETA) Office of 

Apprenticeship (OA). As part of its 

duties, OA registers apprenticeship 

programs that meet certain minimum 

labor standards. These standards, set 

forth at 29 CFR parts 29 and 30, are 

intended to provide for more uniform 

training of apprentices and to promote 

equal opportunity in apprenticeship. 

Part 29 implements the National 

Apprenticeship Act by setting forth 

labor standards that safeguard the 

welfare of apprentices by prescribing 

policies and procedures concerning the 

registration, cancellation, and 

deregistration of apprenticeship 

programs; the recognition of State 

Apprenticeship Agencies (SAA) as 

Registration Agencies; and matters 

relating thereto. On October 29, 2008, 

the Department published an amended 

part 29 to provide a framework that 

supports an enhanced, modernized 

apprenticeship system. 73 FR 64402. 

These regulations can be accessed on 

OA’s Web site at: http://www.doleta.

gov/oa/pdf/FinalRule29CFRPart29.pdf. 

Part 30 implements the National 

Apprenticeship Act by requiring 

registered apprenticeship program 

sponsors to provide equal opportunity 

for participation in their registered 

apprenticeship programs, and by 

protecting apprentices and applicants 

for apprenticeship from discrimination 

based on race, color, religion, national 

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1Fiscal Year (FY) 2013 national results available 

at http://doleta.gov/oa/data_statistics.cfm. 

2High growth industries include: Advanced 

manufacturing, construction, energy, health care, 

homeland security, hospitality, and transportation. 

origin, and sex. In addition, part 30 also 

requires that sponsors of registered 

apprenticeship programs take 

affirmative action to provide equal 

opportunity in such programs. The 

Department first published part 30 on 

December 18, 1963, at the direction of 

President Kennedy, who ordered that 

the Secretary of Labor, in implementing 

the National Apprenticeship Act and 

Executive Order 10925, require that the 

admission of young workers to 

apprenticeship programs be on a 

completely nondiscriminatory basis. 28 

FR 13775. At that time, the regulations 

prohibited discrimination based on race, 

color, religion, and national origin. 

Coverage on the basis of sex was added 

in 1971, as was the requirement for 

sponsors with five or more apprentices 

to develop and implement a written 

affirmative action plan (AAP) for 

minorities. 36 FR 6810, April 8, 1971. In 

1978, the Department amended these 

regulations to require inclusion of 

female apprentices in AAPs. 43 FR 

20760, May 12, 1978. There have been 

no changes to these regulations since 

that time. 

Registered apprenticeship is a 

combination of on-the-job training and 

related technical instruction in which 

workers learn the practical and 

theoretical aspects of a highly-skilled 

occupation. Apprenticeship programs 

are sponsored voluntarily by individual 

employers, employer associations, or 

Joint Apprenticeship Training 

Committees that partner organized labor 

with employers. In the U.S. today, there 

are more than 19,000 program sponsors 

representing over 200,000 employers 

who are offering registered 

apprenticeship training to more than 

375,000 registered apprentices.1

OA oversees the National Registered 

Apprenticeship System. Federal staff 

members are directly responsible for 

registered apprenticeship activities in 

25 States and provide technical 

assistance and oversight to 25 SAAs in 

the other 25 States. In these ‘‘SAA 

States,’’ the SAA has voluntarily 

requested recognition from the Secretary 

of Labor to serve as the entity 

authorized to register and oversee State 

and local apprenticeship programs for 

Federal purposes. Therefore, in those 25 

States, the SAA, in accordance with 

Federal regulations, has responsibility 

for registering apprenticeship activities 

for Federal purposes. 

Registered apprenticeship programs 

appear in traditional industries, such as 

construction (where the majority of 

registered programs has been) and 

manufacturing, as well as in new 

emerging ‘‘high-growth’’ industries, 

such as health care, information 

technology, and energy. High-growth 

industries are those sectors in the 

economy that are projected to add 

substantial numbers of new jobs to the 

economy or affect the growth of other 

industries, or they are existing or 

emerging businesses being transformed 

by technology and innovation requiring 

new skill sets for workers.2

B. Overview of the NPRM 

In spring 2010, to inform the drafting 

of this NPRM, OA conducted a series of 

town hall meetings across the nation, a 

webinar, and listening sessions with the 

agency’s stakeholders to elicit their 

recommendations for updating part 30. 

Through these efforts, OA received 

valuable input from a broad array of 

interested individuals, including SAAs; 

the National Association of State and 

Territorial Apprenticeship Directors 

(NASTAD); advocacy organizations; 

registered apprenticeship program 

sponsors such as labor-management 

organizations, employers, and employer 

associations; journeyworkers; former 

apprentices; and registered apprentices. 

This input addressed features of part 30 

that work well, those that could be 

improved, and additional requirements 

that might help to effectuate the overall 

goal of ensuring equal opportunity for 

all individuals who are participating in 

or seeking to participate in the National 

Registered Apprenticeship System. 

Recurring themes in these town halls, 

webinars, and listening sessions 

included the need for increased 

outreach efforts to attract women and 

minorities; a focus on equal training and 

retention of apprentices; stricter 

enforcement of the Equal Employment 

Opportunity (EEO) obligations; 

clarification of complaint procedures; 

and progressive actions by Registration 

Agencies to achieve sponsor compliance 

with the regulations. 

In developing the proposed rule, the 

Department also consulted with its 

Advisory Committee on Apprenticeship 

(ACA). Chartered under the Federal 

Advisory Committee Act, the ACA 

provides advice and recommendations 

to the Secretary of Labor (Secretary) on 

a wide range of matters related to 

apprenticeship. The ACA is comprised 

of approximately 30 members with 

equal representation of employers, labor 

organizations, and the public. 

In January 2011, the ACA 

unanimously accepted a series of 

recommendations to revise part 30, 

prepared by its EEO regulations 

workgroup, and then formally provided 

those recommendations to the 

Department. In particular, the ACA 

recommended that the revised part 30: 

(1) Align with part 29; (2) link the part 

30 regulatory requirements with 

apprenticeship programs’ standard 

operating procedures, so that program 

sponsors can minimize administrative 

burden; (3) enhance program sponsors’ 

accountability for compliance; (4) align 

requirements for outreach and 

recruitment activities with established 

national best practices; (5) allow 

maximum flexibility in selection 

procedures provided they are objective 

and specific; (6) provide for the use of 

local labor market information in 

establishing and updating utilization 

goals; and (7) require that all registered 

apprenticeship programs, regardless of 

size, adopt AAPs and selection 

procedures, supported by OA technical 

assistance. 

This proposed rule is based on public 

input, ACA consultation, as well as 

OA’s analysis of demographic patterns 

in apprenticeship discussed later in this 

preamble, and a literature review 

regarding barriers to entry, 

underutilization, and discrimination in 

apprenticeship and nontraditional 

occupations for women and minorities, 

and best practices to address these 

challenges. This NPRM proposes four 

general part 30 revisions: (1) Changes 

required to make part 30 consistent with 

the Labor Standards for Registration of 

Apprenticeship Programs set forth in 

part 29; (2) changes updating the scope 

of a sponsor’s EEO obligations; (3) 

changes to enhance sponsors’ 

affirmative action obligations and 

enforcement efforts by Registration 

Agencies; and (4) changes to improve 

the overall readability of part 30. 

The first set of changes align the EEO 

regulations at part 30 with its 

companion regulations at part 29, and 

are necessary to ensure a cohesive, 

comprehensive regulatory framework 

for the National Registered 

Apprenticeship System. To that end, the 

Department proposes to revise or add 

several terms in 29 CFR 30.2, 

Definitions. These terms include 

‘‘administrator,’’ ‘‘apprentice,’’ 

‘‘apprenticeship committee,’’ 

‘‘apprenticeship program,’’ ‘‘preapprenticeship,’’ ‘‘employer,’’ 

‘‘journeyworker,’’ ‘‘Office of 

Apprenticeship,’’ ‘‘Registration 

Agency,’’ ‘‘sponsor,’’ and ‘‘State 

Apprenticeship Agency.’’ 

In addition, proposed part 30 

incorporates the procedures set forth in 

part 29 for deregistration of 

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3See Macy v. Holder, Appeal No. 0120120821, 

2012 WL 1435995, at *7 (EEOC) (2012), available 

at http://www.eeoc.gov/decisions/0120120821%20

Macy%20v%20DOJ%20ATF.txt (last accessed 

August 26, 2015), on remand, Department of Justice 

(DOJ) Final Agency Decision, Agency Complaint 

No. ATF–2011–00751, DJ No. 187–9–149 (July 8, 

2013); Memorandum from Attorney General Eric 

Holder to United States Attorneys and Heads of 

Department Components (Dec. 15, 2014), available 

at http://www.justice.gov/file/188671/download 

(last accessed August 26, 2015); OFCCP Directive 

2014–02 (August 19, 2014), available at http://www.

dol.gov/ofccp/regs/compliance/directives/dir2014_

02.html (last accessed August 26, 2015); see also, 

e.g., Glenn v. Brumby, 663 F.3d 1312 (11th Cir. 

2011); Kastl v. Maricopa Cnty. Cmty. Coll. Dist., 325 

F. App’x 492 (9th Cir. 2009); Smith v. City of Salem, 

378 F.3d 566 (6th Cir. 2004); Barnes v. City of 

Cincinnati, 401 F.3d 729 (6th Cir. 2005); Schroer v. 

Billington, 424 F. Supp. 2d 203 (D.D.C. 2006). 

4https://www.aclu.org/maps/non-discriminationlaws-state-state-information-map (last accessed 

Aug. 27, 2015). 

apprenticeship programs, derecognition 

of SAAs, and hearings. The use of a 

single set of procedures would 

streamline management of the National 

Registered Apprenticeship System. This 

would, for example, avoid the confusion 

of requiring two simultaneous 

proceedings when separate part 29 and 

part 30 issues arise in relation to a 

single registered apprenticeship 

program. 

The second category of proposed 

changes addresses the fact that the EEO 

regulations for the National Registered 

Apprenticeship System have not been 

revised since 1978. The current EEO 

regulations prohibit discrimination in 

registered apprenticeship against 

individuals based on race, color, 

religion, national origin, and sex. Since 

1978, however, the legal landscape for 

EEO has evolved. Within the context of 

the existing protected category of sex, 

for example, Congress passed the 

Pregnancy Discrimination Act in 1978, 

which amended Title VII to include, 

within the context of sex 

discrimination, discrimination on the 

basis of pregnancy, childbirth, and 

related medical conditions. The scope 

and analysis of pregnancy 

discrimination has been refined in Title 

VII case law throughout the years, up to 

and including the Supreme Court’s 

recent holding in Young v. United 

Parcel Serv., Inc., 135 S. Ct. 1338 (2015), 

addressing the obligations for providing 

workplace accommodations for 

pregnancy, childbirth, or related 

medical conditions. Further, the Equal 

Employment Opportunity Commission 

(EEOC), Department of Justice, the 

Department’s Office of Federal Contract 

Compliance Programs (OFCCP), and 

several federal courts have held that 

discrimination on the basis of gender 

identity or transgender status falls 

within the ambit of sex discrimination.3

Consistent with the Department’s 

interpretation, this regulation interprets 

sex discrimination in line with these 

developments in the law. 

The EEO landscape has evolved 

beyond those protected categories 

specifically enumerated in the 

regulations as well. In 1990, Congress 

enacted the Americans with Disabilities 

Act (ADA), 42 U.S.C. 12101 et seq., 

prohibiting employers from 

discriminating in employment against 

qualified individuals on the basis of 

disability. In 2008, Congress passed the 

ADA Amendments Act (ADAAA), 

making it easier for an individual to 

establish that he or she has a disability 

within the meaning of the ADA. Most 

sponsors are subject to the ADA, as it 

applies to, among others, private 

employers with 15 or more employees, 

including part-time employees, and to 

joint labor management committees 

controlling apprenticeship and training. 

In 1996, the Equal Employment 

Opportunity Commission (EEOC) 

amended its regulations implementing 

the Age Discrimination in Employment 

Act (ADEA), subjecting apprenticeship 

programs to the ADEA’s requirements, 

thus barring apprenticeship programs 

from setting upper age limit 

requirements or otherwise 

discriminating against apprentices age 

40 or older on the basis of age. In 2008, 

Congress enacted the Genetic 

Information Nondiscrimination Act 

(GINA), which applies to joint-labor 

management training and 

apprenticeship programs, among others, 

and prohibits them from discriminating 

against employees or applicants because 

of genetic information. GINA prohibits 

the use of genetic information in making 

employment decisions and prohibits 

covered entities, including joint-labor 

management training and 

apprenticeship programs from 

requesting, requiring, or purchasing 

genetic information and strictly limits 

the disclosure of genetic information. 

Accordingly, this proposal would add 

age, disability, and genetic information 

to the list of bases upon which a 

sponsor must not discriminate, and 

revises part 30 throughout consistent 

with this change. 

Additionally, the proposed rule adds 

sexual orientation to the list of protected 

bases. Since 1978, the legal landscape 

regarding employment discrimination 

related to sexual orientation has 

changed. Many employment practices 

that were not then widely recognized as 

discriminatory now constitute unlawful 

sex discrimination under title VII. In 

particular, it is now widely recognized 

that employment decisions made on the 

basis of stereotypes about how males 

and/or females are expected to look, 

speak, or act are a form of sex-based 

employment discrimination. See Price 

Waterhouse v. Hopkins, 490 U.S. 228, 

250 (1989) (finding sex discrimination 

on basis of sex stereotyping). Following 

Price Waterhouse, the EEOC has 

concluded that discrimination against 

an individual because of that person’s 

sexual orientation is a violation of Title 

VII. David Baldwin v. Dep't of 

Transportation, EEOC Appeal No. 

0120133080 (July 15, 2015), at p. 14 

(available at http://www.eeoc.gov/

decisions/0120133080.pdf) (last 

accessed August 26, 2015). Also at the 

Federal level, in July 2014, President 

Obama issued Executive Order 13672, 

which amended Executive Order 11246 

to add sexual orientation and gender 

identity to the list of bases for which 

discrimination by Federal contractors 

and subcontractors is prohibited. 79 FR 

42971 (July 21, 2014). At the State and 

local level, the recognition of sexual 

orientation as a protected characteristic 

has expanded significantly. As of the 

publication of the proposed rule, 22 

States and the District of Columbia, in 

addition to numerous additional 

counties and municipalities across the 

country, have passed statutes and 

ordinances explicitly prohibiting 

employment discrimination on the basis 

of sexual orientation in the public and 

private sectors.4

Adding sexual orientation as a 

protected characteristic is consistent 

with both the statutory authority 

requiring the formulation of ‘‘labor 

standards necessary to safeguard the 

welfare of apprentices,’’ 29 U.S.C. 50, 

and the Department’s purpose and 

approach since part 30 was first 

established: To promote equality of 

opportunity in registered apprenticeship 

programs and prevent discrimination in 

the recruitment, selection, employment 

and training of apprentices by requiring, 

among other things, that apprentices 

and applicants for registered 

apprenticeship are selected according to 

objective and specific qualifications 

relating to job performance. 30 CFR 30.1 

and 30.5. It is also consistent with the 

developing legal landscape in this area. 

While the proposal prohibits 

discrimination on the basis of sexual 

orientation, it does not require 

incorporating sexual orientation into 

written affirmative action plans, nor 

does it require sponsors to collect 

employee or applicant data on sexual 

orientation. This is consistent with the 

treatment of sexual orientation under 

OFCCP’s affirmative action programs for 

federal contractors. 

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5Federal Plain Language Guidelines at 25 (March 

2011), available at http://www.plainlanguage.gov/

howto/guidelines/FederalPLGuidelines/FederalPL

Guidelines.pdf (last accessed Dec. 2, 2014). 

6RAPIDS includes individual, apprentice-level 

data from the 25 states in which OA is the 

Registration Agency, and from the nine SAA states 

that have chosen to participate. However, unless 

otherwise stated, the tables and discussions of 

RAPIDS data are limited to the apprentice data 

managed by OA staff. We note that, currently, 

RAPIDS does not collect data regarding individuals 

with disabilities. The analysis excludes apprentice 

data maintained by State Apprenticeship Agencies, 

including those that participate in the RAPIDS 

database, since the majority of the SAA states 

provide limited aggregated information which does 

not lend itself to detailed statistical analysis of 

demographic characteristics. Given the unique 

structure of the Registered Apprenticeship system, 

OA believes that data managed by OA staff is an 

acceptable proxy for the nation as a whole, because 

this individual record dataset contains 62 percent 

of the total active apprentices nationwide 

(excluding active military members—USMAP) and 

a representative cross-section of 25 states. 

The third category of proposed 

changes in this NPRM seeks to improve 

the effectiveness of program sponsors’ 

required affirmative action efforts and of 

Registration Agencies’ efforts to enforce 

and support compliance with this rule 

by, among other things, detailing 

specific mandatory actions a sponsor 

must take to satisfy its affirmative action 

obligations, including mandating certain 

actions that are merely suggested in the 

existing regulations. This NPRM also 

gives Registration Agencies more tools 

with which to promote compliance with 

affirmative action objectives. In 

addition, this NPRM expands 

affirmative action requirements in part 

30 by requiring affirmative action for 

individuals with disabilities. These 

proposed enhancements are necessary 

because, despite the progress that has 

been made in some segments of the 

workforce since the promulgation of the 

existing part 30, the residual impact of 

longstanding discrimination continues 

to exclude historically disadvantaged 

worker groups from participation in 

registered apprenticeship. The 

Department has a strong interest in 

ensuring that its approval of a sponsor’s 

apprenticeship program does not serve 

to support, endorse, or further private 

discrimination. 

The fourth category of proposed 

changes in the NPRM would improve 

the overall readability of part 30 through 

a reorganization of the part 30 

requirements, basic editing, and by 

providing clarifying language where 

needed. For instance, the Department 

proposes to make minor language 

changes for the purposes of clarity and 

adhering to plain language guidelines. 

This includes replacing the word 

‘‘shall’’ with ‘‘must’’ or ‘‘will’’ as 

appropriate to the context. The Federal 

Plain Language Guidelines specify that 

use of the word ‘‘shall’’ is not only 

outdated, but also imprecise, as it 

‘‘could indicate either an obligation or 

a prediction.’’ 5 In the past, the word 

‘‘shall’’ has been used throughout the 

part 30 regulations to denote a 

requirement—something the word 

‘‘must’’ does with greater clarity. In 

addition, the proposed rule would add 

a new section setting forth the effective 

date for this rule and for programs 

currently registered to come into 

compliance with the revised 

regulations. 

Finally, the Department proposes to 

make a few minor, conforming changes 

in 29 CFR part 29, the companion rule 

to part 30. These changes do not alter 

any substantive requirements of part 29; 

rather, this NPRM makes minor 

revisions to part 29 in order to 

harmonize parts 29 and 30. The specific 

proposed revisions to parts 29 and 30 

are explained in detail in Section II 

below. 

C. Demographic Patterns of Women and 

Minorities in Apprenticeship 

At the outset of the regulatory 

revision process, OA evaluated 

demographic changes in apprenticeship 

programs, apprenticeable occupations, 

and employment-related training 

programs in construction and nonconstruction industries. OA reviewed 

data in OA’s Registered Apprenticeship 

Partners Information Data System 

(RAPIDS) 6 and analyzed workforcerelated data from the Department of 

Commerce/Census Bureau’s American 

Community Survey Data (ACS), the 

Current Population Survey (CPS), and 

the Bureau of Labor Statistics (BLS), all 

of which provide the Department with 

data on who is currently working in 

various labor market sectors. The 

representation of each demographic 

group employed in apprenticeable 

occupations provides a basis for 

estimating a minimum of who may be 

interested and/or available to enter into 

apprenticeships. OA recognizes that an 

estimate of availability for 

apprenticeship should more broadly 

include those with the potential 

capacity for registered apprenticeship, 

rather than being limited to those 

currently employed in the 

apprenticeable occupation. But even 

comparisons to the demographic 

characteristics of current employees in 

apprenticeable occupations and 

industries disclosed disparities in 

apprenticeship. 

As described in more detail below, 

the Department has concluded from 

these data and other available analyses 

that women and minorities continue to 

face substantial barriers to entry into 

and, for some groups, completion of 

registered apprenticeships, despite their 

availability in industry sectors that 

include apprenticeable occupations. 

Barriers include: 

• Lower than expected enrollment 

rates in registered apprenticeship for 

specific groups including, most notably, 

women and specific minority groups; 

• To the extent that women and 

minorities participate in registered 

apprenticeships, women and almost all 

minority groups are concentrated in 

lower-paying occupations; and 

• In the construction industry, 

barriers to apprenticeship program 

completion, which result in significant 

differences in completion rates amongst 

minority groups and for women in the 

construction industry. 

Women in Apprenticeships 

Women’s enrollment in 

apprenticeship programs is significantly 

lower than expected. All women, 

regardless of race or ethnicity, are 

severely underrepresented in registered 

apprenticeship programs when 

compared to their share of the U.S. labor 

force. This disparity exists in 

comparison to the number of men in 

registered apprenticeships, and also in 

comparison to the number of women 

who are working in the wider civilian 

labor force. CPS data indicate that in 

2014 the national labor force was 53.0 

percent male and 47.0 percent female. 

Yet, as Table 1 illustrates, in the last 

decade, on average, women comprised 

only 7.1 percent of all new enrollments 

in registered apprenticeships, whereas 

men accounted for 92.9 percent— 

roughly the same as a decade ago. 

TABLE 1 7—NEW ENROLLMENTS IN REGISTERED APPRENTICESHIP BY SEX, ALL INDUSTRIES

Year % Female % Male 

2003 ......................................................................................................................................................................... 6.9 93.1 

2004 ......................................................................................................................................................................... 7.7 92.3 

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7Source: Query of RAPIDS database—February 

2014. 

8Source: Query of RAPIDS database—February 

2014. 

9Source: Query of RAPIDS database—February 

2014, and CPS, February 2013 (http://www.bls.gov/ 

cps/cpsaat16.htm). 

TABLE 1 7—NEW ENROLLMENTS IN REGISTERED APPRENTICESHIP BY SEX, ALL INDUSTRIES—Continued 

Year % Female % Male 

2005 ......................................................................................................................................................................... 6.7 93.3 

2006 ......................................................................................................................................................................... 7.1 92.9 

2007 ......................................................................................................................................................................... 6.1 93.9 

2008 ......................................................................................................................................................................... 6.7 93.3 

2009 ......................................................................................................................................................................... 7.8 92.2 

2010 ......................................................................................................................................................................... 8.3 91.7 

2011 ......................................................................................................................................................................... 6.7 93.3 

2012 ......................................................................................................................................................................... 7.5 92.5 

2013 ......................................................................................................................................................................... 6.7 93.3 

10 Year Average ...................................................................................................................................................... 7.1 92.9 

CPS Labor Force Participation (2012) .................................................................................................................... 47.0 53.0 

When analyzed on an industry basis 

more pronounced disparities are 

disclosed. As seen in Table 2 below, of 

the seven high-growth industries 

identified by OA as particularly 

desirable for expansion opportunities 

for registered apprenticeship, all show 

huge disparities between male and 

female enrollment rates. For example, 

women are the vast majority of 

apprentices in the health care industry 

but are a fraction of apprentices in the 

construction and utilities industries. 

TABLE 2 8—NEW ENROLLMENTS IN REGISTERED APPRENTICESHIP BY SEX AND INDUSTRY, 2013 

Industry % Female % Male 

Advanced Manufacturing ......................................................................................................................................... 10.4 89.6 

Construction ............................................................................................................................................................. 2.3 97.7 

Utilities ..................................................................................................................................................................... 1.8 98.2 

Health Care and Social Assistance ......................................................................................................................... 95.5 4.5 

Homeland Security Public Administration and National Security ............................................................................ 16.1 83.9 

Hospitality Educational Services ............................................................................................................................. 3.9 96.1 

Transportation .......................................................................................................................................................... 3.7 96.3 

CPS Labor Force Participation (2012) .................................................................................................................... 47.0 53.0 

The underrepresentation of women in 

registered apprenticeship programs for 

high-growth industries also is 

demonstrated by comparing the 

percentage of women working in highgrowth industries with their percentage 

in registered apprenticeships in those 

same industries. As seen in Table 3 

below, female enrollment was 

significantly below women’s share of 

the workforce in the same six highgrowth industries as in Table 2. Except 

for health care, these comparisons 

indicate that the representation of 

women enrolled in apprenticeship 

programs in these industries is 

significantly lower than the female rate 

of participation in these industries in 

the U.S. civilian labor force. 

TABLE 3 9—COMPARISON OF NEWLY ENROLLED APPRENTICES BY SEX AND INDUSTRY TO CIVILIAN WORKFORCE

CURRENTLY EMPLOYED IN THE INDUSTRY, 2013 

Industry Data % Female % Male 

Advanced Manufacturing .............................................. Apprenticeship ..............................................................

Workforce .....................................................................

10.4 

29.0 

89.6 

71.0 

Construction .................................................................. Apprenticeship ..............................................................

Workforce .....................................................................

2.3 

8.9 

97.7 

91.1 

Utilities .......................................................................... Apprenticeship ..............................................................

Workforce .....................................................................

1.8 

23.4 

98.2 

76.6 

Health Care and Social Assistance .............................. Apprenticeship ..............................................................

Workforce .....................................................................

95.5 

78.4 

4.5 

21.6 

Homeland Security Public Administration and National 

Security.

Apprenticeship ..............................................................

Workforce .....................................................................

16.1 

45.4 

83.9 

54.6 

Educational Services .................................................... Apprenticeship ..............................................................

Workforce .....................................................................

3.9 

68.6 

96.1 

31.4 

Transportation ............................................................... Apprenticeship ..............................................................

Workforce .....................................................................

3.7 

23.2 

96.3 

76.8 

Apprenticeship = National Federal Workload only tracked in RAPIDS. 

Workforce = Civilian Population Survey (CPS) February 2013. 

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10Source: Query of RAPIDS database for all active 

apprentices—February 2014. 

11Table 5 uses multiple data sources. The 

RAPIDS database is the source for apprenticeship 

data. Other sources are the CPS and the ACS. 

12See, e.g., Permanent Commission on the Status 

of Women, ‘‘Pre-Apprenticeship Construction 

Training Manual for Women.’’ Hartford, CT, (2007); 

Byrd, B., ‘‘Women in Carpentry Apprenticeship: A 

Case Study,’’ 24 Labor Studies Journal, at 8 (Fall 

1999); Ericksen, J., and Palladino Schultheiss D., 

‘‘Women Pursuing Careers in Trades and 

Construction,’’ 36 Journal of Career Development at 

69–70 (September 2009); Moir, S., Thomson, M., 

and Kelleher, C., ‘‘Unfinished Business: Building 

Equality for Women in the Construction Trades,’’ 

Labor Resource Center Publications. Paper 5 at 10– 

12 (2011); and ‘‘Women in the Construction 

Workplace: Providing Equitable Safety and Health 

Protection,’’ Health and Safety of Women in 

Construction (HASWIC) Workgroup, Advisory 

Committee on Construction Safety and Health 

(ACCSH), submitted to Occupational Safety and 

Health Administration (OSHA), Department of 

Labor (June 1999). 

Women also are concentrated in 

apprenticeship programs for the lowest 

paying apprenticeable occupations. As 

shown in Table 4 below, women 

account for less than 10 percent of the 

enrollments in apprenticeship programs 

in the highest paid apprenticeable 

occupations, which include many 

construction occupations, but comprise 

typically over 80 percent of the 

enrollments in apprenticeship programs 

in the lowest paying apprenticeable 

occupations, such as nursing assistants 

in the health care industry. 

TABLE 4 10—REPRESENTATION OF WOMEN IN APPRENTICESHIP PROGRAMS IN TOP 25 APPRENTICEABLE OCCUPATIONS

Category Examples Hourly Earnings % Women 

Best Paid Occupations ............................ Electrician, ...............................................

Pipe Fitter, ...............................................

Painter .....................................................

$25–$35 per hour .................................... 1–8.5 

Intermediate Pay Level Occupations ...... Correction Officer, ...................................

Cook/Chef ................................................

$15–$20 per hour .................................... 10–50 

Lowest Paid Occupations ........................ Child Care Development Specialist, .......

Certified Nursing Assistant ......................

Less than $15 per hour ........................... 85–99 

Disparities between male and female 

enrollment rates are dramatic in the 

construction industry, where almost 60 

percent of registered apprentices were 

enrolled in 2013, according to RAPIDS. 

As seen in Table 5 below, the 

representation of women in 

construction apprenticeship programs 

in 2013 (2.3 percent) was lower than the 

representation of women in 

construction industry occupations in all 

industries (8.9 percent according to the 

CPS and 9.9 percent according to the 

ACS). 

This striking underrepresentation of 

women in construction apprenticeship 

programs is consistent with the 

historical underrepresentation of 

women in on-site construction 

occupations. Factors that affect women’s 

representation in on-site construction 

occupations in the construction 

industry include negative stereotypes 

about women’s ability to perform 

construction work and pervasive sexual 

harassment. These factors, together, act 

as a significant barrier to women 

entering the construction trades.12

Women also may be the victims of 

discriminatory recruitment and 

selection procedures. The construction 

trades have traditionally used informal 


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13See, e.g., Bilginsoy, C., ‘‘The Hazards of 

Training: Attrition and Retention in Construction 

Industry Apprenticeship Programs,’’ 57 Industrial & 

Labor Relations Review, at 54–67 (Oct. 2003); Byrd, 

B, ‘‘Women in Carpentry Apprenticeship: A Case 

Study,’’ 24 Labor Studies Journal, at 8–10 (Fall 

1999). 

14Bilginsoy, C., ‘‘The Hazards of Training: 

Attrition and Retention in Construction Industry 

Apprenticeship Programs,’’ 57 Industrial & Labor 

Relations Review, at 54–67, at 65 (Oct. 2003). 

15The author of a study on women in carpentry 

apprenticeships suggests that apprenticeship 

programs in construction need to make a concerted 

effort to recruit females if they want to increase the 

number of female applicants. Byrd, B., ‘‘Women in 

Carpentry Apprenticeship: A Case Study,’’ 24 Labor 

Studies Journal, at 10 (Fall 1999). 

16RAPIDS data. Completion rate means the 

percentage of an apprenticeship cohort who 

receives a certificate of apprenticeship completion 

within 1 year of the expected completion date. For 

more information see Bulletin FY 2011–07— 

Program Performance—Calculation of Registered 

Apprenticeship Program Completion Rates (http:// 

doleta.gov/OA/bu110/

Bulletin_2011_07_Completion_Rates.pdf). 

17Washington State Workforce Training and 

Education Coordinating Board, ‘‘Workforce 

Training Results: Apprenticeship,’’ at 13 (Dec. 

2008). A copy of the report is available at http:// 

www.wtb.wa.gov/Documents/WTR_

Apprenticeship.pdf. 

18Source: Labor Force Statistics from the Current 

Population Survey, BLS (http://www.bls.gov/cps/

cpsaat18.htm) 

networks and referrals and word of 

mouth to recruit for open 

apprenticeships. Similarly, personal 

introductions and recommendations (as 

well as nepotism policies in the past) 

continue to be significant factors in 

selection for construction 

apprenticeships and work.13 The 

problem of underrepresentation then 

perpetuates itself; because women have 

historically been underrepresented in 

construction apprenticeships and jobs, 

many of them may not have the 

connections necessary to receive 

information concerning these 

opportunities and be selected for 

them.14 15

In addition to low enrollment rates, 

women complete apprenticeships in the 

construction industry at lower rates 

than men. As shown in Table 6 below, 

the 2011 completion rate indicates that 

women completed apprenticeships at a 

rate of 33.6 percent compared to 39.2 

percent for men. Of the cohort of 

apprentices that completed in 2013, the 

most recent cohort for which the 

Department has completion rates, 

women’s completion rate improved to a 

rate of 39.3 percent compared to 42.7 

percent for men. 

Women can succeed in construction 

apprenticeship programs when 

provided equal opportunity. For 

example, a study of apprentices in 

Washington State during the 2005–2006 

program year indicated that the 

participation rate of women apprentices 

in construction trades was 36 percent, 

much higher than the National 

Registered Apprenticeship System’s 

average of 2.3 in construction 

apprenticeship programs.17

In conclusion, the data and literature 

about female participation in registered 

apprenticeship confirms: 

• Significantly lower than expected 

enrollment rates for women in 

registered apprenticeship in general, as 

compared to the number of women in 

the workforce for industries that 

sponsor apprenticeships; 

• Lower than expected completion 

rates for women relative to the rates for 

men; and 

• Concentration of women in 

apprenticeship programs for the lowest 

paying occupations. 

Minorities in Apprenticeship 

Progress for racial minority groups 

and Hispanics or Latinos has been 

uneven and varies by group. Analyses 

reveal that tailored affirmative action 

efforts are necessary to ensure equal 

opportunity for racial minority groups 

and Hispanics or Latinos, who continue 

to face barriers to full participation in 

registered apprenticeship. 

At the most macro level, a review of 

the nationwide enrollment data by 

industry reveals significant 

underutilization for some minority 

groups in some industries. For instance, 

in 2014, in manufacturing, Hispanics or 

Latinos comprised 15.8 percent of the 

civilian labor force, yet only represented 

6.3 percent of the apprentice 

workforce.18 Similarly, in the 

transportation industry, Hispanics or 

Latinos were 17.2 percent of the civilian 

labor force, but only 9.1 percent of the 

apprentice workforce. In utilities, Blacks 

or African Americans represented 8.9 

percent of the civilian labor force, but 

only 5.9 percent of the apprentice 

workforce. In public administration and 

homeland security, Asians comprised 

4.8 percent of the civilian labor force, 

but only 1.0 percent of the apprentice 

workforce. 

More detailed analyses at the 

occupation level reveal further 

disparities. For instance, Hispanics or 


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19Source: Query of RAPIDS database—February 

2014 and Labor Force Statistics from the Current 

Population Survey, BLS (http://www.bls.gov/cps/

cpsaat11.htm). 

20Source: Query of RAPIDS database—February 

2014 and Labor Force Statistics from the Current 

Population Survey, BLS (http://www.bls.gov/cps/

cpsaat11.htm). 

21Hamilton, D, Algernon A., and William D., Jr., 

‘‘Whiter Jobs, Higher Wages: Occupational 

Segregation and the Lower Wages of Black Men.’’ 

Economic Policy Institute, Washington, DC (Feb. 

2011). 

22Mean hourly earnings from the 2012 National 

Occupational Employment and Wage Estimates, 

BLS (http://www.bls.gov/oes/current/oes_nat.htm). 

23Matthew W. Brault, ‘‘Americans With 

Disabilities: 2010,’’ U.S. Census Bureau (2012), 

http://www.census.gov/prod/2012pubs/p70- 

131.pdf. 

24The working age population consists of people 

between the ages of 16 and 64, excluding those in 

the military and people who are in institutions. 

25Source: Persons with a disability: Labor force 

characteristics (June 2013), BLS (http://www.bls.

gov/news.release/disabl.nr0.htm). 

Latinos comprise 35.7 percent of active 

apprentices as painters yet represent 

42.6 percent of painters in the civilian 

labor force.19 Likewise, Hispanics or 

Latinos represent 11.1 percent of active 

apprentices as operating engineers, yet 

represent 16.5 percent of operating 

engineers in the civilian labor force. 

These disparities exist at the occupation 

level for Blacks or African Americans as 

well. For example, Blacks or African 

Americans represent 2.3 percent of 

active apprentices as building 

inspectors, yet represent 6.2 percent of 

building inspectors in the civilian labor 

force.20 Likewise, Blacks or African 

Americans represent 2.4 percent of 

active apprentices as emergency 

medical technicians, yet represent 5.5 

percent of these workers in the civilian 

labor force. The underrepresentation of 

Black or African American males in 

registered apprenticeship at the 

occupational level may be reflective of 

problems in the industry at large. Blacks 

or African Americans are 

underrepresented in many of the largest 

and highest paying apprenticeable 

occupations when compared to their 

utilization in similar occupations in 

other industries. In an analysis of 2005– 

2007 ACS data that drills down to the 

occupational level in the construction, 

extraction, and maintenance sector, 

researchers found that Black or African 

American men experience 

underrepresentation in 81 percent of the 

67 precisely defined occupations that 

comprise this sector.21

In addition, minority groups tend to 

be concentrated in lower paying 

occupations. RAPIDS data for major 

occupations (those with the greatest 

numbers of total apprentices) for which 

earnings data are readily available show 

that both Hispanics or Latinos and 

Blacks or African Americans, for 

example, account for a smaller 

percentage of apprentices enrolled in 

apprenticeship programs in the highest 

paid apprenticeable occupations, and 

have a relatively greater representation 

in the lower paying apprenticeable 

occupations. Specifically, Blacks or 

African Americans make up less than 8 

percent of the apprentice workforce for 

the highest paying apprenticeable 

occupations, such as electricians and 

plumbers, which earn on average 

$23.80/hour, but comprise 14.0 percent 

and 21.7 percent of lower paying 

occupations, such as construction 

laborers and correctional officers, which 

earn on average $12.31/hour and 

$18.77/hour, respectively. Likewise, 

Hispanics or Latinos make up less than 

23 percent of higher paying 

apprenticeable occupations, such as 

elevator installers and repairers, which 

earn on average $36.85/hour, but 

comprise 35.7 percent and 45.1 percent 

of lower paying apprenticeable 

occupations, such as roofers and 

painters, which earn on average $16.95/ 

hour.22

Furthermore, RAPIDS data reveal that 

there are challenges for minority groups 

in completion rates as well. For 

example, the 2013 completion rate for 

Blacks or African Americans in the 

construction industry, was 30.3 percent. 

This rate was significantly lower 

compared to Whites, who completed 

their apprenticeship programs at a rate 

of 46.7 percent. In conclusion, the data 

about minority participation in 

apprenticeship indicates the following: 

• Progress has been made over the 

last 30 years for minority participation 

in registered apprenticeship, but it has 

been uneven across minority groups; 

• Disparities continue to exist for 

some groups depending on industry, 

occupation, and geographic area; 

• Minority groups are concentrated in 

apprenticeship programs in the lower 

paying occupations; and 

• Completing apprenticeship 

programs has been a challenge for some 

minority groups. 

These findings indicate that 

affirmative action, while necessary to 

ensure that minorities have an equal 

opportunity to apprentice, must be 

tailored to address the specific 

disparities by minority group, and by 

occupation, industry, and geographic 

area. 

People With Disabilities in 

Apprenticeship 

The Department believes strongly that 

including people with disabilities in 

apprenticeship affirmative action efforts 

is crucial to affording them equal 

opportunity in registered 

apprenticeship. Individuals with 

disabilities experience high levels of 

unemployment. According to the 

Survey of Income and Program 

Participation (SIPP) by the U.S. Census 

Bureau that collected data from May 

through August 2010, individuals with 

disabilities comprise approximately 

16.6 percent (one sixth) of the working 

age population.23 Yet, the 

unemployment rate of working age 

individuals with disabilities and the 

percentage of working age individuals 

with disabilities who are not in the 

labor force remain significantly higher 

than for those without disabilities.24

According to 2012 data from BLS, 17.8 

percent of working age people with 

disabilities were in the labor force in 

March 2011, compared with 63.9 

percent of working age people with no 

disability.25 The unemployment rate for 

working age people with disabilities 

was 13.4 percent, compared with a 7.9 

percent unemployment rate for working 

age individuals without a disability. 

Ensuring individuals with disabilities 

have fair access to the employment 

training opportunities offered by 

registered apprenticeship programs 

through inclusion in affirmative action 

efforts can be important in opening 

doors to good jobs for people with 

disabilities. 

The detailed Section-by-Section 

Analysis below identifies and discusses 

all proposed changes in each section. 

The Department welcomes comments 

on all of the provisions discussed 

below. 

II. Section-by-Section Analysis 

Title of the Rule 

The current title of the rule is Equal 

Employment Opportunity in 

Apprenticeship and Training. The 

Department proposes to delete the 

phrase ‘‘and Training’’ to clarify that the 

rule applies specifically to 

apprenticeship programs registered 

under the National Apprenticeship Act, 

and not to other training programs for 

which the Department has 

responsibility. This updated title is 

consistent with recent revisions to the 

name of the Department’s agency with 

responsibility for registration of 

apprenticeship programs, and 

implementation of the National 

Apprenticeship Act. Currently, this 

agency is ETA’s OA. In 1963, when the 

part 30 regulation was first 

promulgated, and then in 1978, when it 

was last amended, the Department’s 

apprenticeship agency was entitled the 

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26Available on-line at http://www.aspenwsi.org/

WSIwork-sector.asp. 

Bureau of Apprenticeship and Training. 

In recent years, the agency’s name was 

formally changed to the Office of 

Apprenticeship (OA). 

Purpose, Applicability, and 

Relationship to Other Laws (§ 30.1) 

In general, § 30.1 of the current part 

30 condenses scope and purpose in one 

paragraph and outlines the general 

topics covered by part 30 in the same 

paragraph. The Department proposes 

several minor revisions to enhance the 

readability of this section. 

First, the title of proposed § 30.1 

would be revised to read ‘‘Purpose, 

applicability, and relationship to other 

laws’’ to better inform the public about 

what this section addresses. Second, 

proposed § 30.1 is divided into three 

paragraphs: § 30.1(a) would set forth the 

purpose of the rule; § 30.1(b) would 

address to whom the rule applies; and 

§ 30.1(c) would discuss how this 

regulation relates to other laws that may 

apply to the entities covered by this 

regulation. In addition, proposed § 30.1 

would delete the text indicating that 

part 30 addresses the registration of 

apprenticeship programs, because the 

registration of apprenticeship programs 

is covered only by part 29. Proposed 

§ 30.1 also would add in § 30.1(a) that 

the required contents of a sponsor’s 

affirmative action program are covered 

under part 30. 

Proposed § 30.1(a) would add age (40 

or older), genetic information, sexual 

orientation, and disability to the list of 

bases set forth in the rule upon which 

sponsors of registered apprenticeship 

programs must not discriminate. As 

discussed above, since 1978, when this 

rule was last amended, EEO law has 

evolved with the application of the 

ADEA and GINA to apprenticeship 

programs, the passage of the ADA, the 

issuance of Executive Order 13672, and 

the legal developments with respect to 

discrimination related to sexual 

orientation. By adding age (40 or older), 

genetic information, sexual orientation, 

and disability to the list of protected 

bases, the Department is better able to 

fulfill its charge to protect the welfare of 

apprentices and ensure admission to 

apprenticeship is on a ‘‘completely nondiscriminatory basis,’’ as directed by 

President Kennedy. Moreover, the 

addition of these bases to the list of 

those upon which a sponsor must not 

discriminate ensures that the National 

Registered Apprenticeship System’s 

regulatory framework affords the same 

protections to these individuals as it 

does for others, and it will bring the 

National Registered Apprenticeship 

System into alignment with the 

protected bases identified in the various 

Federal, State, and local laws already 

applicable to many apprenticeship 

sponsors. 

For greater clarity and to establish 

parity with parallel provisions in the 

ADA, proposed § 30.1(c) also would 

include a paragraph explaining that part 

30 does not invalidate or limit the 

remedies, rights, and procedures under 

any Federal law, or the law of any State 

or political subdivision, that provides 

greater or equal protection for 

individuals based on race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, or disability. Proposed 

§ 30.1(c) additionally recognizes as a 

defense to a charge of violation of this 

part that a challenged action is required 

or necessitated by another Federal law 

or regulation, or that another Federal 

law or regulation prohibits an action 

that would otherwise be required by this 

part. 

The Department recognizes that 

program sponsors and Registration 

Agencies may need technical assistance 

with implementing these proposed 

regulations with respect to individuals 

with disabilities. Therefore, ETA will 

partner closely with the Department’s 

Office of Disability Employment Policy 

(ODEP) to provide significant technical 

assistance tools and sub-regulatory 

policy and program guidance to assist 

program sponsors with improving their 

EEO practices with respect to 

individuals with disabilities and 

Registration Agencies with enforcing the 

EEO requirements set forth in this 

proposed rule. There are many 

resources immediately available to 

assist apprenticeship program sponsors 

in meeting their proposed EEO 

obligations for individuals with 

disabilities. For instance, the Job 

Accommodation Network, a free service 

provided by ODEP, provides one-on-one 

guidance to employers with expert and 

confidential guidance on workplace 

accommodations and disability 

employment issues. 

Definitions (§ 30.2) 

Proposed § 30.2 would revise and redesignate existing definitions and 

would add certain terms used in part 29 

that apply also to part 30. The terms 

added from part 29 are: ‘‘administrator,’’ 

‘‘apprentice,’’ ‘‘apprenticeship 

committee,’’ ‘‘apprenticeship program,’’ 

‘‘electronic media,’’ ‘‘employer,’’ 

‘‘journeyworker,’’ ‘‘Office of 

Apprenticeship,’’ ‘‘Registration 

Agency,’’ ‘‘sponsor,’’ and ‘‘State 

Apprenticeship Agency.’’ The proposed 

definitions for these terms are identical 

to those set forth in part 29. 

In addition, because the Department 

proposes to include disability among 

the list of protected bases covered by 

part 30, proposed § 30.2 would add 

several new terms relevant to defining 

disability and disability discrimination 

standards. These are: ‘‘direct threat,’’ 

‘‘disability,’’ ‘‘major life activities,’’ 

‘‘physical or mental impairment,’’ 

‘‘qualified applicant or apprentice,’’ 

‘‘reasonable accommodation,’’ and 

‘‘undue hardship.’’ The proposed 

definitions for these terms are taken 

directly from title I of the ADA, as 

amended by the ADAAA (effective 

January 1, 2009), and from the EEOC 

regulations implementing the ADA at 29 

CFR part 1630, to the extent the ADAAA 

did not provide the definition. The 

Department intends that these proposed 

terms will have the same meaning as 

what was set forth in the ADAAA and 

implemented by the EEOC in 29 CFR 

part 1630. 76 FR 16978. 

Likewise, because the Department 

proposes to add genetic information to 

the list of protected bases, proposed 

§ 30.2 would include a definition of the 

term ‘‘genetic information’’. This 

proposed definition is taken directly 

from GINA and from the EEOC’s 

implementing regulations at 29 CFR part 

1635. The Department intends that this 

term will have the same meaning as 

what is set forth in GINA and 

implemented by the EEOC in 29 CFR 

part 1635. 

Proposed § 30.2 also would add 

definitions for several new terms: ‘‘preapprenticeship program,’’ ‘‘ethnicity,’’ 

‘‘race,’’ and ‘‘selection procedure.’’ The 

current part 30 regulations refer to 

‘‘programs of pre-apprenticeship’’ in the 

requirements for AAPs in § 30.4. 

However, there is no standard definition 

or even application of the term ‘‘preapprenticeship.’’ Over the past several 

decades, pre-apprenticeship programs 

have been structured in numerous ways, 

depending on the partnerships, funding 

availability, and geographic area. The 

Aspen Institute recently completed a 

survey of pre-apprenticeship programs 

in the construction industry 26 and 

found a wide range of models, including 

those focused on placing participants 

into registered apprenticeship programs, 

while others are basically job 

preparation/readiness or career 

exploration programs oriented toward 

placing participants into a wide range of 

positive outcomes (job placement, 

placement into higher education) not 

formally linked to a registered 

apprenticeship program. On November 

30, 2012, the Department circulated a 

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Training and Employment Notice (TEN 

13–12), Defining a Quality PreApprenticeship Program and Related 

Tools and Resources, to inform the 

public workforce system about the preapprenticeship program definition and 

quality framework, as well as to 

promote tools and materials to improve 

the consistency and quality of preapprenticeship programs. The preapprenticeship definition and quality 

framework incorporated the following 

elements: Approved training and 

curriculum; strategies for long-term 

success; access to appropriate support 

services; promoting greater use of 

registered apprenticeship to increase 

future opportunities; meaningful handson training that does not displace paid 

employees; and facilitated entry and/or 

articulation. 

The definition for ‘‘preapprenticeship’’ in the proposed rule 

would provide greater clarity and 

uniformity by establishing required 

components and suggested elements for 

pre-apprenticeship programs consistent 

with the TEN 13–12. The required 

components would be: Provision of 

structured workplace education and 

training; collaboration among 

apprenticeship program sponsors, 

community-based organizations, and 

educational institutions; and formal 

instruction that introduces participants 

to competencies, skills, and materials 

used in one or more apprenticeable 

occupations. This proposed definition 

also would include an optional 

provision for the offering of supportive 

services such as transportation, child 

care, and income support to assist 

participants to successfully complete 

the program. 

Regarding the terms ‘‘ethnicity’’ and 

‘‘race,’’ for purposes of recordkeeping 

and affirmative action, the terms 

‘‘ethnicity’’ and ‘‘race’’ would have the 

same meaning as under the Office of 

Management and Budget’s standards for 

the classification of Federal data on race 

and ethnicity found at http://www.

whitehouse.gov/omb/fedreg_

1997standards/, or any successor 

standards. ‘‘Ethnicity’’ would refer to 

the following designations: Hispanic or 

Latino; and Not Hispanic or Latino. The 

term ‘‘race’’ would refer to the following 

designations: White; Black or African 

American; Native Hawaiian or Other 

Pacific Islander; Asian; and American 

Indian or Alaska Native. 

Regarding the term ‘‘selection 

procedure,’’ for consistency, the 

Department proposes to use the parallel 

definition found in the Uniform 

Guidelines on Employee Selection 

Procedures (UGESP) at 41 CFR part 60– 

3, because program sponsors are already 

required to comply with those 

regulations under the current part 30 

and should be familiar with that 

definition. 

Proposed § 30.2 would remove several 

terms that are no longer encompassed 

within the part 30 regulation itself. 

These are: ‘‘Secretary,’’ ‘‘state 

apprenticeship council,’’ ‘‘state 

apprenticeship program,’’ and ‘‘state 

program sponsor.’’ 

Equal Opportunity Standards 

Applicable to All Sponsors (§ 30.3) 

Section 30.3 of the current part 30 is 

divided into five paragraphs and sets 

forth the required equal opportunity 

standards for registered apprenticeship 

programs. As currently structured, 

§ 30.3 requires that a sponsor: Not 

discriminate on the basis of race, color, 

religion, national origin, and sex 

(§ 30.3(a)(1) and (2)); engage in 

affirmative action (§ 30.3(a)(3)); 

incorporate an equal opportunity pledge 

into its apprenticeship program 

standards (§ 30.3(b)); and, for programs 

with five or more apprentices, adopt an 

affirmative action program, as required 

by § 30.4, and a selection procedure, as 

required by § 30.5 (§ 30.3(c)). 

Current § 30.3 also provides an 

exemption from the affirmative action 

program and selection procedure 

requirements for those programs already 

subject to an approved EEO program 

(§ 30.3(e)) and for those programs with 

fewer than five apprentices (§ 30.3(f)). In 

addition, § 30.3 discusses the impact of 

part 30 on programs ‘‘presently 

registered’’ as of the effective date of the 

regulations, and sets forth the 

registration requirements relating to 

sponsors seeking a new program 

registration (§ 30.3(c)). The Department 

finds the current regulatory structure 

confusing and in need of reorganization. 

The proposed rule seeks to reorganize 

§ 30.3 for clarity purposes. 

Proposed § 30.3 would remove 

paragraphs (c) through (f) and would 

incorporate them elsewhere in the rule, 

because these paragraphs do not pertain 

to the equal opportunity standards set 

forth in § 30.3. Instead, they pertain to: 

The effective date of the part 30 

regulations for programs presently 

registered (current § 30.3(c)); the 

registration requirements for sponsors 

seeking registration of new programs 

(current § 30.3(d)); and the bases for 

exemption from the requirement to 

develop an affirmative action program 

(current § 30.3(e) and (f)). The reason 

behind removing these paragraphs and 

placing them elsewhere in the rule will 

be discussed in detail later in the 

preamble. 

Proposed § 30.3 is divided into three 

paragraphs, each paragraph addressing 

an equal opportunity standard required 

of sponsors. Proposed § 30.3(a) would 

set forth the general prohibition against 

discrimination on the basis of race, 

color, religion, national origin, and 

sex—the bases listed in the current part 

30—and would add a prohibition 

against discrimination on the basis of 

age (40 or older), genetic information, 

sexual orientation, and disability. The 

addition of these bases to the types of 

discrimination already prohibited by 

part 30 would align the Department’s 

EEO regulations for registered 

apprenticeship with the Federal, State, 

and local anti-discrimination laws 

already applicable to many 

apprenticeship program sponsors, as 

discussed previously. These laws apply 

to many employers, including labor 

organizations and joint labormanagement committees operating 

registered apprenticeship programs or 

other training or retraining programs, 

including an on-the-job training 

program, provided that the employer 

(and in this case the sponsor) employs 

the requisite threshold of individuals for 

coverage. Further, many employer’s 

internal EEO policies already prohibit 

discrimination on these grounds, legal 

requirements notwithstanding. 

Proposed § 30.3(a) also would 

incorporate the concepts set forth in the 

current regulation (§ 30.3(a)(1) and (2)) 

in a framework similar to that used in 

other equal opportunity laws. Section 

30.3(a)(1) and (2) of the current part 30 

address the sponsor’s duty to not 

discriminate; therefore, these 

paragraphs would be consolidated. The 

Department proposes this change to 

clarify that the discrimination standards 

and defenses applied under part 30 are 

the same as those applied under the 

other major EEO laws that apply to 

sponsors in determining whether a 

sponsor has engaged in an unlawful 

employment practice, including title VII 

of the Civil Rights Act of 1964 (title VII), 

the ADEA, GINA, and the ADA. In 

enforcing the nondiscrimination 

obligations of sponsors set forth in this 

part, OA follows Title VII legal 

principles and case law, and will do the 

same with regard to ADEA, GINA, and 

the ADA. 

Proposed § 30.3(b) requires that all 

sponsors, regardless of size, take 

affirmative steps to provide equal 

opportunity in apprenticeship. Under 

§ 30.3(a)(3) of the current part 30, all 

sponsors are required to engage in 

affirmative action to provide equal 

opportunity, and those with five or 

more apprentices also are required to 

adopt an AAP. The current part 30 also 

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articulates affirmative action obligations 

for those developing AAPs; however, 

the regulation is silent as to what is 

required of sponsors in order to fulfill 

these general obligations. 

Proposed § 30.3(b) fills this gap by 

identifying the minimum affirmative 

steps that all sponsors, regardless of 

size, must take in order to ensure equal 

opportunity in apprenticeship 

programs. By clearly specifying the 

requirements, this revised regulatory 

structure is intended to ensure that all 

sponsors take the necessary steps to 

ensure that they fulfill their EEO 

obligations under part 30, and become 

more aware of the effect their 

employment practices have on EEO. 

This revised framework furthers the 

Department’s strategic vision of 

promoting and protecting opportunity 

for all workers and employers by 

ensuring that apprenticeship program 

sponsors develop and fully implement a 

program that seeks to break down the 

barriers to fair workplaces. 

Proposed § 30.3(b)(1) requires 

sponsors to designate an individual to 

be responsible and accountable for 

overseeing the sponsor’s commitment to 

equal opportunity in apprenticeship, 

including the development of the 

sponsor’s affirmative action program, as 

required by § 30.4. This designation is 

expected to facilitate a sponsor’s 

compliance with part 30 by creating a 

self-monitoring mechanism within each 

registered apprenticeship program, 

therefore institutionalizing each 

sponsor’s commitment to equal 

opportunity. The Department 

anticipates that this requirement would 

be fulfilled by individuals who are 

currently providing coordination and 

administrative oversight functions for 

the program sponsor. For example, in 

the Department’s experience, many 

program sponsors identify a specific 

individual to serve as an apprenticeship 

coordinator, who oversees and manages 

the apprenticeship program, including 

the EEO components. 

Proposed § 30.3(b)(2) requires the 

sponsor to develop internal procedures 

to communicate its equal opportunity 

and affirmative action obligations to 

apprentices, applicants for 

apprenticeship, and personnel involved 

in the recruitment, screening, selection, 

promotion, training, and disciplinary 

actions of apprentices. This requirement 

would be similar to that set forth in 

§ 30.4(c)(4) of the current part 30, which 

addresses internal communication of 

the sponsor’s equal opportunity policy. 

However, proposed § 30.3(b)(2) would 

be required of all sponsors, regardless of 

size, and would make this 

communication mandatory; under the 

current part 30, internal communication 

of the sponsor’s equal opportunity 

policy is merely a suggested activity for 

meeting the sponsor’s outreach and 

recruitment obligations. 

Furthermore, proposed § 30.3(b)(2) 

also identifies the specific minimum 

activities that a sponsor is required to 

undertake to satisfy the obligation to 

disseminate internally the sponsor’s 

equal opportunity policy. Compliance 

with this requirement should not be 

particularly onerous or burdensome, 

given that the increasingly standard use 

of technology—particularly regarding 

the use of electronic media for 

communications and records 

maintenance—would readily enable a 

program sponsor to comply with these 

requirements. Proposed § 30.3(b)(2) 

requires a sponsor to: (i) Publish its 

equal opportunity pledge in 

apprenticeship standards and in 

appropriate publications; (ii) post the 

pledge on bulletin boards, including 

through electronic media, accessible to 

apprentices and applicants for 

apprenticeship; (iii) conduct orientation 

and periodic information sessions for 

apprentices and all of a program 

sponsor’s personnel involved in the 

recruitment, screening, selection, 

promotion, training, and disciplinary 

actions of apprentices to inform, 

remind, and ensure that these 

individuals understand how to 

implement the sponsor’s equal 

opportunity policy with regard to 

apprenticeship; and (iv) maintain 

records necessary to demonstrate 

compliance with this requirement. 

Proposed § 30.3(b)(2)(i) carries 

forward the existing requirement in 

current § 30.3(b) for program sponsors to 

include the equal opportunity pledge in 

their apprenticeship standards, and 

slightly expands the provision by 

requiring sponsors to also post the 

pledge in other appropriate publications 

such as apprentice and employee 

handbooks, policy manuals, newsletters, 

and Web sites. Proposed § 30.3(b)(3)(iii) 

also requires program sponsors to 

include the equal opportunity pledge in 

the notification of apprenticeship 

openings to be provided to recruitment 

sources. 

Proposed § 30.3(c) updates the 

specific language of the equal 

opportunity pledge, as discussed below. 

Therefore, sponsors will need to make a 

one-time revision of the apprenticeship 

standards to incorporate the revised 

equal opportunity pledge. With regard 

to posting the pledge in other 

appropriate publications and including 

the pledge in the notification of 

apprenticeship openings to recruitment 

sources, the Department expects that 

program sponsors would insert the 

revised equal opportunity pledge, if it is 

not already included in such 

publications, or would update the 

existing pledge that may already be 

included as they routinely update these 

materials. Cost and burden associated 

with the updating and/or inserting the 

equal opportunity pledge would be 

incorporated in program sponsors’ 

existing efforts to maintain these 

publications and notifications, and 

therefore will not require frequent 

updates or changes. Many 

apprenticeship program sponsors’ Web 

sites, apprenticeship handbooks, and 

existing publications already include 

the equal opportunity pledge. Therefore, 

the Department anticipates very little 

additional burden would result from 

compliance with proposed § 30.3(b)(2)(i) 

and (ii). 

The orientation and information 

sessions required by proposed 

§ 30.3(b)(2)(iii) underscore the sponsor’s 

commitment to equal opportunity and 

its affirmation action obligations. These 

sessions would also institutionalize a 

sponsor’s EEO policies and practices, 

providing a mechanism by which the 

sponsor may inform everyone connected 

with the apprenticeship program of the 

sponsor’s obligations under part 30, and 

ensure that all individuals involved in 

the program understand these 

obligations and the policies instituted to 

implement them. 

Given that sponsors operate 

apprenticeship programs in numerous 

industries and occupations, involving a 

wide range of working conditions and 

environments, the Department 

recognizes that it is unrealistic to 

prescribe in the proposed rule the exact 

nature and frequency of these sessions. 

This specificity would be contrary to the 

industry-driven nature of registered 

apprenticeship. Accordingly, the 

recordkeeping requirement in proposed 

§ 30.3(b)(2)(iv) would allow the program 

sponsor and the Registration Agency a 

more industry-driven, effective review, 

to ensure that a sponsor is in 

compliance with its general obligation 

to engage in affirmative steps to ensure 

equal opportunity in registered 

apprenticeship. 

Proposed § 30.3(b)(3) requires a 

sponsor, regardless of size, to ensure 

that its outreach and recruitment efforts 

for apprentices extend to all persons 

available and qualified for 

apprenticeship within the sponsor’s 

recruitment area regardless of race, sex, 

ethnicity, or disability status. This 

universal recruitment and outreach 

requirement would foster awareness of 

opportunities for apprenticeship among 

all individuals regardless of their race, 

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sex, ethnicity, and disability status. This 

requirement, which is consistent with 

the corresponding requirement in 

current part 30, is intended to meet the 

Department’s vision of promoting and 

protecting opportunity for all workers 

and employers. Sponsors would be 

required to develop a list of recruitment 

sources that would generate referrals 

from all demographic groups, including 

women, minorities, and individuals 

with disabilities, with contact 

information for each source and would 

be required to notify these sources in 

advance of any apprenticeship 

opportunities. The proposal does not 

specify how far in advance this 

notification must be, understanding that 

unique circumstances may affect the 

amount of advance notice that can be 

given, but states that at least 30 days 

advance notice is preferred. Examples of 

relevant recruitment sources include, 

but are not limited to, the public 

workforce system’s One-Stop career 

centers and local workforce investment 

boards, community-based organizations, 

community colleges, vocational and 

technical education schools, preapprenticeship programs, and Federallyfunded, youth job-training programs 

such as YouthBuild and Job Corps or 

their successors. A sponsor’s 

notification to these recruitment sources 

could be conducted through a number 

of mechanisms, including but not 

limited to in-person meetings, 

distribution of form letters sent via 

email and/or postal mail, social media 

networks, and other options that may 

develop as the use of technology for 

information distribution continues to 

evolve. These specific requirements are 

meant to institutionalize a sponsor’s 

commitment to affirmative action and to 

ensure that the sponsor is fulfilling its 

general obligation to engage in 

affirmative action. 

Proposed § 30.3(b)(4) would introduce 

a section entitled, ‘‘Maintain workplace 

free from harassment, intimidation, and 

retaliation,’’ which requires a sponsor to 

develop and implement procedures to 

ensure that its apprentices are not 

harassed because of their race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, or disability, and to ensure 

that its workplace is free from 

harassment, intimidation, and 

retaliation. In support of this 

requirement and to ensure an 

environment in which all apprentices 

feel safe, welcomed, and treated fairly, 

sponsors would be required to: (i) 

Communicate to all personnel that 

harassing conduct will not be tolerated; 

(ii) provide anti-harassment training to 

all personnel; (iii) make all facilities and 

apprenticeship activities available 

without regard to race, color, religion, 

national origin, sex, sexual orientation, 

age (40 or older), genetic information, 

and disability, except that if the sponsor 

provides restrooms or changing 

facilities, the sponsor must provide 

separate or single-user rest rooms and 

changing facilities to assure privacy 

between the sexes; and (iv) establish 

and implement procedures for filing, 

processing, and timely resolving 

complaints about harassment based on 

race, color, religion, national origin, sex, 

sexual orientation, age (40 or older), and 

disability. Because harassment is a form 

of employment discrimination that 

violates Federal laws applicable to most 

sponsors, including title VII, the ADEA, 

GINA, ADA, and Executive Order 11246 

(as amended by Executive Order 13672), 

the steps outlined above will not impose 

any new burdens on sponsors who 

already must take the necessary action 

to prevent and eliminate harassment in 

the workplace. 

The intent of proposed § 30.3(b)(4) 

would be to reduce workplace 

harassment and retaliation. The 

Department expects that sponsors’ 

compliance with the obligations of 

proposed § 30.3(b)(4) ultimately will 

lead to an improvement in the retention 

rates of apprentices that are currently 

under-represented in apprenticeship 

programs so that they not only begin but 

also complete apprenticeships, and 

continue on as skilled journeyworkers 

in their respective occupations. 

Proposed § 30.3(b)(5) requires all 

sponsors to comply with all applicable 

Federal and State laws and regulations 

requiring EEO without regard to race, 

color, religion, national origin, sex, 

sexual orientation, age (40 or older), 

genetic information, or disability. A 

sponsor who fails to comply ultimately 

would be subject to enforcement 

actions, including possible 

deregistration. In essence, proposed 

paragraph (b)(5) merely carries forward 

the current § 30.10. 

The Department does not expect that 

the steps outlined in proposed § 30.3(b) 

will increase a sponsor’s compliance 

burden. Rather, these proposed steps are 

representative of the kinds of good faith 

efforts the Department has required to 

date for a sponsor to meet its EEO and 

affirmative action obligations under the 

current part 30. 

Finally, proposed § 30.3(c) would 

carry forward the requirement set forth 

in the current § 30.3(b) for an equal 

opportunity pledge, but would make 

three important changes to this pledge. 

First, consistent with the expanded 

scope of the proposed regulation, 

proposed § 30.3(c) revises the pledge by 

adding age (40 or older), genetic 

information, sexual orientation, and 

disability to the list of bases upon which 

a sponsor must not discriminate. 

Second, it adds a parenthetical after sex 

discrimination specifying that 

pregnancy and gender identity 

discrimination are included within sex 

discrimination. Third, the proposed 

paragraph clarifies that a sponsor may 

include additional protected bases in 

the pledge, but must not exclude any of 

the bases protected under part 30. 

Affirmative Action Programs (§ 30.4) 

Current § 30.4 of part 30 sets forth the 

regulatory requirements with respect to 

affirmative action programs, addressing: 

The adoption of an affirmative action 

program in § 30.4(a); the definition of 

affirmative action in § 30.4(b); the 

requirements for broad outreach and 

recruitment in § 30.4(c); the mandate 

that a sponsor include goals and 

timetables where underutilization 

occurs in § 30.4(d); the factors for 

determining whether goals and 

timetables are needed in § 30.4(e); the 

establishment and attainment of goals 

and timetables in § 30.4(f); and that the 

Secretary of Labor will make available 

to program sponsors data and 

information on minority and female 

labor force characteristics in § 30.4(g). 

Exemptions from the requirement to 

adopt an affirmative action program are 

found in the current part 30 at § 30.3(e) 

and (f). 

The proposed rule substantially 

restructures § 30.4 to streamline, clarify, 

update, and strengthen the affirmative 

action requirements. 

Proposed § 30.4(a) would set forth the 

definition of and purpose for an 

affirmative action program, so that 

sponsors understand at the outset what 

the Department means by the term 

‘‘affirmative action program.’’ This 

proposed definition is consistent with 

how the Department has defined the 

term in its regulations implementing the 

affirmative action requirements of 

Executive Order 11246 at 41 CFR part 

60–2 applicable to supply and service 

Federal contractors and subcontractors. 

Current § 30.4(b) defines an affirmative 

action program as ‘‘not mere passive 

non-discrimination’’ and states that ‘‘[i]t 

is action which will equalize 

opportunity in apprenticeship so as to 

allow full utilization of the work 

potential of minorities and women.’’ 

Proposed § 30.4(a) elaborates on that 

definition and states that the premise 

underlying an affirmative action 

program is that absent discrimination, a 

sponsor’s apprenticeship program 

generally will reflect the sex, race, 

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27See http://www.doleta.gov/oa/bul10/Bulletin

%202010-11a_AppendixC_inj.pdf (last accessed 

Sept. 10, 2015). 

ethnicity, and disability profile of the 

labor pools from which the sponsor 

recruits and selects. Proposed paragraph 

(a) explains that, in addition to 

identifying and correcting 

underutilization, affirmative action 

programs also are intended to 

institutionalize the sponsor’s 

commitment to equality by establishing 

procedures to monitor and examine the 

sponsor’s employment practices and 

decisions with respect to 

apprenticeship, so that the practices and 

decisions are free from discrimination 

and barriers to equal opportunity are 

identified and addressed. 

Proposed § 30.4(a) also makes clear 

that the commitments contained in an 

affirmative action program are not 

intended and must not be used to 

discriminate against any applicant or 

apprentice on the basis of race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, or disability. This 

proposed definition is more expansive 

than the one in § 30.4(b) of the current 

part 30, and is intended to explain in 

more detail what constitutes an 

affirmative action program. 

While the development and 

maintenance of an affirmative action 

program under these regulations is an 

integral tool in the pursuit of equal 

employment opportunity for all, it need 

not be an unduly burdensome 

undertaking. Thousands of employers, 

including large employers, have 

established apprenticeship programs 

with affirmative action plans under the 

existing regulations, and many have 

maintained and grown the number of 

apprenticeships, the diversity of their 

workforce, and the skill of their 

individual workers as a result. While 

these proposed regulations add some 

new obligations to the affirmative action 

program, they greatly streamline and 

clarify the AAP as a whole, making it 

simpler to understand what compliance 

means and easier to measure and 

achieve meaningful success—both for 

existing apprenticeship programs and 

for the many companies looking to 

create apprenticeship programs now 

and into the future. 

Having established the definition and 

purpose of an affirmative action 

program, proposed § 30.4(b) sets forth 

who must adopt an affirmative action 

program. This proposed paragraph 

would require that unless otherwise 

exempted by proposed § 30.4(d), each 

sponsor must develop and maintain an 

affirmative action program, and set forth 

its program in a written plan. This 

language differs from current § 30.4(a), 

which does not indicate that some 

sponsors may be exempted from this 

requirement. The timeframe for 

preparing and submitting the written 

plan is set forth in proposed § 30.20. 

The details of the timing are discussed 

in greater detail in the discussion of that 

section, but in general, sponsors will 

have at least one year for the 

preparation and approval of the first 

plan under these proposed regulations, 

allowing ample time for sponsors to 

understand and implement their 

obligations. Further, during this period, 

the Registration Agency will provide 

technical assistance to sponsors seeking 

advice or clarification on the creation, 

drafting, and submission of its written 

plan. 

The submission of the written plan to 

the Registration Agency is not an annual 

obligation; rather, the regulations 

specify that sponsors need only submit 

their current written plan to OA upon 

request. Thus, while sponsors will 

generally need to maintain and update 

their written AAPs annually for internal 

purposes (or potentially every two 

years, if the conditions in § 30.4(e), 

discussed below, are met), reviews will 

be less frequent. Further, the written 

AAP need not be a lengthy document. 

Sample written AAPs under the current 

regulations are available for review on 

OA’s Web site as a model for sponsors 

to use in creating their own written 

plans, and many of the elements in this 

model can be readily adopted by new 

sponsors.27 While these proposed 

regulations add a disability component 

to the AAP, this will not significantly 

expand the length of the written AAP. 

The Department proposes to replace 

the current § 30.4(c) requirements 

related to outreach and positive 

recruitment with proposed § 30.8, 

discussed later in the preamble, which 

addresses the regulatory requirements 

related to targeted outreach, 

recruitment, and retention. 

Proposed § 30.4(c) instead would 

provide an outline of the required 

elements of an affirmative action 

program in order to provide a roadmap 

to sponsors at the outset of what is 

required. Proposed § 30.4(c) would 

mandate that an affirmative action 

program include five elements: (1) 

Utilization analyses for race, sex, and 

ethnicity; (2) establishment of 

utilization goals for race, sex, and 

ethnicity, if necessary; (3) establishment 

of utilization analyses and goal setting 

for individuals with disabilities; (4) 

targeted outreach, recruitment, and 

retention, if necessary; and (5) a review 

of personnel processes. 

Proposed § 30.4(c) also would identify 

the sections within the larger proposed 

rule that would address each of these 

elements. This type of roadmap is 

lacking in the current part 30. We 

believe this outline of required elements 

will help to facilitate a sponsor’s 

compliance with the requirements of 

proposed § 30.4 by serving as a checklist 

in determining whether the sponsor has 

met all of the affirmative action program 

requirements. 

Proposed § 30.4(d) sets forth, in one 

location, the two existing exemptions to 

the requirement that a sponsor develop 

an affirmative action program. These 

exemptions can be found in the current 

rule at § 30.3(e) (programs subject to an 

approved equal employment 

opportunity program) and § 30.3(f) 

(programs with fewer than five 

apprentices). Both exemptions are 

carried forward into the proposed rule 

at § 30.4(d) with one minor revision. 

Paragraph (e) currently exempts 

sponsors from the AAP requirement if 

they have an approved equal 

employment opportunity program 

providing for affirmative action under 

either title VII of the Civil Rights Act or 

Executive Order 11246. In light of the 

proposal to add disability to the list of 

protected bases for nondiscrimination 

and to the affirmative action 

requirements, such an exemption 

without change would fail to recognize 

that qualified individuals with 

disabilities are now protected from 

discrimination under part 30 and will 

benefit from affirmative action under 

the proposed rule. Therefore, the 

Department proposes to revise this 

exemption by requiring that a sponsor 

have an approved equal employment 

opportunity program under title VII of 

the Civil Rights Act and agree to extend 

such program to include individuals 

with disabilities, or have approved 

affirmative action programs under both 

Executive Order 11246 and section 503 

of the Rehabilitation Act, which are 

administered by OFCCP and apply to 

Federal contractors and subcontractors 

with qualifying contracts. This would 

ensure that all protected bases set forth 

in the proposal would be addressed and 

that the sponsor is taking the 

appropriate actions to ensure that 

protected individuals are employed as 

apprentices and advanced in 

employment. This particular exemption 

can now be found in the proposed rule 

at paragraph (d)(2) of proposed § 30.4, 

which addresses the requirement to 

conduct affirmative action programs. 

This re-designation from § 30.3, which 

discusses equal opportunity standards, 

to § 30.4, which addresses affirmative 

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action program requirements, would 

improve notice to sponsors that some 

sponsors are not subject to the 

affirmative action program 

requirements. Some apprenticeship 

programs are also qualifying Federal 

contractors that have developed AAPs 

under OFCCP’s laws, and thus would 

not incur any additional burden to 

create and maintain AAPs under these 

regulations. 

The proposed rule deletes the text in 

current § 30.4(c) which provides: ‘‘The 

Department may provide such financial 

or other assistance as it deems necessary 

to implement the requirements of this 

paragraph,’’ because the Department 

does not need a regulatory requirement 

in order to provide such assistance. 

Proposed § 30.5, outlined below, 

replaces the current § 30.4(e). The 

proposed rule also deletes current 

§ 30.4(f) and addresses the 

establishment of utilization goals for 

race, sex, and ethnicity in proposed 

§ 30.6 and for individuals with 

disabilities in proposed § 30.7. 

Finally, the proposed regulation adds 

a new § 30.4(e) addressing the schedule 

for the review of affirmative action 

programs. Under the current 

regulations, a sponsor is required to 

complete an internal review of its 

affirmative action plan, which includes 

all the elements listed in the proposed 

§ 30.4(c) set out above, on an annual 

basis. This NPRM incorporates that 

existing practice, but proposes an 

alternative schedule of review for those 

sponsors that can demonstrate their 

program is fully meeting the objectives 

set forth in this paragraph. Specifically, 

if a contractor’s AAP demonstrates that 

it is not underutilized in any of the 

protected bases for which measurements 

are kept (race, sex, and disability) and 

that its review of personnel practices 

did not require any necessary 

modifications to meet 

nondiscrimination objectives, then the 

sponsor may wait two years to complete 

its next internal AAP review and update 

its written plan. This proposal is 

intended to provide an incentive to 

sponsors who have shown success in 

meeting their AAP and 

nondiscrimination obligations. We seek 

comments on this proposal, including 

specifically whether stakeholders 

believe such an approach would 

incentivize AAP success without 

compromising the overall goals of 

promoting and ensuring equal 

employment opportunity in registered 

apprenticeship. 

Utilization Analysis for Race, Sex, and 

Ethnicity (§ 30.5) 

The Department proposes revising the 

current § 30.5, entitled ‘‘Selection of 

apprentices,’’ and moving the revised 

language to § 30.10; the revised language 

is discussed later in the preamble at 

§ 30.10. In its place, the Department 

proposes a new § 30.5, which provides 

guidelines for assessing whether 

possible barriers to apprenticeship exist 

for particular groups of individuals by 

determining whether the race, sex, and 

ethnicity of apprentices in a sponsor’s 

apprenticeship program is reflective of 

the population available for 

apprenticeship by race, sex, and 

ethnicity in the sponsor’s relevant 

recruitment area. Availability is the 

yardstick against which the actual 

utilization of individuals by race, sex, 

and ethnicity in the sponsor’s 

apprenticeship program workforce is 

measured. Where a disparity exists 

between availability and the actual 

representation in the sponsor’s 

apprenticeship program, the sponsor 

would be required to establish a 

utilization goal. The Department 

anticipates that grouping these 

provisions into one specific section that 

is clearly titled, ‘‘Utilization Analysis 

for Race, Sex, and Ethnicity,’’ rather 

than subsuming them in the current part 

30 section on affirmative action, also 

would improve the regulation’s overall 

organization and readability. 

Proposed § 30.5 replaces current 

§ 30.4(e), ‘‘Analysis to determine if 

deficiencies exist,’’ which requires the 

sponsor to compute availability 

separately for minorities and for 

women, for each particular occupation. 

The current part 30 requires the sponsor 

to consider at least the following five 

factors in determining availability: (1) 

The size of the working age minority 

and female population in the program 

sponsor’s labor market area; (2) the size 

of the minority and female labor force 

in the program sponsor’s labor market 

area; (3) the percentage of minority and 

female participation as apprentices in 

the particular craft, as compared with 

the percentage of minorities and women 

in the labor force in the program 

sponsor’s labor market area; (4) the 

percentage of minority and female 

participation as journeyworkers 

employed by the employer or employers 

participating in the program, as 

compared with the percentage of 

minorities and women in the sponsor’s 

labor market area, and the extent to 

which the sponsor should be expected 

to correct any deficiencies through the 

achievement of goals and timetables for 

the selection of apprentices; and (5) the 

general availability of minorities and 

women with present or potential 

capacity for apprenticeship in the 

program sponsor’s labor market area. 

Under the current part 30, although 

the sponsor must consider all five 

factors, it is not required to use each 

factor in determining the final 

availability estimate, and may consider 

other factors not listed in the regulation. 

Only the factors that are relevant to the 

actual availability of apprentices for the 

particular craft in question must be used 

under the current part 30. As a result, 

most sponsors actually use only a few 

of the five factors to compute the final 

availability estimates. Moreover, how 

these factors in the current part 30 relate 

to the availability of qualified 

individuals for apprenticeship is 

unclear. Finally, the current part 30 

does not indicate how a sponsor should 

consider or weight each of these factors 

when determining availability. 

Proposed § 30.5 describes the steps 

required to perform utilization analyses, 

and would simplify the availability 

computations by reducing the number 

of factors from five to two. In addition, 

proposed § 30.5 would require that a 

sponsor consider the availability of 

qualified individuals for apprenticeship 

by race, sex, and ethnicity, rather than 

continue the current approach, which 

requires the sponsor to analyze 

availability and utilization for women 

and then for minorities as an aggregate 

group. 

As a first step in determining whether 

a particular group is being 

underutilized, proposed § 30.5(b) would 

require sponsors to identify the racial, 

sex, and ethnic composition of its 

apprentice workforce. Rather than 

review the composition for each 

occupational title represented in a 

sponsor’s apprenticeship program, the 

proposed § 30.5(b) would simplify the 

analysis by requiring the sponsor to 

group the occupational titles 

represented in its registered 

apprenticeship program by industry. If a 

sponsor has programs in various 

occupations (e.g., carpenter, electrician, 

glazier, maintenance technician), but 

these programs are all in one industry 

(e.g., construction), then the sponsor 

conducts the utilization analysis based 

on that one industry. Grouping by 

industry permits aggregation of 

apprenticeable occupations that are 

sufficiently similar to permit 

meaningful analysis while being 

sufficiently refined to identify potential 

barriers. In addition, these industry 

groupings would minimize the 

administrative burden for sponsors 

performing the analyses, particularly for 

those sponsors who have apprenticeship 

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programs in which more than one 

occupational title is represented. 

The next step in a sponsor’s 

utilization analysis would be to 

determine the availability of qualified 

individuals for apprenticeship by race, 

sex, and ethnicity. Under proposed 

§ 30.5(c), the following two factors 

would be considered in determining the 

availability of qualified individuals for 

apprenticeship: 

(1) The percentage of individuals 

available in the sponsor’s relevant 

recruitment area with the present or 

potential capacity for apprenticeship in 

each industry, broken down by race, 

sex, and ethnicity; and 

(2) The percentage of the sponsor’s 

current employees with the present or 

potential capacity for apprenticeship 

broken down by race, sex, and ethnicity. 

That is, the sponsor is to examine two 

broad sets of people: (1) Their current 

employees who are not in an 

apprenticeship program, but who have 

the capacity to be in the apprenticeship 

program, and (2) the broader labor force 

in the relevant recruitment area who are 

qualified and available for 

apprenticeship. 

To determine the availability 

percentages in proposed § 30.5(c), the 

benchmark to which the sponsor 

compares its apprenticeship program, 

the sponsor must use the most current 

and discrete statistical information 

available to derive availability figures by 

industry. Specifically, sponsors are 

asked to consult the Bureau of Labor 

Statistics’ Occupational Handbook to 

review the educational background 

requirements for relevant occupations. 

Examples of other publicly available 

data sources available for sponsors to 

use include, but are not limited to, data 

from the Census Bureau’s American 

Community Survey EEO Tabulation 

2006 to 2010 currently available at 

http://www.census.gov/people/

eeotabulation/data/eeotables

20062010.html; the Census Bureau’s 

Census 2000 EEO Data Tool currently 

available at http://www.census.gov/

eeo2000/index.html; the Census 

Bureau’s Quick Facts tables currently 

available at http://quickfacts.census.gov; 

the Census Bureau’s American Fact 

Finder currently available at http://

factfinder2.census.gov/faces/nav/jsf/

pages/index.xhtml; labor market 

information data from State workforce 

agencies; data from vocational 

education schools, secondary and postsecondary school or other career and 

employment training institutions; 

educational attainment data from the 

Census Bureau; and for sponsors of 

registered apprenticeship programs in 

the construction industry, any data 

provided by OFCCP through their 

regulations at 41 CFR part 60–4 or 

otherwise on the potential availability of 

workers by demographic group for 

employment in on-site construction 

occupations. ‘‘Potential availability 

percentage’’ means an availability 

estimate that reflects current 

employment in an on-site construction 

occupation and current employment in 

non-construction occupations that 

employ workers who have similar 

abilities and interests to the workers in 

the corresponding on-site construction 

occupation. 

Proposed § 30.5(c)(4) would require a 

sponsor to define its recruitment area 

reasonably based on objective criteria 

and to document how the recruitment 

area was defined. Proposed § 30.5(c)(4) 

prohibits sponsors from drawing the 

relevant recruitment area in such a way 

as to have the effect of excluding 

individuals on the basis of race, sex, or 

ethnicity from consideration. 

Finally, proposed § 30.5(d) would 

require a sponsor to establish a 

utilization goal in accordance with the 

procedures set forth in proposed § 30.6 

when underutilization occurs. 

Underutilization is the difference 

between availability for apprenticeship 

in a given industry and incumbency 

(i.e., the sponsor’s apprentice workforce 

in that industry). In other words, the 

proposed rule would require a sponsor 

to establish a utilization goal when the 

sponsor’s utilization of women, 

Hispanics or Latinos, and/or particular 

racial minority groups is less than 

would be expected given their 

availability for apprenticeship. Sponsors 

would be permitted to identify 

underutilization using a variety of 

methods, including the ‘‘any difference’’ 

rule, i.e., whether any difference exists 

between the availability of individuals 

by race, sex, and ethnicity for 

apprenticeship in a given industry and 

the number of such persons actually 

employed as an apprentice in the 

industry; the ‘‘one person’’ rule, i.e., 

whether the difference between 

availability and the actual employment 

of individuals as apprentices equals one 

person or more for a given race, sex, or 

ethnicity; the ‘‘80 percent rule,’’ i.e., 

whether actual employment of 

apprentices, broken down by race, sex, 

and ethnicity, is less than 80 percent of 

their availability; and a ‘‘two standard 

deviations’’ analysis, i.e., whether the 

difference between availability and the 

actual employment of apprentices by 

race, sex, and ethnicity exceeds the two 

standard deviations test of statistical 

significance. Proposed paragraph 

30.5(d) clarifies that utilization goals are 

not required where no disparity in 

utilization rates for any particular group 

has been found. 

The methodology in proposed § 30.5 

would refine a sponsor’s utilization 

analysis and would help pinpoint 

whether any particular group is being 

underutilized, which will in turn aid 

the sponsor in fashioning a more 

tailored affirmative action program for 

addressing the specific underutilization. 

The Department recognizes that the 

existence of and access to relevant data 

sources may vary depending on the 

sponsor’s geographic location and the 

occupations included in its registered 

apprenticeship program. The 

Department has intentionally designed 

proposed § 30.5 and related provisions 

for goal-setting in proposed § 30.6 to 

provide a broad framework that has the 

flexibility to accommodate continuing 

upgrades and improvements in 

publicly-available data sources 

appropriate for conducting utilization 

analyses. 

The Department also plans to provide 

significant technical assistance and subregulatory policy and program guidance 

to assist program sponsors and 

Registration Agencies to comply with 

the proposed § 30.5 and proposed 

§ 30.6. We anticipate that such guidance 

will address, among other things, how 

best to analyze a sponsor’s registered 

apprenticeship program workforce, 

including through the use of data 

aggregation from a range of years of 

program operations in order to identify 

a utilization rate that is most meaningful 

to sponsors, including those with small 

apprenticeship programs, and a 

utilization goal for race, sex, and 

ethnicity that is appropriate to the size 

and circumstances of each sponsor’s 

program. The Department believes the 

issuance of examples and technical 

assistance in guidance documents 

maintains the flexibility necessary to 

accommodate the evolving data analysis 

tools and data sources used for 

availability analysis and goal-setting. 

The Department welcomes specific 

comments and suggestions from the 

public regarding what data and/or tools 

exist that would enable program 

sponsors to determine, within their 

relevant recruitment area, the 

availability of individuals with the 

present or potential capacity for 

apprenticeship broken down by race, 

sex, and ethnicity. Also, the Department 

requests comments specifically 

addressing what criteria, other than 

educational attainment, sponsors can 

use to help distinguish between those 

individuals in the relevant recruitment 

area with the present or potential 

capacity for apprenticeship and those in 

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the relevant recruitment area without 

such capacity. 

Establishment of Utilization Goals for 

Race, Sex, and Ethnicity (§ 30.6) 

The Department proposes to remove 

current § 30.6 entitled ‘‘Existing list of 

eligibles,’’ because the Department is 

proposing to change the approach to 

selection procedures. For a discussion 

of the proposed selection procedures, 

see proposed § 30.10 discussed later in 

the preamble. 

Proposed § 30.6 describes the 

procedures for establishing utilization 

goals and would replace the existing 

procedures set forth in § 30.4(f) of the 

current part 30. Under the current 

§ 30.4(f), a sponsor is required to 

establish goals and timetables based on 

the outcome of the sponsor’s analyses of 

its underutilization of minorities in the 

aggregate and women. It is acceptable 

for a sponsor to develop a single goal for 

minorities and a separate single goal for 

women, unless a particular minority 

group is employed in a substantially 

disparate manner in which case separate 

goals are required for each group. In 

establishing goals, the sponsor is 

encouraged to consider the results 

which could reasonably be expected 

from its good faith efforts to make its 

overall affirmative action program work. 

The current part 30 does not provide 

specific instructions on how to set a 

goal nor does it explain what constitutes 

good faith efforts on the part of a 

sponsor. In addition, under the current 

part 30, the form of goal that a sponsor 

is required to set depends on the nature 

of the selection procedure used. For 

selections based on rank from a pool of 

eligible applicants, for instance, 

sponsors are required to establish a 

percentage goal and timetable for the 

admission of minority and/or female 

applicants into the eligibility pool. 

However, if selections are made from a 

pool of current employees, sponsors are 

required to establish goals and 

timetables for actual selection into the 

apprenticeship program. 

The Department proposes several 

changes to the current goal setting 

approach. First, for simplification, the 

proposed rule would require that 

sponsors adopt just one type of goal 

regardless of the selection procedure 

used. Under proposed § 30.6, a sponsor 

would be required to establish a 

utilization goal for representation of the 

particular group in the sponsor’s 

apprenticeship program. Second, 

proposed § 30.6 would remove any 

reference to timetables, because the 

proposed goal setting approach requires 

that sponsors evaluate annually (or 

every two years, if it meets the 

conditions in the proposed § 30.4(e)) 

whether goals are needed and make 

adjustments to their goals as needed. 

Third, proposed § 30.6 would add 

language explaining that quotas are 

expressly forbidden; goals may not be 

used to extend a preference to any 

individual on the basis of race, sex, or 

ethnicity; and goals may not be used to 

supersede eligibility requirements for 

apprenticeship. Fourth, proposed § 30.6 

would clarify that the percentage goal 

must be at least equal to the availability 

figure that the sponsor computes. 

Currently, part 30 is silent as to how a 

sponsor must calculate its goal, other 

than to say sponsors must create a goal 

when underutilization has been found. 

Finally, to ensure a sponsor’s 

affirmative action program is tailored to 

address the barriers to EEO it has 

identified, proposed § 30.6 would 

require that goals be set only for the 

particular racial or ethnic group(s) that 

the sponsor has identified as being 

underutilized, rather than for minorities 

in the aggregate. 

Utilization Goals for Individuals With 

Disabilities (§ 30.7) 

Current § 30.7 is reserved. In keeping 

with the proposed expanded scope of 

part 30 and of the affirmative action 

requirements, this proposed rule would 

assign a new section entitled 

‘‘Utilization goals for individuals with 

disabilities’’ to § 30.7. In contrast to the 

framework set forth for establishing 

utilization goals for race, sex, and 

ethnicity, proposed § 30.7 would 

establish a single, national utilization 

goal of 7 percent for individuals with 

disabilities that applies to all sponsors 

subject to proposed § 30.4, Affirmative 

Action Programs. Proposed § 30.7(a) sets 

forth this goal. 

Proposed § 30.7(b) states that the 

purpose of this section is to establish a 

benchmark against which the sponsor 

must measure the representation of 

individuals with disabilities in the 

sponsor’s apprentice workforce by 

industry, in order to assess whether any 

barriers to EEO remain. The goal serves 

as an equal opportunity objective that 

should be attainable by complying with 

all of the affirmative action 

requirements of part 30. 

Proposed § 30.7(c) provides that the 

Administrator of OA will periodically 

review and update, as appropriate, the 

utilization goal established in proposed 

§ 30.7(a). 

Proposed § 30.7(d) sets out the steps 

that the sponsor must use to determine 

whether it has met the utilization goal. 

Proposed § 30.7(d)(1) states that the 

purpose of the utilization analysis is to 

evaluate the representation of 

individuals with disabilities in the 

sponsor’s apprentice workforce grouped 

by industry and compare the rate 

against the utilization goal set forth in 

proposed § 30.7(a). If individuals with 

disabilities are represented in the 

sponsor’s apprentice workforce in a 

given industry at a rate less than the 

utilization goal, the sponsor must take 

specific measures to address this 

disparity. 

Proposed § 30.7(d)(2) explains that the 

utilization analysis is a two-step 

process. First, the sponsor is required to 

group all occupational titles represented 

in its apprenticeship program by 

industry. As discussed above, if a 

sponsor has apprenticeship programs in 

various occupations (e.g., carpenter, 

electrician, glazier, maintenance 

technician), but these programs are all 

in one industry (e.g., construction), then 

the sponsor conducts the utilization 

analysis based on that one industry. 

Next, for each industry represented, the 

sponsor must identify the number of 

apprentices with disabilities based on 

voluntary self-identification by the 

individual apprentices. Proposed 

§ 30.7(d)(3) requires that the sponsor 

evaluate its utilization of individuals 

with disabilities in each industry group 

annually (or every two years, if it meets 

the conditions set forth in the proposed 

§ 30.4(e)). 

When the percentage of apprentices 

with disabilities in one or more industry 

groups is less than the utilization goal 

proposed in § 30.7(a), proposed § 30.7(e) 

requires that the sponsor take steps to 

determine whether and where 

impediments to equal opportunity exist. 

Proposed § 30.7(e) explains that when 

making this determination, the sponsor 

must look at the results of its assessment 

of personnel processes and the 

effectiveness of its outreach and 

recruitment efforts as required by 

proposed § 30.9. If, in reviewing its 

personnel processes, the sponsor 

identifies any barriers to equal 

opportunity, then proposed § 30.7(f) 

requires that the sponsor undertake 

action oriented programs designed to 

correct any problem areas that the 

sponsor identified. Only if a problem or 

barrier to equal opportunity is 

identified, must the sponsor develop 

and execute an action-oriented program. 

Proposed § 30.7(g) clarifies that the 

sponsor’s determination that it has not 

attained the utilization goal in one or 

more industry groups does not 

constitute either a finding or admission 

of discrimination in violation of part 30. 

It is important to note, however, that 

such a determination, whether by the 

sponsor or by the Registration Agency, 

will not impede the Registration Agency 

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28Senate Committee on Labor and Human 

Resources, S. Rep. No. 101–116, 101st Cong, 1st 

Sess. (1989) at 9. 

29 Id. (citing a poll by the Lou Harris company). 

30The working age population consists of people 

between the ages of 16 and 64, excluding those in 

the military and people who are in institutions. 

31A national sample of approximately 3 million 

addresses nationwide receives the ACS each year, 

with a portion of this total receiving the survey each 

month. For more information on the American 

Community Survey visit the Census Bureau’s ACS 

Web page at www.census.gov/acs. 

32The six questions are: Is this person deaf or 

does he/she have serious difficulty hearing? Is this 

person blind or does he/she have serious difficulty 

seeing even when wearing glasses? Because of a 

physical, mental, or emotional condition, does this 

person have serious difficulty concentrating, 

remembering, or making decisions? Does this 

person have serious difficulty walking or climbing 

stairs? Does this person have difficulty dressing or 

bathing? Because of a physical, mental, or 

emotional condition, does this person have 

difficulty doing errands alone such as visiting a 

doctor’s office or shopping? 2009 American 

Community Survey, Questions 17–19. 

33The civilian labor force is the sum of people 

who are employed and those who are unemployed 

and looking for work. The civilian population is the 

civilian labor force plus civilians who are not in the 

labor force, excluding those in institutions. 

from finding that one or more unlawful 

discriminatory practices caused the 

sponsor’s failure to meet the utilization 

goal. In such a circumstance, the 

Registration Agency will take 

appropriate enforcement measures. 

Lastly, proposed § 30.7(h) states that 

the goal proposed in this section must 

not be used as a quota or ceiling that 

limits or restricts the employment of 

individuals with disabilities as 

apprentices. 

The establishment of a utilization goal 

for individuals with disabilities would 

be a new requirement, which the 

Department believes is warranted in 

light of the long-term and intractable 

nature of the substantial employment 

disparity between those with and 

without disabilities. Little Government 

data measuring the unemployment and 

workforce participation rates of 

individuals with disabilities exists prior 

to the 2000 Census. However, 

illustrative data can be found in the 

1989 legislative history of the ADA. 

Explaining the need for inclusion of 

employment provisions in the thenpending legislation, the Senate reported 

that individuals with disabilities 

‘‘experience staggering levels of 

unemployment.’’ 28 More specifically, 

the Senate reported that two-thirds of all 

disabled Americans of working age were 

not working at all, even though a large 

majority of those not working (66 

percent) wanted to work.29

Today, more than 20 years later, there 

continues to be a substantial 

discrepancy between the workforce 

participation and unemployment rates 

of working age 30 individuals with and 

without disabilities. As explained 

earlier in this preamble, both the 

unemployment rate and the percentage 

of working age individuals with 

disabilities who are not in the labor 

force remain significantly higher than 

that of the working age population 

without disabilities. 

The establishment of a utilization goal 

for individuals with disabilities is not, 

by itself, a ‘‘cure’’ for this longstanding 

problem. We believe, however, that the 

goal proposed in this section is a vital 

element that, in conjunction with other 

requirements of this part, will enable 

sponsors and Registration Agencies to 

assess the effectiveness of specific 

affirmative action efforts with respect to 

individuals with disabilities, and to 

identify and address specific workplace 

barriers to employment as an 

apprentice. 

This adoption of a single, national 

goal of 7 percent would establish 

consistency among the Department’s 

regulations requiring covered entities to 

engage in nondiscrimination and 

affirmative action for qualified 

individuals with disabilities. The 

Department’s OFCCP recently published 

a Final Rule implementing section 503 

of the Rehabilitation Act of 1973 

(section 503) which establishes for the 

first time a single, national utilization 

goal of 7 percent for individuals with 

disabilities for all covered contractors. 

78 FR 58682, Sept. 24, 2013. 

As detailed in that Final Rule, the 

OFCCP derived this utilization goal in 

part from the disability data collected as 

part of the American Community 

Survey (ACS). The ACS was designed to 

replace the census ‘‘long form’’ of the 

decennial census, last sent out to U.S. 

households in 2000, to gather 

information regarding the demographic, 

socioeconomic and housing 

characteristics of the nation. Whereas 

the Census Bureau now only 

administers a very short survey for the 

decennial census, a more detailed view 

of the social and demographic 

characteristics of the population is 

provided by the ACS, which collects 

data from a sample of 3 million 

residents on a continuing basis.31

The ACS was first launched in 2005, 

after a decade of testing and 

development by the Census Bureau. 

Refinement of the questions designed to 

characterize disability status has been 

continuous, with the current set of 

disability-related questions incorporated 

into the ACS in 2008. Taken together, 

the six dichotomous (‘‘yes’’ or ‘‘no’’) 

disability-related questions 32 comprise 

the function-based definition of 

‘‘disability,’’ used in the ACS and by 

most of the other major surveys 

administered by the Federal Statistical 

System. 

The definition of disability used by 

the ACS, however, is clearly not as 

broad as that in the ADA and proposed 

here. For example, since the ACS 

questions do not say that one should 

respond without considering mitigating 

measures (e.g., medication or aids), 

some individuals with disabilities that 

are well-controlled by medication (e.g., 

depression or epilepsy) or in remission 

might respond to the ACS in a way that 

leads them not to be coded as 

‘‘disabled.’’ Likewise, since the ACS 

questions do not include major bodily 

functions, an individual who has a 

disability that substantially limits a 

major bodily function such as HIV, 

cancer, or diabetes but does not limit an 

activity such as hearing, seeing or 

walking, might respond that he or she 

does not have a disability on the ACS. 

Despite its limitations, the ACS is the 

best source of nationwide disability data 

available today, and, thus, an 

appropriate starting place for 

developing a utilization goal. 

Consistent with OFCCP’s approach set 

forth in its Final Rule implementing 

section 503, OA proposes to set a single, 

national goal for individuals with 

disabilities, based on the most recent 

2009 ACS disability data for the 

‘‘civilian labor force’’ and the ‘‘civilian 

population,’’ 33 first averaged by EEO–1 

job category, and then averaged across 

EEO–1 category totals. Specifically, the 

Department used the mean across these 

EEO–1 groups (5.7 percent) as a starting 

point for deriving a range of values 

upon which we will take comment; 5.7 

percent is the Department’s estimate of 

the percentage of the civilian labor force 

that has a disability as defined by the 

ACS. However, the Department 

acknowledges that this number does not 

encompass all individuals with 

disabilities as defined under the broader 

definition in the ADA, as amended, and 

this part. Further, this figure most likely 

underestimates the percent of 

individuals with disabilities with the 

present or potential capacity for 

apprenticeship because it reflects the 

percentage of individuals with 

disabilities who are currently in the 

labor force with an occupation and 

individuals need not have an 

occupation or be in the labor force in 

order to be eligible for apprenticeship. 

Therefore, 5.7 percent should not be 

construed as an affirmative action goal 

for individuals with disabilities under 

these authorities, nor convey a false 

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34This number was derived from an updated 

2009 version of Table 24 in Affirmative Action for 

People with DisabilitiesÐVolume I: Data Sources 

and Models, Economic Systems, Inc. (April 30, 

2010) at 64. The original table uses ACS data from 

2008. 

35As it is derived from ACS data, the 1.7 percent 

is also a limited number that does not fully 

encompass all individuals with disabilities as 

defined in the ADA and this NPRM. 

sense of precision. Even if the 5.7 

percent represented a complete 

availability figure for all individuals 

with disabilities as defined under the 

ADA, we are concerned that such an 

availability figure does not take into 

account discouraged workers, or the 

effects of historical discrimination 

against individuals with disabilities that 

has suppressed the representation of 

such individuals in the workforce. 

Discouraged workers are those 

individuals who are not now seeking 

employment, but who might do so in 

the absence of discrimination or other 

employment barriers. There are 

undoubtedly some individuals with 

disabilities who, for a variety of reasons, 

would not seek employment even in the 

absence of employment barriers. 

However, given the acute disparity in 

the workforce participation rates of 

those with and without disabilities, it is 

reasonable to assume that at least a 

portion of that gap is due to a lack of 

equal employment opportunity. 

One way to go about estimating the 

size of the discouraged worker effect 

would be to compare the percent of the 

civilian population with a disability 

(per the ACS definition) who identified 

as having an occupation to the percent 

of the civilian labor force with a 

disability who identified as having an 

occupation. Though not currently 

seeking employment, it might be 

reasonable to believe that those in the 

civilian population who identify as 

having an occupation, but who are not 

currently in the labor force, remained 

interested in working should job 

opportunities become available. Using 

the 2009 ACS EEO–1 category data, the 

result of this comparison is 1.7 percent. 

Again, we believe this figure 

underestimates the percentage of 

discouraged workers who may be 

eligible for apprenticeship because it 

measures who in the current 

population, with an occupation, may be 

discouraged from employment, and 

individuals eligible for apprenticeship 

need not have had an occupation at any 

time.34

Adding this figure to the 5.7 percent 

availability figure above results in the 

7.4 percent.35 OFCCP uses this level, 

rounded to 7 percent in its Final Rule 

to revise section 503 to avoid implying 

a false level of precision, as it is an 

initial approximation of the availability 

for employment of individuals with 

disabilities. OA adopts this approach in 

this proposed rule to revise part 30. 

The Department recognizes that 

registered apprenticeship program 

sponsors who are subject to the 

utilization goal for individuals with 

disabilities (i.e., those with five or more 

registered apprentices who are not 

otherwise exempt under proposed 

§ 30.4(d)) often have programs that are 

quite small, some with less than twenty 

registered apprentices. The purpose of 

the utilization goal requirement is to 

encourage sponsors to be more aware of 

how effective their employment 

practices are in ensuring equal 

employment opportunity for individuals 

with disabilities. 

Under this proposed rule, a sponsor 

who failed to meet the utilization goal 

for individuals with disabilities 

required in proposed § 30.7—for 

example, a sponsor with 14 apprentices, 

none of whom is an individual with a 

disability—would be required to 

determine whether and where 

impediments to equal opportunity exist, 

and if such problem areas are identified, 

to implement targeted outreach, 

recruitment, and retention activities to 

ensure that individuals with disabilities 

are, in fact, learning about registered 

apprenticeship opportunities. These 

targeted activities would be done in 

addition to the universal outreach and 

recruitment that is required of all 

sponsors and not in lieu of, with the end 

result being that the sponsor is, in fact, 

reaching the broadest pool of applicants 

and apprentices. In contrast, if the same 

sponsor with 14 apprentices had one or 

more apprentices with a disability, the 

sponsor would achieve the proposed 

utilization goal for individuals with 

disabilities, and would not be required 

to engage in targeted outreach, 

recruitment, and retention activities for 

individuals with disabilities. Instead, 

the sponsor would simply be required to 

continue to engage in universal outreach 

and recruitment that is required under 

§ 30.3(b)(3) of this part. 

The Department recognizes that many 

sponsors of registered apprenticeship 

programs and Registration Agencies will 

require assistance with implementing 

proposed § 30.7. We plan, therefore, to 

provide significant technical assistance 

and sub-regulatory policy and program 

guidance that will address, among other 

things, how best to analyze a sponsor’s 

registered apprenticeship program 

workforce, including through the use of 

data aggregation from a range of years of 

program operations, in order to identify 

a utilization rate that is most meaningful 

to the sponsor; how to ensure equal 

employment opportunity through best 

practices; and how to ensure a work 

environment inclusive of individuals 

with disabilities. 

The Department welcomes specific 

comments and suggestions from the 

public regarding what data and/or tools 

exist that would enable program 

sponsors to determine, within their 

relevant recruitment area, the 

availability of individuals with 

disabilities with the present or potential 

capacity for apprenticeship, recognizing 

that individuals need not be in the 

current labor force to be eligible for 

apprenticeship. In addition, the 

Department invites public comment on 

the methodology used to calculate the 

utilization goal for individuals with 

disabilities and whether there might be 

other approaches for setting a utilization 

goal, particularly approaches to setting 

ranges that recognize that in some 

geographic areas and for some 

occupations, there may be fewer people 

with disabilities qualified and eligible 

for apprenticeship. The Department also 

seeks comment on whether and, if so, 

how to take into account discouraged 

workers in assessing the availability of 

individuals with disabilities for 

registered apprenticeship. The 

Department is also very interested in 

public comment on whether there are 

empirically-based approaches that 

recognize that there are many more 

people who have disabilities as 

characterized by the ADA than the ACS 

and that there is likely a discouraged 

worker effect. 

The Department further invites public 

comment on the impact of this proposal 

on sponsors, and on the impact a fixed 

goal would have on sponsors of smaller 

apprenticeship programs who are 

required to establish an affirmative 

action program and comply with the 

utilization goal requirement for 

individuals with disabilities. 

Targeted Outreach, Recruitment, and 

retention (§ 30.8) 

The Department proposes to revise 

current § 30.8 entitled ‘‘Records’’ and to 

move that language to proposed § 30.11, 

as discussed later in the preamble. 

Proposed § 30.8 instead would replace 

the current requirements related to 

outreach and positive recruitment 

discussed in § 30.4(c) of the current part 

30 by addressing the regulatory 

requirements related to targeted 

outreach, recruitment, and retention. 

Under proposed § 30.8, where a 

sponsor has made a finding of 

underutilization and established a 

utilization goal for a specific group or 

groups pursuant to proposed § 30.6, 

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68926 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

36 Information about WANTO grants is available 

on-line: http://www.dol.gov/wb/programs/

family2.htm; http://www.dol.gov/wb/03awards.htm; 

and http://www.dol.gov/opa/media/press/wb/

wb20100817.htm. 

37Programs and Practices That Work: Preparing 

Student for Nontraditional Careers Project, Joint 

project sponsored by the Association of Career and 

Technical Education, the National Alliance for 

Partnerships in Equity, the National Association of 

State Directors of Career Technical Education 

Consortium, and the National Women’s Law Center 

(Washington DC 2006). 

38California Apprenticeship Council, Blue 

Ribbon Committee on Women in Apprenticeship 

Final Report and Recommendations (California 

2006). 

39See, e.g., Brown, J.K., and Jacobsohn, F., ‘‘From 

the Ground Up: Building Opportunities for Women 

in Construction.’’ Legal Momentum, New York, NY, 

(2008); Skidmore, E., and Moir, S., ‘‘Designing a 

Pre-apprenticeship Model for Women Entering and 

Succeeding in The Construction Trades: A Report 

to YouthBuild Providence,’’ (September 2004); and 

Moir, S., Thomson, M., and Kelleher, C., 

‘‘Unfinished Business: Building Equality for 

Women in the Construction Trades,’’ Labor 

Resource Center Publications (April 2011): Paper 5. 

40See, e.g., Port Jobs, ‘‘Building the Foundation: 

Opportunities and Challenges Facing Women in 

Construction in Washington State,’’ Study prepared 

through a contract with Apprenticeship and 

Nontraditional Employment for Women and Men 

with funding support from the Workforce 

Development Council of Seattle-King County, 

(Seattle, WA November 2006), and Hard Hatted 

Women, ‘‘A Toolkit for the Recruitment and 

Retention of Women,’’ funded by a WANTO grant 

from the U.S. Department of Labor (Cleveland, OH 

2009). 

and/or where a sponsor has determined, 

pursuant to proposed § 30.7(f), that 

there are problem areas with respect to 

its outreach, recruitment, and retention 

activities for individuals with 

disabilities, the sponsor must undertake 

targeted outreach, recruitment, and 

retention activities that are likely to 

generate an increase in applications for 

apprenticeship and improve retention of 

apprentices from the targeted group or 

groups and/or from individuals with 

disabilities as appropriate. These 

targeted activities would be in addition 

to the sponsor’s universal outreach and 

recruitment activities that now would 

be required under proposed § 30.3(b)(3). 

As discussed earlier in the preamble to 

the proposed rule, these proposed 

universal outreach and recruitment 

activities require development of a list 

of recruitment sources and notification 

of these sources at least 30 days in 

advance of any apprenticeship 

opportunities, whereas proposed § 30.8 

sets forth four broad categories of 

minimum, specific activities required to 

address underutilization. These four 

categories are discussed below. 

The Department specifically mentions 

retention activities in proposed § 30.8 to 

highlight that a sponsor’s retention 

efforts are an important part of the EEO 

regulatory framework for the National 

Registered Apprenticeship System. The 

Department does not require program 

sponsors to retain an apprentice who 

does not demonstrate sufficient progress 

in his or her apprenticeship simply 

because the individual is from the 

specific group or groups. The 

Department would incorporate retention 

activities in proposed § 30.8 to 

emphasize that the requirements for 

EEO in registered apprenticeship extend 

to the entire term of apprenticeship, not 

just to the recruitment and selection of 

apprentices. By including retention 

activities in proposed § 30.8, the 

Department further emphasizes that all 

apprentices should receive fair and 

equitable treatment regardless of race, 

sex, ethnicity, or disability so that each 

can progress through a full term of 

apprenticeship. 

Finally, the Department does not 

expect the specific mention of retention 

activities in proposed § 30.8 to increase 

a sponsor’s burden of complying with 

this rule. Rather, these retention 

activities are representative of the kinds 

of good faith efforts the Department has 

required to date for a sponsor to meet 

its EEO obligations required in §§ 30.3 

and 30.4 of the current part 30, such as 

use of journeyworkers to assist with 

affirmative action efforts; establishing 

pre-apprenticeship programs to prepare 

candidates for apprenticeship; 

cooperating with local schools and 

vocational education systems to develop 

programs to prepare students for entry 

into apprenticeship programs; and 

education and outreach to the education 

and workforce systems to raise 

awareness about apprenticeship 

opportunities. 

Proposed § 30.8(a)(1) would set forth 

the minimum, specific targeted 

outreach, recruitment, and retention 

activities required of a sponsor that has 

found underutilization of a particular 

group or groups pursuant to § 30.6 and/ 

or who has determined pursuant to 

§ 30.7(f) that there are problem areas 

with respect to its outreach, 

recruitment, and retention activities. 

These activities include, but need not be 

limited to: (1) Dissemination of 

information to community-based 

organizations, local high schools, local 

community colleges, local vocational, 

career and technical schools, career 

centers at minority serving institutions 

(including Historically Black Colleges 

and Universities, Hispanic-Serving 

Institutions, and Tribal Colleges and 

Universities), and other groups serving 

the underutilized group; (2) advertising 

openings for apprenticeship 

opportunities by publishing 

advertisements in newspapers and other 

media, electronic or otherwise, that 

have wide-spread circulation in the 

relevant recruitment area; (3) 

cooperating with local school boards 

and vocational education systems to 

develop and/or establish relationships 

with pre-apprenticeship programs 

inclusive of students from the 

underutilized groups, preparing them to 

meet the standards and criteria required 

to qualify for entry into apprenticeship 

programs; and (4) establishing linkage 

agreements enlisting the assistance and 

support of pre-apprenticeship programs, 

community-based organizations and 

advocacy organizations in recruiting 

qualified individuals for apprenticeship 

and in developing pre-apprenticeship 

programs. We believe that these four 

activities should be attainable for all 

programs but request comment on 

whether there are any exceptional 

circumstances under which it might be 

difficult to complete them. 

Consistent with a recommendation 

from the ACA to align requirements for 

outreach and recruitment activities with 

established national best practices, the 

Department conducted a literature 

review and examined technical 

assistance tools and materials issued by 

various stakeholders in the National 

Registered Apprenticeship System, 

including SAAs, advocacy 

organizations, and program sponsors. In 

the Department’s experience with the 

grant projects authorized by Women 

Apprenticeship Nontraditional 

Occupations (WANTO),36 and in the 

reports and materials from career and 

technical education organizations,37 the 

California Apprenticeship Council,38

and research and advocacy 

organizations focusing on women,39 40

these outreach activities have proven 

key in assisting sponsors to recruit 

female and minority applicants for 

apprenticeship who may not have 

otherwise learned about apprenticeship 

opportunities, and in retaining them 

once they are enrolled in registered 

apprenticeship. Given the usefulness of 

these specific activities, we also believe 

they provide the most efficient way for 

sponsors to meaningfully address 

underutilization. Such activities, 

including linkage agreements, need not 

be highly formal, detailed arrangements, 

but rather are intended to be 

straightforward, dynamic partnerships 

that can be easily tailored to meet 

sponsors’ needs. Therefore, the 

Department proposes these types of 

activities to support program sponsors’ 

efforts to meet utilization goals 

established under proposed §§ 30.6(a) 

and 30.7(e). Additionally, the 

Department welcomes specific 

comments and suggestions from the 

public regarding what specific 

employment practices have been 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68927 

verifiably effective in recruiting, hiring, 

advancing, and retaining women, 

minorities, and individuals with 

disabilities in registered apprenticeship. 

In terms of conducting both universal 

outreach and recruitment required 

under proposed § 30.3(b), and targeted 

outreach and recruitment for 

individuals with disabilities that might 

be required under proposed § 30.8, the 

Department would recommend program 

sponsors contact the following types of 

organizations: State Vocational 

Rehabilitation Agencies, the State 

Workforce System (including State 

Workforce Investment Boards, Local 

Workforce Investment Boards, and OneStop Career Centers), Centers for 

Independent Living, Goodwill and other 

community rehabilitation and 

employment service providers, 

Community College Disability Centers, 

Community College Career Centers, 

Alternative Schools, Community Mental 

Health programs, and the Social 

Security Administration’s Employment 

Networks. 

In addition, to foster awareness of the 

usefulness of a sponsor’s outreach, 

recruitment, and retention activities, 

proposed § 30.8(a) would also require 

the sponsor to evaluate and document 

the overall effectiveness of its outreach, 

recruitment, and retention activities 

after every selection cycle for registering 

apprentices. While the proposal does 

not specify the precise contents of this 

evaluation, OA expects that it would 

include at a minimum the criteria used 

to evaluate the effectiveness of each 

activity and the sponsor’s subsequent 

conclusion as to its effectiveness. This 

review will allow the sponsor to refine 

these activities as needed, as set forth in 

the proposed § 30.8(a)(3). Finally, the 

proposal requires the sponsor to 

maintain records of its outreach, 

recruitment, and retention activities and 

any evaluation of these activities 

(§ 30.8(a)(4)). This approach is designed 

to help sponsors identify barriers to 

apprenticeship, prevent discrimination, 

and ensure equal opportunity for all. 

In addition to the activities required 

in § 30.8(a), as a matter of best practice, 

proposed § 30.8(b) encourages but does 

not require sponsors to consider other 

outreach, recruitment, and retention 

activities that may assist them in 

addressing any barriers to equal 

opportunity in apprenticeship. Such 

activities include but are not limited to: 

(1) Use of journeyworkers and 

apprentices from the underutilized 

group or groups to assist in the 

implementation of the sponsor’s 

affirmative action program; (2) use of 

individuals from the underutilized 

group or groups to serve as mentors and 

to assist with the sponsor’s targeted 

outreach and recruitment activities; and 

(3) conducting exit interviews of each 

apprentice leaving the sponsor’s 

apprenticeship program prior to 

receiving his/her certificate of 

completion to understand better why 

the apprentice is leaving and to help 

shape the sponsor’s retention activities. 

Review of Personnel Processes (§ 30.9) 

The Department proposes to revise 

and rename the current § 30.9 entitled 

‘‘Compliance reviews,’’ and to move 

that language to § 30.12, as discussed 

below in the preamble. 

Proposed § 30.9 requires that any 

sponsor who is subject to the affirmative 

action program requirements in this 

proposed rule (i.e., those with five or 

more apprentices who are not otherwise 

exempt) must review its personnel 

processes on at least an annual basis to 

ensure that it is meeting its obligations 

under part 30, unless it qualifies for a 

bi-annual review as set forth in § 30.4(e), 

in which case the review would take 

place every two years. As part of this 

review, proposed § 30.9 would require 

that the sponsor review all aspects of its 

apprenticeship program, including but 

not limited to the qualifications for 

apprenticeship, wages, outreach and 

recruitment activities, advancement 

opportunities, promotions, work 

assignments, job performance, rotations 

among all work processes of the 

occupation, disciplinary actions, 

handling of requests for reasonable 

accommodations, and the program’s 

accessibility to individuals with 

disabilities (including accessibility of 

information and communication 

technology) and make all necessary 

modifications to ensure compliance 

with the equal opportunity obligations 

of this part. Essentially, this review is 

simply a good business practice that 

most employers should already be doing 

as a matter of course—examining the 

personnel decisions they make to ensure 

that they are free from unlawful 

discrimination. Such a review 

ultimately inures to the benefit of the 

employer, as, done appropriately, it can 

ferret out potential discrimination 

proactively, rather than in response to 

employee complaints and litigation and 

their attendant costs. Proposed § 30.9 

would also require a sponsor to include 

a description of its review in its written 

AAP, and to identify in the plan any 

modifications that the sponsor has made 

or plans to make as a result of this 

review. In conjunction with this NPRM, 

OA will post on its Web site specific 

examples of what a successful review of 

personnel processes would entail, how 

it could be completed most efficiently, 

and how these steps could be easily 

documented in the written AAP. 

This proposed requirement is similar 

to one set forth in the current part 30 at 

§ 30.4(c)(10), which suggests that a 

sponsor audit periodically its 

affirmative action program and activities 

to ensure that its employment activities 

with respect to recruitment, selection, 

employment, and training of 

apprentices is without discrimination 

because of race, color, religion, national 

origin, and sex. Proposed § 30.9 

emphasizes the philosophy the 

Department intends to convey 

throughout the regulation that 

affirmative action is not only a 

requirement on paper, but also a 

dynamic part of the sponsor’s 

management approach, requiring 

ongoing monitoring, reporting, and 

revising to address barriers to EEO and 

to ensure that discrimination does not 

occur. Sponsors are required to create 

and sustain affirmative action programs 

that incorporate: (1) Proactive measures 

designed to actively welcome all 

qualified individuals, including women, 

minorities, and individuals with 

disabilities, to participate in registered 

apprenticeship; (2) thorough, systematic 

efforts to prevent discrimination from 

occurring; and (3) methods to detect and 

eliminate discrimination. The 

Department requests comments 

specifically addressing how to ensure 

that these reviews remain a dynamic 

part of the management approach that is 

effective in preventing, ferreting out, 

and correcting any discrimination in 

employment. The Department is also 

interested in receiving comments on 

whether it would be beneficial to 

involve apprentices and journeyworkers 

in the review. 

Selection of Apprentices (§ 30.10) 

The Department proposes to revise 

current § 30.10 entitled 

‘‘Noncompliance with Federal and 

[S]tate equal opportunity requirements,’’ 

and to move that language to 

§ 30.3(b)(5), as discussed above. 

As described earlier in this preamble, 

under the current § 30.5, sponsors may 

select any one of four methods of 

selecting apprentices: (1) Selection on 

the basis of rank from pool of eligible 

applicants; (2) random selection from 

pool of eligible applicants; (3) selection 

from pool of current employees; or (4) 

an alternative selection method which 

allows the sponsor to select apprentices 

by means of any other method including 

its present selection method, subject to 

approval by the Registration Agency. An 

alternative selection method could be, 

for example, the use of interviews as 

one of the factors to be considered in 

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68928 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

41This issue was addressed in the course of 

OFCCP’s rulemaking revising its Section 503 

regulations to, among other things: Include a preoffer disability self-identification requirement. The 

EEOC’s Office of Legal Counsel issued a letter 

stating that the Section 503 self-identification 

requirement was lawful under the ADA; the legal 

rationale in that letter would apply with equal force 

to the self-identification requirement in this 

proposal as well. A copy of the letter is available 

at http://www.dol.gov/ofccp/regs/compliance/

sec503/Self_ID_Forms/OLC_letter_to_OFCCP_8-8- 

2013_508c.pdf (last accessed Sept. 8, 2015). 

selecting apprentices. Another 

alternative method could use preapprenticeship programs as a source of 

candidates. A sponsor also may 

combine two or more selection methods. 

One common method that sponsors 

have used regularly, which would fall 

under this fourth category, is referred to 

as ‘‘direct entry.’’ Under this selection 

method, the application process would 

be waived so that qualified applicants 

can enter directly into an 

apprenticeship program, where the 

individual applicant demonstrates 

specific education and/or skills 

previously attained. In order for 

sponsors to use ‘‘direct entry,’’ this 

method must be defined clearly in the 

selection procedure component of the 

sponsor’s apprenticeship standards, and 

must be approved by the Registration 

Agency. Provisions for ‘‘direct entry’’ in 

an apprenticeship program sponsor’s 

registered standards enable the 

development of formal relationships 

between an apprentice sponsor and 

other organizations or entities that 

prepare individuals to meet the 

sponsor’s requirements for selection 

into apprenticeship. Examples of 

organizations for which many 

apprenticeship program sponsors may 

have ‘‘direct entry’’ provisions in their 

apprenticeship standards include 

graduates from Job Corps Centers and 

YouthBuild sites; as well as veterans 

participating in the AFL–CIO Building 

and Construction Trades Department’s 

‘‘Helmets to Hard Hats’’ or the United 

Association of Journeymen and 

Apprentice of the Plumbing and Pipe 

Fitting Industry of the United States and 

Canada (UA)’s Veterans in Piping (VIP) 

Program. 

Proposed § 30.10 would simplify the 

regulatory requirements related to 

selection procedures by allowing a 

sponsor to adopt any method for 

selection of apprentices, including 

direct entry, provided that the method 

used: (1) Complies with the UGESP at 

41 CFR part 60–3; (2) is uniformly and 

consistently applied to all applicants for 

apprenticeship and apprentices; (3) 

complies with the qualification 

standards set forth in title I of the ADA; 

and (4) is facially neutral in terms of 

race, color, religion, national origin, sex, 

sexual orientation, age (40 or older), 

genetic information, and disability. The 

Department believes this approach 

would greatly simplify the regulatory 

structure currently governing selection 

procedures and would distill the current 

requirements to their essence. This 

proposed approach for selection 

procedures also would be consistent 

with how other equal opportunity laws 

regulate an employer’s use of selection 

procedures. 

Invitation To Self-Identify as an 

Individual With a Disability (§ 30.11) 

The Department proposes to revise 

current § 30.11 entitled ‘‘Complaint 

procedure,’’ and to move that language 

to § 30.14, as discussed later in the 

preamble. 

This section of the proposed rule is 

new and proposes to require sponsors, 

as part of their general duty to engage 

in affirmative action, to invite 

applicants for apprenticeship to 

voluntarily self-identify as an individual 

with a disability protected by this part 

at three stages: (1) At the time they 

apply or are considered for 

apprenticeship; (2) after they are 

accepted into the apprenticeship 

program but before they begin their 

apprenticeship; and (3) once they are 

enrolled in the program. Thereafter, 

proposed § 30.11 would require 

sponsors to remind apprentices yearly 

that they may voluntarily update their 

disability status, thereby allowing those 

who have subsequently become 

disabled or who did not wish to selfidentify during the application and 

enrollment process to be counted. 

The purpose of this section is to 

collect important data pertaining to the 

participation of individuals with 

disabilities in the sponsor’s applicant 

pools and apprenticeship program. This 

data will allow the sponsor and OA to 

better identify and monitor the 

sponsor’s enrollment and selection 

practices with respect to individuals 

with disabilities. Data related to the preoffer stage will be particularly helpful, 

as it will provide the sponsor and OA 

with valuable information regarding the 

number of individuals with disabilities 

who apply for apprenticeship with 

sponsors. This data will enable OA and 

the sponsor to assess the effectiveness of 

the sponsor’s recruitment efforts over 

time, and to refine and improve the 

sponsor’s recruitment strategies, where 

necessary. In addition, data from the 

application stage, post-offer, will allow 

sponsors and OA to assess the impact 

selection procedures and qualification 

standards may have on individuals with 

disabilities. And finally, data related to 

apprentices once they are in the 

program will help sponsors assess 

whether there may be barriers to equal 

opportunity in all aspects of 

apprenticeship and may inform the 

effectiveness of retention strategies or 

whether such strategies are necessary. 

Proposed § 30.11(a)(1) requires that 

the sponsor invite each applicant to 

voluntarily self-identify as an individual 

with a disability whenever the applicant 

applies for or is considered for 

apprenticeship. The invitation may be 

included with the application materials, 

but must be separable or detachable 

from the application for apprenticeship. 

The requirement to give applicants 

and employees the opportunity to selfidentify is consistent with the ADA. 

Although the ADA generally prohibits 

inquiries about disability prior to an 

offer of employment, it does not 

prohibit the collection of this 

information by a sponsor in furtherance 

of its part 30 affirmative action 

obligation to provide equal opportunity 

in apprenticeship for qualified 

individuals with disabilities.41 The 

EEOC’s regulations implementing the 

ADA state that the ADA ‘‘does not 

invalidate or limit the remedies, rights, 

and procedures of any Federal law . . . 

that provides greater or equal protection 

for the rights of individuals with 

disabilities’’ than does the ADA. 29 CFR 

1630.1(c)(2). The OA part 30 rule is one 

such law. 

Proposed § 30.11(a)(2) requires that 

the sponsor invite applicants to selfidentify ‘‘using the language and 

manner prescribed by the Administrator 

and published on the OA Web site.’’ 

This requirement will ensure 

consistency in all pre-offer invitations 

that are made, and will reassure 

applicants that the request is routine 

and executed pursuant to obligations 

created by OA. It will also minimize any 

burden on sponsors resulting from 

compliance with this responsibility as 

they will not be required to develop 

suitable self-identification invitations 

individually. This, in turn, we believe, 

will facilitate sponsor compliance with 

this proposed section. 

The inquiry that OA will prescribe for 

sponsors is a limited one and will be 

narrowly tailored. To minimize privacy 

concerns and the possibility of misuse 

of disability-related information, the 

Department is proposing that the 

required invitation ask only for selfidentification as to the existence of a 

‘‘disability,’’ not as to the general nature 

or type of disability the individual has, 

or the nature or severity of any 

limitations the individual has a result of 

their disability. Below is the language 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68929 

42Section 503 of the Rehabilitation Act of 1973, 

as amended. For more information about this form 

or the equal employment obligations of Federal 

contractors, visit the U.S. Department of Labor’s 

Office of Federal Contract Compliance Programs 

(OFCCP) Web site at www.dol.gov/ofccp. 

PUBLIC BURDEN STATEMENT: According to the 

Paperwork Reduction Act of 1995 no persons are 

required to respond to a collection of information 

unless such collection displays a valid OMB control 

number. This survey should take about 5 minutes 

to complete. 

43OA maintains guidance that provides more 

explanation on exactly what documents must be 

maintained, and how sponsors should maintain it. 

See Bulletin 2010–11a Apprenticeship Program 

Standards Section XVIII Maintenance of Records 

and Appendix D, Section VI Maintenance of 

Records http://www.doleta.gov/OA/bul10/Bulletin

%202010-11%20Revised%20Boilerplates.pdf. (last 

accessed September 10, 2015). In addition, OA will 

provide publicly available materials in conjunction 

with this NPRM that will update this guidance 

consistent with this proposal. 

OA proposes to prescribe that the 

sponsor use when inviting applicants to 

self-identify at the pre-offer stage. To 

ensure consistency across Departmental 

programs, the language is modeled on 

the invitation to self-identify that 

Federal contractors are required to use 

when complying with the requirements 

of section 503, but is adapted for use in 

the Registered Apprenticeship context. 

In all other respects, it is identical to 

what OFCCP requires of Federal 

contractors under section 503: 

1.Why are you being asked to complete this 

form? Because we are a sponsor of a 

registered apprenticeship program and 

participate in the National Registered 

Apprenticeship System that is regulated by 

the U.S. Department of Labor, we must reach 

out to, enroll, and provide equal opportunity 

in apprenticeship to qualified people with 

disabilities.42 To help us measure how well 

we are doing, we are asking you to tell us if 

you have a disability or if you ever had a 

disability. Completing this form is voluntary, 

but we hope that you will choose to fill it 

out. If you are applying for apprenticeship, 

any answer you give will be kept private and 

will not be used against you in any way. 

If you already are an apprentice within our 

registered apprenticeship program, your 

answer will not be used against you in any 

way. Because a person may become disabled 

at any time, we are required to ask all of our 

apprentices at the time of enrollment, and 

then remind them yearly, that they may 

update their information. You may 

voluntarily self-identify as having a disability 

on this form without fear of any punishment 

because you did not identify as having a 

disability earlier. 

2. How do I know if I have a disability? You 

are considered to have a disability if you 

have a physical or mental impairment or 

medical condition that substantially limits a 

major life activity, or if you have a history 

or record of such an impairment or medical 

condition. 

Disabilities include, but are not limited to: 

Blindness, deafness, cancer, diabetes, 

epilepsy, autism, cerebral palsy, HIV/AIDS, 

schizophrenia, muscular dystrophy, bipolar 

disorder, major depression, multiple sclerosis 

(MS), missing limbs or partially missing 

limbs, post-traumatic stress disorder (PTSD), 

obsessive compulsive disorder, impairments 

requiring the use of a wheelchair, intellectual 

disability (previously called mental 

retardation). 

Please check one of the boxes below: 

b YES, I HAVE A DISABILITY (or 

previously had a disability) 

b NO, I DON’T HAVE A DISABILITY 

b I DON’T WISH TO ANSWER 

Your name: 

Date: 

OA invites public comment on this 

potential self-identification text and 

whether there are any reasons, 

programmatic or otherwise, as to why 

OA should not adopt a similar form to 

the one used by OFCCP and covered 

Federal contractors. 

Proposed § 30.11(b)(1) requires that 

the sponsor invite applicants, after 

acceptance into the apprenticeship 

program, but before they begin their 

apprenticeship, to voluntarily selfidentify as individuals with disabilities. 

The Department proposes to include a 

post-offer invitation to self-identify 

requirement, in addition to the 

invitation at the pre-offer stage, so that 

individuals with hidden disabilities 

who fear potential discrimination if 

their disability is revealed prior to being 

accepted into the program will, 

nevertheless, have the opportunity to 

provide this valuable data. 

Proposed § 30.11(b)(2) requires that 

the sponsor invite self-identification 

using the language and manner 

prescribed by the Administrator and 

published on the OA Web site. Again, 

the Department believes that this 

requirement will ensure consistency in 

all post-offer invitations that are made, 

minimize any burden to sponsors of 

compliance with this responsibility, and 

consequently, facilitate such sponsor 

compliance. 

Proposed § 30.11(c) requires that the 

sponsor invite each of its apprentices to 

voluntarily self-identify as an individual 

with a disability at the time the sponsor 

becomes subject to the requirements of 

part 30 and then remind apprentices 

yearly that they may update their 

disability status at any time. Allowing 

apprentices enrolled in a registered 

apprenticeship program to update their 

status will ensure that the sponsor has 

the most accurate data possible. 

Proposed § 30.11(d) emphasizes that 

the sponsor is prohibited from 

compelling or coercing individuals to 

self-identify. While proposed § 30.11(e) 

emphasizes that all information 

regarding self-identification as an 

individual with a disability shall be 

kept confidential and maintained in a 

data analysis file in accordance with 

proposed § 30.12. Proposed § 30.11(e) 

also states that self-identification must 

be provided to the Registration Agency 

upon request and that the information 

may only be used in accordance with 

this part. 

Proposed § 30.11(f) states that nothing 

in this section may relieve the sponsor 

of its obligation to take affirmative 

action with respect to those applicants 

and apprentices of whose disability the 

sponsor has knowledge. 

Finally, proposed § 30.11(g) clarifies 

that nothing in this proposed section 

may relieve the sponsor from liability 

for discrimination in violation of this 

part. 

Recordkeeping (§ 30.12) 

The Department proposes to remove 

current § 30.12 entitled ‘‘Adjustments in 

schedule for compliance review or 

complaint processing’’ because the 

information contained within this 

section has been incorporated into the 

proposed sections addressing EEO 

compliance reviews and complaints. 

Proposed § 30.12 prescribes the 

recordkeeping requirements that would 

apply to registered apprenticeship 

program sponsors, and concludes that a 

sponsor’s failure to comply with these 

requirements would constitute 

noncompliance with the part 30 

regulations. Proposed § 30.12 retains, in 

large part, the recordkeeping 

requirements currently in § 30.8, subject 

to basic editing, and updates them to 

reflect the development and use of 

electronic recordkeeping, and the 

broadened scope of the proposed rule to 

provide for equal opportunity, 

affirmative action, and 

nondiscrimination for applicants and 

apprentices with disabilities.43

Proposed § 30.12, therefore, includes a 

new provision regarding the 

confidentiality and use of medical 

information that is obtained pursuant to 

part 30, including information regarding 

whether an applicant or apprentice is an 

individual with a disability. Proposed 

§ 30.12(e) provides that any information 

collected that concerns the medical 

condition or history of an applicant or 

apprentice must be maintained in 

separate forms and in separate medical 

files and treated as confidential. 

Furthermore, proposed § 30.12(e) makes 

clear that any information obtained by 

a sponsor regarding the medical 

condition or history of any applicant or 

apprentice must not be used for any 

purpose inconsistent with part 30. 

In addition, proposed § 30.12 would 

remove any reference to the 

recordkeeping requirements of State 

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68930 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

Apprenticeship Councils. The 

Department proposes to move these 

requirements to proposed § 30.18, the 

section addressing SAAs. This proposed 

change would ensure that all 

requirements specific to SAAs can be 

found in one location. 

Finally, proposed § 30.12(d) would 

decrease the amount of time that 

sponsors are required to keep 

documentation from five to three years. 

This decreases the amount of data 

contractors must store while 

maintaining the general purposes of 

allowing sponsors and OA the ability to 

review previous records for necessary 

information. 

Equal Employment Opportunity 

Compliance Reviews (§ 30.13) 

The Department proposes to revise 

current § 30.13 entitled ‘‘Sanctions’’, retitle the section ‘‘Enforcement actions,’’ 

and move the revised language to 

§ 30.15, as discussed later in this 

preamble. 

Proposed § 30.13 would carry forward 

the current provision at § 30.9 

addressing compliance reviews and 

would include several modifications to 

improve readability. In addition to 

improving the readability of the rule 

and ensuring uniformity in compliance 

reviews, proposed § 30.13 is intended to 

convey the Department’s strong 

commitment to supporting 

apprenticeship program sponsors’ 

compliance with OA’s EEO regulations 

through the compliance review process. 

First, proposed § 30.13 would revise 

the title from ‘‘Compliance reviews’’ to 

‘‘Equal employment opportunity 

compliance reviews,’’ clarifying that the 

reviews are to assess compliance with 

part 30 and not the companion 

regulations at part 29. Second, the term 

‘‘Registration Agency’’ would be used 

throughout proposed § 30.13 instead of 

the term ‘‘Department,’’ because this 

section applies to both the Department 

and to SAAs when conducting an EEO 

compliance review. Third, proposed 

§ 30.13 would provide more specificity 

for the procedures Registration Agencies 

must follow in conducting compliance 

reviews. 

This increased specificity would 

provide for greater consistency and 

standardization of procedures across the 

National Registered Apprenticeship 

System. For instance, proposed 

§ 30.13(b) would require the 

Registration Agency to notify a sponsor 

of the Agency’s findings through a 

written Notice of Compliance Review 

Findings within 45 business days of 

completing a compliance review. The 

Notice of Compliance Review Findings 

must include whether any deficiencies 

(i.e., failures to comply with the 

regulatory requirements) were found, 

how they are to be remedied, and the 

time frame within which the 

deficiencies must be corrected. The 

Notice of Compliance Review Findings 

also must notify a sponsor that 

sanctions may be imposed for failing to 

correct deficiencies. The current part 30 

at § 30.9(d) simply states that the 

Department must notify the sponsor in 

writing of its results from a compliance 

review. 

Finally, proposed § 30.13(c) addresses 

what is expected of sponsors who 

receive a Notice of Compliance Review 

Findings indicating a failure to comply 

with the part 30 regulations. 

Specifically, proposed § 30.13(c) 

requires that a sponsor implement a 

compliance action plan within 30 

business days of receiving the Notice of 

Compliance Review Findings and notify 

the Registration Agency of that action. 

The compliance action plan must 

contain a specific written, actionoriented program that demonstrates a 

commitment to correct or remediate the 

identified deficiencies. The compliance 

action plan also must set forth the 

specific actions the sponsor plans to 

take, and must indicate the time period 

within which the corrections will be 

taken. Specifically, the compliance 

action plan would need to include 

information such as who is the 

responsible party for the action, what 

action will be taken, how the action 

would be implemented, and the time 

period within which the action would 

be implemented or completed. A 

sponsor that fails to implement its 

compliance action plan would be 

subject to enforcement action under 

proposed § 30.15. 

Complaints (§ 30.14) 

The Department proposes to revise 

current § 30.14 entitled ‘‘Reinstatement 

of program registration’’ and to move 

that language to § 30.16, as discussed 

later in the preamble. 

Section 30.11 of the current part 30 

addresses the procedures for filing and 

processing complaints. The proposed 

rule would move individual complaint 

procedures to proposed § 30.14, and 

would include additional revisions to 

improve readability and clarify 

requirements of program sponsors and 

Registration Agencies for addressing 

complaints. For instance, proposed 

§ 30.14 would incorporate subheadings 

so that an apprentice or applicant for 

apprenticeship who wishes to file a 

complaint of discrimination under this 

part with a Registration Agency may 

easily identify the required components. 

Specifically, proposed § 30.14(a)(1) 

through (3) describe who has standing 

to file a complaint, the time period for 

filing a complaint, and the required 

contents of the complaint. 

Proposed § 30.14 would delete the 

provisions concerning private review 

bodies in the current part 30, at 

§ 30.11(a) and (b). Through feedback 

from the SAAs, stakeholders at the town 

hall meetings, and the administration of 

the National Registered Apprenticeship 

System, the Department has found that 

apprenticeship program sponsors 

generally do not have or use private 

review bodies. Additionally, 

stakeholders expressed the opinions 

that such bodies could not objectively 

evaluate or prescribe remedies for 

complaints of discrimination. Thus, the 

proposed rule would eliminate the use 

of private review bodies. 

Proposed § 30.14(b) requires sponsors 

to provide notice to all applicants for 

apprenticeship and apprentices of their 

right to file a discrimination complaint 

with the Registration Agency and the 

procedures for doing so. Proposed 

§ 30.14(b) also specifies the required 

wording for this notice. A sponsor may 

combine this notice and its equal 

opportunity pledge in a single posting 

for the purposes of this proposed 

section and proposed § 30.3(b)(2)(ii). 

Also, in an effort to ensure 

consistency in how Registration 

Agencies process complaints and 

conduct investigations, proposed 

§ 30.14(c) would add uniform 

procedures that Registration Agencies 

must follow. These uniform procedures 

would ensure that: The Registration 

Agency acknowledges and thoroughly 

investigates complaints in a timely 

manner; parties are notified of the 

Registration Agency’s findings; and the 

Registration Agency attempts to resolve 

complaints quickly through voluntary 

compliance. 

Proposed § 30.14(c)(3) provides that a 

Registration Agency may, at any time, 

refer a complaint to an appropriate EEO 

enforcement agency. This provision 

would allow Registration Agencies to 

safeguard the welfare of apprentices by 

making use of existing Federal and State 

resources and authority. For example, a 

Registration Agency might refer a 

complaint to the EEOC if it finds a 

violation of title VII, the ADA, or the 

ADEA, but does not think it could 

achieve a complete remedy for the 

complainant through voluntary 

compliance procedures or enforcement 

action under proposed § 30.15. 

Additionally, ETA plans to develop a 

Memorandum of Understanding with 

the EEOC, which will describe the 

complaint processing and referral 

procedures between the two agencies in 

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44Secretary’s Order 1–2002 delegated authority 

and assigned responsibility to the Administrative 

Review Board to act for the Secretary of Labor in 

review or appeal of decisions and recommended 

decisions by Administrative Law Judges as 

provided for or pursuant to National 

Apprenticeship Act, 29 U.S.C. 50; 29 CFR parts 29 

and 30. 

more detail. This coordination will 

further the purpose of Executive Order 

12067, by helping to eliminate 

duplicative and/or conflicting 

investigations or compliance reviews. 

43 FR 28967, June 30, 1978. 

Proposed § 30.14(c)(4) would allow a 

SAA to adopt slightly different 

complaint procedures, but only if it 

submits the proposed procedures to OA 

and receives OA’s approval. This 

provision would codify the 

Department’s current practice and 

would be consistent with § 29.12(f) of 

this title. 

Enforcement Actions (§ 30.15) 

The Department proposes to revise 

current § 30.15 entitled ‘‘State 

Apprenticeship Councils’’ and to move 

that language to § 30.18, as discussed 

later in the preamble. 

Section 30.13 of the current part 30, 

entitled ‘‘Sanctions,’’ states that when 

the Department has reasonable cause to 

believe that an apprenticeship program 

is not operating in accordance with part 

30, and where the sponsor fails to 

voluntarily take corrective action, the 

Department will initiate deregistration 

proceedings or refer the matter to the 

EEOC or the United States Attorney 

General with a recommendation for 

initiation of a court action. The rest of 

the section describes the procedures for 

deregistration proceedings. 

Proposed § 30.15 would make several 

revisions to the requirements that are 

outlined in the current § 30.13. First, 

proposed § 30.15 would be entitled 

‘‘Enforcement actions’’ to demonstrate 

the Department’s emphasis on enforcing 

regulations governing discrimination in 

the workplace. Second, as a 

housekeeping measure, the term 

‘‘Department’’ would be replaced 

throughout proposed § 30.15 with the 

term ‘‘Registration Agency’’ to clarify 

that both the Department (more 

specifically, OA) and SAAs have the 

authority to take enforcement action 

against a non-complying sponsor. 

Third, proposed § 30.15(b) would 

introduce a new enforcement procedure 

in which a Registration Agency would 

suspend registration of new apprentices 

until the sponsor has achieved 

compliance with part 30 through the 

completion of a compliance action plan 

or until a final order is issued in formal 

deregistration proceedings. In the 

Department’s experience, many 

sponsors have found it beneficial to 

have cohorts or groups of apprentices 

enter and start their apprenticeship at 

different times so that at any given 

point, the sponsor may have first, 

second, third, and fourth year 

apprentices, rather than one cohort of 

apprentices scheduled to complete their 

apprenticeship at the same time. These 

sponsors have been more willing to 

remedy violations when they find that 

they will be unable to register new 

apprentices until they have 

demonstrated compliance with part 30, 

including the remedying of any 

discrimination. Expanding the range of 

enforcement actions to include this 

suspension option is also consistent 

with a recurring theme for stricter 

enforcement of EEO obligations raised 

by stakeholders in OA’s listening 

sessions and in consultations with 

stakeholders in Spring 2010, as 

discussed above in the overview of the 

NPRM. Suspension is intended as a 

temporary, remedial measure to spur 

return to compliance with the proposed 

part 30 regulations; it is not intended to 

be punitive. If a sponsor has not taken 

the necessary corrective action within 

30 days of receiving notice of 

suspension, the Registration Agency 

will initiate de-registration proceedings 

as provided in part 29. 

Fourth, proposed § 30.15(c) would 

adopt the deregistration procedures of 

§§ 29.8(b)(5) through (8) of this title, 

including the hearing procedures in 

§ 29.10, for consistency and simplicity. 

This revision would allow SAAs to 

follow a single set of procedures for all 

matters arising from management of the 

National Registered Apprenticeship 

System. 

Finally, proposed § 30.15(d) would 

authorize Registration Agencies to refer 

a matter involving a potential violation 

of equal opportunity laws to appropriate 

Federal or State EEO agencies, whether 

the Registration Agency becomes aware 

of the potential violation through a 

complaint investigation, compliance 

review, or other means. 

Reinstatement of Program Registration 

(§ 30.16) 

Current § 30.16 entitled ‘‘Hearings’’ 

would be removed. As explained earlier 

in the preamble, the Department 

proposes to incorporate the part 29 

procedures for hearings into part 30, so 

that a sponsor need only follow one set 

of procedures regardless of whether the 

issue at hand addresses the labor 

standards set forth in part 29 or the 

equal opportunity standards set forth in 

part 30. Current § 30.14 states that any 

apprenticeship program that has been 

deregistered pursuant to part 30 may be 

reinstated by the Secretary, upon 

presentation of adequate evidence that 

the program is operating in accordance 

with part 30. Proposed § 30.16 would be 

revised to align with part 29, which 

provides that requests for reinstatement 

must be filed with and decided by the 

Registration Agency. 

These proposed revisions, which are 

consistent with §§ 29.8, 29.9, 29.10 and 

29.13 of this title, implement Secretary’s 

Order 1–2002, 67 FR 64272, Oct. 17, 

2002.44 Accordingly, the proposal 

provides that requests for reinstatement 

must be filed with and decided by the 

Registration Agency. 

Intimidation and Retaliation Prohibited 

(§ 30.17) 

The Department proposes to revise 

the title of the current § 30.17 from 

‘‘Intimidatory or retaliatory acts’’ to 

‘‘Intimidation and retaliation 

prohibited,’’ as well as to make other 

stylistic changes to improve the 

readability of the rule. In addition, 

proposed § 30.17 would expand the 

bases upon which a sponsor must not 

intimidate or retaliate in order to protect 

more fully the rights of apprentices. 

The current § 30.17 states that a 

sponsor must not intimidate, threaten, 

coerce, or retaliate against any person 

for the purpose of interfering with any 

right or privilege secured by title VII or 

Executive Order 11246. Proposed 

§ 30.17 revises this language by stating 

that sponsors would be prohibited from 

intimidating or retaliating against any 

individual because he or she has 

opposed a practice prohibited by this 

part or any other Federal or State equal 

opportunity law or participated in any 

manner in any investigation, 

compliance review, proceeding, or 

hearing under part 30 or any Federal or 

State equal opportunity law. 

State Apprenticeship Agencies (§ 30.18) 

The Department proposes to revise 

current § 30.18 entitled 

‘‘Nondiscrimination,’’ which states that 

the commitments contained in a 

sponsor’s affirmative action programs 

must not be used to discriminate against 

an apprentice or applicant for 

apprenticeship on the basis of race, 

color, religion, national origin, and sex, 

and to incorporate those revisions into 

proposed § 30.4, as discussed earlier in 

the preamble. 

Proposed § 30.18 revises current 

§ 30.15, which requires State 

Apprenticeship Councils to adopt State 

plans. These proposed revisions are 

necessary to make proposed part 30 

consistent with the part 29 procedures 

for recognition of SAAs. 

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Proposed § 30.18 differs significantly 

from the current § 30.15, because 

proposed § 30.18 does not include State 

Apprenticeship Councils as entities 

eligible for recognition. As provided in 

§ 29.13 of this title, the Department will 

only recognize an SAA that complies 

with the specified requirements, 

granting that agency authority to register 

apprenticeship programs and 

apprentices for Federal purposes. 

Therefore, proposed § 30.18 would 

delete references to ‘‘State 

Apprenticeship Councils’’ as the entities 

required to submit a State EEO plan and 

the entities eligible for recognition, and 

replace it with the appropriate term, 

‘‘State Apprenticeship Agency.’’ 

Proposed § 30.18(a) sets forth 

requirements for a State EEO plan. The 

proposed rule would require, within 

one year of the effective date of the final 

rule, with no extensions permitted, that 

SAAs provide to OA a State EEO plan 

that includes the State apprenticeship 

law that corresponds to the 

requirements of this part and requires 

all apprenticeship programs registered 

with the State for Federal purposes to 

comply with the requirements of the 

State’s EEO Plan within 180 days from 

the date that OA provides written 

approval of the State EEO plan. The 

Department’s determination of 

compliance with this part is separate 

from submission of the State EEO plan. 

Therefore, proposed § 30.18(a) also 

specifies a collaborative, iterative 

process whereby SAAs seeking 

recognition can achieve conformity with 

this part. Proposed § 30.18(a) also would 

provide clarity regarding requirements 

for demonstration of conformity, while 

maintaining flexibility to accommodate 

the unique circumstances of a particular 

SAA. 

Proposed § 30.18(b) carries forward 

existing recordkeeping requirements at 

current § 30.8(d), using the term ‘‘State 

Apprenticeship Agency’’ instead of 

‘‘State Apprenticeship Council.’’ 

Proposed § 30.18(c) also carries forward 

provisions in § 30.15(a)(4), which state 

that OA retains full authority to conduct 

EEO compliance reviews of 

apprenticeship programs, investigate 

complaints, deregister for Federal 

purposes an apprenticeship program 

registered with a recognized SAA, and 

refer any matter pertaining to these EEO 

compliance reviews or these complaints 

to the EEOC, the U.S. Attorney General, 

or the Department’s OFCCP. In addition, 

proposed § 30.18(c) clarifies that OA 

retains authority to conduct complaint 

investigations to determine whether any 

program sponsor registered for Federal 

purposes is operating in accordance 

with this part. 

Proposed § 30.18(d) clarifies that 

SAAs will be subject to the 

derecognition procedures established in 

§ 29.14 of this title, for failure to comply 

with the requirements of this part. 

Exemptions (§ 30.19) 

Section 30.19 of the current rule 

addresses exemptions. Under current 

§ 30.19, a sponsor may submit a written 

request to the Secretary for an 

exemption from part 30, or any part 

thereof, and such a request may be 

granted by the Secretary for good cause. 

State Apprenticeship Councils are 

required to notify the Department of any 

such exemptions granted that affect a 

substantial number of employers and 

the reasons therefore. 

The Department proposes minor 

revisions to this section. First, proposed 

§ 30.19 requires that requests for 

exemption be submitted to the 

Administrator, rather than the Secretary, 

to reflect a shift in Departmental 

decision-making. Second, proposed 

§ 30.19 requires that SAAs, not State 

Apprenticeship Councils, request and 

receive approval from the Administrator 

to grant an exemption from these 

regulations. As discussed above, State 

Apprenticeship Councils are not eligible 

for recognition under § 29.13 of this 

title. This proposed regulatory 

requirement is to ensure consistency 

with respect to when exemptions may 

be granted. 

Effective Date (§ 30.20) 

Proposed § 30.20 is a new section. It 

provides the dates by which all 

apprenticeship programs registered with 

a Registration Agency must comply with 

this part. Proposed § 30.20(a) would 

require all apprenticeship program 

sponsors to amend its Standards of 

Apprenticeship to include the equal 

opportunity pledge prescribed by 

§ 30.3(c), and to comply with the nondiscrimination requirements prescribed 

by § 30.3(a). 

Proposed § 30.20(b) and 30.20(c) set 

forth the deadlines by which sponsors 

must comply with their affirmative 

action program related obligations. 

Section 30.20(b) addresses deadlines for 

sponsors and potential sponsors in 

states with State Apprenticeship 

Agencies, and paragraph (c) addresses 

deadlines in states without SAAs, in 

which sponsors register directly with 

OA. The deadlines for each are slightly 

different because upon publication of 

the final regulation, SAAs must amend 

their EEO plans and OA must approve 

that amendment. The deadlines for each 

must also take into account whether a 

program is new or existing as of the time 

the final regulation would go into effect. 

As such, proposed § 30.20(b) 

addressing SAA states provides that 

sponsors with programs that are existing 

as of the effective date must adopt an 

AAP that complies with these 

regulations, and submit it to the SAA for 

approval, within 180 days after OA 

approves of the state’s EEO plan revised 

in light of these regulations. While we 

cannot say for sure how long the state 

EEO plan revision and approval process 

will take, it will likely take at least 

several months, and perhaps a year or 

longer. For programs registered with an 

SAA after the effective date, the 

deadline will be the same up until the 

point that the state has approved the 

State’s EEO plan. If a program is 

registered after the State’s EEO plan has 

been approved, that program will have 

one year from registration to adopt a 

compliant AAP and submit it for 

approval. The intent is that this will 

provide ample time for all sponsors to 

understand and comply with their AAP 

obligations. As stated previously in this 

preamble, the Registration Agencies will 

provide technical assistance during this 

time to any sponsor seeking advice or 

clarification on the creation, drafting, 

and submission of its written plan. 

The deadlines in § 30.20(c) are 

somewhat simpler given that sponsors 

registering directly with OA do not have 

to wait for a revised state EEO plan from 

an SAA. Accordingly, § 30.20(c) 

provides that, for programs existing as 

of the effective date of the final rule, 

they have one year from that effective 

date to adopt a compliant AAP. For 

programs that are registered after the 

effective date of the final rule, they have 

one year from registration to adopt and 

comply with the AAP obligations. 

Again, this should provide ample time 

for new and existing sponsors to 

understand the new obligations and 

receive any technical assistance from 

OA they might need to aid in the 

creation and submission of the written 

plan. 

Finally, to repeat a point made in the 

discussion of § 30.4, the submission of 

the written plan to the Registration 

Agency is not an annual obligation; after 

the first plan under these proposed 

regulations, sponsors need only submit 

their current written plan to OA upon 

request. Thus, while sponsors will 

generally need to maintain and update 

their written AAPs annually for internal 

purposes (or potentially every two 

years, if the conditions in § 30.4(e), 

discussed below, are met), reviews will 

be less frequent. 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68933 

Proposed Amendments to Part 29 

Regulations, Labor Standards for 

Registration of Apprenticeship 

Programs 

The part 29 regulations governing 

Labor Standards for Registration of 

Apprenticeship Programs include 

references to sections in part 30 that are 

changed through this proposed rule. 

This NPRM would make these 

technical, non-substantive changes for 

consistency and conformity with the 

proposed changes to part 30. 

Section 29.5(b)(21), ‘‘Standards of 

Apprenticeship,’’ would incorporate 

three revisions. First, the reference to an 

equal opportunity pledge required by 

part 30 would be revised by deleting the 

reference to § 30.3(b) and replacing it 

with an updated reference to § 30.3(c). 

Second, the reference to the part 30 

section on selection of apprentices 

would be revised by deleting the 

reference to § 30.5, where this reference 

sits in current part 30, and replacing it 

with a reference to § 30.10, where this 

reference now would sit under this 

NPRM. Third, the reference to 

requirements in § 30.4 would use the 

updated term ‘‘affirmative action 

program’’ in place of current term 

‘‘affirmative action plan.’’ 

This NPRM would institute 

procedures to deregister programs in 

accordance with the deregistration 

proceedings of § 29.8(b)(5) through (8), 

and would delete separate proceedings 

for deregistration proceedings for 

violations of part 30. Therefore, the final 

sentence in § 29.8(b)(1)(i), which refers 

to processing of deregistration 

proceedings for violations of equal 

opportunity requirements in accordance 

with 29 CFR part 30, would be deleted. 

This NPRM also would require 

procedures for deregistration of SAAs 

established in part 29 regulations, rather 

than maintaining separate procedures 

under the part 30. The reference to part 

30 would be deleted from § 29.14(a). 

Additionally, this NPRM proposes 

three substantive changes to § 29.7, 

which sets the requirements for 

apprenticeship agreements. An 

apprenticeship agreement, as defined in 

§ 29.2, is the written agreement between 

an apprentice and either the 

apprentice’s program sponsor or 

committee acting as agent for the 

program sponsor(s), which contains the 

terms and conditions of the employment 

and training of the apprentice. 

Consistent with nondiscrimination 

based on age (40 or older), genetic 

information, sexual orientation, or 

disability proposed in § 30.3(a), the 

proposed changes to § 29.7(j) would add 

age (40 or older), genetic information, 

sexual orientation, and disability to the 

list of protected bases for which the 

apprentice will be accorded equal 

opportunity in all phases of the 

apprenticeship employment and 

training without discrimination. 

Proposed additions to § 29.7 also update 

the apprenticeship agreement to 

accommodate recordkeeping 

requirements in proposed § 30.12(b), in 

which the sponsor must be able to 

identify the race, ethnicity, and when 

known, disability status, of each 

apprentice. Proposed § 29.7(l) would 

add space on the agreement in which an 

apprentice would voluntarily provide 

information about his or her race, sex, 

ethnicity, and disability status. 

III. Regulatory Procedures 

Executive Order 12866 

Under Executive Order 12866, the 

Office of Information and Regulatory 

Affairs must determine whether this 

regulatory action is ‘‘significant’’ and, 

therefore, subject to the requirements of 

the Executive Order and subject to 

review by the Office of Management and 

Budget (OMB). Section 3(f) of Executive 

Order 12866 defines a ‘‘significant 

regulatory action’’ as an action likely to 

result in a rule that may: (1) Have an 

annual effect on the economy of $100 

million or more, or adversely affect a 

sector of the economy, productivity, 

competition, jobs, the environment, 

public health or safety, or State, local or 

Tribal governments, or communities in 

a material way (also referred to as an 

‘‘economically significant’’ rule); (2) 

create serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; (3) 

materially alter the budgetary impacts of 

entitlement grants, user fees, or loan 

programs or the rights and obligations of 

recipients thereof; or (4) raise novel 

legal or policy issues arising out of legal 

mandates, the President’s priorities, or 

the principles set forth in the Executive 

Order. 

The Department has determined that 

this NPRM is not an economically 

significant regulatory action under 

paragraph 3(f)(1) of Executive Order 

12866. This rulemaking would not 

adversely affect the economy or any 

sector thereof, productivity, 

competition, jobs, the environment, or 

public health or safety in a material 

way. In fact, this NPRM is being 

proposed to increase the effectiveness 

and efficiency of EEO compliance 

within apprenticeship programs and to 

reduce the burden imposed on sponsors 

in several respects. The Department, 

however, has determined that this 

NPRM is a significant regulatory action 

under paragraph 3(f)(4) of the Executive 

Order and, accordingly, OMB has 

reviewed this NPRM. 

1. Need for Regulation 

As explained in the preamble, the 

Department is proposing to update the 

equal opportunity regulations that 

implement the National Apprenticeship 

Act of 1937. These regulations set forth 

at part 30 prohibit discrimination in 

apprenticeship on the basis of race, 

color, religion, national origin, and sex, 

and require that sponsors take 

affirmative action to provide equal 

opportunity in such programs. This 

NPRM proposes to update the part 30 

regulations by including age (40 or 

older), genetic information, sexual 

orientation, and disability among the 

list of protected bases upon which a 

sponsor must not discriminate, and by 

detailing mandatory actions a sponsor 

must take to satisfy its affirmative action 

obligations. 

In part, the Department is proposing 

this update so that the part 30 

regulations align with 2008 revisions 

made to the Department’s other set of 

regulations governing the National 

Registered Apprenticeship System at 

part 29. In addition, the part 30 

regulations have not been amended 

since 1978 and EEO law has evolved 

since that time. The changes proposed 

in this NPRM are to ensure that the 

National Registered Apprenticeship 

System is consistent and in alignment 

with EEO laws as they have developed 

over the past 30 years, as discussed in 

Section I of the NPRM, and to ensure 

that apprentices and applicants for 

apprenticeship receive equal 

opportunity in apprenticeship 

programs. 

The Department is concerned that 

women, Blacks or African Americans, 

Hispanics or Latinos, other racial 

minorities, individuals with disabilities, 

and older workers (40 or older) continue 

to face substantial barriers to equal 

opportunity in apprenticeship. 

Accordingly, a principal goal for this 

NPRM is to strengthen the EEO for the 

National Registered Apprenticeship 

System, and improve the effectiveness 

of an apprenticeship program sponsor’s 

required affirmative action efforts, as 

well as improve sponsors’ compliance 

with part 30. To achieve this goal, the 

Department has proposed the following 

changes to part 30: 

(1) Updating the equal opportunity 

standards to include age (40 or older), 

genetic information, sexual orientation, 

and disability to the list of protected 

bases upon which sponsors of registered 

apprenticeship programs must not 

discriminate; 

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45As explained in Section I of the NPRM, part 29 

prescribes procedures concerning the recognition of 

State Apprenticeship Agencies as Registration 

Agencies that can then register, cancel, and 

deregister apprenticeship programs within that 

State with the same authority as the Department 

and in accordance with the policies and procedures 

in part 29. 

46 43 FR 20760, May 12, 1978 (requiring the 

inclusion of female apprentices in AAPs). 

47OMB Circular No. A–4, ‘‘Regulatory Analysis,’’ 

M–03–21 (Sept. 2003). 

48OMB Circular No. A–4, p. 14. 

49Holzer, H. and Neumark, D., ‘‘Assessing 

Affirmative Action,’’ Journal of Economic 

Literature, Vol. XXXVII (2000). 

50 Id. 

(2) Requiring all sponsors, regardless 

of size, to take certain affirmative steps 

to provide equal opportunity in 

apprenticeship; 

(3) Streamlining the utilization 

analysis required of sponsors with five 

or more apprentices to determine 

whether any barriers to apprenticeship 

exist for individuals based on race, sex, 

or ethnicity, and clarifying when and 

how utilization goals are to be 

established; 

(5) Requiring targeted outreach, 

recruitment, and retention activities 

when underutilization of a protected 

group or groups have been found and a 

utilization goal established per § 30.6 

and/or where a sponsor has determined 

pursuant to § 30.7(f) that problem areas 

exist with respect to its outreach, 

recruitment, and retention activities for 

individuals with disabilities; 

(6) Simplifying procedures for 

selecting apprentices; 

(7) Standardizing procedures 

Registration Agencies 45 must follow for 

conducting compliance reviews; 

(8) Clarifying requirements of program 

sponsors and Registration Agencies for 

addressing complaints; 

(9) Adopting 29 CFR part 29 

procedures for deregistration of SAAs, 

derecognition of apprenticeship 

programs, and hearings; and 

(10) Requiring an invitation to selfidentify as an individual with a 

disability. 

These provisions are proposed to 

ensure that all individuals, including 

women, minorities, and individuals 

with disabilities, are afforded equal 

opportunity in registered apprenticeship 

programs. Moreover, the addition of age 

(40 or older), genetic information, 

sexual orientation, and disability to the 

list of those bases upon which a sponsor 

must not discriminate ensures that the 

National Registered Apprenticeship 

System’s regulatory framework affords 

the same protections to individuals with 

disabilities and those 40 or older as it 

does for other protected groups, and the 

addition of these protected bases, 

including genetic information and 

sexual orientation, will bring the 

National Registered Apprenticeship 

System into alignment with the 

protected bases identified in the various 

Federal laws applicable to most 

apprenticeship sponsors. The 

Department’s interest in updating part 

30 to improve the effectiveness of 

sponsors’ affirmative action efforts, as 

well as Registration Agencies’ efforts to 

enforce and support compliance with 

this rule, lies in assuring that the 

Department’s approval of a sponsor’s 

apprenticeship program does not serve 

to support, endorse, or perpetuate 

private discrimination. 

2. Economic Analysis 

The Department derives benefit and 

cost estimates by comparing the 

baseline (the program benefits and costs 

under the 1978 Final Rule 46) with the 

benefits and costs of implementing the 

provisions proposed in this NPRM. 

Only the additional benefits and costs 

that would be incurred due to the 

changes in this proposed regulation are 

included in the analysis. The 

Department requests comments on this 

analysis, including potential sources of 

data or information on the costs and 

benefits of the provisions in this 

proposed rule. 

The Department sought to quantify 

and monetize the benefits and costs of 

this NPRM where feasible. Where we 

were unable to quantify benefits and 

costs—for example, due to data 

limitations—we describe them 

qualitatively. The analysis covers a 10- 

year period (2015 through 2024) to 

ensure it captures major benefits and 

costs that accrue over time. In this 

analysis, we have sought to present 

benefits and costs both undiscounted 

and discounted at 7 and 3 percent, 

respectively, following OMB 

guidelines.47

The 10-year monetized costs of this 

NPRM range from $109.61 million to 

$134.98 million (with 7 and 3 percent 

discounting, respectively). The 10-year 

monetized benefits of this NPRM range 

from $4.21 million to $5.28 million 

(with 7 and 3 percent discounting, 

respectively). The annual average costs 

of this NPRM range from $10.96 million 

to $13.49 million (with 7 and 3 percent 

discounting, respectively). The annual 

average benefits of this NPRM range 

from $0.42 million to 0.53 million (with 

7 and 3 percent discounting, 

respectively). 

In addition, we expect this NPRM to 

result in several overarching benefits to 

apprenticeship programs as well as 

some specific benefits resulting from a 

clearer, more systematic rule. As 

discussed below, equal opportunity 

policies may lead to both efficiency 

gains and distributional impacts to 

society. The proposed rule may reduce 

barriers to entry in apprenticeship 

programs for women, minorities, and 

persons with disabilities, fostering a 

distributional effect, and may alleviate 

the inefficiencies in the job market these 

barriers potentially create. 

In the remaining sections, we first 

present the overall benefits of the 

proposed rule, followed by a subject-bysubject analysis of the benefits and 

costs. We then present a summary of the 

costs and benefits of this NPRM, 

including total costs over the 10-year 

analysis period. Finally, we conclude 

with a benefit-cost analysis of five 

alternatives (including the proposed 

rule). 

a. Potential Overall Benefits and 

Distributional Effects of the Proposed 

Rule 

This subsection presents the potential 

economic benefits and distributional 

effects of policy interventions related to 

equal opportunity employment. Claims 

about these impacts are derived from an 

extensive body of empirical labor 

market research published over the last 

two decades in peer-reviewed 

publications. We assume that similar 

effects would be attributable to this 

rule’s combination of proposed 

provisions, not necessarily to a single 

provision. Some additional benefits 

associated with specific provisions of 

the rule are presented in the next 

section. 

This NPRM proposes to clarify and 

improve the regulations on equal 

opportunity employment from the 1978 

Final Rule by encouraging better 

recruiting and hiring practices. These 

enhanced affirmative action policies 

may lead to both efficiency effects and 

distributional effects. OMB Circular A– 

4 directs the consideration of both the 

efficiency and distributional effects of 

regulations.48

Job market efficiencies and other 

efficiency gains from affirmative action 

policies have been found to result from 

improvements of human resource 

functions. Human resource functions 

become more formal and more 

systematic, while incorporating 

impartial screening practices.49 Firms 

subject to these types of policies tend to 

provide training and contribute to a 

more qualified workforce.50 A policy 

that utilizes an outreach program 

resulting in more recruits raises the 

competition for job openings and thus 

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51Schotter, A., and Weigelt, K., ‘‘Asymmetric 

Tournaments, Equal Opportunity Laws and 

Affirmative Action: Some Experimental Results,’’ 

The Quarterly Journal of Economics, (May 1992). 52Holzer, H. and Neumark, D., ‘‘Assessing 

Affirmative Action,’’ Journal of Economic 

Literature, Vol. XXXVII (2000). 53 Dabke, S.; Salem, O.; Genaidy, A., et al. ‘‘Job 

Satisfaction of Women in Construction Trades,’’ 

Journal of Construction Engineering and 

Management, (March 2008). 54Holzer, H. and Neumark, D., ‘‘Assessing 

Affirmative Action,’’ Journal of Economic 

Literature, Vol. XXXVII (2000). 

55See ‘‘A Profile of the Working Poor, 2008’’ 

Report 1022, published by BLS annually, for a 

breakdown of the working poor. 56World Institute on Disability, http://www.wid.

org/about-wid. 57Median weekly earnings in construction are 

$611. For some women-dominated occupations, 

such as receptionists, hairdressers, and child care 

workers, the median weekly earnings are 

significantly lower: $480, $409, and $360, 

respectively. Source: U.S. Census Bureau, 2006 

American Community Survey. 58We note here that ETA projections use growth 

rates between 5 percent and 20% for all industries. 

This is an estimated growth rate that would be 

required to meet or exceed the goal of doubling the 

number of apprentices. We believe this is highly 

unrealistic, because BLS employment projection 10- 

year average growth rates are between ¥1.1 percent 

and 2.6 percent. In many industries, notably Public 

Service, Agriculture, Forestry, Fishing, Hunting, 

Advanced manufacturing, Information and 

telecommunications, the growth rates are negative, 

meaning these industries are losing workers. When 

the 10-year average growth rate is used, the 

projected number of new apprentices becomes 

considerably smaller. 

increases efficiency by employing the 

highest qualified individuals. A study 

by Schotter and Weigelt (1992) showed 

that equal opportunity policies increase 

the efforts of all workers, not just the 

underutilized workers.51 The proposed 

rule may reduce barriers to entry in 

apprenticeship programs for women, 

minorities, and persons with 

disabilities, and may alleviate the 

inefficiencies in the job market that 

these barriers potentially create. 

Without more specific affirmative 

action policies, women and minorities 

may have fewer job opportunities or 

invest in less education and training.52

If underrepresented groups believe that 

certain jobs are unattainable, they may 

have little incentive to invest in 

training. Personal education and 

training investments not only help the 

individual but may have positive 

externalities in the long run because 

they can be mentors for future 

apprentices from underrepresented 

groups.53 When more individuals invest 

in training and education in the short 

run, productivity and efficiency are 

likely to increase in labor markets over 

the long run. 

In addition to its effect on efficiency, 

the proposed rule would result in a 

distributional effect. The direct 

beneficiaries of this proposed rule 

would be underrepresented workers: 

Women, minorities, and persons with 

disabilities. According to Holzer and 

Neumark (2000), ‘‘affirmative action 

policies offer significant redistribution 

towards women and minorities, with 

relatively small efficiency 

consequences.’’ 54

Although true for all low income 

populations, evidence indicates that 

women are more likely to be classified 

as working poor and that Blacks or 

African Americans and Hispanics or 

Latinos are more than twice as likely as 

their Caucasian counterparts to be 

among the working poor.55 In addition, 

persons with disabilities are almost 

three times more likely to live in 

poverty than other groups.56

Construction, the largest represented 

industry sector in the National 

Registered Apprenticeship System, 

offers a higher median wage than 

traditionally female-dominated jobs and 

other jobs that do not require a college 

education for advancement, thus 

providing opportunity to move out of 

poverty or working poor status.57

To estimate the number of people 

with disabilities who will be affected by 

this proposed rule, we first obtained 

estimates of the prevalence of 

disabilities among workers in different 

industries. This tabulation gives the 

industry hiring rates for people with 

disabilities. Next, we assume that in a 

given industry, the apprenticeship 

programs enroll people with disabilities 

at the same rate as the industry hiring 

rate. Exhibit 1 shows these rates for 18– 

64 working age populations between 

2008 and 2012. We see, for example that 

in Construction, 5.4 percent of all 

workers have a disability. Assuming 

that employers enroll new apprentices 

with disabilities at the same rate as they 

fire people with disabilities, this implies 

that the current prevalence of 

Construction apprentices with 

disabilities is also 5.4 percent. The 

utilization goal for individuals with 

disabilities set forth in the proposed 

rule is 7 percent of enrollees, so this 

means that 1.6 percent of enrollees (7 

percent goal minus the 5.4 percent 

currently enrolled) would be enrolled 

who otherwise would not be. Since the 

number of new apprentices in 10 year 

span in Construction is projected by 

ETA to be × 660,718, this means that the 

proposed rule requiring a 7% 

enrollment rate will result in (.07¥.054) 

× 660,718 = 10,373 more people with 

disabilities as new apprentices.58

This calculation, when repeated over 

all industries, gives a total estimate of 

an additional 22,080 individuals with 

disabilities who will be enrolled out of 

the total of 1,293,772 new apprentices 

projected over the next 10 years (2015– 

2024). 

EXHIBIT 1—POTENTIAL IMPACT ESTIMATES

Industry 

Industry hiring 

rate 

(%) 

Projected new 

apprentices 

Target 

(7%-current) 

(%) 

Projected new 

apprentices with 

disabilities 

Administrative-Support ..................................................................... 5.5 5,708 1.5 86 

Agriculture ........................................................................................ 6.2 1,813 0.8 14 

Construction ..................................................................................... 5.4 660,718 1.6 10,373 

Education ......................................................................................... 4.3 154,521 2.7 4,172 

Oil, Gas, Mineral Extraction ............................................................. 5.7 636 1.3 8 

Finance ............................................................................................ 3.9 521 3.1 16 

Information ....................................................................................... 4.8 2,430 2.2 53 

Medical Services .............................................................................. 5.1 21,045 1.9 398 

Manufacturing .................................................................................. 5.3 146,950 1.7 2,439 

Professional ..................................................................................... 4.8 2,617 2.2 58 

Retail ................................................................................................ 5.9 11,339 1.2 130 

Personal Service & Care ................................................................. 8.7 1,890 ¥1.7 ¥33 

Service ............................................................................................. 6.0 7,135 1.0 73 

Transportation .................................................................................. 6.2 152,924 0.8 1,223 

Utilities ............................................................................................. 4.5 114,982 2.5 2,886 

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59We calculated the hourly compensation rate for 

a human resource manager by multiplying the 

median hourly wage of $47.94 (as published by the 

Department’s OES survey, O*NET Online) by 1.43 

to account for private-sector employee benefits 

(source: BLS). The hourly compensation rate for a 

human resource manager is thus $68.55 ($47.94 × 

1.43). 

60To calculate the labor burden, we multiplied 

the time to complete the task by the hourly 

compensation rate for sponsors ($68.55 × 4 = 

$274.2). The total cost for sponsors in 2015 is the 

labor cost multiplied by the total number of 

sponsors (23,014), or $6.3 million ($274.2 × 23,014). 

This burden occurs in the first year of the analysis 

period for existing sponsors, and every year 

thereafter only for new sponsors. 

61We calculated the hourly compensation rate for 

an administrative assistant by multiplying the 

median hourly wage of $15.58 (as published by the 

Department’s OES survey, O*NET Online) by 1.43 

to account for private-sector employee benefits 

(source: BLS). Thus, the hourly compensation rate 

for an administrative assistant is $22.28 ($15.58 × 

1.43). 

EXHIBIT 1—POTENTIAL IMPACT ESTIMATES—Continued 

Industry 

Industry hiring 

rate 

(%) 

Projected new 

apprentices 

Target 

(7%-current) 

(%) 

Projected new 

apprentices with 

disabilities 

Wholesale ........................................................................................ 4.9 8,543 2.1 180 

Total .......................................................................................... ............................ 1,293,772 ............................ 22,080 

Source: OASP Tabulations, November 2014, ACS 2008–2012. 

As noted above, the Department seeks 

specific comments on all aspects of the 

economic analysis presented here. In 

particular, the Department encourages 

the public to provide possible sources of 

data on the efficiency and distributional 

effects of the proposed rule, including 

the monetary gains from employing and 

retaining underrepresented groups, and 

the extent to which human resource and 

labor market functions are impacted by 

affirmative action policies. 

3. Subject-by-Subject Analysis 

The Department’s analysis below 

considers the expected benefits (beyond 

those discussed above) and costs of the 

proposed changes to part 30. The 

analysis below considers the impacts of 

each proposed change to part 30 

separately. 

a. Familiarization With the Rule 

To estimate the cost of rule 

familiarization, we multiplied the 

number of apprenticeship sponsors by 

the amount of time required to read the 

new rule (ranging from 2 to 6 hours, 

depending on how familiar the program 

sponsor is with the current part 30 

requirements) and by the average hourly 

compensation of a private-sector human 

resources manager ($68.55).59 In the first 

year of the rule, the cost to sponsors 

amounts to approximately $6.3 million 

in labor costs, for an average annual cost 

of $1.34 million over the 10-year 

analysis period.60

b. Addition of Age (40 or Older), 

Genetic Information, Sexual 

Orientation, and Disability to the List of 

Protected Bases 

This NPRM would update the EEO 

standards to include age (40 or older), 

genetic information, sexual orientation, 

and disability to the list of protected 

bases upon which sponsors of registered 

apprenticeship programs must not 

discriminate (proposed § 30.3(a)). As 

explained in the preamble above, the 

addition of these bases to the types of 

discrimination prohibited by part 30 

should not result in significant 

additional burden to sponsors as many 

of the National Registered 

Apprenticeship System’s sponsors must 

already comply with Federal, State, and 

local laws and regulations prohibiting or 

otherwise discouraging discrimination 

against applicants and employees based 

on age (40 or older), genetic 

information, sexual orientation, and 

disability. Even among those sponsors 

not covered by such laws, many have 

internal EEO policies that prohibit 

discrimination on these bases. 

Therefore, the Department does not 

expect that the addition of age (40 or 

older), genetic information, sexual 

orientation, and disability to the list of 

protected bases in proposed §§ 30.1(a) 

and 30.3(a) would result in significant 

burdens to sponsors. The Department 

requests data or information on the 

percentage and type of sponsors, if any, 

who are not currently required to 

comply with the ADEA, GINA, 

Executive Order 11246 as amended by 

Executive Order 13672, the Americans 

with Disabilities Act, section 503 of the 

Rehabilitation Act, or any other law 

prohibiting discrimination against 

individuals on the basis of age (40 or 

older), genetic information, sexual 

orientation, or disability. 

c. Specific Affirmative Steps To Provide 

Equal Opportunity 

The proposed rule would require all 

sponsors, regardless of size, to take 

certain affirmative steps to provide 

equal opportunity in apprenticeship. 

Proposed § 30.3(b) would, for the first 

time, obligate sponsors to take the 

following basic steps to ensure EEO in 

apprenticeship. 

First, sponsors would be required to 

designate an individual to be 

responsible and accountable for 

overseeing the sponsor’s commitment to 

EEO (proposed § 30.3(b)(1)). The 

Department expects the burden of this 

requirement on sponsors to be minimal. 

Our understanding is that most, if not 

all, sponsors have an apprenticeship 

coordinator who is in charge of the 

apprenticeship program. The 

Department anticipates that this 

proposed requirement would be 

fulfilled by individuals currently 

providing coordination and 

administrative oversight functions for 

the program sponsor. We expect that the 

designation will be a relatively minor 

administrative matter, but one that will 

result in institutionalizing a sponsor’s 

commitment to equal opportunity. 

Second, the proposed rule would 

require for the first time that sponsors 

post their equal opportunity pledge on 

bulletin boards, including through 

electronic media, such that it is 

accessible to all apprentices and 

applicants to apprenticeship programs 

(proposed § 30.3(b)(2)). The cost of this 

proposed requirement is expected to be 

minimal. The Department assumes that 

it would take a sponsor 5 minutes (0.08 

hours) to post the pledge and that this 

task would be performed by an 

administrative assistant at an hourly 

compensation rate of $22.28.61 We 

multiplied the time estimate for this 

provision by the hourly compensation 

rate to obtain a total labor cost per 

sponsor of $1.84 ($22.28 × 0.08). 

However, updating the EO pledge to 

include age (40 or older), genetic 

information, sexual orientation, and 

disability will not create any new 

burden because it is already covered by 

the existing requirements. 

To estimate the materials cost, the 

Department assumed that the pledge is 

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62We estimated the 2015 labor cost by 

multiplying the estimated time to complete the task 

by the hourly compensation rate of an 

administrative assistant and by the total number of 

sponsors in 2015 to obtain a total labor cost of 

$42,557 (0.08 × $22.28 × 23,014). We then estimated 

the materials cost by multiplying the per-sponsor 

materials cost by the total number of sponsors in 

2015 to obtain a total materials cost of $3,452 ($0.15 

× 23,014). We summed the two costs to obtain a 

total cost in 2015 of $46,009 ($42,557 + $3,452) for 

this provision. We repeated this calculation for each 

year of the analysis period, using the projected 

number of new sponsors. 

63We calculated the hourly compensation rate for 

an apprentice by multiplying the median hourly 

wage $13 (as published by PayScale for apprentice 

electrician) by 1.43 to account for private-sector 

employee benefits (source: OES survey). Thus, the 

hourly compensation rate for an apprentice is 

$18.59 ($13 × 1.43). 

64We calculated the hourly compensation rate for 

a journeyworker by multiplying the median hourly 

wage $25.50 (for a journeyworker electrician) by 

1.43 to account for private-sector employee benefits 

(source: OES survey). Thus, the hourly 

compensation rate for a journeyworker electrician is 

$36.47 ($25.50 × 1.43). 

65To estimate the cost of this provision, we 

calculated the labor cost per affected sponsor by 

multiplying the time required for the task by the 

hourly compensation rate for both a human 

resource manager ($68.55 × .5 = $34.27) and an 

administrative assistant ($22.28 × .5 = $11.14). We 

then multiplied the total per-sponsor labor cost by 

the total number of sponsors in 2015 (23,014) and 

by the five sites for which each sponsor is to 

provide outreach. This results in a total cost of $5.2 

million (($34.27 + $11.14) × 23,014 × 5) in 2015. 

We repeated this calculation for each year of the 

analysis period, using the projected number of 

sponsors for each year. 

66To estimate the range of costs for this 

provision, we calculated the labor cost per affected 

sponsor by multiplying the time required for the 

task by the hourly compensation rate for both a 

Continued 

one page, and that the cost per page for 

photocopying is $0.15, resulting in a 

materials cost of $0.15 ($0.15 × 1) per 

sponsor. Summing the labor and 

materials costs and multiplying this 

sum by the total number of sponsors in 

the first year results in a cost of $46,009 

for this provision for the first year and 

an average annual cost of $73,939 over 

the 10-year analysis period.62 The 

posting of the equal opportunity pledge 

is a one-time cost; costs after the initial 

year only occur for new sponsors. 

Proposed § 30.3(b)(2) also requires 

each sponsor to conduct orientation and 

periodic information sessions for 

apprentices and journeyworkers who 

directly supervise apprentices, and 

other individuals connected with the 

administration or operation of the 

sponsor’s apprenticeship program to 

inform and remind such individuals of 

the sponsor’s equal employment 

opportunity policy with regard to 

apprenticeship. The orientation and 

information sessions required by 

proposed § 30.3(b)(2)(iii) underscore the 

sponsor’s commitment to equal 

opportunity and its affirmation action 

obligations. These sessions would also 

institutionalize a sponsor’s EEO policies 

and practices, providing a mechanism 

by which the sponsor may inform 

everyone connected with the 

apprenticeship program of the sponsor’s 

obligations under part 30, and ensure 

that all individuals involved in the 

program understand these obligations 

and the policies instituted to implement 

them. 

The Department first estimated that 

some of the 23,014 sponsors in the first 

year (2015) will hold one 30-minute 

regular orientation and periodic 

information session with on average 5 

apprentices ($18.59) 63 and 5 

journeyworkers ($36.47).64 The 

Department estimated that a human 

resource manager ($68.55) would need 

to spend 4 hours to develop and prepare 

written materials for the session in the 

first year ($1.58 million = 23,014 

sponsors × 4 hours × $68.55 × 25 

percent). The Department also estimated 

that approximately 25 percent of the 

23,014 sponsors would need to incur 

additional costs to comply with this 

provision. Most sponsors have already 

implemented this provision and would 

not incur any additional cost. This 

calculation results in a total cost for this 

provision of approximately $2.57 

million in the first year (2015). The 

average annual cost over the 10-year 

analysis period is $1.44 million. 

Third, under the current § 30.4(c) 

sponsors with 5 or more apprentices are 

required to engage in appropriate 

outreach and recruitment activities to 

organizations that serve women and 

minorities, and the regulations list the 

types of appropriate activities a sponsor 

is expected to undertake. The exact mix 

of activities depends on the size and 

type of the program and its resources, 

however each sponsor is ‘‘required to 

undertake a significant number of 

appropriate activities’’ under the current 

§ 30.4. Under the proposed rule, all 

sponsors would be required to reach out 

to a variety of recruitment sources, 

including organizations that serve 

individuals with disabilities, to ensure 

universal recruitment (proposed 

§ 30.3(b)(3)). Including individuals with 

disabilities among the groups of 

individuals to be recruited would be a 

new focus for sponsors. Sponsors would 

be required to develop a list of 

recruitment sources that would generate 

referrals from all demographic groups, 

including women, minorities, and 

individuals with disabilities, with 

contact information for each source. 

Further, sponsors would be required to 

notify these sources in advance of any 

apprenticeship opportunities; while a 

firm deadline is not proposed, the 

proposal prefers 30 days notice if 

possible under the circumstances. This 

may incur costs to employers due to the 

additional days of delay in the hiring 

process resulting from this rule. 

However, the Department does not have 

enough information to allow for an 

estimate of this potential cost. 

The kinds of activities we anticipate 

the sponsor engaging in to satisfy this 

requirement would include, at a 

minimum, fostering a relationship with 

organizations that serve individuals 

with disabilities, distributing 

announcements and flyers detailing the 

job prospects, and may include visiting 

sites that would likely provide access to 

individuals with disabilities, and 

holding seminars. The Department 

assumed that the cost to sponsors to 

distribute information to persons with 

disabilities will be the labor cost of 

complying with this provision. We also 

assumed that the labor for this provision 

will be performed by a human resource 

manager and an administrative assistant 

with hourly compensation rates of 

$68.55 and $22.28, respectively. We 

assumed that this task will take 30 

minutes (0.5 hours) of a human resource 

manager’s time and 30 minutes (0.5 

hours) of an administrative assistant’s 

time per targeted location. A sensitivity 

analysis for a range of time spent 

conducting outreach to organizations 

that serve individuals with disabilities 

was conducted and is presented below. 

This outreach is expected to include 

seminars at job sites, webinars, and 

other forms of outreach. We calculated 

the cost of this provision per affected 

sponsor by multiplying the time each 

staff member devotes to this task by 

their associated hourly compensation 

rates. We then multiplied the total labor 

cost by the number of locations (five) 

and by the total number of sponsors.65

The resulting cost for this proposed 

provision is $5.2 million in the first 

year, with an average annual cost of $8.4 

million over the 10-year analysis period. 

Because the universal outreach may 

involve several different types of 

activities, the Department included a 

sensitivity analysis on the total time 

allocated to universal outreach. 

Mirroring the calculation above, the 

Department estimated a low allocation 

of time (15 minutes, or 0.25 hours) and 

a high allocation of time (1 hour and 15 

minutes, or 1.25 hours) for both the 

administrative assistant and the human 

resource manager. The resulting range of 

costs for the first year is $2.6 million to 

$13.0 million with an average annual 

cost ranging from $4.2 to $21 million.66

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human resource manager ($68.55 × .25 = $17.14 for 

the low cost and $68.55 × 1.25 = $85.69 for the high 

cost) and an administrative assistant ($22.28 × .25 

= $5.57 for the low cost and $22.28 × 1.25 = $27.85 

for the high cost). We then multiplied the total persponsor labor cost by the total number of sponsors 

in 2015 (23,014) and by the five sites for which each 

sponsor is to provide outreach. This results in a 

total cost of $2.6 million for the low time 

assumption (($17.14 + $555.57) × 23,014 × 5) and 

$13.0 million for the high time assumption 

(($85.6927+ $27.85) × 23,014 × 5) in 2015. The 

Department used the growth rate of apprenticeship 

programs ranging from 5% to 20% by industry to 

achieve a goal of doubling the number of sponsors 

in 5 years. 

67Blau and Winkler (2005), ‘‘Does Affirmative 

Action Work?’’, Countering Stereotypes by 

Changing the Rules, Regional Review Q1. 

68 Dabke, S; Salem, O; Genaidy, A, et al. (2008). 

‘‘Job Satisfaction of Women in Construction 

Trades,’’ Journal of Construction Engineering and 

Management, March 2008. 

69An employee who had no prior experience 

gathering demographic data completed this 

simulation to accurately estimate the time that 

would be spent on this task by a sponsor who is 

not familiar with retrieving the required data. 

70To calculate the benefits of this provision for 

2015, we multiplied the hourly compensation rate 

for a human resource manager ($68.55) by the time 

saved per sponsor (1 hour), by the total number of 

sponsors, and by the percent that employ five or 

more apprentices (25%). This calculation resulted 

in a total benefit to sponsors of $0.33 million 

($68.55 × 1 × 23,014 × 25%) for 2015. We repeated 

this calculation for the nine remaining years in the 

analysis period using the projected number of 

active sponsors for each year. Because the number 

of apprenticeship sponsors is projected to increase 

from 23,014 in 2015 to 56,655 in 2014, the annual 

benefit would also increase over time. 

71For this analysis, we assumed that the percent 

of all sponsors employing five or more apprentices 

(25 percent) remains constant throughout the 10- 

year analysis period. In reality, this percentage will 

fluctuate as sponsors take on new apprentices and 

as apprentices complete their programs. We also 

expect that, over time, successful outreach will lead 

to more hiring of persons with disabilities and that 

The Department requests data from the 

public on how the addition of universal 

outreach to organizations that serve 

individuals with disabilities is expected 

to impact sponsors. 

Fourth, the proposed rule would 

require that all sponsors develop and 

implement procedures to ensure that its 

apprentices are not harassed because of 

their race, color, religion, national 

origin, sex, sexual orientation, age (40 or 

older), genetic information, or disability 

and to ensure that the workplace is free 

from harassment, intimidation, and 

retaliation (proposed § 30.3(b)(4)(iv)). As 

explained in the preamble above, this 

proposed requirement should not result 

in any new burdens on sponsors who 

are already subject to Federal laws that 

prohibit harassment in the workplace. 

Because title VII, Executive Order 11246 

as amended by Executive Order 13672, 

the ADEA, GINA, and the ADA prohibit 

these actions, and most sponsors are 

already subject to these laws, many 

sponsors are already undertaking these 

actions. 

Benefits 

By hiring more workers from 

underrepresented groups, firms 

naturally create mentors and expand 

networking opportunities for these 

groups.67 Mentors are essential not only 

for recruiting purposes but also as a 

retention strategy since they provide a 

support mechanism for new hires.68

Retention is a direct benefit to sponsors 

since they will not lose their initial 

investment in recruiting and training 

the apprentice. Education and training 

investments help individuals from 

underrepresented groups and have 

positive overall effects, since they 

improve job performance. Improved job 

performance and retention due to 

investments in training and education 

yields better productivity and 

efficiencies in labor markets. 

d. Revised Methodology for Utilization 

Analysis and Goal Setting 

The proposed rule would streamline 

the utilization analysis required of 

sponsors with five or more apprentices 

and clarify when and how utilization 

goals are to be established (proposed 

§§ 30.5 through 30.7). Specifically, the 

proposed rule would require sponsors to 

consider just two factors when 

determining the availability of 

individuals for apprenticeships rather 

than the five currently listed in the part 

30 regulations. In addition, the 

proposed rule explains in clear terms 

the steps required to determine whether 

any particular groups of individuals are 

being underutilized and would provide 

direction as to when and how goals are 

to be established. 

Benefits 

The proposed methodology for 

utilization analysis and goal setting 

represents a benefit to sponsors because 

it would reduce the time a sponsor 

would need to complete it. To estimate 

the benefits of the proposed 

methodology as compared to the current 

methodology, the Department 

conducted an informal simulation to 

determine the difference in time to 

complete the analysis and goal setting 

by each methodology.69 According to 

the simulation, the baseline 

methodology takes about two hours to 

complete while the proposed 

methodology takes one hour to 

complete. Thus, there is one hour of 

time savings associated with the 

proposed methodology for utilization 

analysis and goal setting. 

To monetize the benefits of this time 

savings, we multiplied this one hour of 

time savings by the hourly 

compensation rate of a human resource 

manager ($68.55) and by the number of 

active sponsors who employ five or 

more apprentices (23,014 × 25 percent = 

5,754). This calculation results in a 

benefit to sponsors of $0.39 million in 

the first year due to the time savings 

from the proposed methodology and an 

average annual benefit of $0.58 million 

over the 10-year analysis period.70

e. Requiring Targeted Outreach, 

Recruitment, and Retention for 

Underutilized Groups 

In addition to the normal outreach, 

recruitment, and retention activities 

required of all sponsors under proposed 

§ 30.3(b), this NPRM would require a 

sponsor of an apprenticeship program, 

whose utilization analyses revealed 

underutilization of a particular group or 

groups of individuals pursuant to 

proposed § 30.6 and/or who has 

determined pursuant to proposed 

§ 30.7(f) that there are problem areas 

with respect to its outreach, 

recruitment, and retention activities, to 

engage in targeted outreach, 

recruitment, and retention for all 

underutilized groups in proposed § 30.8. 

We assume that this additional outreach 

will happen in the same manner as the 

universal outreach discussed above. 

We further assume that this targeted 

outreach, recruitment, and retention 

would be newly required for individuals 

with disabilities of all sponsors who 

employ five or more apprentices, failed 

to meet the 7 percent utilization goal, 

and their current recruitment efforts are 

not effective and need to be revised, 

since the proposed rule would now 

require that such sponsors engage in 

affirmative action of individuals with 

disabilities. The Department recognizes, 

however, that some sponsors may 

already be meeting the 7% utilization 

goal for persons with disabilities. Others 

may be employing them at less than 7%, 

but nevertheless do not need to engage 

in targeted outreach and recruitment 

because their review of their activities 

did not reveal any barriers to equal 

opportunity. Therefore, the analysis 

below may be overestimating those who 

need to engage in targeted outreach and 

recruitment. Unfortunately, there are no 

available data for us to determine how 

many sponsors are or are not utilizing 

individuals with disabilities at a rate to 

be expected. The Department requests 

data or information from the public on 

the number of sponsors who employ 

five or more apprentices as well as the 

number of sponsors who currently 

employ individuals with disabilities.71

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sponsors will meet their recruitment goals and not 

be required to complete this additional outreach. 

Costs 

We assumed that the cost to sponsors 

to distribute information about 

apprenticeship opportunities to 

organizations serving individuals with 

disabilities will be the labor cost. We 

also assumed that the labor for this 

provision will be performed by a human 

resource manager and an administrative 

assistant with hourly compensation 

rates of $68.55 and $22.28, respectively. 

Lastly, we assumed that this additional 

outreach will first occur three years after 

the rule goes into effect. 

The Department estimated that this 

dissemination task will take 30 minutes 

(0.5 hours) of a human resource 

manager’s time and 30 minutes (0.5 

hours) of an administrative assistant’s 

time per targeted location. A sensitivity 

analysis for a range of time spent 

conducting targeted outreach to 

organizations that serve individuals 

with disabilities was conducted and is 

presented below. The cost of this 

provision per affected sponsor is the 

time each staff member devotes to this 

task multiplied by their associated 

hourly compensation rates. This 

calculation resulted in a labor cost of 

$45.41 (($68.55 × 0.5) + ($22.28 × 0.5)) 

per location. We then multiplied this 

total labor cost by the number of 

locations (5) and by the number of 

sponsors with five or more apprentices 

(2.5 percent of the total number of 

sponsors whose utilization analyses 

revealed underutilization of a particular 

group or groups of individuals in the 

third year, or 757 (30,291 × 2.5 

percent)). 

Finally, we assumed that this 

additional outreach will occur when 

sponsors who underutilize persons with 

disabilities are identified by the 

Department from the results of random 

audits and that this process will begin 

in 2018 giving sponsors the opportunity 

to meet these EEO requirements. This 

calculation results in a total cost for this 

provision of approximately $0.17 

million in 2018. The average annual 

cost over the 10-year analysis period is 

$0.24 million. 

The Department requests data from 

the public on how the targeted outreach 

to organizations that serve individuals 

with disabilities is expected to impact 

sponsors. 

The proposed rule would require 

sponsors to review personnel processes 

annually (proposed § 30.9), or every two 

years if it meets the requirements set 

forth in proposed § 30.4(e)). As required 

by the 1978 Final Rule (the analysis 

baseline), sponsors with five or more 

apprentices in a registered 

apprenticeship program are required to 

develop and maintain an affirmative 

action program. The scope of each 

sponsor’s program depends on the size 

and type of its program and resources. 

However, each sponsor is required, 

under the current rule, to undertake a 

significant number of appropriate 

activities to satisfy its affirmative action 

obligations. The 1978 Final Rule lists 

examples of the kinds of activities 

expected, including ‘‘periodic auditing 

of the sponsor’s affirmative action 

programs and activities’’ (29 CFR 

30.4(c)(10)). We assume that, at the very 

least, these program sponsors currently 

conduct this audit on an annual basis 

because elsewhere in the 1978 Final 

Rule, sponsors are required to review 

their affirmative action programs 

annually and update them where 

necessary (29 CFR 30.8). Accordingly, 

we do not believe that this proposed 

requirement will result in any 

additional cost to the sponsor. For 

sponsors who meet the requirements for 

biannual review under proposed 

§ 30.4(e), there may be a cost reduction; 

however, we cannot accurately quantify 

it due to data limitations on the number 

of sponsors who would meet the annual 

requirements for review. 

This NPRM proposes that sponsors be 

required to review their personnel 

activities at least annually (or every two 

years, per proposed § 30.4(e)). Requiring 

this scheduled review of personnel 

processes would emphasize the 

philosophy the Department intends to 

convey throughout the regulation that 

affirmative action is not a mere 

paperwork exercise but rather a 

dynamic part of the sponsor’s 

management approach. Affirmative 

action requires ongoing monitoring, 

reporting, and revising to address 

barriers to EEO and to ensure that 

discrimination does not occur. 

g. Simplified Procedures for Selecting 

Apprentices 

Under the 1978 Final Rule, selection 

of apprentices must be made using one 

of four specific selection methods. 

Under this NPRM (proposed § 30.10), a 

sponsor would be required to adopt any 

method for the selection of apprentices 

provided that the method (1) complies 

with UGESP; (2) is uniformly and 

consistently applied to all applicants 

and apprentices; (3) complies with the 

qualification standards set forth in title 

I of the ADA; and (4) is facially neutral 

in terms of race, color, religion, national 

origin, sex, sexual orientation, age (40 or 

older), and disability. This approach 

greatly simplifies the regulatory 

structure currently governing selection 

procedures and affords sponsors with 

greater flexibility in fashioning a 

selection procedure; it also would align 

this provision of part 30 with how other 

equal opportunity laws regulate an 

employer’s use of selection procedures. 

Benefits 

This provision aimed at simplifying 

selection procedures should reduce the 

sponsor’s cost of compliance because 

we expect that sponsors will be able to 

more quickly and easily adopt a method 

for selection consistent with how they 

are selecting applicants or employees 

under other EEO laws. The Department 

requests data or information on the 

extent the simplification of selection 

procedures benefits sponsors. 

h. Standardizing Compliance Review 

Procedures for Registration Agencies 

The proposed rule would standardize 

procedures Registration Agencies must 

follow for conducting compliance 

reviews (proposed § 30.13). The 

proposed provision on compliance 

reviews would carry forward the current 

provision at § 30.9 addressing 

compliance reviews and would include 

several modifications to improve 

readability. First, the proposed rule 

would revise the title from ‘‘Compliance 

reviews’’ to ‘‘Equal employment 

opportunity compliance reviews’’ to 

clarify that the reviews are to assess 

compliance with the part 30 regulations 

and not the companion regulations at 

part 29. 

Second, the term ‘‘Registration 

Agency’’ would be used throughout 

proposed § 30.13 instead of the term 

‘‘Department,’’ because this section 

applies to both the Department and to 

SAAs when conducting an EEO 

compliance review. 

Third, the proposed rule would 

provide more specificity for the 

procedures Registration Agencies must 

follow in conducting compliance 

reviews. This increased specificity 

would provide for greater consistency 

and standardization of procedures 

across the National Registered 

Apprenticeship System. For instance, 

proposed § 30.13(b) would require the 

Registration Agency to notify a sponsor 

of the Agency’s findings through a 

written Notice of Compliance Review 

Findings within 45 days of completing 

a compliance review. The Notice of 

Compliance Review Findings must 

include whether any deficiencies (i.e., 

failures to comply with the regulatory 

requirements) were found, how they are 

to be remedied, and the timeframe 

within which the deficiencies must be 

corrected. The Notice of Compliance 

Review Findings also must notify a 

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72We calculated the hourly compensation rate for 

an administrative assistant by multiplying the 

hourly wage of $18.64 (GS–7 step 5) by 1.52 for the 

State agency and 1.69 for the Federal agency to 

account for public-sector employee benefits. Thus, 

the hourly compensation rate for an administrative 

assistant at a State agency is $28.33 ($18.64 × 1.52) 

and $31.50 ($18.64 × 1.69) at a Federal agency. 

73To calculate the labor cost, we multiplied the 

time required by the hourly compensation rate, 

resulting in a cost of $7.16 (0.25 × $28.64) for State 

Apprenticeship Agencies and $7.87 (0.25 × $31.50) 

for OA. We then multiplied each labor cost by the 

percentage of sponsors subject to compliance 

reviews (10 percent) and by 50 percent (we 

assumed that half of the sponsors respond to State 

Apprenticeship Agencies and half respond to OA). 

sponsor that sanctions may be imposed 

for failing to correct the aforementioned 

deficiencies. 

These changes would add clarity to 

the procedures but would not 

fundamentally change the process and, 

therefore, would not represent a 

significant additional burden to 

sponsors or SAAs. The Department 

believes the additional specificity will 

ease some of the burden on States; 

however the Department requests public 

comment on how these procedures 

affect the burden for sponsors and 

SAAs. 

Sponsors are subject to random onsite 

or offsite compliance reviews by either 

the SAA or OA where the corresponding 

agency is expected to notify the sponsor 

of the review findings. Although the 

notice of compliance reviews already 

occurs with SAAs and OA, this NPRM 

would make the practice standard and 

common among all entities. Under this 

NPRM, the notice of review findings 

would be required to be sent via 

registered or certified mail, with return 

receipt requested within 45 days of the 

completed equal opportunity 

compliance review. 

Costs 

The costs associated with this 

provision would be limited to the use of 

registered mail, the cost of materials, 

and the labor cost to send the letter. The 

actual review process remains 

unchanged from the 1978 Final Rule. To 

determine the cost of the notice of 

compliance reviews, we estimated the 

labor cost to mail and compile the 

notice (assumed to be completed by an 

administrative assistant) and the cost of 

materials to send the notice. The labor 

cost is comprised of the time an 

administrative assistant dedicates to the 

task (15 minutes, or 0.25 hours) 

multiplied by the hourly compensation 

rate ($28.33 for SAAs and $31.50 for 

OA).72 The total materials cost is the 

cost to send a letter via registered mail 

($11.25) plus the cost of the envelope 

($0.07) plus the cost to photocopy the 

one-page document ($0.15), or $11.47 

($11.25 + $0.07 + $0.15). 

To estimate the total cost of this 

provision in the first year, we summed 

labor and material costs and then 

multiplied by the total number of 

reviewed sponsors resulting in $18,100 

for SAAs and $18,790 for OA.73 We then 

repeated this calculation for each year of 

the analysis period using the projected 

number of sponsors for each year. The 

annual average cost to SAAs amounts to 

$0.02 million and the annual average 

cost to OA amounts to $0.02 million 

over the 10-year analysis period. 

i. Clarifying Complaint Procedures 

This NPRM would require sponsors to 

establish and implement procedures for 

handling and resolving complaints 

about harassment based on race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, and disability (proposed 

§ 30.3(b)(4)(iv)). Because harassment is a 

form of employment discrimination that 

violates Federal laws applicable to most 

sponsors, including title VII, Executive 

Order 11246, the ADEA, GINA, and the 

ADA, we expect that most sponsors 

already have complaint procedures in 

place. Thus, this proposed requirement 

should not impose any new burdens on 

sponsors who must already take the 

necessary action to prevent and 

eliminate harassment in the workplace. 

Also, in an effort to ensure 

consistency with how Registration 

Agencies process complaints and 

conduct investigations, proposed 

§ 30.14(c) would add uniform 

procedures that Registration Agencies 

must follow. These uniform procedures 

would ensure that Registration Agencies 

acknowledge and thoroughly investigate 

complaints in a timely manner, that 

parties are notified of the Registration 

Agency’s findings, and that the 

Registration Agency attempts to quickly 

resolve violations through voluntary 

compliance. Since the complaint 

process is not a new process, the 

Department does not expect that these 

provisions would add significantly to 

the burden on Registration Agencies, 

they simply would standardize the 

procedures and define a timeline. 

Therefore, while the Department does 

not expect significant changes in 

burden, there may still be one-time costs 

as Registration Agencies adjust their 

complaint procedures to reflect newly 

standardized requirements. These 

procedures will benefit both sponsors 

and apprentice complainants since 

claims will be handled in a clear and 

consistent fashion. The Department 

requests more data or information on 

how these proposed complaint 

procedures are expected to burden and/ 

or benefit sponsors, apprentices, and 

Registration Agencies. 

j. Adopting Uniform Procedures Under 

29 CFR Parts 29 and 30 for 

Deregistration, Derecognition, and 

Hearings 

The proposed rule would adopt 29 

CFR part 29 procedures for 

deregistration of apprenticeship 

programs, derecognition of SAAs, and 

hearings (proposed §§ 30.15 through 

30.16). For consistency and simplicity, 

proposed § 30.15(c) would adopt the 

deregistration procedures of § 29.8(b)(5) 

through (8) of this title, including the 

hearing procedures in § 29.10. This 

revision would allow SAAs to follow a 

single set of procedures for all matters 

arising from management of the 

National Registered Apprenticeship 

System. As explained in the preamble 

above, the Department proposes to 

incorporate the part 29 procedures for 

hearings into part 30 so that a sponsor 

need only follow one set of procedures 

regardless of whether the issue at hand 

addresses the labor standards set forth 

in part 29 or the EEO standards set forth 

in part 30. These provisions are not 

expected to impose a burden because 

SAAs are already following these 

procedures in part 29. 

l. Invitation to Self-Identify as an 

Individual With a Disability 

Proposed § 30.11 requires sponsors, as 

part of their general duty to engage in 

affirmative action, to invite applicants 

for apprenticeship to voluntarily selfidentify as an individual with a 

disability protected by this part at three 

stages: (1) At the time they apply or are 

considered for apprenticeship; (2) after 

they are accepted into the 

apprenticeship program but before they 

begin their apprenticeship; and (3) once 

they are enrolled in the program. 

The purpose of this section is to 

collect important data pertaining to the 

participation of individuals with 

disabilities in the sponsor’s applicant 

pools and apprenticeship program. This 

data will allow the sponsor and OA to 

better identify and monitor the 

sponsor’s enrollment and selection 

practices with respect to individuals 

with disabilities and also enable OA and 

the sponsor to assess the effectiveness of 

the sponsor’s recruitment efforts over 

time, and to refine and improve the 

sponsor’s recruitment strategies, where 

necessary. In addition, data related to 

apprentices once they are in the 

program will help sponsors assess 

whether there may be barriers to equal 

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74Note that this calculation is only the 

administrative costs of updating the State equal 

opportunity plan, as opposed to the costs of 

implementing the new plan, or any new burdens on 

State Agencies. Since the updated State equal 

opportunity plan should reflect the proposed 

Federal regulations, these costs should be 

accounted for and addressed elsewhere in the 

analysis under discussions of costs. 

75We calculated the hourly compensation rate for 

a human resource manager at a State agency by 

multiplying the hourly wage of $33.06 (GS–12 step 

5) by 1.52 for the State agency. The hourly 

compensation rate for a human resource manager at 

a State agency is thus $50.25 ($33.06 × 1.52). 

76The estimated time to complete the revisions is 

12 months (2080 hours). The 2014 calculation used 

the hourly compensation rate for a state human 

resource manager ($59.75) multiplied by 2,080 (the 

assumed number of work hours in a year) and by 

the total number of State Apprenticeship Agencies 

(25) to obtain a total cost of $3.11 million (2,080 × 

$59.75 × 25). This cost only accrues in the first year 

of the ten-year analysis period. 

77 In addition, this NPRM clarifies the need for 

recordkeeping (proposed § 30.11). Better 

recordkeeping will enable sponsors to better 

understand their current underutilization practices 

and be able to easily identify recruitment strategies 

that have worked in the past. 

opportunity in all aspects of 

apprenticeship and may inform the 

effectiveness of retention strategies or 

whether such strategies are necessary. 

The Department estimated that each 

of the 23,014 sponsors in the first year 

(2015) will need to develop a selfidentification invitation, which must be 

separate from the application, for preoffer, post-offer, and post-enrollment 

stages. The Department estimated that a 

human resource manager ($68.55) will 

spend 1 hour to develop a selfidentification invitation and the burden 

for this is $1,577,609 in the first year 

(2015). 

The Department estimated that an 

applicant ($18.59) would take on 

average 5 minutes (0.08 hour) to 

complete the invitation. The 

Department also estimated that there 

will be an average of 10 applicants per 

job listing, with an average of 5 listings 

per sponsor per year. The burden at the 

stage of pre-offer in the first year (2015) 

is estimated at $1,738,247 (23,014 

sponsors × 5 listings × 10 applicants × 

0.08 hour × $18.59). The burden at the 

stages of post-offer and post-enrollment 

is estimated at $173,825 (23,014 

sponsors × 5 listings × 0.08 hour × 

$18.59), respectively. 

In addition, the Department estimated 

that an administrative assistant ($22.28) 

would spend 0.5 hours to record and 

keep invitations in a data analysis file. 

The burden for this is estimated at 

$256,376 (23,014 sponsors × 0.5 hour × 

$22.28). 

Total cost for this provision is 

approximately $3.96 million in the first 

year (2015). The average annual cost 

over the 10-year analysis period is $3.93 

million. 

j. Other 

In addition to the changes discussed 

above, the proposed rule also would 

result in three additional costs. First, 

SAAs would be required to revise their 

State equal opportunity plan to conform 

to the new requirements. Second, 

sponsors would need to learn about the 

new processes and requirements during 

the first year of the rule’s 

implementation. Furthermore the NPRM 

would create an intermediary step 

between a registered sponsor and a 

deregistered sponsor (registration 

suspension). Third, sponsors would 

likely hire and/or retain more qualified 

apprentices with disabilities under the 

proposed rule and this may result in 

additional costs of providing 

appropriate job accommodations. The 

Department seeks comment regarding 

the amount of additional costs of 

providing appropriate job 

accommodations that would not 

otherwise be captured by sponsors’ 

current accommodation requirements 

under federal or state disability laws. 

Revision of State Equal Opportunity 

Plan 

The process of updating a State equal 

opportunity plan may potentially 

involve various different people at 

different stages of implementation. 

Updating the plan will include drafting 

the new plan and completing all 

administrative procedures that may 

apply, such as revisions to a State’s 

apprenticeship law or policy that may 

require a public notice and comment 

period, training for SAA staff on the 

revised State EEO Plan, and outreach to 

program sponsors to inform them of the 

relevant aspects of the revised State EEO 

plan, once it has been approved by the 

Department. The updates to State equal 

opportunity plans would include 

changing language and current 

requirements such that they align with 

the regulatory changes proposed herein. 

To calculate the costs, the Department 

assumed that the process to revise the 

State equal opportunity plan would take 

a full year of effort (or 2,080 hours) to 

complete.74 This is the Department’s 

best estimate for updating the current 

State equal opportunity plan; the 

Department requests data or information 

from the public on the burden for 

updating State EEO plans. For 

simplicity, we assumed that an SAA 

human resource manager will complete 

the task at an hourly compensation rate 

of $59.75.75 This amounts to an initial 

cost of $3.11 million and an average 

annual cost of $0/31 million over the 

10-year analysis period.76

Intermediate Step Between a Registered 

Sponsor and a Deregistered Sponsor 

Finally, the NPRM proposes the 

creation of an intermediary step 

between a registered sponsor and a 

deregistered sponsor (proposed 

§ 30.15(b)). Currently, deregistration of 

an apprenticeship program occurs when 

the sponsors fails to demonstrate 

compliance with the 1978 Final Rule. 

The proposed suspension step would 

allow sponsors an adequate span of time 

to update their practices and be in 

compliance without having to be 

deregistered and then reregistered at a 

later date. Under this proposed 

procedure, a Registration Agency would 

suspend a registration of new 

apprentices until the sponsor has 

achieved compliance with part 30 

through the completion of a voluntary 

compliance action plan or until a final 

order is issued in formal deregistration 

proceedings initiated by the Registration 

Agency. 

The intermediary step represents a 

benefit because it would allow sponsors 

to become compliant without having to 

be deregistered and then reregister or 

abandon their program. The benefits of 

this proposed provision are difficult to 

quantify because some programs eligible 

for deregistration may seek 

deregistration voluntarily. Voluntary 

deregistration, however, can occur for 

several reasons and it would be 

incorrect to assume that all voluntary 

deregistrations directly correlate with 

sponsors who would have been 

deregistered. 

The Department expects that fewer 

programs will be required to deregister 

or voluntarily deactivate as a result of 

the proposed suspension procedure, 

enabling more active total sponsors and 

the associated apprenticeship 

opportunities. Instead of losing these 

potential registered apprenticeship 

programs, they will persist while 

upholding equal opportunity hiring 

practices.77

Workplace Accommodations for 

Apprentices With Disabilities 

The proposed rule prohibits 

discrimination against individuals with 

disabilities and requires sponsors to 

take affirmative action to provide equal 

opportunity in apprenticeship to 

qualified individuals with disabilities. 

With respect to the sponsor’s duty to 

ensure non-discrimination based on 

disability, the sponsor must provide 

necessary reasonable accommodations 

to ensure applicants and apprentices 

with disabilities receive equal 

opportunity in apprenticeship. Since 

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68942 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

78Beth Loy, ‘‘Accommodation and Compliance 

Series Workplace Accommodations: Low Cost, High 

Impact,’’ Job Accommodation Network (JAN) (2014), http://askjan.org/media/lowcosthigh

impact.html. 

most, if not all, sponsors already are 

subject to the ADA as amended, and if 

a Federal contractor to section 503 of 

the Rehabilitation Act, sponsors already 

have a duty under existing law to 

provide reasonable accommodations for 

qualified individuals with disabilities 

and thus there is no new burden 

associated with any duty to provide 

reasonable accommodation under part 

30, as that duty already exists under 

existing Federal law. The Department 

requests data or information on the 

percentage and types of sponsors, if any, 

who are not currently required to 

comply with the ADA and/or section 

503 and provide reasonable 

accommodation. For any sponsor who 

may not already be required under the 

law to provide such accommodations, 

we expect the resulting burden to be 

quite small. A recent study conducted 

by the Job Accommodation Network 

(JAN), a service of the Department’s 

Office of Disability Employment Policy 

(ODEP), shows that the majority of 

employers in the study (57%) reported 

no additional accommodation costs and 

the rest (43%) reported one-time cost of 

$500 on average.78 This study shows 

that the benefits to employers, such as 

improving productivity and morale, 

retaining valuable employees, and 

improving workplace diversity, 

outweigh the low cost. 

4. Summary of Cost-Benefit Analysis 

Exhibit 2 presents a summary of the 

first year costs of the various proposed 

rule provisions, as described above. As 

shown in the exhibit, the total first year 

costs of the rule provisions are $21.26 

million. The Department was able to 

only quantify benefits of the proposed 

rule resulting from time savings to 

sponsors from the new methodology for 

utilization and goal setting. As 

discussed above, the estimated benefits 

of this provision are $0.39 million in the 

first year. 

EXHIBIT 2—SUMMARY OF FIRST-YEAR COST

Provision Entity affected Monetized cost 

($millions) 

1. Post equal opportunity pledge ............................................................................. Sponsor .................................................. $0.05 

2. Disseminate information to organizations serving the underutilized g ................ Sponsor .................................................. ..............................

3. Universal Outreach ............................................................................................... Sponsor .................................................. 5.23 

4. Notice of compliance review ................................................................................ SSA ......................................................... 0.02 

5. Notice of compliance review ................................................................................ OA ........................................................... 0.02 

6. Revision of State EEO Plan ................................................................................. SSA ......................................................... 3.11 

7. Time required to read and review NPRM ............................................................ Sponsor .................................................. 6.31 

8. Orientation and periodic information sessions ..................................................... Sponsor/Apprentice ................................ 2.57 

9. Invitation to self-identify as an individual with a disability ................................... Sponsor/Apprentice ................................ 3.96 

Total First-Year Cost ......................................................................................... ................................................................. 21.96 

Next, Exhibit 3 presents a summary of 

the monetized costs and benefits 

associated with this NPRM over the 10- 

year analysis period. The monetized 

costs and benefits displayed are the 

yearly summations of the calculations 

described above. Costs and benefits are 

presented as undiscounted 10-year 

totals, and as present values, using 7 

and 3 percent discount rates, 

respectively. 

2015 

EXHIBIT 3—SUMMARY OF MONETIZED BENEFITS AND COSTS

Year Monetized benefits 

($millions/year) 

Monetized costs 

($millions/year) 

1. 2015 ............................................................................................................................................. 0.39 21.268 

2. 2016 ............................................................................................................................................. 0.43 9.98 

3. 2017 ............................................................................................................................................. 0.47 10.93 

4. 2018 ............................................................................................................................................. 0.52 12.17 

5. 2019 ............................................................................................................................................. 0.57 13.40 

6. 2020 ............................................................................................................................................. 0.63 14.80 

7. 2021 ............................................................................................................................................. 0.70 16.39 

8. 2022 ............................................................................................................................................. 0.78 18.21 

9. 2023 ............................................................................................................................................. 0.87 20.30 

10. 2024 ........................................................................................................................................... 0.97 22.70 

Undiscounted total .................................................................................................................... 6.34 160.15 

Total with 7% discounting ................................................................................................. 4.21 109.61 

Total with 3% discounting ................................................................................................. 5.28 134.98 

Primary estimates of the 10-year 

monetized costs of this NPRM are 

$109.61 million or $134.98 million 

(with 7 and 3 percent discounting, 

respectively). The 10-year monetized 

benefits of this NPRM are estimated to 

be $4.21 million or $5.28 million (with 

7 and 3 percent discounting, 

respectively). 

The proposed rule includes four 

general categories of revisions: (1) 

Changes required to make the rule 

consistent with the Labor Standards for 

Registration of Apprenticeship Programs 

set forth in 29 CFR part 29; (2) changes 

updating the scope of a sponsor’s EEO 

obligations by including age (40 or 

older), genetic information, sexual 

orientation, and disability among the 

list of protected bases upon which a 

sponsor must not discriminate; (3) 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68943 

79We calculated the hourly compensation rate for 

a human resource manager at OA by multiplying 

the hourly wage of $33.06 (GS–12 step 5) by 1.69 

to account for public-sector employee benefits. The 

hourly compensation rate for a human resource 

manager at a Federal agency is thus $55.87 ($33.06 

× 1.69). 

80To estimate the full cost of this alternative, we 

also considered the cost to read and review the new 

regulation for both sponsors ($2.7 million) and State 

Apprenticeship Agencies ($2,512 = 2 hours × 25 

State Apprenticeship Agencies × $50.25), as 

calculated above for the proposed regulation. 

changes to enhance a sponsor’s 

affirmative action obligations and 

enforcement efforts by Registration 

Agencies; and (4) changes to improve 

the overall readability of the rule. 

Alignment of the EEO regulations at part 

30 with its companion regulations at 

part 29 is necessary for a cohesive, 

comprehensive regulatory framework 

for the National Registered 

Apprenticeship System. 

Due to data limitations, the 

Department did not quantify several of 

the important benefits to society 

provided by the proposed policies. This 

NPRM is expected to result in several 

overarching benefits to apprenticeship 

programs as well as some specific 

benefits resulting from a clearer, more 

systematic rule. 

As discussed above, equal 

opportunity policies may lead to both 

efficiency gains and distributional 

impacts to society. The proposed rule 

may reduce barriers to entry in 

apprenticeship programs for women, 

minorities, and persons with 

disabilities, fostering a distributional 

effect, and may alleviate the 

inefficiencies in the job market these 

barriers potentially create. 

This NPRM focuses on making the 

current EEO policy consistent and 

standard across the National Registered 

Apprenticeship System. In doing so, 

several tasks already undertaken by 

sponsors, apprentices and Registration 

Agencies have been simplified. For 

instance, the clarified complaint process 

better informs apprentices, sponsors, 

and Registration Agencies of their roles 

and expectations from the process. This 

NPRM also develops a simpler 

methodology for the apprentice 

selection process and offers sponsors 

the flexibility to choose a mechanism 

that aligns with their State’s specific 

equal opportunity regulations. Much of 

the new language developed provides 

consistency with current equal 

opportunity laws and part 29 already 

applicable to these affected entities. 

Finally, this NPRM streamlines 

procedures already in place under the 

1978 Final Rule. 

The Department did quantify some of 

the benefits and the various costs 

associated with the NPRM. The major 

quantifiable benefit was the reduction in 

labor hours needed for completing the 

new methodology for utilization 

analysis and goal setting. The reduction 

in labor cost resulted in an average 

annual savings of $0.63 million. 

5. Alternatives 

In addition to the proposal set forth in 

this NPRM, the Department has 

considered four alternatives. These are: 

(1) To take no action, that is, to leave the 

1978 Final Rule intact; (2) to increase 

the Department’s enforcement efforts of 

the 1978 Final Rule; (3) to apply the 

same affirmative action requirements set 

forth in this proposed rule to all 

sponsors, regardless of size; and (4) to 

rely solely on individuals participating 

in the National Registered 

Apprenticeship System to identify and 

report to Registration Agencies potential 

cases of discrimination based on race, 

color, religion, national origin, sex, 

sexual orientation, age (40 or older), 

genetic information, and disability. 

The Department conducted economic 

analyses of all five alternatives to better 

understand their costs and benefits and 

the implied tradeoffs (in terms of the 

costs and benefits that would be 

realized) relative to the proposed rule. 

Below is a discussion of each alternative 

along with an estimation of their costs 

and benefits. All costs and benefits use 

the 1978 Final Rule as the baseline for 

the analysis. Finally, we summarize the 

total costs and benefits of each proposed 

alternative. 

a. Propose the Policy Changes 

Contained in This NPRM 

The analysis presented above lays out 

the calculations of the benefits and costs 

of the proposed regulation. The 

proposed regulation offers a middle 

ground to spread the burden on the 

Department, SAAs, and the sponsors. It 

increases the responsibilities of the 

sponsors and provides more detailed 

methods to uphold a nondiscriminatory 

program. As calculated above, the 10- 

year monetized costs of this NPRM 

range from $105.44 million to $130.14 

million (with 7 and 3 percent 

discounting, respectively). The 10-year 

monetized benefits of this NPRM range 

from $4.21 million to $5.28 million 

(with 7 and 3 percent discounting, 

respectively). 

b. Take No Action 

This alternative yields no additional 

costs to society because it does not 

deviate from the baseline, that is, the 

1978 Final Rule. This alternative, 

however, also yields no additional 

benefits in terms of ensuring equal 

opportunities for women, minorities, 

individuals with disabilities, and those 

ages 40 or older. 

c. Increase Enforcement of Original 

Regulation 

This alternative maintains the original 

1978 Final Rule but increases the 

monitoring of apprenticeship programs. 

This alternative increases the burden on 

the SAAs and OA to enforce the equal 

opportunity standards. To determine the 

cost of this alternative, we assumed that 

the compliance reviews will occur at a 

50 percent rate, implying that sponsors 

would be evaluated by the Registration 

Agency (OA or SAAs) on a more 

frequent basis. 

To calculate the cost of this 

alternative, the Department assumed 

that each compliance review takes 40 

hours to complete. This estimate 

includes time for preparation, 

conducting the review, writing up the 

findings and guidance to sponsors, 

reviewing and approving the final 

documents to be provided to sponsors, 

and providing technical assistance, 

where appropriate. We multiplied the 

40 hours needed to complete a review 

by the increase in the annual number of 

reviews by 10 percent (2,301 = 23,014 

× 10% in 2015)) by the hourly 

compensation rate of an SAA human 

resource manager ($59.75) and by the 

hourly compensation rate of an OA 

human resource manager ($66.43).79 We 

also multiplied this number by 50 

percent, assuming that half of the 

sponsors would report to a SAA and 

half would report to OA. The cost of 

increased compliance reviews in the 

first year is $2.75 million for SAAs 

(23,014 × 50 percent × $59.75 × 40 × 10 

percent) and $3.06 million for OA 

(23,014 × 50 percent × $55.87 × 40 × 10 

percent).80 The 10-year costs for this 

alternative range from $62.0 million to 

$77.7 million (with 7 and 3 percent 

discounting, respectively). 

Exhibit 4 presents a summary of the 

monetized costs of this alternative 

option over the 10-year analysis period. 

Costs are presented as undiscounted 10- 

year totals, and as present values, using 

7 and 3 percent discount rates, 

respectively. 

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68944 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

EXHIBIT 4—COSTS OF INCREASING ENFORCEMENT

[$ millions] 

Year Costs Sponsors SAA OA 

2015 ................................................................................................................. $6 ........................ $2.75 $3.06 

2016 ................................................................................................................. 6.4 ........................ 3.01 3.34 

2017 ................................................................................................................. 7.0 ........................ 3.30 3.66 

2018 ................................................................................................................. 7.6 ........................ 3.62 4.02 

2019 ................................................................................................................. 8.4 ........................ 3.99 4.43 

2020 ................................................................................................................. 9.3 ........................ 4.41 4.90 

2021 ................................................................................................................. 10.3 ........................ 4.88 5.43 

2022 ................................................................................................................. 11.5 ........................ 5.43 6.03 

2023 ................................................................................................................. 12.8 ........................ 6.05 6.73 

2024 ................................................................................................................. 14.3 ........................ 6.77 7.53 

Undiscounted Total ................................................................................... 93.3 ........................ 44.20 49.14 

Total with 7% ..................................................................................... 62.0 

Total with 3% ..................................................................................... 77.7 

Increasing monitoring and evaluation 

of current efforts may not improve 

compliance, nor would it necessarily 

result in improved access to 

apprenticeship opportunities for all 

qualified applicants. 

d. Apply the Same Affirmative Action 

Policy to All Sponsors Regardless of 

Size 

The 1978 Final Rule and the proposed 

rule require that all sponsors with five 

or more apprenticeships maintain and 

update their AAPs. This alternative 

would apply the same AAP to all 

sponsors regardless of size. The 

Department believes that the 

incremental benefit of this action would 

be minimal compared to its incremental 

cost. This policy directly impacts the 

segment of the population that both 

qualifies as a small entity and also has 

few apprentices. We believe that the 

original 1978 Final Rule restriction of 

requiring only those sponsors with five 

or more apprentices to develop, 

maintain, and update their AAPs is an 

appropriate way to not 

disproportionately burden small 

entities. 

To calculate the cost and benefits of 

this alternative, the Department 

completed the same calculations 

conducted for the proposed rule but 

increased the number of sponsors who 

have to establish an AAP. This new 

calculation assumed that all sponsors 

must determine utilization rates and 

participate in targeted outreach and 

recruitment. This alternative increases 

the costs of the regulation, but we do 

not believe that it significantly increases 

the benefits because approximately 90 

percent of apprentices in OA programs 

are currently in the 25 percent of 

programs that employ 5 or more 

apprentices. 

Although the new utilization 

methodology saves sponsors time as 

compared to the provisions of the 1978 

Final Rule, expanding the requirements 

to all sponsors increases the compliance 

burden on those sponsors who have less 

than five apprentices. For this 

alternative, the new utilization 

methodology is now considered an 

increased burden on those sponsors 

who employ less than five apprentices. 

This new utilization methodology is, 

however, still considered a benefit to 

those sponsors who already had to set 

goals (those with five or more 

apprentices). 

Although this is the only benefit the 

Department quantifies, expanding the 

regulations to cover all sponsors should 

lead to marginal benefits to society. The 

Department requests data or information 

from the public on how greatly these 

benefits would increase, if the 

regulations were applied to all sponsors, 

as opposed to only sponsors with five or 

more apprentices. 

To calculate the costs associated with 

this alternative, we first calculated the 

cost for those sponsors with fewer than 

five apprentices to complete the 

utilization analysis. As discussed above, 

we assumed this process takes one hour 

of a human resource manager’s time at 

an hourly compensation rate of $68.55. 

We then multiplied this amount by 75 

percent (the assumed percentage of 

sponsors who have fewer than five 

apprentices) for a total of 17,260 (23,014 

× 75 percent) sponsors in the first year. 

The resulting cost in the first year is 

$1.18 million (1 × $68.55 × 17,260). We 

repeated this calculation for each of the 

remaining years in the analysis period 

using the estimated number of sponsors 

for each year, resulting in an average 

annual cost of $2.2 million. 

We next calculated the costs of 

expanding the requirements to all 

apprentices for the targeted outreach. 

The cost of targeted outreach and 

recruitment mirrors the cost above 

except that we no longer scale it by the 

25 percent of sponsors who need to set 

goals. We again assumed that each 

sponsor contacts three organizations; 

that a human resource manager would 

take 30 minutes (0.5 hours) to complete 

this task at an hourly compensation rate 

of $68.55; and that an administrative 

assistant would spend 30 minutes (0.5 

hours) at an hourly compensation rate of 

$22.28. We also multiply this total by 

the percent of sponsors reviewed each 

year by either the corresponding SAA or 

OA. The resulting cost in the third year 

after implementation of the rule is $0.69 

million. 

The remaining costs for this 

alternative are the same as was 

calculated above for the proposed 

regulation. The total 10-year costs of 

this alternative range from $126.55 

million to $157.45 million (with 7 

percent and 3 percent discounting, 

respectively). 

Sponsors of small apprenticeship 

programs are often quite small with few 

employees. Such sponsors would likely 

be overly burdened by the targeted 

outreach, recruitment, and retention 

requirements in proposed § 30.8. For 

example, they might not have the staff 

and resource capacity to adequately 

handle large numbers of applications for 

one or two apprenticeship positions. 

e. Rely on Individuals Participating in 

the National Registered Apprenticeship 

System To Identify and Report Potential 

Cases of Discrimination 

Under this alternative, individuals 

participating in the National Registered 

Apprenticeship System would be 

responsible for identifying and reporting 

to Registration Agencies potential cases 

of discrimination, in contrast to both the 

current and proposed part 30 regulatory 

structures, which require Registration 

Agencies to monitor and enforce the 

EEO and affirmative action obligations 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68945 

81According to the RAPIDS database’s FY2013 

Performance Score Card Report, the estimated 

average starting wage for apprentices that 

completed their programs was $15.02 and the 

estimated average exit wage for apprentices that 

completed their programs was $24.68. The average 

of these two wages ($15.02 and $24.68) is $19.85. 

via regular compliance reviews. This 

alternative reduces the burden on 

sponsors by relying on a complaintbased system. Under this alternative, 

apprentices’ rights for nondiscrimination would still be protected, 

but Registration Agencies would have a 

more passive role in how they monitor 

and evaluate program sponsors’ 

compliance with the regulations. OA 

and SAAs would still conduct 

compliance reviews (in proposed 

§ 30.11 and current § 30.9) but not as 

frequently. 

Under this alternative, to identify 

when discrimination may be occurring 

and whether sponsors are violating the 

non-discrimination and affirmative 

action requirements in the part 30 

regulations, the Registration Agencies 

would primarily rely on: (1) The 

complaints filed under proposed § 30.12 

and current § 30.11 and self-evaluations 

from sponsors, and (2) a process where 

sponsors conduct a self-evaluation and 

report back to the Registration Agency. 

Registration Agencies would provide 

sponsors with a format and process to 

conduct a self-evaluation relative to 

their compliance with these EEO 

regulations. Sponsors would then 

submit their self-evaluation to the 

Registration Agency for review and 

analysis. If the Registration Agency is 

satisfied with the findings from the selfevaluation, the sponsor would be 

informed accordingly, and no additional 

actions would be necessary at that time. 

If the Registration Agency’s review of 

sponsor’s self-evaluation identifies 

deficiencies, then the Registration 

Agency would conduct an on-site 

review and provide technical assistance 

as appropriate. 

These complaints and self-evaluations 

would serve as a ‘‘trigger’’ for 

Registration Agencies to adopt a more 

active role of visiting program sites to 

conduct compliance reviews and 

provide technical assistance, as 

appropriate. 

To estimate the cost of this 

alternative, the Department assumes 

that the SAA and OA reduce the 

number of compliance reviews by 20 

percent. To calculate this cost saving we 

multiplied the total number of active 

sponsors (23,014 in 2015) by the 

percentage decrease in reviews. This 

results in 4,603 fewer reviews in year 

2015. We then multiplied the total 

number of reviews by 50 percent 

assuming that the SAAs handle half the 

reviews and OA handles the remaining 

half. Finally, we multiplied the total 

reduction in reviews by each agency 

2,301 (0.5 × 4,603) by the hours needed 

to complete each review (40 hours) and 

by the human resource managers’ wages 

($59.75 and $66.43, for the SAAs and 

OA, respectively). The resulting cost 

savings in 2015 is $5.5 million (2,301 × 

$59.75 × 40) for SAAs and $6.12 million 

(2,301 × $66.43 × 40) for OA. This 

calculation was repeated for each year 

using the projected number of sponsors 

resulting in an average annual savings 

for the SAAs of $8.84 million and $9.83 

million for OA. 

To estimate the cost of completing the 

self-evaluations, the Department 

assumes that each sponsor completes 

one evaluation each year and that the 

sponsor will dedicate 8 hours to 

complete this review. We multiplied 

this labor time by the hourly 

compensation rate of a human resource 

manager ($66.43) and by the total 

number of sponsors (23,014). The cost to 

the sponsors is thus $12.23 million 

(23,014 × 1 × 8 × $66.43) in 2015. This 

calculation was repeated according to 

the projected number of sponsors each 

year, with an average annual cost of 

$16.0 million. 

The self-evaluations will then be 

reviewed by either the SAAs or OA. The 

Department calculates this burden by 

assuming that half of the evaluations are 

completed by the SAAs and the rest are 

completed by OA; thus each agency 

reviews 11,507 (23,014/2) evaluations 

each year. We multiplied the number of 

self-evaluations by the time needed to 

review the evaluation, 5 hours, and 

finally by the corresponding hourly 

compensation rates ($59.75 and $66.43 

for the SAAs and OA, respectively). The 

cost in 2015 is $3.44 million for the 

SAAs and $3.82 million for OA. This 

calculation was repeated according to 

the projected number of sponsors each 

year, with an average annual cost of 

$5.52 million for SAAs and $6.14 

million for OA. 

Lastly, the Department estimated the 

cost of completing and reviewing the 

individual complaints. The apprentices 

would be filling out these individual 

complaints and although the process 

existed in the 1978 final rule, the 

Department expects that through general 

outreach the number of complaints 

would increase by 100 per year. We 

assumed that each individual complaint 

takes 15 minutes to file (0.25 hours). We 

then multiplied the 0.25 hours by the 

compensation rate for an apprentice 

($19.85) 81 to estimate a labor cost of 

$4.96 and a total cost of $496 ($4.96 × 

100) each year of the analysis period. 

The Department again assumed that 

half of these complaints go to SAAs and 

half go to OA, or 50 complaints total for 

each agency. To calculate the cost, we 

multiplied the time needed to review 

each complaint (8 hours) by 50 

complaints and by the compensation 

rate for a human resource manager. The 

resulting cost in 2013 is $23,900 (50 × 

8 × $59.75) for the SAAs and $26,572 

(50 × 8 × $66.43) for OA. This 

calculation was repeated for the nine 

remaining years in the analysis period. 

This alternative also includes costs of 

reading and reviewing the NPRM 

totaling $3.16 million for sponsors and 

$2,988 for the SAAs, as calculated 

above. The complaint based alternative 

would range between $184.7 million 

and $230.7 million (with 7 and 3 

percent discounting, respectively). 

The Department believes that this 

approach to regulating discrimination 

and non-compliance with the part 30 

regulations would not adequately 

prevent discrimination and promote 

equal opportunity in apprenticeship 

programs. 

f. Summary of Alternatives 

Exhibit 5 below summarizes the 

monetized benefits, costs, and net 

present values for the alternatives 

discussed above. We again use discount 

rates of 3 and 7 percent, respectively, to 

estimate the benefits, costs, and net 

present values of the alternatives over 

the 10-year analysis period. 

EXHIBIT 5—SUMMARY OF ALTERNATIVES

[$ million over 2015–2024] 

Benefits Costs Net benefit 

(NPV) 

7-percent discount: 

No Action .............................................................................................................................. 0.00 0.00 0.00 

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68946 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

EXHIBIT 5—SUMMARY OF ALTERNATIVES—Continued 

[$ million over 2015–2024] 

Benefits Costs Net benefit 

(NPV) 

Policy Change NPRM ........................................................................................................... 4.21 107.70 ¥103.49 

Increased Enforcement ........................................................................................................ 0.00 62.00 ¥62.00 

Same policies regardless of size ......................................................................................... 4.21 125.63 ¥121.42 

Complaint-based ................................................................................................................... 124.01 211.41 ¥87.40 

3-percent discount: 

No Action .............................................................................................................................. 0.00 0.00 0.00 

Policy Change NPRM ........................................................................................................... 5.28 132.55 ¥127.27 

Increased Enforcement ........................................................................................................ 0.00 77.71 ¥77.71 

Same policies regardless of size ......................................................................................... 5.28 156.30 ¥151.02 

Complaint-based ................................................................................................................... 155.41 264.30 ¥18.89 

Note: Net present values may not subtract precisely due to rounding. 

Paperwork Reduction Act (PRA) 

As part of its continuing effort to 

reduce paperwork and respondent 

burden, the Department conducts a 

preclearance consultation program to 

provide the general public and Federal 

agencies with an opportunity to 

comment on proposed and continuing 

collections of information in accordance 

with the Paperwork Reduction Act of 

1995 (PRA), 44 U.S.C. 3506(c)(2)(A). 

This program helps to ensure that 

requested data can be provided in the 

desired format, reporting burden (time 

and financial resources) is minimized, 

collection instruments are clearly 

understood, and the impact of collection 

requirements on respondents can be 

properly assessed. 

The PRA typically requires an agency 

to provide notice and seek public 

comments on any proposed collection of 

information contained in a proposed 

rule. 44 U.S.C. 3506(c)(2)(B); 5 CFR 

1320.8. Persons are not required to 

respond to the information collection 

requirements as contained in this 

proposal unless and until they are 

approved by OMB under the PRA at the 

final rule stage. The Department has 

submitted the identified information 

collections associated with this NPRM 

to the OMB for review under the PRA. 

44 U.S.C. 3507(d); 5 CFR 1320.11. ETA 

will publish a notice of OMB’s action, 

when OMB makes a final determination 

on these information collections. 

Public Comments: The Department is 

soliciting comments concerning 

proposed changes to two information 

collection requests (ICRs) that are 

associated with proposed changes to 

part 30. OMB previously approved for 

these two ICRs: (1) OMB Control 

Number 1205–0223 for information 

collection required under part 29, Labor 

Standards for Registration of 

Apprenticeship Programs, and (2) OMB 

Control Number 1205–0224 for 

information collection required under 

part 30, Equal Employment Opportunity 

in Apprenticeship Training. Interested 

parties may obtain a copy of the ICRs by 

visiting the http://www.reginfo.gov/

public/do/PRAMain Web site, or by 

contacting the Office of Apprenticeship, 

200 Constitution Avenue NW., Room N– 

5311, Washington, DC 20210. 

Telephone: 202–693–2796; Fax: 202– 

693–3799. These are not toll-free 

numbers. 

The Department specifically seeks 

comments regarding the burdens 

imposed by information collection 

requests associated with this proposed 

rule. In particular, the Department seeks 

comments that evaluate whether the 

proposed collection of information is 

necessary for the proper performance of 

the functions of the agency, including 

whether the information will have 

practical utility; evaluate the accuracy 

of the agency’s estimate of the burden of 

the proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

enhance the quality, utility and clarity 

of the information to be collected; and 

minimize the burden of the collection of 

information on those who are to 

respond, including through the use of 

appropriate automated, electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology, e.g., permitting 

electronic submissions of responses. 

Comments about the information 

collections in this NPRM may be 

submitted to ETA by using the Federal 

eRulemaking portal at http://

www.regulations.gov (follow 

instructions for submission of 

comments). In addition to filing 

comments with ETA, interested parties 

may address comments about the 

paperwork implications of the proposed 

regulations to OMB. Comments to OMB 

should be directed to: Office of 

Information and Regulatory Affairs, 

Attention OMB Desk Officer for ETA, 

Office of Management and Budget, 

Room 10235, Washington, DC 20503. 

Telephone: 202–395–7316; Fax: 202– 

395–6974. These are not toll-free 

numbers. 

OMB requests that comments be 

received within 30 days of publication 

of the proposed revisions to the part 30 

regulations. Please note that comments 

submitted to both OMB and DOL are a 

matter of public record. 

Purpose, Use, and Burden Estimate. 

As previously explained, the part 30 

regulations already require 

apprenticeship program sponsors to 

provide for equal opportunity for 

participation in registered 

apprenticeship programs, and protect 

apprentices and applicants for 

apprenticeship from discrimination 

based on race, color, religion, national 

origin, and sex. In addition, the 

regulations require that sponsors of 

registered apprenticeship programs take 

affirmative action to provide equal 

opportunity in such programs. 

Under the PRA, information 

collections include Federal reporting, 

recordkeeping, and third-party discloser 

requirements. The existing regulations 

impose a number of approved 

information collection requirements that 

would be unchanged by this NRPM, 

except as discussed in this preamble. 

These include information collections 

related to registration requirements for 

apprenticeship programs and 

apprentices, including proper training 

safeguards; apprenticeship agreements 

and standards; and recognition 

requirements for SAAs. The Department 

obtains OMB approval for this 

information collection under Control 

Number 1205–0223 (current expiration 

date of June 30, 2018). 

The NPRM would also continue, 

except as discussed elsewhere in this 

preamble, requirements for a sponsor to 

document that the apprenticeship 

program conforms to equal opportunity 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68947 

standards required by these regulations, 

to maintain records necessary to 

determine compliance with this part 

(although the length of time required for 

recordkeeping maintenance has been 

shortened from five to three years), to 

provide all applicants and all 

apprentices written notice of complaint 

procedures; and to prepare written 

AAPs, if required. The NPRM would 

also continue, except as discussed 

elsewhere in the preamble, the 

requirements for SAAs to prepare State 

EEO plans conforming to these 

regulations, to maintain adequate 

records pertinent to compliance with 

these regulations, and to notify the 

Department of exemptions from these 

regulations granted to program 

sponsors. The Department clears this 

latter list of information collections with 

OMB under Control Number 1205–0224 

(current expiration date of May 31, 

2016). 

Recordkeeping requirements 

described in this NPRM modify 

previously approved requirements for 

registered apprenticeship program 

sponsors and apprentices to submit 

Apprenticeship Agreement Forms to OA 

or to the appropriate SAA. These 

Apprenticeship Agreement Forms 

include record-keeping information 

necessary for Registration Agencies to 

determine if apprenticeship program 

sponsors are complying with the 

affirmative steps to ensure nondiscrimination required under this 

NPRM. OMB approved these 

requirements for the ICR for 

Apprenticeship Agreement Form (ETA 

671) for use under 29 U.S.C. 50 and 29 

CFR 29.1 (OMB control number 1205– 

0223). Responses to this Apprenticeship 

Agreement Form are required to obtain 

or retain benefits as registered 

apprentices. Specifically, this NPRM 

would add age (40 or older), genetic 

information, sexual orientation, and 

disability to the list of bases upon which 

registered apprenticeship program 

sponsors must not discriminate. 

Therefore, the Department would 

revise ETA 671, the Apprenticeship 

Agreement Form, to provide for 

collection of information, on a voluntary 

basis, of an apprentice’s disability 

status. Such information would be 

collected on a separate tear-off sheet 

that could be maintained separately 

from the Apprenticeship Agreement 

Form and treated as confidential. The 

Department estimates that this 

modification to ETA 671 will not add 

any additional response time or cost 

burden. 

The Department has also determined 

that the proposed rule will not change 

the paperwork burdens for the first of 

the three information collections 

included in the ICR for part 30: ‘‘ETA 

9039, Compliant Form—Equal 

Employment Opportunity in 

Apprenticeship Programs.’’ As 

discussed above, the NPRM would add 

age (40 or older), genetic information, 

sexual orientation, and disability to the 

list of bases upon which registered 

apprenticeship program sponsors must 

not discriminate. The Complaint 

Form—Equal Employment Opportunity 

in Apprenticeship Programs (ETA 

9039), does not currently include 

disability status, genetic information, 

sexual orientation, and age (40 or older) 

as bases for discrimination. 

Therefore, the Department would 

revise ETA 9039 to enable complainants 

to file complaints about discrimination 

on the basis of age (40 or older), genetic 

information, sexual orientation, and 

disability. These additions would not 

add any new or additional time or cost 

burden to individuals who voluntarily 

choose to complete and file a complaint 

form regarding EEO in registered 

apprenticeship. Based on agency 

experience administering the National 

Registered Apprenticeship System, the 

Department assumes an annual rate of 

50 responses requiring 30 minutes (0.5 

hours) per response for a total annual 

burden of 25 hours for this information 

collection. Exhibit 6 below summarizes 

the burden hours for Complaint 

Forms—Equal Employment Opportunity 

in Apprenticeship Programs. 

EXHIBIT 6—INFORMATION COLLECTION FOR ETA 9039 COMPLAINT FORM—EQUAL OPPORTUNITY IN APPRENTICESHIP AND

TRAINING

Currently approved 

(Current § 30.11) 

Proposed rule 

(Proposed § 30.13) 

Total Respondents .................................................................. 50 ........................................................... 50. 

Frequency ............................................................................... One-time ................................................ One-time. 

Total Responses ..................................................................... 50 ........................................................... 50. 

Average Time Per Response .................................................. 0.5 hour ................................................. 0.5 hour. 

Total Burden Hours .......................................................... 25 ........................................................... 25. 

The NPRM would make some changes 

to the second information collection in 

the ICR for part 30 that pertains to 

SAAs. Responses to this information 

collection are required for the SAA to 

retain recognition status as a 

Registration Agency. The NPRM would 

carry forward the current part 30’s 

recordkeeping requirements for SAAs 

and would update these requirements to 

reflect the use of electronic 

recordkeeping, and the broadened scope 

of the regulation to provide for equal 

opportunity, nondiscrimination, and 

affirmative action for applicants or 

apprentices with disabilities. The 

proposed revisions would not change 

the hour and cost burden for SAAs’ 

recordkeeping requirements. Based on 

historical data for the National 

Registered Apprenticeship System, the 

Department estimates that the 25 SAAs 

will register approximately 11,700 new 

apprentices annually requiring about 5 

minutes (0.083 hours) per response. 

Therefore, the Department estimates the 

annual paperwork burden at 975 hours 

(0.083 hours × 11,700 responses = 975 

hours). As discussed above, the 

estimated number of responses would 

be lower than the estimates of 12,800 

new apprentices currently approved for 

this information collection under OMB 

Control Number 1205–0224. 

The proposed requirement for 

submission of a revised State EEO plan 

(proposed § 30.17) would create a onetime paperwork burden that is not 

included in the currently approved 

information collections under OMB 

Control Number 1205–0224. As 

discussed in the Executive Order 12866 

section of the preamble, the Department 

estimates that process of updating the 

State’s EEO plan for conformity with the 

requirements of the proposed rule will 

take a full year of effort (2,080 hours) to 

complete. The Department estimates a 

one-time burden of 52,000 hours for this 

information collection (2,080 hours × 25 

responses = 52,000 hours). 

Exhibit 7 below summarizes the 

burden hours for SAAs currently 

approved under OMB Control Number 

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68948 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

1205–0224, and displays the burden 

hours associated with the NPRM and 

with the estimates of reduced numbers 

of responses, as discussed above. SAAs’ 

responses to this information collection 

are required for the Agency to retain the 

Department’s recognition of the SAA as 

the Registration Agency for Federal 

purposes. 

EXHIBIT 7—INFORMATION COLLECTION FOR SAAS

Regulatory requirements Currently approved Proposed rule 

SAA records of apprentices .................................................... Current § 30.8 ........................................ Proposed § 30.17. 

Total Respondents ........................................................... 25 ........................................................... 25. 

Frequency ........................................................................ On Occasion .......................................... On Occasion. 

Total Responses .............................................................. 12,800 .................................................... 11,700. 

Average Time Per Response .......................................... 0.083 hours (5 minutes) ........................ 0.083 hours (5 minutes). 

Burden .............................................................................. 1,067 hours ............................................ 975 hours. 

State EEO Plan ....................................................................... Current § 30.15 ...................................... Proposed § 30.17. 

Total Respondents ........................................................... ................................................................ 25. 

Frequency ........................................................................ One-time ................................................ One-time. 

Total Responses .............................................................. ................................................................ 25. 

Average Time Per Response .......................................... 0 * ........................................................... 2,080 hours. 

Burden .............................................................................. Completed in 1978 ................................ 52,000. 

Total Burden Hours .................................................. 1,067 ...................................................... 52,975. 

* Last completed in 1978. 

The NPRM would change the burden 

hours associated with the third 

information collection for part 30, 

‘‘Obligations of apprenticeship program 

sponsors.’’ The burden hours for 

compliance with proposed revisions to 

equal opportunity standards (proposed 

§ 30.3, Equal opportunity standards 

applicable to all sponsors) would 

increase from the currently approved 

burden of one half-hour to 1.08 hours. 

This increase is necessary to account for 

universal outreach to a variety of 

recruitment sources, including 

organizations that serve individuals 

with disabilities, and the 0.08 burden 

hour required to post the equal 

opportunity pledge. 

The Department estimates that the 

NPRM would modify the distribution of 

burden hours for compliance with 

affirmative action provisions, which 

ultimately would reduce burden hour 

estimates for obligations of 

apprenticeship program sponsors. 

Under the currently approved 

paperwork burdens (OMB Control 

Number 1205–0224), the Department 

attributes a total of 3,380 burden hours 

for program sponsors obligations for 

affirmative action provisions in current 

§ 30.4, affirmative action (1 hour for 

each new sponsor with five or more 

apprentices = 180 hours); current § 30.5, 

selection procedures (0.5 hours for 

5,900 active apprenticeship program 

sponsors with five or more apprentices 

= 2,950 hours), and § current 30.6, 

existing list of eligibles and public 

notice (5 hours for 50 sponsors = 250 

hours). 

As discussed elsewhere in the 

preamble, the NPRM would delete the 

current § 30.6, existing list of eligibles 

and public notice, and would simplify 

the regulatory structure governing 

procedures for selecting apprentices 

(current § 30.5 and proposed § 30.10). 

Burden hours for affirmative action 

obligations in current § 30.5 and 30.6 

would be eliminated. 

For the proposed rule, the Department 

estimates five total burden hours for 

apprenticeship program sponsors’ 

affirmative action obligations in 

proposed §§ 30.4, 30.5, 30.6, 30.8, and 

30.9. These requirements would apply 

to program sponsors subject to proposed 

§ 30.4(b), the adoption of affirmative 

action programs. As discussed 

elsewhere in the preamble, proposed 

§ 30.4(d) carries forward existing 

exemptions from the requirement to 

conduct affirmative action programs. 

Burden hour estimates for these 

affirmative action obligations are: (1) 

One hour to develop, maintain, and 

update a written plan submitted to and 

approved by the Registration Agency 

within one year from the time of 

registration; (2) 0.5 hours for utilization 

analysis for race, sex, and ethnicity in 

proposed § 30.5; (3) 0.5 hours for 

establishment of utilization goals for 

race, sex, and ethnicity in proposed 

§ 30.6; (4) one hour for outreach, 

recruitment and retention for targeted 

groups in proposed § 30.8; and (5) one 

hour for targeted outreach, recruitment, 

and retention for individuals with 

disabilities in proposed § 30.8; and (6) 

one hour for the review of personnel 

processes (proposed § 30.9). 

Collection of Voluntary SelfIdentification of Disability Information: 

The system for voluntary selfidentification for individuals with 

disabilities is based on the one used by 

the Office of Federal Contractor 

Compliance Programs (OFCCP) (see 

OMB Control Number 1250–0005). 

Burden hour estimates for 

apprenticeship voluntary selfidentification for individuals with 

disabilities follow the reasoning that 

OFCCP developed for the Section 503 

rule. Similar estimates are described in 

the burden analysis and illustrated in 

Exhibit 8. 

The Department proposes to require 

sponsors to invite applicants to 

voluntarily self-identify as part of the 

apprenticeship application process if 

they are an individual with a disability 

at three stages: (1) Pre-offer: At the time 

they apply or are considered for 

apprenticeship; (2) Post-offer: After they 

are accepted into the apprenticeship 

program but before they begin; and, (3) 

After-Enrollment: Once they are 

enrolled in the program. 

The Department estimates that an 

applicant would take on average 5 

minutes to read and complete a program 

sponsor’s invitation to self-identify a 

disability. The Department estimates 

that there will be, on average, 10 

applicants per Registered 

Apprenticeship job listing, and an 

average of five job openings per year per 

sponsor. The pre-offer burden is 

estimated to be 95,508 hours (23,014 

sponsors × 10 applicants × 5 job 

openings per year × 5 minutes). The 

post-offer burden is estimated to be 

9,551 hours based on an average of 5 

applicants for the 5 job openings per 

sponsor per year (23,014 sponsors × 5 

applicants per year × 5 minutes). 

Likewise, the after-enrollment burden is 

estimated to be 9,551 hours based on an 

average of 5 apprentices employed in an 

average of 5 job openings per sponsor 

per year 23,014 sponsors × 5 new 

apprentices per year × 5 minutes). The 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68949 

Department also estimates that an 

administrative assistant will spend 30 

minutes per year to record and file the 

voluntary reporting of disability 

information related to this rule. This 

burden is estimated to be 11,507 hours 

(23,014 × 30 minutes). 

Exhibit 8 below summarizes the 

burden hours for obligations of 

apprenticeship program sponsors 

currently approved under OMB Control 

Number 1205–0224, and displays the 

burden hours associated with the 

NPRM. Responses for information 

collections regarding program sponsors’ 

obligation are required to obtain or 

retain benefits as registered 

apprenticeship program sponsors. 

EXHIBIT 8—INFORMATION COLLECTION FOR OBLIGATIONS OF APPRENTICESHIP PROGRAM SPONSORS

Regulatory requirements Currently approved Proposed rule 

Equal opportunity standards: .................................................. Current § 30.3 ........................................ Proposed § 30.3. 

Total Respondents ........................................................... New sponsors with five or fewer apprentices.860. 

Frequency ........................................................................ One-time ................................................ One-time. 

Total Responses .............................................................. 1,290 ...................................................... 860 *. 

Average Time Per Response .......................................... 0.5 hour ................................................. 1.08 hours. 

Burden .............................................................................. 645 hours ............................................... 929 hours. 

Affirmative action ..................................................................... Current § 30.4 ........................................ Proposed § 30.4 *. 

Total Respondents ........................................................... 180 ......................................................... 140. 

Frequency ........................................................................ One-time ................................................ One-time. 

Total Responses .............................................................. 180 ......................................................... 140 *. 

Average Time Per Response .......................................... 1 hour .................................................... 5 hours. 

Burden .............................................................................. 180 hours ............................................... 700 hours. 

Selection of apprentices .......................................................... Current § 30.3 ........................................ Proposed § 30.10. 

Total Respondents ........................................................... 5,900 ...................................................... 0. 

Frequency ........................................................................ One-time ................................................ 0. 

Total Responses .............................................................. 5,900 ...................................................... 0. 

Average Time Per Response .......................................... 0.5 hour ................................................. 0. 

Burden .............................................................................. 2,950 hours ............................................ 0. 

Existing list of eligibles and public notice ............................... Current § 30.6 ........................................ 0. 

Total Respondents ........................................................... 50 ........................................................... 0. 

Frequency ........................................................................ One-time ................................................ 0. 

Total Responses .............................................................. 50 ........................................................... 0. 

Average Time Per Response .......................................... 5 hours ................................................... 0.

Burden .............................................................................. 250 hours ............................................... 0. 

Recordkeeping of active apprentices ...................................... Current § 30.8 ........................................ Proposed § 30.11. 

Total Respondents ........................................................... 26,700 .................................................... 23,014. 

Frequency ........................................................................ One-time ................................................ One-time. 

Total Responses .............................................................. 26,700 .................................................... 23,014. 

Average Time Per Response .......................................... 0.0167 hour ........................................... 0.0167 hour. 

Burden .............................................................................. 445 hours ............................................... 384 hours. 

Voluntary Self-Identification of Disability Information 

Pre-Offer 

Total Respondents ........................................................... NA .......................................................... 23,014. 

Total Responses .............................................................. NA .......................................................... 10 applicants/job opening. 

Frequency ........................................................................ NA .......................................................... 5 job openings/year. 

Average Time Per Response .......................................... NA .......................................................... 5 minutes. 

Burden .............................................................................. NA .......................................................... 95,508 hours. 

Post-Offer 

Total Respondents ........................................................... NA .......................................................... 23,014. 

Total Responses .............................................................. NA .......................................................... 5 applicants/year. 

Frequency ........................................................................ NA .......................................................... Annually. 

Average Time Per Response .......................................... NA .......................................................... 5 minutes. 

Burden .............................................................................. NA .......................................................... 9,551 hours. 

After-Enrollment 

Total Respondents ........................................................... NA .......................................................... 23,014. 

Total Responses .............................................................. NA .......................................................... 5 new apprentices/year. 

Frequency ........................................................................ NA .......................................................... Annually. 

Average Time Per Response .......................................... NA .......................................................... 5 minutes. 

Burden .............................................................................. NA .......................................................... 9,551 hours. 

Sponsor Recordkeeping 

Total Respondents ........................................................... NA .......................................................... 23,014. 

Total Responses .............................................................. NA .......................................................... 23,014. 

Frequency ........................................................................ NA .......................................................... Annually. 

Average Time Per Response .......................................... NA .......................................................... 30 minutes. 

Burden .............................................................................. NA .......................................................... 11,507 hours. 

Total Burden Hours .................................................. 4,470 ...................................................... 128,130. 

* If sponsors are not exempt from § 30.4, then total six burden hours are associated with meeting the requirements of proposed §§ 30.5, 30.6, 

30.8, and 30.9. 

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68950 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

Exhibit 9 illustrates the total burden 

hour estimates for the three information 

collections in the ICR for part 30, as 

currently approved under OMB Control 

Number 1205–0224, and as proposed 

under the NPRM. 

EXHIBIT 9—BURDEN SUMMARY OF THREE INFORMATION COLLECTIONS FOR PART 30 

[OMB Control Number 1205–0224] 

Information collection Currently approved Proposed rule 

ETA 9039 Complaint Form—Equal Opportunity in Apprenticeship and Training (Exhibit 6) 

Total Respondents .................................................................. 50 ........................................................... 50. 

Total Responses ..................................................................... 50 ........................................................... 50. 

Burden ..................................................................................... 25 ........................................................... 25 hours. 

Information Collection for SAAs (Exhibit 7) 

Total Respondents .................................................................. 25 SAAs ................................................. 25 SAAs. 

Total Responses ..................................................................... 12,800 .................................................... 11,725. 

Aggregated Burden Hours ...................................................... 1,067 ...................................................... 52,975 *. 

Information Collection For Obligations of Apprenticeship Program Sponsors (Exhibit 8) 

Total Respondents .................................................................. 34,120 .................................................... 116,070. 

Total Responses ..................................................................... 34,120 .................................................... 47,088. 

Aggregated Burden ................................................................. 4,470 ...................................................... 128,130. 

Totals 

Total Respondents ........................................................... 26,778 .................................................... 116,145. 

Total Responses .............................................................. 46,970 .................................................... 58,863. 

Aggregated Burden Hours ............................................... 5,562 ...................................................... 181,130. 

* SAAs’ aggregated burden includes a one-time burden for the process of updating the State EEO plans necessary for conformity with the proposed rule. 

Executive Order 13132: Federalism 

The Department has reviewed this 

NPRM in accordance with Executive 

Order 13132 and found it may have 

Federalism implications, because it may 

have substantial direct effects on States 

and on the relationship between the 

Federal government and the States. 

Although matters of Federalism in the 

National Registered Apprenticeship 

System are primarily established 

through part 29, Labor Standards for 

Registration of Apprenticeship 

Programs, which establishes the 

requirements for the recognition of 

SAAs as Registration Agencies, the 

proposed revisions to part 30 also have 

direct effect on a State’s method of 

administering registered apprenticeship 

for Federal purposes. In particular, this 

NPRM requires an SAA that seeks to 

obtain or maintain recognition as the 

Registration Agency for Federal 

purposes, to submit a State EEO plan 

that demonstrates conformity of State 

apprenticeship law with revised part 30, 

and requires all program sponsors 

registered with the State for Federal 

purposes to comply with the State EEO 

plan. This NPRM also requires OA’s 

Administrator to provide written 

concurrence on any subsequent 

modifications to the State EEO plan, as 

provided in § 29.13(b)(9) of this title. 

The Department has determined that 

these requirements are essential to 

ensure that SAAs conform to the new 

requirements of part 30, as a 

precondition for recognition. 

In the development of this NPRM, the 

Department included several 

mechanisms for consultation with State 

officials. In 2010, OA conducted two 

listening sessions with members of the 

National Association of State and 

Territorial Apprenticeship Directors 

(NASTAD), the organization 

representing apprenticeship officials 

from the District of Columbia, 26 States, 

and three Territories, to request the 

members’ recommendations for 

updating part 30. Additionally, as 

discussed earlier in the preamble, OA 

gave consideration to recommendations 

from the ACA, whose membership 

includes representatives from NASTAD 

and the National Association of State 

Government Labor Officials (NAGLO). 

Finally, OA invited State officials to 

participate in a series of ‘‘town hall’’ 

meetings and a webinar conducted in 

spring 2010 to elicit the agency’s 

stakeholders’ recommendations for 

updating part 30. 

The recommendations that State 

apprenticeship officials provided 

through these consultations varied 

considerably as to their specificity and 

topics. However, the input received in 

consultations with State apprenticeship 

officials was similar to that generated in 

the sessions with other apprenticeship 

stakeholders. The shared themes 

included support for a progressive 

approach to enforcement; increased 

outreach efforts; focus on equal training 

for and retention of all apprentices; 

clarification of complaint procedures; 

and simplification of requirements for 

selection procedures. The Department 

considered all of these issues, and 

incorporated them into the proposed 

rule. 

Nevertheless, consistent with 

Executive Order 13132, the Department 

specifically solicits comments from 

State and local government officials on 

this proposed rule. 

Unfunded Mandates Reform Act of 1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (2 U.S.C. 1531– 

1538) establishes requirements for 

Federal agencies to assess the effects of 

their regulatory actions on State, local, 

and tribal governments, and on the 

private sector. This NPRM does not 

impose any Federal mandates on any 

State, local, or tribal governments, or the 

private sector, within the meaning of the 

Unfunded Mandates Reform Act of 

1995. 

Assessment of Federal Regulations and 

Policies on Families 

The Department certifies that this 

NPRM has been assessed according to 

section 654 of Public Law 105–277, 112 

Stat. 2681, for its effect on family wellbeing. The Department concludes that 

this NPRM will not adversely affect the 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68951 

82According to RAPIDS, the percent of programs 

(of all sizes) in the selected sectors were as follows: 

Construction, 40.2 percent; Manufacturing, 26.7 

percent; Service, 8.6 percent; Transportation and 

Communication, 7.3 percent; and Trade, 2.7 

percent. 

83RAPIDS includes a portion of all registered 

apprenticeship programs and apprentices 

nationwide because SAAs that are recognized by 

the Department of Labor to serve as the Registration 

Agency may choose, but are not required, to 

participate in RAPIDS. Therefore, RAPIDS includes 

individual level apprentice and apprenticeship 

program data for the 25 states in which OA is the 

Registration agency and 7 SAAs that participate in 

RAPIDS. Therefore, RAPIDS includes data from 32 

of the 50 states and the Department estimates that 

they represent 55 to 60 percent of all sponsors and 

50 to 55 percent of all apprentices. We assume that 

our data set is a good predictor of the population 

of apprenticeship programs nationwide. 

84When an industry breakdown uses multiple 

sector codes, we used the more specific NAICS 

code. Typically, the definition of the industry 

category centers on a particular sector (for example, 

Manufacturing) but it may also include some 

satellite industries. For example, Logging is the 

only industry in Agriculture, Forestry, Fishing, and 

Hunting (NAICS 11). Thus, including the entire 

sector would be a poor representation of the 

‘‘Manufacturing’’ industry category. 

85The included industry sectors are Arts, 

Entertainment and Recreation (NAICS 71); 

Accommodation (NAICS 721); Other Services 

(NAICS 81); Administrative and Support and Waste 

Management and Remediation Services (NAICS 56); 

Professional, Scientific, and Technical Services 

(NAICS 541); Rental and Leasing Services (NAICS 

532); Motion Picture and Video Production (NAICS 

512110); Dental Laboratories (NAICS 339116); 

Radio, Television and Other Electronic Stores 

(NAICS 44312); Educational Services (NAICS 611); 

and Health Care and Social Assistance (NAICS 62). 

well-being of the Nation’s families. 

Rather, it should have a positive effect 

by safeguarding the welfare of registered 

apprentices. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act of 

1980, as amended (RFA), requires 

agencies to review regulations for their 

impact on small businesses and 

consider less burdensome alternatives. 

When proposing regulations that will 

have a significant effect on a substantial 

number of small entities, the RFA 

requires agencies to prepare regulatory 

flexibility analyses, which describe the 

impact of the proposed rule on small 

entities, and make them available for 

public comment. 5 U.S.C. 603. If the 

rule is not expected to have a significant 

economic impact on a substantial 

number of small entities, the RFA 

allows an agency to certify this in lieu 

of preparing the analyses. 5 U.S.C. 605. 

For the reasons explained in this 

section, the Department believes this 

NPRM is not likely to have a significant 

economic impact on a substantial 

number of small entities and, therefore, 

a regulatory flexibility analysis is not 

required by the RFA. 

However, in the interest of 

transparency and to provide a full 

opportunity for public comment, we 

have prepared the following Initial 

Regulatory Flexibility Analysis to assess 

the impact of this proposed regulation 

on small entities, as defined by the 

applicable Small Business 

Administration (SBA) size standards. 

We specifically request comments on 

the following burden estimates, 

including the number of small entities 

affected by the requirements, and on 

alternatives that could reduce the 

burden on small entities. The Chief 

Counsel for Advocacy of the SBA was 

notified with a draft of this proposed 

rule upon submission of the proposed 

rule to OMB under Executive Order 

12866, as amended, ‘‘Regulatory 

Planning and Review.’’ 58 FR 51735, 67 

FR 9385, 72 FR 2763; 5 U.S.C. 603(a). 

1. Classes of Small Entities 

A small entity is one that is 

independently owned and operated and 

that is not dominant in its field of 

operation. 5 U.S.C. 601(3); 15 U.S.C. 

632. The definition of small entity 

varies from industry to industry to 

properly reflect industry size 

differences. 13 CFR 121.201. An agency 

must either use the SBA definition for 

a small entity or establish an alternative 

definition for the industry. Using SBA 

size standards, the Department has 

conducted a small entity impact 

analysis on small entities in the five 

industry categories with the most 

registered apprenticeship programs and 

for which data were available: 

Construction, Manufacturing, Service, 

Transportation and Communication, 

and Trade.82 These top five industry 

categories account for 86 percent of the 

total number of apprenticeship sponsors 

who had active apprenticeships during 

FY2009.83

One industry, Public Administration, 

made the initial top-five list but is not 

included in this analysis because no 

data on the revenue of small local 

jurisdictions were available. Local 

jurisdictions are classified as small 

when their population is less than 

50,000. 5 U.S.C. 601(5). The Department 

requests information from the public 

regarding possible sources of data or 

information on the number and 

revenues of small local jurisdictions 

sponsoring apprenticeship programs. 

Registered apprenticeship program 

sponsors may be employers, employer 

associations, industry associations, or 

labor management organizations and, 

thus, may represent businesses, 

multiple businesses, and not-for-profit 

organizations. The requirements of this 

NPRM, however, fall on the sponsor, 

and therefore we used sponsor data to 

create the industry breakdowns. The 

Department requests information from 

the public regarding possible sources of 

data or information on the number and 

revenues of not-for-profit organizations 

sponsoring apprenticeship programs. 

The Department has adopted the SBA 

small business size standard for each of 

the five industry categories. Since the 

industry categories include multiple 

NAICS sectors, some industry categories 

will reflect multiple SBA definitions. 

We accounted for industries included in 

each industry category. 

The ‘‘Construction’’ industry category 

follows NAICS exactly (NAICS 23) and, 

thus, we used the SBA definition of 

revenue less than or equal to $35.5 

million. 

The ‘‘Manufacturing’’ industry 

category includes the standard sector for 

Manufacturing (NAICS 31–33), but also 

covers Logging (NAICS 113310); Sand, 

Gravel, Clay, and Ceramic and 

Refractory Minerals Mining and 

Quarrying (NAICS 21232); and 

Newspaper, Periodical, Book, and 

Directory Publishers (NAICS 5111). The 

corresponding SBA small size standards 

are as follows: Manufacturing—500 

employees or less; Newspaper, 

Periodical, Book, and Directory 

Publishers—500 employees or less; 

Logging and Sand, Gravel, Clay, and 

Ceramic—revenue less than or equal to 

$7 million; and Refractory Minerals 

Mining and Quarrying—revenue less 

than or equal to $7 million.84

The ‘‘Service’’ industry category 

covers the largest number of NAICS 

sectors, subsectors, and industries.85

The majority of these industries use the 

SBA small business size standard of 

revenue of less than or equal to $7 

million, with the exception of Radio, 

Television, and Other Electronic Stores, 

which uses $9 million (the average 

across the industry codes); Motion 

Picture and Video Production, which 

uses $29.5 million; and Dental 

Laboratories, which uses 500 employees 

or less. 

The ‘‘Transportation and 

Communication’’ industry category 

includes transportation and 

warehousing (NAICS 48–49), Marinas 

(NAICS 713930), Other Nonhazardous 

Waste Treatment and Disposal (NAICS 

562219), Telecommunication (NAICS 

517), Radio and TV Broadcasting 

(NAICS 5151), and Utilities (NAICS 

221). The SBA size standard for these 

industries is revenue less than or equal 

to $7 million for Transportation and 

Warehousing, Marinas and 

Telecommunication; $12.5 million for 

Other Nonhazardous Waste Treatment 

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86Utilities are categorized as small when their 

total electric output does not exceed 4 million 

megawatt hours. Because we did not have readily 

available data on megawatt output, we set aside the 

Utilities subsector. 

87The SBA classifies small entities at the industry 

level but, because our analysis considers affected 

sectors, we incorporate the most common industry 

standard for each sector or subsector. 

88 43 FR 20760 (May 12, 1978) (requiring the 

inclusion of female apprentices in AAPs). 

89Source: 2007 County Business Patterns and 

2007 Economic Census. These figures originate 

from the average number of employees and average 

revenue by employee size for a business that 

qualifies as a small business based on the sectorspecific size standard. 

90See Small Business Association, A Guide for 

Government Agencies: How to Comply with the 

Regulatory Flexibility Act, 17–19 (June 2010), 

available at http://www.sba.gov/content/guidegovernment-agencies-how-comply-with-regulatoryflexibility-act-0 (last accessed Apr. 7, 2011). The 

Department has used the 1 percent threshold in 

previous regulations. 

91The ratio of annual costs to average annual 

revenue for small entities for the year 2010 is as 

follows: Construction, 0.12 percent; Manufacturing, 

0.03 percent; Service, 0.21 percent; Transportation/ 

Communication, 0.14 percent; and Trade, 0.09 

percent. 

92A large entity could have a single apprentice 

or a small entity could have multiple apprentices. 

93Because the number of apprentices does not 

directly correlate with the size of the sponsor, we 

are unable to account for this difference. To be 

conservative in its estimate of impacts, the 

Department assumed that the time to complete the 

review process is independent of the size of the 

entity and applied the same cost of this provision 

to entities regardless of their size. 

94The hourly compensation rate for an 

administrative assistant was calculated by 

multiplying the average hourly wage of $15.58 (as 

published by the Department’s OES survey, O*NET 

Online) by 1.43 to account for private-sector 

employee benefits (source: BLS). Thus, the hourly 

compensation rate for an administrative assistant is 

$22.28 ($15.58 × 1.43). 

and Disposal; and $10.5 million for 

Radio and TV Broadcasting.86

The ‘‘Trade’’ industry category 

includes Merchant Wholesalers, 

Nondurable Goods (NAICS 424) and 

Durable Goods (NAICS 423); Retail 

Trade (NAICS 44–45); Retail Bakeries 

(NAICS 311811); and Food Services and 

Drinking Places (NAICS 722). The 

associated SBA size standards are: 

Merchant Wholesalers, Nondurable 

Goods and Durable Goods—less than or 

equal to 100 employees, Retail Trade— 

revenue less than or equal to $7 million, 

Retail Bakeries—less than or equal to 

500 employees and Food Services and 

Drinking Places—revenue less than or 

equal to $7 million. 

SBA small business size standards are 

based on a comprehensive survey of 

industries, and are specific to each 

industry. Because each industry 

category covers multiple sectors, each 

category includes several criteria that 

can be used to identify small entities.87

To determine the average number of 

employees by small entity, the revenue 

per employee for a small entity, and the 

percent of entities that qualify as a small 

entity, we broke down the 2007 

Economic Census by these various 

sectors, subsectors, and industries. We 

made a calculation separately for each 

industry and then aggregated these 

values to obtain estimates for the top 

five industry categories. 

2. Impact on Small Entities 

The Department has estimated the 

incremental costs for small entities from 

the baseline of the 1978 Final Rule.88

This analysis reflects the incremental 

cost of this NPRM, as it adds to the 

requirements of the 1978 Final Rule. 

Using available data, we have estimated 

the costs of the following provisions: 

Posting of the equal opportunity pledge, 

disseminating information about 

apprenticeship opportunities through 

universal outreach and recruitment, 

selected sponsors disseminating 

information about apprenticeship 

opportunities through targeted outreach, 

and the time required to read and 

review the new regulatory requirements. 

To examine the impact of this 

proposed rule on small entities, we 

evaluated the impact of the incremental 

costs on a hypothetical small entity of 

average size. The total number of 

workers for the average small entity in 

the different sectors is as follows: 

Construction, 6.2; Manufacturing, 20.3, 

Service, 6.6; Transportation and 

Communication, 6.7; and Trade, 7.5.89

Using 2007 Economic Census data, we 

derived the annual revenues for small 

entities in each of the top five industry 

categories by multiplying the average 

number of workers by the average 

revenue per worker for each of the 

sectors. We estimated that small entities 

in the five sectors considered in this 

analysis have the following average 

annual revenues: Construction, $1.28 

million; Manufacturing, $4.31 million; 

Service, $0.72 million; Transportation 

and Communication, $1.05 million; and 

Trade, $1.72 million. 

A significant economic burden results 

when the total incremental annual cost 

as a percentage of total average annual 

revenue is equal to or exceeds 1 

percent.90 Because the estimated annual 

burden of the rule is less than 1 percent 

of the average annual revenue of each 

industry category, the rule is not 

expected to cause a significant 

economic impact to small entities.91

These entities include individual 

employers, groups of employers, labor 

management organizations, or industry 

associations that sponsor 

apprenticeships. 

A provision-by-provision analysis of 

the estimated small entity impacts of 

this NPRM is provided below. 

3. Impacts of NPRM Provisions 

The following sections present the 

impacts that this NPRM is estimated to 

have on small entities that sponsor 

apprentices. These include: Posting of 

the equal opportunity pledge, 

disseminating information about 

apprenticeship opportunities through 

universal outreach and recruitment to 

individuals with disabilities, 

disseminating information about 

apprenticeship opportunities through 

targeted outreach and recruitment, , and 

reading and reviewing the new 

regulatory requirements. 

The Department estimated the perentity cost for each one of these changes 

from the baseline, that is, the 1978 Final 

Rule. Because all the rule provisions 

will have a similar impact on entities 

across economic sectors, we calculated 

impacts to a representative single 

entity.92 As explained in detail below, 

the total impact amounts to 

approximately $436 per affected entity 

in the first year (and a somewhat 

smaller impact in subsequent years).93

The analysis covers a 10-year period 

(2015 through 2024) to ensure it 

captures costs that accrue over time. 

a. Posting of the Equal Opportunity 

Pledge 

This NPRM proposes to require 

sponsors to post their equal opportunity 

pledge at each individual sponsor 

location, including on bulletin boards 

and through electronic media (proposed 

§ 30.3(b)(2)). The 1978 Final Rule did 

not contain a requirement for posting 

the pledge. This proposed provision 

represents a cost to sponsors, and 

reflects the time needed to post the 

document as well as the cost of the 

materials. 

To estimate the labor cost of this 

provision, we assumed that it would 

take a sponsor 5 minutes (0.0833 hours), 

to post the pledge, and that this task 

would be performed by an 

administrative assistant at an average 

hourly compensation rate of $22. 28.94

We multiplied the time estimate for this 

provision by the average hourly 

compensation rate to obtain a total labor 

cost per sponsor of $1.85 ($22.28 × 

0.083). 

To estimate the materials cost, we 

assumed that the pledge is one page, 

and that the cost per page for 

photocopying is $0.15, resulting in a 

materials cost of $0.15 ($0.15 × 1) per 

sponsor. Summing the labor and 

materials costs results in an annual permstockstill on DSK4VPTVN1PROD with PROPOSALS2

Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68953 

95The hourly compensation rate for a human 

resource manager is calculated by multiplying the 

hourly wage of $47.94 (as published by the 

Department’s OES survey) by 1.43 to account for 

private-sector employee benefits (source: BLS). 

Thus, the average hourly compensation rate for a 

human resource manager is $68.55 ($47.94 × 1.43). 

The average hourly compensation rate for an 

administrative assistant is $22.28, as calculated 

above. 

96Total does not add up precisely due to 

rounding. 

97To estimate the range of costs for this 

provision, we calculated the labor cost per affected 

sponsor by multiplying the time required for the 

task by the hourly compensation rate for both a 

human resource manager ($68.55 × .25 = $17.14 for 

the low cost and $68.55 × 1.25 = $85.69 for the high 

cost) and an administrative assistant ($22.28 × .25 

= $5.57 for the low cost and $22.28 × 1.25 = $27.85 

for the high cost). We then multiplied the total persponsor labor cost by the five sites for which each 

sponsor is to provide outreach. This results in a 

total cost of $113.55 for the low time assumption 

(($17.14 + $5.57) × 5) and $567.70 for the high time 

assumption (($85.69 + $27.85) × 5) in 2015. 

98The 25 percent of sponsors who employ five or 

more apprenticeships was estimated from the 

RAPIDS data set maintained by the Department. 

entity cost of $2.00 ($1.85 + $0.15) due 

to this provision. 

b. Disseminate Information About 

Apprenticeship Opportunities Through 

Universal Outreach and Recruitment, 

Including to Individuals With 

Disabilities 

Under the 1978 Final Rule, sponsors 

are required to develop and maintain an 

affirmative action program, which 

requires, among other things, outreach 

and recruitment of women and 

minorities. This NPRM proposes that 

sponsors, in addition to contacting 

organizations that reach women and 

minorities, also contact organizations 

that serve individuals with disabilities. 

Sponsors would be required to develop 

a list of recruitment sources that would 

generate referrals from all demographic 

groups, including women, minorities, 

and individuals with disabilities, with 

contact information for each source. 

Further, sponsors would be required to 

notify these sources at least 30 days in 

advance of any apprenticeship 

opportunities. 

We assumed that the cost to sponsors 

to distribute the information about 

apprenticeship opportunities to 

organizations serving individuals with 

disabilities will be the labor cost. We 

also assumed that the labor for this 

provision will be performed by a human 

resource manager and an administrative 

assistant with average hourly 

compensation rates of $68.55 and 

$22.28, respectively.95

The Department estimated that this 

dissemination task will take 0.5 hours of 

a human resource manager’s time and 

0.5 hours of an administrative 

assistant’s time per targeted location. 

The cost of this provision per affected 

sponsor is, therefore, the time each staff 

member devotes to this task (0.5 hours 

for a human resource manager and 0.5 

hours for an administrative assistant) 

multiplied by their associated average 

hourly compensation rates. This 

calculation resulted in a total labor cost 

of $45.41 (($68.55 × 0.5) + ($22.28 × 

0.5)) per location. This total labor cost 

is then multiplied by the number of 

locations (5). The total per-entity cost 

for this provision for the first year is 

$227.05 ($45.41 × 5) for each entity.96

Because the universal outreach may 

involve several different types of 

activities, the Department included a 

sensitivity analysis on the total time 

allocated to universal outreach. 

Mirroring the sensitivity analysis 

calculation above in the Executive 

Order 12866 analysis, the Department 

estimated a low allocation of time (15 

minutes, or 0.25 hours) and a high 

allocation of time (1 hour and 15 

minutes, or 1.25 hours) for both the 

administrative assistant and the human 

resource manager. The resulting range of 

costs for the first year is $113.55 to 

$567.70.97 The Department requests 

data from the public on how the 

addition of universal outreach to 

organizations that serve individuals 

with disabilities is expected to impact 

small entities that sponsor apprentices. 

c. Disseminate Information About 

Apprenticeship Opportunities Through 

Targeted Outreach and Recruitment, 

Including to Individuals With 

Disabilities 

In addition to the normal outreach, 

recruitment, and retention activities 

required of all sponsors under proposed 

§ 30.3(b), the proposed rule would 

require a sponsor of an apprenticeship 

program, whose utilization analyses 

revealed underutilization of Hispanics 

or Latinos, women, or a particular racial 

minority group(s) and/or who has 

determined pursuant to proposed 

§ 30.7(f) that there are problem areas 

with respect to its outreach, 

recruitment, and retention activities of 

individuals with disabilities, to improve 

and revamp their targeted outreach, as 

discussed in proposed § 30.8. We 

assume that this additional outreach 

will happen in the same manner as the 

universal outreach discussed above. 

This additional outreach, recruitment, 

and retention would be required of 

sponsors who employ five or more 

apprentices and who are not effectively 

recruiting and retaining a particular 

underutilized group. We assume that 25 

percent of all sponsors currently employ 

five or more apprentices, and would 

thus be required to develop and 

maintain an affirmative action 

program.98 However, the Department 

recognizes that some sponsors may 

already be employing persons with 

disabilities as registered apprentices 

and, therefore, this analysis would be 

overestimating those who need to set 

goals. Unfortunately, there are no 

available data on the number of 

sponsors who are employing persons 

with disabilities as registered 

apprentices. As stated above in the 

discussions of proposed §§ 30.5 and 

30.6, the Department requests data or 

information from the public on the 

number of sponsors who currently 

employ persons with disabilities. 

For this analysis, we assumed that the 

25 percent of all sponsors employing 

five or more apprentices remains 

constant throughout the 10-year analysis 

period. In reality, this percentage will 

fluctuate as sponsors take on new 

apprentices and as apprentices complete 

their programs. We also expect that, 

over time, successful outreach will lead 

to more hiring of persons with 

disabilities and that sponsors will meet 

their recruitment goals and not be 

required to complete this additional 

outreach. 

We assumed that the cost to sponsors 

to distribute information about 

apprenticeship opportunities to 

organizations serving individuals with 

disabilities will be the labor cost. We 

also assumed that the labor for this 

provision will be performed by a human 

resource manager and an administrative 

assistant with average hourly 

compensation rates of $68.55 and 

$22.28, respectively. 

The Department estimated that this 

dissemination task will take 0.5 hours of 

a human resource manager’s time and 

0.5 hours of an administrative 

assistant’s time per targeted location. A 

sensitivity analysis for a range of time 

spent conducting targeted outreach to 

organizations that serve individuals 

with disabilities was conducted and is 

presented below. The cost of this 

provision per affected sponsor is, 

therefore, the time each staff member 

devotes to this task (0.5 hours for a 

human resource manager and 0.5 hours 

for an administrative assistant) 

multiplied by their associated average 

hourly compensation rates. This 

calculation results in a total labor cost 

of $45.41 (($68.55 × 0.5) + ($22.28 × 

0.5)) per location. This total labor cost 

is then multiplied by the number of 

locations (5) and by the number of 

sponsors who sponsor 5 or more 

apprentices (25 percent of the total 

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68954 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

number of sponsors, or 5,754 (23,014 × 

25 percent). 

Finally, we assume that this 

additional outreach will occur when 

those sponsors who underutilize 

persons with disabilities are identified 

by the Department through audits (10 

percent of the total number of sponsors). 

This calculation results in a total cost 

for this provision of approximately 

$238,506 annually. To estimate the cost 

of this provision per affected small 

entity, we divided this total by the 

estimated number of small entities 

(19,345), resulting in an average cost per 

small entity of $12.33 ($238,506/

19,345). We assume that this additional 

outreach will occur 3 years after the rule 

goes into effect. 

Because the targeted outreach may 

involve several different types of 

activities, the Department included a 

sensitivity analysis on the total time 

allocated to universal outreach. 

Mirroring the sensitivity analysis 

calculation above, the Department 

estimated a low allocation of time (15 

minutes, or 0.25 hours) and a high 

allocation of time (1 hour and 15 

minutes, or 1.25 hours) for the 

administrative assistant. The resulting 

range of costs annually is $6.17 to 

$30.83. The Department requests data 

from the public on how the targeted 

outreach to organizations that serve not 

only individuals with disabilities, but 

women and minorities is expected to 

impact small entities that sponsor 

apprenticeship programs. 

d. Reading and Reviewing the New 

Regulatory Requirements 

During the first year that this NPRM 

would be in effect, assuming that it 

becomes a final rule, sponsors would 

need to learn about the new regulatory 

requirements. We estimate this cost for 

a hypothetical small entity by 

multiplying the time required to read 

the new rule (4 hours) by the average 

hourly compensation rate of a human 

resources manager ($68.55, as calculated 

above). Thus, the resulting cost per 

small entity for this provision is $274.20 

($68.55 × 4). This cost occurs only in the 

year when the rule is published. 

e. Orientation and Periodic Information 

Sessions 

Proposed § 30.3(b)(2) requires each 

sponsor to conduct orientation and 

periodic information sessions for 

apprentices and journeyworkers who 

directly supervise apprentices, and 

other individuals connected with the 

administration or operation of the 

sponsor’s apprenticeship program to 

inform and remind such individuals of 

the sponsor’s equal employment 

opportunity policy with regard to 

apprenticeship. 

The Department estimated a sponsor 

in the first year (2015) will hold one 30 

minute regular orientation and periodic 

information sessions with on average 5 

apprentices ($18.59) and 5 

journeyworkers ($36.47). The 

Department estimated that a human 

resource manager ($68.55) would need 

to spend 4 hours to develop and prepare 

written materials for the session in the 

first year. The average annual cost over 

the 10-year analysis period per a small 

entity for this provision is $197.77. 

f. Invitation to Self-Identify as an 

Individual With a Disability 

Proposed § 30.11 requires sponsors, as 

part of their general duty to engage in 

affirmative action, to invite applicants 

for apprenticeship to voluntarily selfidentify as an individual with a 

disability protected by this part at three 

stages: (1) At the time they apply or are 

considered for apprenticeship; (2) after 

they are accepted into the 

apprenticeship program but before they 

begin their apprenticeship; and (3) once 

they are enrolled in the program. 

The Department estimated that a 

sponsor in the first year (2015) will need 

to develop a self-identification 

invitation, which must be separate from 

the application, for pre-offer, post-offer, 

and post-enrollment stages. The 

Department estimated that a human 

resource manager ($68.55) will spend 1 

hour to develop a self-identification 

invitation and estimated that an 

applicant ($18.59) would take on 

average 5 minutes (0.083 hour) to 

complete the invitation. The 

Department also estimated that there 

will be an average of 10 applicants per 

job listings for an average for on average 

5 listings per year. In addition, the 

Department estimated that an 

administrative assistant ($22.28) would 

spend 0.5 hour to record and keep 

invitations in a data analysis file. The 

average annual cost over the 10-year 

analysis period per a small entity for 

this provision is $117.67. 

4. Total Cost Burden for Small Entities 

The Department’s calculations 

indicate that for a hypothetical small 

entity in the top five industry categories 

the average annual cost of this proposed 

rule is $831.02 ($2 + $227.05 + $12.33 

+ $274.2 + $197.77 + $117.67) + 303 + 

118) The cost in the initial year is higher 

than the cost in subsequent years 

because the initial year includes the 

time to read and review the provisions 

of the new rule; costs change in the 

third year to reflect the additional 

recruitment but remain constant for the 

remaining years of the 10-year analysis 

period. Neither the entity size nor the 

entity sector impact the per-entity costs. 

The Department also calculated a 

range of costs to account for some of the 

uncertainty in the time needed to 

disseminate information to 

underutilized groups and the time 

needed for universal outreach. The 

Department’s calculations indicate that 

for a hypothetical small entity in the top 

five industry categories the annual 

average cost of this proposed rule is 

$831.02 over 2015–2024. 

The total cost impacts, as a percent of 

revenue, are all well below the 1 percent 

threshold for determining a significant 

economic impact. The estimated cost 

impacts to apprenticeship sponsors for 

the first year, as a percent of revenue, 

are as follows: Construction, 0.06 

percent; Manufacturing, 0.02 percent; 

Service, 0.1 percent; Transportation and 

Communication, 0.08 percent; and 

Trade, 0.05 percent. None of these 

impacts for the first year are close to 1 

percent of revenues, even if considering 

only the high cost estimates. 

Even if we measure the cost impacts, 

as a percent of revenue for the smallest 

of the small entities in each industry, 

they are still below the 1 percent 

threshold. Estimated number of 

sponsors classified as small entities is 

9,154, 6,059, 1,936, 1,613, and 507 for 

construction, manufacturing, service, 

transportation and communication, and 

trade industry, respectively. 

EXHIBIT 9—SUMMARY OF THE IMPACTS ON SMALL ENTITIES

Industry 

Average cost 

as a percent 

of average 

revenue 

(%) 

Affected 

small entities 

1. Construction ................................................................................................................................................. 0.06 9,154 

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EXHIBIT 9—SUMMARY OF THE IMPACTS ON SMALL ENTITIES—Continued 

Industry 

Average cost 

as a percent 

of average 

revenue 

(%) 

Affected 

small entities 

2. Manufacturing .............................................................................................................................................. 0.02 6,059 

3. Service ......................................................................................................................................................... 0.1 1,936 

4. Transportation and Communication ............................................................................................................ 0.08 1,613 

5. Trade ........................................................................................................................................................... 0.05 507 

Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

The Department has reviewed this 

proposed rule in accordance with 

Executive Order 13175 and has 

determined that it does not have ‘‘tribal 

implications.’’ This NPRM 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 NPRM has been drafted and 

reviewed in accordance with Executive 

Order 12988, Civil Justice Reform, and 

will not unduly burden the Federal 

court system. This NPRM 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. 

List of Subjects in 29 CFR part 30 

Administrative practice and 

procedure, Apprenticeship, 

Employment, Equal employment 

opportunity, Reporting and 

recordkeeping requirements, Training. 

Signed in Washington, DC. 

Portia Wu, 

Assistant Secretary, Employment and 

Training. 

For the reasons stated in the 

preamble, the Department of Labor 

proposes to amend 29 CFR parts 29 and 

30 as follows: 

PART 29—LABOR STANDARDS FOR 

THE REGISTRATION OF 

APPRENTICESHIP PROGRAMS 

■ 1. The authority citation for part 29 

continues to read as follows: 

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). 

■ 2. Amend § 29.5 by revising paragraph 

(b)(21) to read as follows: 

§ 29.5 Standards of apprenticeship. 

* * * * * 

(b) * * * 

(21) Compliance with 29 CFR part 30, 

including the equal opportunity pledge 

prescribed in 29 CFR 30.3(c); an 

affirmative action program complying 

with 29 CFR 30.4; and a method for the 

selection of apprentices complying with 

29 CFR 30.10, 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. 

* * * * * 

■ 3. Amend § 29.7 by revising paragraph 

(j) and adding paragraph (l) to read as 

follows: 

§ 29.7 Apprenticeship 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, sex, sexual 

orientation, age (40 or older), genetic 

information, or disability. 

* * * * * 

(l) A request for demographic data, 

including the apprentice’s race, sex, and 

ethnicity, and disability status. 

■ 4. Amend § 29.8 by revising paragraph 

(b)(1)(i) to read as follows: 

§ 29.8 Deregistration of a registered 

program. 

* * * * * 

(b) * * * 

(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 

but not 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. 

* * * * * 

■ 5. Amend § 29.14 by revising 

paragraph (a) to read as to read as 

follows: 

§ 29.14 Derecognition of State 

apprenticeship agencies. 

* * * * * 

(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 this part. 

* * * * * 

PART 30—EQUAL EMPLOYMENT 

OPPORTUNITY IN APPRENTICESHIP 

AND TRAINING 

■ 6. Revise part 30 to read as follows: 

PART 30—EQUAL EMPLOYMENT 

OPPORTUNITY IN APPRENTICESHIP 

Sec. 

30.1 Purpose, applicability, and 

relationship to other laws. 

30.2 Definitions. 

30.3 Equal opportunity standards 

applicable to all sponsors. 

30.4 Affirmative action programs. 

30.5 Utilization analysis for race, sex, and 

ethnicity. 

30.6 Establishment of utilization goals for 

race, sex, and ethnicity. 

30.7 Utilization goals for individuals with 

disabilities. 

30.8 Targeted outreach, recruitment, and 

retention. 

30.9 Review of personnel processes. 

30.10 Selection of apprentices. 

30.11 Invitation to self-identify as an 

individual with a disability. 

30.12 Recordkeeping. 

30.13 Equal employment opportunity 

compliance reviews. 

30.14 Complaints. 

30.15 Enforcement actions. 

30.16 Reinstatement of program 

registration. 

30.17 Intimidation and retaliation 

prohibited. 

30.18 State apprenticeship agencies. 

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1The definitions for the term ‘‘disability’’ and 

other terms relevant to defining disability and 

disability discrimination standards, including 

‘‘direct threat’’, ‘‘major life activities’’, ‘‘physical or 

mental impairment’’, ‘‘qualified applicant or 

apprentice’’, ‘‘reasonable accommodation’’, and 

‘‘undue hardship, are taken directly from title I of 

the Americans with Disabilities Act (ADA), as 

amended by the Americans with Disabilities Act 

Amendments Act (ADAAA) and from the Equal 

Employment Opportunity Commission’s regulations 

implementing the ADA at 29 CFR part 1630, to the 

extent that the ADAAA did not provide a 

definition. 

30.19 Exemptions. 

30.20 Effective date. 

Authority: Sec. 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, 3 CFR 1949–53 Comp. p. 1007. 

§ 30.1 Purpose, applicability, and 

relationship to other laws. 

(a) Purpose. The purpose of this part 

is to promote equal opportunity for 

apprentices and applicants for 

apprenticeship in registered 

apprenticeship programs by prohibiting 

discrimination based on race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, and disability. This part 

also prescribes affirmative action efforts 

sponsors must take to ensure equal 

opportunity for apprentices and 

applicants for apprenticeship. The 

regulations set forth the equal 

opportunity obligations of sponsors, the 

contents of affirmative action programs, 

procedures for the filing and processing 

of complaints, and enforcement 

procedures. These regulations also 

establish procedures for deregistration 

of an apprenticeship program in the 

event of noncompliance with this part 

and prescribe the equal opportunity 

requirements for recognition of State 

Apprenticeship Agencies (SAA) under 

part 29. 

(b) Applicability. This part applies to 

all sponsors of apprenticeship programs 

registered with either the U.S. 

Department of Labor or a recognized 

SAA. 

(c) Relationship to other laws. This 

part does not invalidate or limit the 

remedies, rights, and procedures under 

any Federal law or the law of any State 

or political subdivision of any State or 

jurisdiction that provides greater or 

equal protection for individuals based 

on race, color, religion, national origin, 

sex, sexual orientation, age (40 or older), 

genetic information, or disability than 

are afforded by this part. It may be a 

defense to a charge of a violation of this 

part that a challenged action is required 

or necessitated by another Federal law 

or regulation, or that another Federal 

law or regulation prohibits an action 

that would otherwise be required by this 

part. 

§ 30.2 Definitions. 

For the purpose of this part: 

Administrator means the 

Administrator of the Office of 

Apprenticeship, or any person 

specifically designated by the 

Administrator. 

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 of this title under 

standards of apprenticeship fulfilling 

the requirements of § 29.5 of this title. 

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. 

Department means the U.S. 

Department of Labor. 

Direct threat means a significant risk 

of substantial harm to the health or 

safety of the individual or others that 

cannot be eliminated or reduced by 

reasonable accommodation. The 

determination that an individual poses 

a ‘‘direct threat’’ must be based on an 

individualized assessment of the 

individual’s present ability to safely 

perform the essential functions of the 

job. This assessment must be based on 

a reasonable medical judgment that 

relies on the most current medical 

knowledge and/or on the best available 

objective evidence. In determining 

whether an individual would pose a 

direct threat, the factors to be 

considered include: 

(1) The duration of the risk; 

(2) The nature and severity of the 

potential harm; 

(3) The likelihood that the potential 

harm will occur; and 

(4) The imminence of the potential 

harm. 

Disability 1 means, with respect to an 

individual: 

(1) A physical or mental impairment 

that substantially limits one or more 

major life activities of such individual; 

(2) A record of such an impairment; 

or 

(3) Being regarded as having such an 

impairment. 

EEO means equal employment 

opportunity. 

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. 

Ethnicity, for purposes of 

recordkeeping and affirmative action, 

has the same meaning as under the 

Office of Management and Budget’s 

Standards for the Classification of 

Federal Data on Race and Ethnicity, 62 

FR 58782 (Oct. 30, 1997), or any 

successor standards. Ethnicity thus 

refers to the following designations: 

(1) Hispanic or Latino—A person of 

Cuban, Mexican, Puerto Rican, Cuban, 

South or Central American, or other 

Spanish culture or origin, regardless of 

race. 

(2) Not Hispanic or Latino 

Genetic information means: 

(1) Information about: 

(i) An individual’s genetic tests; 

(ii) The genetic tests of that 

individual’s family members; 

(iii) The manifestation of disease or 

disorder in family members of the 

individual (family medical history); 

(iv) An individual’s request for, or 

receipt of, genetic services, or the 

participation in clinical research that 

includes genetic services by the 

individual or a family member of the 

individual; or 

(v) The genetic information of a fetus 

carried by an individual or by a 

pregnant woman who is a family 

member of the individual and the 

genetic information of any embryo 

legally held by the individual or family 

member using an assisted reproductive 

technology. 

(2) Genetic information does not 

include information about the sex or age 

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2The definition of the term ‘‘genetic information’’ 

is taken directly from the Genetic Information 

Nondiscrimination Act of 2008 (GINA) at 42 U.S.C. 

2000ff(4) and the EEOC’s implementing regulations 

at 29 CFR 1635.3(c). 

of the individual, the sex or age of 

family members, or information about 

the race or ethnicity of the individual or 

family members that is not derived from 

a genetic test.2

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.) 

Major life activities include, but are 

not limited to: Caring for oneself, 

performing manual tasks, seeing, 

hearing, eating, sleeping, walking, 

standing, sitting, reaching, lifting, 

bending, speaking, breathing, learning, 

reading, concentrating, thinking, 

communicating, interacting with others, 

and working. A major life activity also 

includes the operation of a major bodily 

function, including but not limited to, 

functions of the immune system, special 

sense organs and skin; normal cell 

growth; and digestive, genitourinary, 

bowel, bladder, neurological, brain, 

respiratory, circulatory, cardiovascular, 

endocrine, hemic, lymphatic, 

musculoskeletal, and reproductive 

functions. The operation of a major 

bodily function includes the operation 

of an individual organ within a body 

system. 

Office of Apprenticeship (OA) means 

the office designated by the 

Employment and Training 

Administration of the U.S. Department 

of Labor to administer the National 

Registered Apprenticeship System or its 

successor organization. 

Physical or mental impairment 

means: 

(1) Any physiological disorder or 

condition, cosmetic disfigurement, or 

anatomical loss affecting one or more 

body systems, such as neurological, 

musculoskeletal, special sense organs, 

respiratory (including speech organs), 

cardiovascular, reproductive, digestive, 

genitourinary, immune, circulatory, 

hemic, lymphatic, skin, and endocrine; 

or 

(2) Any mental or psychological 

disorder, such as intellectual disability 

(formerly termed ‘‘mental retardation’’), 

organic brain syndrome, emotional or 

mental illness, and specific learning 

disabilities. 

Pre-apprenticeship program means a 

training model designed to assist 

individuals who do not currently 

possess the minimum requirements for 

selection into an apprenticeship 

program to meet the minimum selection 

criteria established in a program 

sponsor’s apprenticeship standards 

required under part 29. It involves a 

form of structured workplace education 

and training in which an employer, 

employer group, industry association, 

labor union, community-based 

organization, or educational institution 

collaborates to provide formal 

instruction that will introduce 

participants to the competencies, skills, 

and materials used in one or more 

apprenticeable occupations. It may also 

involve provision of supportive services 

such as transportation, child care, and 

income support to assist participants in 

the successful completion of the preapprenticeship program. 

Qualified applicant or apprentice is 

an individual who, with or without 

reasonable accommodation, can perform 

the essential functions of the 

apprenticeship program for which the 

individual applied or is enrolled. 

Race, for purposes of recordkeeping 

and affirmative action, has the same 

meaning as under the Office of 

Management and Budget’s Standards for 

the Classification of Federal Data on 

Race and Ethnicity, 62 FR 58782 (Oct. 

30, 1997), or any successor standards. 

Race thus refers to the following 

designations: 

(1) White—A person having origins in 

any of the original peoples of Europe, 

the Middle East, or North Africa. 

(2) Black or African American—A 

person having origins in any of the 

black racial groups of Africa. 

(3) Native Hawaiian or Other Pacific 

Islander—A person having origins in 

any of the peoples of Hawaii, Guam, 

Samoa, or other Pacific Islands. 

(4) Asian—A person having origins in 

any of the original peoples of the Far 

East, Southeast Asia, or the Indian 

Subcontinent including, for example, 

Cambodia, China, India, Japan, Korea, 

Malaysia, Pakistan, the Philippine 

Islands, Thailand, and Vietnam. 

(5) American Indian or Alaska 

Native—A person having origins in any 

of the original peoples of North and 

South America (including Central 

America), and who maintains tribal 

affiliation or community attachment. 

Reasonable accommodation (1) The 

term reasonable accommodation means: 

(i) Modifications or adjustments to a 

job application process that enable a 

qualified applicant with a disability to 

be considered for the position such 

qualified applicant desires; or 

(ii) Modifications or adjustments to 

the work environment, or to the manner 

or circumstances under which the 

position held or desired is customarily 

performed, that enable a qualified 

individual with a disability to perform 

the essential functions of that position; 

or 

(iii) Modifications or adjustments that 

enable a sponsor’s apprentice with a 

disability to enjoy equal benefits and 

privileges of apprenticeship as are 

enjoyed by its other similarly situated 

apprentices without disabilities. 

(2) Reasonable accommodation may 

include but is not limited to: 

(i) Making existing facilities used by 

apprentices readily accessible to and 

usable by individuals with disabilities; 

and 

(ii) Job restructuring; part-time or 

modified work schedules; reassignment 

to a vacant position; acquisition or 

modifications of equipment or devices; 

appropriate adjustment or modifications 

of examinations, training materials, or 

policies; the provision of qualified 

readers or interpreters; and other similar 

accommodations for individuals with 

disabilities. 

(3) To determine the appropriate 

reasonable accommodation it may be 

necessary for the sponsor to initiate an 

informal, interactive process with the 

qualified individual in need of the 

accommodation. This process should 

identify the precise limitations resulting 

from the disability and potential 

reasonable accommodations that could 

overcome those limitations. 

Registration Agency means the Office 

of Apprenticeship or a recognized SAA 

that has responsibility for registering 

apprenticeship programs and 

apprentices; providing technical 

assistance; conducting quality assurance 

assessments and reviews of registered 

apprenticeship programs for compliance 

with the requirements of part 29 and 

this part. 

Selection procedure means any 

measure, combination of measures, or 

procedure used as a basis for any 

decision in apprenticeship. Selection 

procedures include the full range of 

assessment techniques from traditional 

paper and pencil tests, performance 

tests, training programs, or probationary 

periods and physical, educational, and 

work experience requirements through 

informal or casual interviews and 

unscored application forms. 

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. 

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State Apprenticeship Agency (SAA) 

means an agency of a State government 

that has responsibility and 

accountability for apprenticeship within 

the State. Only an SAA may seek 

recognition from OA as an agency 

which has been properly constituted 

under an acceptable law or Executive 

Order (E.O.), and authorized by OA to 

register and oversee apprenticeship 

programs and agreements for Federal 

purposes. 

Undue hardship—(1) In general. 

Undue hardship means, with respect to 

the provision of an accommodation, 

significant difficulty or expense 

incurred by a sponsor, when considered 

in light of the factors set forth in 

paragraph (2) of this definition. 

(2) Factors to be considered. In 

determining whether an accommodation 

would impose an undue hardship on a 

sponsor, factors to be considered 

include: 

(i) The nature and net cost of the 

accommodation needed under this part, 

taking into consideration the availability 

of tax credits and deductions, and/or 

outside funding; 

(ii) The overall financial resources of 

the facility or facilities involved in the 

provision of the reasonable 

accommodation, the number of persons 

employed at such facility, and the effect 

on expenses and resources; 

(iii) The overall financial resources of 

the sponsor, the overall size of the 

registered apprenticeship program with 

respect to the number of apprentices, 

and the number, type and location of its 

facilities; 

(iv) The type of operation or 

operations of the sponsor, including the 

composition, structure and functions of 

the workforce of such entity, and the 

geographic separateness and 

administrative or fiscal relationship of 

the facility or facilities in question to 

the sponsor; and 

(v) The impact of the accommodation 

upon the operation of the facility, 

including the impact on the ability of 

other apprentices to perform their duties 

and the impact on the facility’s ability 

to conduct business. 

§ 30.3 Equal opportunity standards 

applicable to all sponsors. 

(a) Discrimination prohibited. (1) It is 

unlawful for a sponsor of a registered 

apprenticeship program to discriminate 

against an apprentice or applicant for 

apprenticeship on the basis of race, 

color, religion, national origin, sex, 

sexual orientation, age (40 or older), 

genetic information, or disability with 

regard to: 

(i) Recruitment, outreach, and 

selection procedures; 

(ii) Hiring, upgrading, periodic 

advancement, promotion, award of 

tenure, demotion, transfer, layoff, 

termination, right of return from layoff, 

and rehiring; 

(iii) Rotation among work processes; 

(iv) Imposition of penalties or other 

disciplinary action; 

(v) Rates of pay or any other form of 

compensation and changes in 

compensation; 

(vi) Conditions of work; 

(vii) Hours of work and hours of 

training provided; 

(viii) Job assignments; 

(ix) Leaves of absence, sick leave, or 

any other leave; and 

(x) Any other benefit, term, condition, 

or privilege associated with 

apprenticeship. 

(2) Discrimination standards and 

defenses—(i) Race, color, religion, 

national origin, sex, or sexual 

orientation. In implementing this 

section, the Registration Agency will 

apply the same legal standards and 

defenses as those applied under title VII 

of the Civil Rights Act of 1964, 42 U.S.C. 

2000e et seq., in determining whether a 

sponsor has engaged in an unlawful 

employment practice. 

(ii) Disability. With respect to 

discrimination based on a disability, the 

Registration Agency will apply the same 

standards, defenses, and exceptions to 

the definition of disability as those set 

forth in title I of the Americans with 

Disabilities Act (ADA), 42 U.S.C. 12112 

and 12113, and the implementing 

regulations promulgated by the Equal 

Employment Opportunity Commission 

(EEOC) at 29 CFR part 1630, which 

include, among other things, the 

standards governing reasonable 

accommodation, medical examinations 

and disability-related inquiries, 

qualification standards, and direct 

threat defense. The Interpretive 

Guidance on title I of the ADA set out 

as an appendix to part 1630 issued 

pursuant to title I may be relied upon 

for guidance in complying with the 

nondiscrimination requirements of this 

part with respect to the treatment of 

individuals with disabilities. 

(iii) Age. The Registration Agency will 

apply the same standards and defenses 

for age discrimination as those set forth 

in the Age Discrimination in 

Employment Act (ADEA), 29 U.S.C. 623, 

and the implementing regulations 

promulgated by the EEOC at 29 CFR 

part 1625. 

(iii) Genetic information. The 

Registration will apply the same 

standards and defenses for 

discrimination based on genetic 

information as those set forth in the 

Genetic Information Nondiscrimination 

Act (GINA), 29 U.S.C. 2000ff et seq., and 

the implementing regulations 

promulgated by the EEOC at 29 CFR 

part 1635. 

(b) General duty to engage in 

affirmative action. For each registered 

apprenticeship program, a sponsor is 

required to take affirmative steps to 

provide equal opportunity in 

apprenticeship. These steps must 

include: 

(1) Assignment of responsibility. The 

sponsor will designate an individual 

with appropriate authority under the 

program, such as an apprenticeship 

coordinator, to be responsible and 

accountable for overseeing its 

commitment to equal opportunity in 

registered apprenticeship, including the 

development and implementation of an 

affirmative action program as required 

by § 30.4. This individual must have the 

resources, support of, and access to the 

sponsor leadership to ensure effective 

implementation. This individual will be 

responsible for: 

(i) Monitoring all registered 

apprenticeship activity to ensure 

compliance with the nondiscrimination 

and affirmative action obligations 

required by this part; 

(ii) Maintaining records required 

under this part; and 

(iii) Generating and submitting reports 

as may be required by the Registration 

Agency. 

(2) Internal dissemination of equal 

opportunity policy. The sponsor must 

inform all applicants for apprenticeship, 

apprentices, and individuals who 

operate or administer any aspect of the 

registered apprenticeship program of its 

commitment to equal opportunity and 

its affirmative action obligations. In 

addition, the sponsor must require that 

individuals connected with the 

administration or operation of the 

apprenticeship program take the 

necessary action to aid the sponsor in 

meeting its nondiscrimination and 

affirmative action obligations under this 

part. A sponsor, at a minimum, is 

required to: 

(i) Publish its equal opportunity 

pledge required in paragraph (c) of this 

section in the apprenticeship standards 

required under § 29.5 of this title, and 

in appropriate publications, such as 

apprentice and employee handbooks, 

policy manuals, newsletters, and other 

appropriate publications; 

(ii) Post its equal opportunity pledge 

from paragraph (c) of this section on 

bulletin boards, including through 

electronic media, such that it is 

accessible to all apprentices and 

applicants for apprenticeship; 

(iii) Conduct orientation and periodic 

information sessions for apprentices, 

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journeyworkers who directly supervise 

apprentices, and other individuals 

connected with the administration or 

operation of the sponsor’s 

apprenticeship program to inform and 

remind such individuals of the 

sponsor’s equal employment 

opportunity policy with regard to 

apprenticeship; and 

(iv) Maintain records necessary to 

demonstrate compliance with these 

requirements and make them available 

to the Registration Agency upon request. 

(3) Universal outreach and 

recruitment. The sponsor will 

implement measures to ensure that its 

outreach and recruitment efforts for 

apprentices extend to all persons 

available for apprenticeship within the 

sponsor’s relevant recruitment area 

without regard to race, sex, ethnicity, or 

disability. In furtherance of this 

requirement, the sponsor must: 

(i) Develop and update annually a list 

of current recruitment sources that will 

generate referrals from all demographic 

groups within the relevant recruitment 

area. Examples of relevant recruitment 

sources include: The public workforce 

system’s One-Stop Career Centers and 

local workforce investment boards; 

community-based organizations; 

community colleges; vocational, career 

and technical schools; preapprenticeship programs; and Federallyfunded, youth job-training programs 

such as YouthBuild and Job Corps or 

their successors; 

(ii) Identify a contact person, mailing 

address, telephone number, and email 

address for each recruitment source; and 

(iii) Provide recruitment sources 

advance notice, preferably 30 days, of 

apprenticeship openings so that the 

recruitment sources can notify and refer 

candidates. Such notification must also 

include documentation of the sponsor’s 

equal opportunity pledge specified in 

paragraph (c) of this section. 

(4) Maintain workplace free from 

harassment, intimidation, and 

retaliation. The sponsor must develop 

and implement procedures to ensure 

that its apprentices are not harassed 

because of their race, color, religion, 

national origin, sex, sexual orientation, 

age (40 or older), genetic information, or 

disability and to ensure that its 

workplace is free from intimidation and 

retaliation as prohibited by § 30.16. To 

ensure an environment in which all 

apprentices feel safe, welcomed, and 

treated fairly, the sponsor must: 

(i) Communicate to all personnel that 

harassing conduct will not be tolerated; 

(ii) Provide anti-harassment training 

to all personnel; 

(iii) Make all facilities and 

apprenticeship activities available 

without regard to race, color, religion, 

national origin, sex, sexual orientation, 

age (40 or older), genetic information, or 

disability except that if the sponsor 

provides restrooms or changing 

facilities, the sponsor must provide 

separate or single-user restrooms and 

changing facilities to assure privacy 

between the sexes; 

(iv) Establish and implement 

procedures for handling and resolving 

complaints about harassment and 

intimidation based on race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, and disability. 

(5) Compliance with Federal and 

State equal employment opportunity 

laws. The sponsor (or where the sponsor 

is a joint apprenticeship committee, 

parties represented on such committee) 

must comply with all applicable Federal 

and State laws and regulations requiring 

equal employment opportunity without 

regard to race, color, religion, national 

origin, sex, sexual orientation, age (40 or 

older), genetic information, or disability. 

Failure to comply with such laws is 

grounds for deregistration or the 

imposition of other enforcement actions 

in accordance with § 30.14. 

(c) Equal opportunity pledge. Each 

sponsor of an apprenticeship program 

must include in its Standards of 

Apprenticeship and apprenticeship 

opportunity announcements the 

following equal opportunity pledge: 

[Name of sponsor] will not discriminate 

against apprenticeship applicants or 

apprentices based on race, color, religion, 

national origin, sex (including pregnancy and 

gender identity), sexual orientation, genetic 

information, or because they are an 

individual with a disability or a person 40 

years old or older. [Name of sponsor] will 

take affirmative action to provide equal 

opportunity in apprenticeship and will 

operate the apprenticeship program as 

required under Title 29 of the Code of 

Federal Regulations, part 30. 

The nondiscrimination bases listed in 

this pledge may be broadened to 

conform to consistent State and local 

requirements. Sponsors may include 

additional protected bases but may not 

exclude any of the bases protected by 

this part. 

§ 30.4 Affirmative action programs. 

(a) Definition and purpose. As used in 

this part: (1) An affirmative action 

program is designed to ensure equal 

opportunity and prevent discrimination 

in apprenticeship programs. An 

affirmative action program is more than 

mere passive nondiscrimination. Such a 

program requires the sponsor to take 

affirmative steps to encourage and 

promote equal opportunity, to create an 

environment free from discrimination, 

and to address any barriers to equal 

opportunity in apprenticeship. An 

affirmative action program is more than 

a paperwork exercise. It includes those 

policies, practices, and procedures, 

including self analyses, that the sponsor 

implements to ensure that all qualified 

applicants and apprentices are receiving 

an equal opportunity for recruitment, 

selection, advancement, retention and 

every other term and privilege 

associated with apprenticeship. An 

affirmative action program should be a 

part of the way the sponsor regularly 

conducts its apprenticeship program. 

(2) A central premise underlying 

affirmative action is that, absent 

discrimination, over time a sponsor’s 

apprenticeship program, generally, will 

reflect the sex, race, ethnicity, and 

disability profile of the labor pools from 

which the sponsor recruits and selects. 

Consistent with this premise, 

affirmative action programs contain a 

diagnostic component which includes 

quantitative analyses designed to 

evaluate the composition of the 

sponsor’s apprenticeship program and 

compare it to the composition of the 

relevant labor pools. If women, 

individuals with disabilities, or 

individuals from a particular minority 

group, for example, are not being 

admitted into apprenticeship at a rate to 

be expected given their availability in 

the relevant labor pool, the sponsor’s 

affirmative action program must include 

specific, practical steps designed to 

address any barriers to equal 

opportunity that may be contributing to 

this underutilization. 

(3) Effective affirmative action 

programs include internal auditing and 

reporting systems as a means of 

measuring the sponsor’s progress 

toward achieving an apprenticeship 

program that would be expected absent 

discrimination. 

(4) An affirmative action program also 

ensures equal opportunity in 

apprenticeship by incorporating the 

sponsor’s commitment to equality in 

every aspect of the apprenticeship 

program. Therefore, as part of its 

affirmative action program, a sponsor 

must monitor and examine its 

employment practices, policies and 

decisions and evaluate the impact such 

practices, policies and decisions have 

on the recruitment, selection and 

advancement of apprentices. It must 

evaluate the impact of its employment 

and personnel policies on minorities, 

women, and persons with disabilities, 

and revise such policies accordingly 

where such policies or practices are 

found to create a barrier to equal 

opportunity. 

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(5) The commitments contained in an 

affirmative action program are not 

intended and must not be used to 

discriminate against any qualified 

applicant or apprentice on the basis of 

race, color, religion, national origin, sex, 

sexual orientation, age (40 or older), 

genetic information, or disability. 

(b) Adoption of affirmative action 

programs. Sponsors other than those 

identified in paragraph (d) of this 

section must develop and maintain an 

affirmative action program, setting forth 

that program in a written plan in the 

timeframe provided by § 30.20 of this 

part. The written plan must be made 

available to the Registration Agency any 

time thereafter upon request. 

(c) Contents of affirmative action 

programs. An affirmative action 

program must include the following 

components in addition to those 

required of all sponsors by § 30.3(a): 

(1) Utilization analysis for race, sex, 

and ethnicity, as described in § 30.5; 

(2) Establishment of utilization goals 

for race, sex, and ethnicity, as described 

in § 30.6; 

(3) Utilization goals for individuals 

with disabilities, as described in § 30.7; 

(4) Targeted outreach, recruitment, 

and retention, as described in § 30.8; 

and 

(5) Review of personnel processes, as 

described in § 30.9 

(d) Exemptions—(1) Programs with 

fewer than five apprentices. A sponsor 

is exempt from the requirements of 

paragraph (b) of this section if the 

sponsor’s apprenticeship program has 

fewer than five apprentices registered, 

unless such program was adopted to 

circumvent the requirements of this 

section. 

(2) Programs subject to approved 

equal employment opportunity 

programs. A sponsor is exempt from the 

requirements of paragraph (b) of this 

section if the sponsor both submits to 

the Registration Agency satisfactory 

evidence that it is in compliance with 

an equal employment opportunity 

program providing for affirmative action 

in apprenticeship, including the use of 

goals for any underrepresented group or 

groups of individuals, which has been 

approved as meeting the requirements 

of either title VII of the Civil Rights Act 

of 1964, as amended (42 U.S.C. 2000e et 

seq.) and agrees to extend such program 

to include individuals with disabilities, 

or if the sponsor submits to the 

Registration Agency satisfactory 

evidence that it is in compliance with 

an equal employment opportunity 

program providing for affirmative action 

in apprenticeship, including the use of 

goals for any underrepresented group or 

groups of individuals, which has been 

approved as meeting the requirements 

of both Executive Order 11246, as 

amended, and section 503 of the 

Rehabilitation Act, as amended (29 

U.S.C. 793), and their implementing 

regulations at title 41 of the Code of 

Federal Regulations, chapter 60: 

Provided, That programs approved, 

modified or renewed subsequent to the 

effective date of this amendment will 

qualify for this exception only if the 

goals for any underrepresented group 

for the selection of apprentices provided 

for in such programs are equal to or 

greater than the goals required under 

this part. 

(e) Review of affirmative action 

programs. Sponsors are required to 

internally review all elements of their 

affirmative action programs on an 

annual basis. If, however, a sponsor’s 

annual review demonstrates that there is 

no underutilization in any industry 

within the sponsor’s program and that 

the sponsor’s review of its personnel 

practices, pursuant to § 30.9, did not 

indicate any necessary modifications, 

then the sponsor may wait two years to 

complete its next affirmative action 

program review. Qualifying for this 

extended review period does not change 

any other obligations set forth in these 

regulations. 

§ 30.5 Utilization analysis for race, sex, 

and ethnicity. 

(a) Purpose. The purpose of the 

utilization analysis is to provide 

sponsors with a method for assessing 

whether possible barriers to 

apprenticeship exist for particular 

groups of individuals by determining 

whether the race, sex, and ethnicity for 

apprentices in a sponsor’s 

apprenticeship program is reflective of 

persons available for apprenticeship by 

race, sex, and ethnicity in the relevant 

recruitment area. Where significant 

disparity exists between availability and 

representation in the sponsor’s 

apprenticeship program, the sponsor 

will be required to establish a utilization 

goal pursuant to § 30.6. 

(b) Analysis of apprenticeship 

program workforce. Sponsors must 

analyze the racial, sex, and ethnic 

composition of their apprentice 

workforce. This is a two-step process. 

First, each sponsor must group all 

occupational titles represented in its 

registered apprenticeship program by 

industry. Next, for each industry 

represented, the sponsor must identify 

the race, sex, and ethnicity of its 

apprentices within that industry. 

(c) Availability analysis—(1) Purpose. 

The purpose of the availability analysis 

is to establish a benchmark against 

which the demographic composition of 

the sponsor’s apprenticeship program 

can be compared in order to determine 

whether barriers to equal opportunity 

may exist with regard to the sponsor’s 

apprenticeship program. 

(2) Availability is an estimate of the 

number of qualified individuals 

available for apprenticeship by race, 

sex, and ethnicity expressed as a 

percentage of all qualified persons 

available for apprenticeship in the 

sponsor’s relevant recruitment area. 

(3) In determining availability, the 

sponsor must consider at least the 

following factors for each occupational 

title represented in the sponsor’s 

registered apprenticeship program 

standards: 

(i) The percentage of individuals 

available with the present or potential 

capacity for apprenticeship in the 

sponsor’s relevant recruitment area 

broken down by race, sex, and ethnicity; 

and 

(ii) The percentage of the sponsor’s 

employees with the present or potential 

capacity for apprenticeship broken 

down by race, sex, and ethnicity. 

(4) In determining availability, the 

relevant recruitment area is defined as 

the geographical area from which the 

sponsor usually seeks or reasonably 

could seek apprentices. The sponsor 

must identify the relevant recruitment 

area in its written affirmative action 

plan (AAP). The sponsor may not draw 

its relevant recruitment area in such a 

way as to have the effect of excluding 

individuals based on race, sex, or 

ethnicity from consideration, and must 

develop a brief rationale for selection of 

that recruitment area. 

(5) The sponsor must use the most 

current and discrete statistical 

information available to derive 

availability figures. The sponsor should 

consult the Bureau of Labor Statistics’ 

Occupational Handbook to confirm the 

educational background required for the 

particular occupation. The sponsor 

should then consult sources such as the 

American Community Survey for data 

on the size of the eligible population in 

the relevant recruitment area with the 

appropriate educational attainment for 

entrance into the apprenticeship 

program. Examples of such data include 

but are not limited to data from the 

Census Bureau’s American Community 

Survey; the Census Bureau’s EEO Data 

Tool currently available at http://www.

census.gov/people/eeotabulation/data/

eeotables20062010.html; the Census 

Bureau’s Quick Facts tables currently 

available at http://quickfacts.census.gov; 

labor market information data from 

State workforce agencies; data from 

vocational education schools, secondary 

and post-secondary school or other 

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career and employment training 

institutions; educational attainment data 

from the Census Bureau; and for 

sponsors of registered apprenticeship 

programs in the construction industry, 

any data provided by the Department’s 

Office of Federal Contract Compliance 

Program (OFCCP) through their 

regulations at 41 CFR part 60–4, 

Construction Contractors—Affirmative 

Action Requirements or otherwise. 

(d) Rate of utilization. Based on the 

apprentice workforce analysis 

performed in paragraph (b) of this 

section and the availability analysis 

performed in paragraph (c) of this 

section, when the sponsor’s utilization 

of women, Hispanics or Latinos, or a 

particular racial minority group in its 

apprenticeship program is less than 

would be reasonably expected given the 

availability of such individuals for 

apprenticeship, the sponsor must 

establish a utilization goal for the 

affected group in accordance with the 

procedures set forth in § 30.6. Sponsors 

are not required or expected to establish 

goals where no disparity in utilization 

rates has been found. 

§ 30.6 Establishment of utilization goals 

for race, sex, and ethnicity. 

(a) Where, pursuant to § 30.5, a 

sponsor is required to establish a 

utilization goal for a particular group in 

its apprenticeship program, the sponsor 

must establish a percentage goal at least 

equal to the availability figure derived 

under § 30.5(c). 

(b) A sponsor’s determination under 

§ 30.5 that a utilization goal is required 

constitutes neither a finding nor an 

admission of discrimination. 

(c) Utilization goals serve as 

objectives or targets reasonably 

attainable by means of applying every 

good faith effort to make all aspects of 

the entire affirmative action program 

work. Utilization goals are used to 

measure the effectiveness of the 

sponsor’s outreach, recruitment, and 

retention efforts. 

(d) In establishing utilization goals, 

the following principles apply: 

(1) Utilization goals may not be rigid 

and inflexible quotas, which must be 

met, nor are they to be considered either 

a ceiling or a floor for the selection of 

particular groups as apprentices. Quotas 

are expressly forbidden. 

(2) Utilization goals may not provide 

a sponsor with a justification to extend 

a preference to any individual, select an 

individual, or adversely affect an 

individual’s status as an apprentice, on 

the basis of that person’s race, sex, or 

ethnicity. 

(3) Utilization goals do not create setasides for specific groups, nor are they 

intended to achieve proportional 

representation or equal results; rather 

they are intended to assist with 

identifying the existence of barriers to 

equal opportunity. 

(4) Utilization goals may not be used 

to supersede eligibility requirements for 

apprenticeship. Affirmative action 

programs prescribed by the regulations 

of this part do not require sponsors to 

select a person who lacks qualifications 

to participate in the apprenticeship 

program successfully, or select a lessqualified person in preference to a more 

qualified one. 

§ 30.7 Utilization goals for individuals with 

disabilities. 

(a) Utilization goal. The Administrator 

of OA has established a utilization goal 

of 7 percent for employment of qualified 

individuals with disabilities as 

apprentices for each industry within 

which the sponsor has an 

apprenticeship program. 

(b) Purpose. The purpose of the 

utilization goal established in paragraph 

(a) of this section is to establish a 

benchmark against which the sponsor 

must measure the representation of 

individuals with disabilities in the 

sponsor’s apprentice workforce by 

industry in order to assess whether any 

barriers to equal opportunity in 

apprenticeship remain. The goal serves 

as an equal opportunity objective that 

should be attainable by complying with 

all of the affirmative action 

requirements of this part. 

(c) Periodic review of goal. The 

Administrator of OA will periodically 

review and update, as appropriate, the 

utilization goal established in paragraph 

(a) of this section. 

(d) Utilization analysis—(1) Purpose. 

The utilization analysis is designed to 

evaluate the representation of 

individuals with disabilities in the 

sponsor’s apprentice workforce grouped 

by industry. If individuals with 

disabilities are represented in the 

sponsor’s apprentice workforce in any 

given industry at a rate less than the 

utilization goal, the sponsor must take 

specific measures to address this 

disparity. 

(2) Apprentice workforce analysis. 

Sponsors are required to analyze the 

representation of individuals with 

disabilities within their apprentice 

workforce by industry. This is a twostep process. First, as required in § 30.5, 

each sponsor must group all 

occupational titles represented in its 

registered apprenticeship program by 

industry. Next, for each industry 

represented, the sponsor must identify 

the number of apprentices with 

disabilities. 

(3) Schedule of evaluation. The 

sponsor must evaluate its utilization of 

apprentices with disabilities in each 

group identified in paragraph (d)(2) of 

this section annually, or biannually if it 

meets the conditions for biannual 

review set forth in § 30.4(e) of this part. 

(e) Identification of problem areas. 

When the percentage of individuals 

with disabilities in one or more 

industries within which a sponsor has 

apprentices is less than the utilization 

goal established in paragraph (a) of this 

section, the sponsor must take steps to 

determine whether and where 

impediments to equal opportunity exist. 

When making this determination, the 

sponsor must look at the results of its 

assessment of personnel processes and 

the effectiveness of its outreach and 

recruitment efforts required by § 30.9. 

(f) Action-oriented programs. The 

sponsor must undertake action oriented 

programs, including targeted outreach, 

recruitment, and retention activities 

identified in § 30.8, designed to correct 

any problem areas that the sponsor 

identified pursuant to its review of 

personnel processes and outreach and 

recruitment efforts. 

(g) A sponsor’s determination that it 

has not attained the utilization goal 

established in paragraph (a) of this 

section in one or more industry groups 

does not constitute either a finding or 

admission of discrimination in violation 

of this part. 

(h) The utilization goal established in 

paragraph (a) of this section must not be 

used as a quota or ceiling that limits or 

restricts the employment of individuals 

with disabilities as apprentices. 

§ 30.8 Targeted outreach, recruitment, and 

retention. 

(a) Minimum activities required. 

Where a sponsor has found 

underutilization and established a 

utilization goal for a specific group or 

groups pursuant to § 30.6, and/or where 

a sponsor has determined pursuant to 

§ 30.7(f) that there are problem areas 

with respect to its outreach, 

recruitment, and retention activities for 

individuals with disabilities, the 

sponsor must undertake targeted 

outreach, recruitment, and retention 

activities that are likely to generate an 

increase in applications for 

apprenticeship from and improve 

retention of apprentices from the 

targeted group or groups and/or from 

individuals with disabilities, as 

appropriate. In furtherance of this 

requirement, the sponsor must: 

(1) Set forth in its written AAP the 

specific targeted outreach, recruitment, 

and retention activities it plans to take 

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for the upcoming program year. Such 

activities must include at a minimum: 

(i) Dissemination of information to 

community-based organizations, local 

high schools, local community colleges, 

local vocational, career and technical 

schools, and other groups serving the 

underutilized group regarding the 

nature of apprenticeship, requirements 

for selection for apprenticeship, 

availability of apprenticeship 

opportunities, and the equal 

opportunity pledge of the sponsor; 

(ii) Advertising openings for 

apprenticeship opportunities by 

publishing advertisements in 

newspapers and other media, electronic 

or otherwise, which have wide 

circulation in the relevant recruitment 

areas; 

(iii) Cooperation with local school 

boards and vocational education 

systems to develop and/or establish 

relationships with pre-apprenticeship 

programs targeting students from the 

underutilized group to prepare them to 

meet the standards and criteria required 

to qualify for entry into apprenticeship 

programs; and 

(iv) Establishment of linkage 

agreements enlisting the assistance and 

support of pre-apprenticeship programs, 

community-based organizations and 

advocacy organizations in recruiting 

qualified individuals for apprenticeship 

and in developing pre-apprenticeship 

programs.; 

(2) Evaluate and document after every 

selection cycle for registering 

apprentices the overall effectiveness of 

such activities; 

(3) Refine its targeted outreach, 

recruitment, and retention activities as 

needed; and 

(4) Maintain records of its targeted 

outreach, recruitment, and retention 

activities and records related to its 

evaluation of these activities. 

(b) Other activities. In addition to the 

activities set forth in paragraph (a) of 

this section, as a matter of best practice, 

sponsors are encouraged but not 

required to consider other outreach, 

recruitment, and retention activities that 

may assist sponsors in addressing any 

barriers to equal opportunity in 

apprenticeship. Such activities include 

but are not limited to: 

(1) Enlisting the use of 

journeyworkers from the underutilized 

group or groups to assist in the 

implementation of the sponsor’s 

affirmative action program; 

(2) Enlisting the use of 

journeyworkers from the underutilized 

group or groups to mentor apprentices 

and to assist with the sponsor’s targeted 

outreach and recruitment activities; and 

(3) Conducting exit interviews of each 

apprentice who leaves the sponsor’s 

apprenticeship program prior to 

receiving a certificate of completion to 

understand better why the apprentice is 

leaving the program and to help shape 

the sponsor’s retention activities. 

§ 30.9 Review of personnel processes. 

(a) As part of its affirmative action 

program, the sponsor must, for each 

registered apprenticeship program, 

engage in an annual review of its 

personnel processes related to the 

administration of the apprenticeship 

program to ensure that the sponsor is 

operating an apprenticeship program 

free from discrimination based on race, 

color, religion, national origin, sex, 

sexual orientation, age (40 or older), 

genetic information, and disability. The 

review must be a careful, thorough, and 

systematic one and include review of all 

aspects of the apprenticeship program, 

including but not limited to the 

qualifications for apprenticeship, 

application and selection procedures, 

wages, outreach and recruitment 

activities, advancement opportunities, 

promotions, work assignments, job 

performance, rotations among all work 

processes of the occupation, 

disciplinary actions, handling of 

requests for reasonable 

accommodations, and the program’s 

accessibility to individuals with 

disabilities (including to the use of 

information and communication 

technology). The sponsor must make 

any necessary modifications to its 

program to ensure that its obligations 

under this part are met. 

(b) The sponsor must include a 

description of its review in its written 

AAP and identify in the written plan 

any modifications made or to be made 

to the program as a result of its review. 

§ 30.10 Selection of apprentices. 

(a) A sponsor’s procedures for 

selection of apprentices must be 

included in the written plan for 

Standards of Apprenticeship submitted 

to and approved by the Registration 

Agency, as required under § 29.5 of this 

title. 

(b) Sponsors may utilize any method 

for selection of apprentices, provided 

that the selection method used meets 

the following requirements: 

(1) The use of the selection procedure 

must comply with the Uniform 

Guidelines on Employee Selection 

Procedures (UGESP) (41 CFR part 60–3), 

including the requirements to evaluate 

the impact of the selection procedure on 

race, sex, and ethnic groups (Hispanic 

or Latino/non-Hispanic or Latino) and 

to demonstrate job-relatedness and 

business necessity for those procedures 

that result in adverse impact in 

accordance with the requirements of 

UGESP. 

(2) The selection procedure must be 

uniformly and consistently applied to 

all applicants and apprentices. 

(3) The selection procedure must 

comply with title I of the ADA and 

EEOC’s implementing regulations at 

part 1630. This procedure must not 

screen out or tend to screen out an 

individual with a disability or a class of 

individuals with disabilities, on the 

basis of disability, unless the standard, 

test or other selection criteria, as used 

by the program sponsor, is shown to be 

job-related for the position in question 

and is consistent with business 

necessity. 

(4) The selection procedure must be 

facially neutral in terms of race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, and disability. 

§ 30.11 Invitation to self-identify as an 

individual with a disability—(a) Pre-offer. 

(1) As part of the sponsor’s general 

duty to engage in affirmative action, the 

sponsor must invite applicants for 

apprenticeship to inform the sponsor 

whether the applicant believes that that 

he or she is an individual with a 

disability as defined in § 30.2. This 

invitation must be provided to each 

applicant when the applicant applies or 

is considered for apprenticeship. The 

invitation may be included with the 

application materials for 

apprenticeship, but must be separate 

from the application. 

(2) The sponsor must invite an 

applicant to self-identify as required in 

paragraph (a) of this section using the 

language and manner prescribed by the 

Administrator and published on the OA 

Web site. 

(b) Post offer. (1) At any time after 

acceptance into the apprenticeship 

program, but before the applicant begins 

his or her apprenticeship, the sponsor 

must invite the applicant to inform the 

sponsor whether the applicant believes 

that he or she is an individual with a 

disability as defined in § 30.2. 

(1) The sponsor must invite an 

applicant to self-identify as required in 

paragraph (b) of this section using the 

language and manner prescribed by the 

Administrator and published on the OA 

Web site. 

(c) Apprentices. The sponsor must 

invite each of its apprentices to 

voluntarily inform the sponsor whether 

the apprentice believes that he or she is 

an individual with a disability as 

defined in § 30.2. This invitation shall 

be extended the first year the sponsor 

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becomes subject to the requirements of 

this section and then each time an 

apprentice is enrolled into an 

apprenticeship program. The sponsor 

must remind apprentices yearly that 

they may voluntarily update their 

disability status. 

(d) The sponsor may not compel or 

coerce an individual to self-identify as 

an individual with a disability. 

(e) The sponsor must keep all 

information on self-identification 

confidential, and must maintain it in a 

data analysis file (rather than the 

medical files of individual apprentices). 

See § 30.12(e). The sponsor must 

provide self-identification information 

to the Registration Agency upon request. 

Self-identification information may be 

used only in accordance with this part. 

(f) Nothing in this section may relieve 

the sponsor of its obligation to take 

affirmative action with respect to those 

applicants and apprentices of whose 

disability the sponsor has knowledge. 

(g) Nothing in this section may relieve 

the sponsor from liability for 

discrimination in violation of this part. 

§ 30.12 Recordkeeping. 

(a) General obligation. Each sponsor 

must collect such data and maintain 

such records as the Registration Agency 

finds necessary to determine whether 

the sponsor has complied or is 

complying with the requirements of this 

part. Such records must include, but are 

not limited to records relating to: 

(1) Selection for apprenticeship, 

including applications, tests and test 

results, interview notes, bases for 

selection or rejection, and any other 

records required to be maintained under 

UGESP; 

(2) The invitation to self-identify as an 

individual with a disability; 

(3) Information relative to the 

operation of the apprenticeship 

program, including but not limited to 

job assignments in all components of 

the occupation as required under 

§ 29.5(b)(3) of this title, promotion, 

demotion, transfer, layoff, termination, 

rates of pay, other forms of 

compensation, conditions of work, 

hours of work, hours of training 

provided, and any other personnel 

records relevant to EEO complaints filed 

with the Registration Agency under 

§ 30.14 or with other enforcement 

agencies; 

(4) Compliance with the requirements 

of § 30.3; 

(5) Requests for reasonable 

accommodation; and 

(6) Any other records pertinent to a 

determination of compliance with these 

regulations, as may be required by the 

Registration Agency. 

(b) Sponsor identification of record. 

For any record the sponsor maintains 

pursuant to this part, the sponsor must 

be able to identify the race, sex, 

ethnicity (Hispanic or Latino/nonHispanic or Latino), and when known, 

disability status of each apprentice, and 

where possible, the race, sex, ethnicity, 

and disability status of each applicant to 

apprenticeship and supply this 

information upon request to the 

Registration Agency. 

(c) Affirmative action programs. Each 

sponsor required under § 30.4 to 

develop and maintain an affirmative 

action program must retain both the 

written AAP and documentation of its 

outreach, recruitment, and retention 

efforts required by § 30.8, including all 

data and analyses made pursuant to the 

requirements of this part. 

(d) Maintenance of records. The 

records required by this part and any 

other information relevant to 

compliance with these regulations must 

be maintained for 3 years from the date 

of the making of the record or the 

personnel action involved, whichever 

occurs later, and must be made available 

upon request to the Registration Agency 

or other authorized representative in 

such form as the Registration Agency 

may determine is necessary to enable it 

to ascertain whether the sponsor has 

complied or is complying with this part. 

Failure to preserve complete and 

accurate records as required by 

paragraphs (a), (b), and (c) of this 

section constitutes noncompliance with 

this part. 

(e) Confidentiality and use of medical 

information. (1) Any information 

obtained pursuant to this part regarding 

the medical condition or history of an 

applicant or apprentice must be 

collected and maintained on separate 

forms and in separate medical files and 

treated as a confidential medical record, 

except that: 

(i) Supervisors and managers may be 

informed regarding necessary 

restrictions on the work or duties of the 

applicant or apprentice and necessary 

accommodations; 

(ii) First aid and safety personnel may 

be informed, when appropriate, if the 

disability might require emergency 

treatment; and 

(iii) Government officials engaged in 

enforcing this part, the laws 

administered by OFCCP, or the ADA, 

must be provided relevant information 

on request. 

(2) Information obtained under this 

part regarding the medical condition or 

history of any applicant or apprentice 

may not be used for any purpose 

inconsistent with this part. 

(f) Access to records. Each sponsor 

must permit access during normal 

business hours to its places of business 

for the purpose of conducting on-site 

EEO compliance reviews and complaint 

investigations and inspecting and 

copying such books, accounts, and 

records, including electronic records, 

and any other material the Registration 

Agency deems relevant to the matter 

under investigation and pertinent to 

compliance with this part. The sponsor 

must also provide the Registration 

Agency access to these materials, 

including electronic records, off-site for 

purposes of conducting EEO compliance 

reviews and complaint investigations. 

Upon request, the sponsor must provide 

the Registration Agency information 

about all format(s), including specific 

electronic formats, in which its records 

and other information are available. 

Information obtained in this manner 

will be used only in connection with the 

administration of this part or other 

applicable EEO laws. 

§ 30.13 Equal employment opportunity 

compliance reviews. 

(a) Conduct of compliance reviews. 

The Registration Agency will regularly 

conduct EEO compliance reviews to 

determine if the sponsor maintains 

compliance with this part, and will also 

conduct EEO compliance reviews when 

circumstances so warrant. An EEO 

compliance review may consist of, but 

is not limited to, comprehensive 

analyses and evaluations of each aspect 

of the apprenticeship program through 

off-site reviews, such as desk audits of 

records submitted to the Registration 

Agency, and on-site reviews conducted 

at the sponsor’s establishment that may 

involve examination of records required 

under this part; inspection and copying 

of documents related to recordkeeping 

requirements of this part; and 

interviews with employees, apprentices, 

journeyworkers, supervisors, managers, 

and hiring officials. 

(b) Notification of compliance review 

findings. Within 45 business days of 

completing an EEO compliance review, 

the Registration Agency must present a 

written Notice of Compliance Review 

Findings to the sponsor’s contact person 

through registered or certified mail, 

with return receipt requested. If the 

compliance review indicates a failure to 

comply with this part, the registration 

agency will so inform the sponsor in the 

Notice and will set forth in the Notice 

the following: 

(1) The deficiency(ies) identified; 

(2) How to remedy the deficiency(ies); 

(3) The timeframe within which the 

deficiency(ies) must be corrected; and 

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(4) Enforcement actions may be 

undertaken if compliance is not 

achieved within the required timeframe. 

(c) Compliance. When a sponsor 

receives a Notice of Compliance Review 

Findings that indicates a failure to 

comply with this part, the sponsor must, 

within 30 business days of notification, 

implement a compliance action plan 

and notify the Registration Agency of 

that plan. The compliance action plan 

must include, but is not limited to, the 

following provisions: 

(1) A specific commitment, in writing, 

to correct or remediate identified 

deficiency(ies) and area(s) of 

noncompliance; 

(2) The precise actions to be taken for 

each deficiency identified; 

(3) The time period within which the 

cited deficiency(ies) will be remedied 

and any corrective program changes 

implemented; and 

(4) The name of the individual(s) 

responsible for correcting each 

deficiency identified. 

Upon the Registration Agency’s 

approval of the compliance action plan, 

the sponsor may be considered in 

compliance with this part provided that 

the compliance action plan is 

implemented. 

(d) Enforcement actions. Any sponsor 

that fails to implement its compliance 

action plan within the specified 

timeframes may be subject to an 

enforcement action under § 30.15. 

§ 30.14 Complaints. 

(a) Requirements for individuals filing 

complaints—(1) Who may file. Any 

individual who believes that he or she 

has been or is being discriminated 

against on the basis of race, color, 

religion, national origin, sex, sexual 

orientation, age (40 or older), genetic 

information, or disability with regard to 

apprenticeship may, personally or 

through an authorized representative, 

file a written complaint with the 

Registration Agency with whom the 

apprenticeship program is registered. 

(2) Time period for filing a complaint. 

Generally, a complaint must be filed 

within 180 days of the alleged 

discrimination or specified failure to 

follow the equal opportunity standards. 

However, for good cause shown, the 

Registration Agency may extend the 

filing time. The time period for filing is 

for the administrative convenience of 

the Registration Agency and does not 

create a defense for the respondent. 

(3) Contents of the complaint. Each 

complaint must be made in writing and 

must contain the following information: 

(i) The complainant’s name, address 

and telephone number, or other means 

for contacting the complainant; 

(ii) The identity of the respondent (the 

individual or entity that the 

complainant alleges is responsible for 

the discrimination); 

(iii) A short description of the events 

that the complainant believes were 

discriminatory, including but not 

limited to when the events took place, 

what occurred, and why complainant 

believes the actions were discriminatory 

(for example, because of his or her race, 

color, religion, sex, sexual orientation, 

national origin, age (40 or older), genetic 

information, or disability). 

(iv) The complainant’s signature or 

the signature of the complainant’s 

authorized representative. 

(b) Requirements of sponsors. 

Sponsors must provide written notice to 

all applicants for apprenticeship and all 

apprentices of their right to file a 

discrimination complaint and the 

procedures for doing so. The notice 

must include the address, phone 

number, and other contact information 

for the Registration Agency that will 

receive and investigate complaints filed 

under this part. The notice must be 

provided in the application for 

apprenticeship and must also be 

displayed in a prominent, publicly 

available location where all apprentices 

will see the notice. The notice must 

contain the following specific wording: 

Your Right to Equal Opportunity 

It is against the law for a sponsor of an 

apprenticeship program registered for 

Federal purposes to discriminate against an 

apprenticeship applicant or apprentice based 

on race, color, religion, national origin, sex, 

sexual orientation, age (40 years or older), 

genetic information, or disability. The 

sponsor must ensure equal opportunity with 

regard to all terms, conditions, and privileges 

associated with apprenticeship. If you think 

that you have been subjected to 

discrimination, you may file a complaint 

within 180 days from the date of the alleged 

discrimination or failure to follow the equal 

opportunity standards with [INSERT NAME 

OF REGISTRATION AGENCY, ADDRESS, 

PHONE NUMBER, AND CONTACT NAME 

OF INDIVIDUAL AT THE REGISTRATION 

AGENCY WHO IS RESPONSIBLE FOR 

RECEIVING COMPLAINTS]. 

Each complaint filed must be made in 

writing and include the following 

information: 

1. Complainant’s name, address and 

telephone number, or other means for 

contacting the complainant; 

2. The identity of the respondent (i.e. the 

name, address, and telephone number of the 

individual or entity that the complainant 

alleges is responsible for the discrimination); 

3. A short description of the events that the 

complainant believes were discriminatory, 

including but not limited to when the events 

took place, what occurred, and why the 

complainant believes the actions were 

discriminatory (for example, because of his/ 

her race, color, religion, sex, sexual 

orientation, national origin, age (40 or older), 

genetic information, or disability); 

4. The complainant’s signature or the 

signature of the complainant’s authorized 

representative. 

(c) Requirements of the Registration 

Agency.—(1) Conduct investigations. 

The investigation of a complaint filed 

under this part will be made by the 

Registration Agency. In conducting 

complaint investigations, the 

Registration Agency must: 

(i) Within 10 business days of 

receiving the complaint, provide written 

notice to the complainant 

acknowledging receipt of the complaint; 

(ii) Contact the complainant within 10 

business days, if the complaint form is 

incomplete, to obtain full information 

necessary to initiate an investigation. 

(iii) Initiate an investigation within 15 

business days of receiving a complete 

complaint; 

(iv) Complete a thorough investigation 

of the allegations of the complaint 

within 30 business days of initiating the 

investigation and develop a complete 

case record that must contain, but is not 

limited to, the name, address, and 

telephone number of each person 

interviewed, the interview statements, 

copies, transcripts, or summaries (where 

appropriate) of pertinent documents, 

and a narrative report of the 

investigation with references to exhibits 

and other evidence which relate to the 

alleged violations; and 

(v) Within 15 business days of 

completing the investigation, provide 

written notification of the Registration 

Agency’s findings to both the 

respondent and the complainant. 

(2) Seek compliance. Where a report 

of findings from a complaint 

investigation indicates a violation of the 

nondiscrimination requirements of this 

part, the Registration Agency must 

resolve the matter quickly and 

informally whenever possible. Where a 

complaint of discrimination cannot be 

resolved informally to the satisfaction of 

the complainant within 75 business 

days of its filing, the Registration 

Agency must refer the complaint to 

other Federal, State or local EEO 

agencies, as appropriate. 

(3) Referrals to other EEO agencies. 

The Registration Agency, at its 

discretion, may choose to refer a 

complaint immediately upon its receipt 

or any time thereafter to: 

(i) The EEOC; 

(ii) The United States Attorney 

General; 

(iii) The Department’s OFCCP; or 

(iv) For an SAA, to its Fair 

Employment Practices Agency. 

(4) An SAA may adopt a complaint 

review procedure differing in detail 

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Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 68965 

from that given in this section provided 

it is submitted for review to and 

receives approval by the Administrator. 

§ 30.15 Enforcement actions. 

Where the Registration Agency, as a 

result of a compliance review, 

complaint investigation, or other reason, 

determines that the sponsor is not 

operating its apprenticeship program in 

accordance with this part, the 

Registration Agency must notify the 

sponsor in writing of the specific 

violation(s) identified and may: 

(a) Offer the sponsor technical 

assistance to promote compliance with 

this part. 

(b) Suspend the sponsor’s right to 

register new apprentices if the sponsor 

fails to implement a compliance action 

plan to correct the specific violation(s) 

identified within 30 business days from 

the date the sponsor is so notified of the 

violation(s). 

(c) If the sponsor has not 

implemented a compliance action plan 

within 30 business days of notification 

of suspension, institute proceedings to 

deregister the program in accordance 

with the deregistration proceedings set 

forth in part 29 of this title. 

(d) Take any other action authorized 

by law. These other actions may 

include, but are not limited to, 

(1) Referral to the EEOC; 

(2) Referral to an appropriate State fair 

employment practice agency; or 

(3) Referral to the Department’s 

OFCCP. 

§ 30.16 Reinstatement of program 

registration. 

An apprenticeship program that has 

been deregistered pursuant to this part 

may be reinstated by the Registration 

Agency upon presentation of adequate 

evidence that the apprenticeship 

program is operating in accordance with 

this part. 

§ 30.17 Intimidation and retaliation 

prohibited. 

(a) A sponsor and its employees must 

not intimidate, threaten, coerce, 

retaliate, or discriminate against any 

individual because the individual has: 

(1) Filed a complaint alleging a 

violation of this part; 

(2) Opposed a practice prohibited by 

the provisions of this part or any other 

Federal or State equal opportunity law; 

(3) Furnished information to, or 

assisted or participated in any manner, 

in any investigation, compliance review, 

proceeding, or hearing under this part or 

any Federal or State equal opportunity 

law; or 

(4) Otherwise exercised any rights and 

privileges under the provisions of this 

part. 

(b) Any sponsor that engages in such 

intimidation or retaliation or fails to 

take appropriate steps to prevent such 

activity will be subject to enforcement 

action under § 30.15. 

§ 30.18 State apprenticeship agencies. 

(a) State Plan. (1) Within 1 year of the 

effective date of this part, with no 

exceptions of this deadline permitted, 

an SAA that seeks to obtain or maintain 

recognition under § 29.13 of this title 

must submit to OA a State EEO plan 

that: 

(i) Includes the State apprenticeship 

law that corresponds to the 

requirements of this part; and 

(ii) Requires all apprenticeship 

programs registered with the State for 

Federal purposes to comply with the 

requirements of the State’s EEO plan 

within 180 days from the date that OA 

provides written approval of the State 

EEO plan submitted under paragraph (1) 

of this section. 

(2) Upon receipt of the State’s EEO 

plan, OA will review the plan to 

determine if the plan conforms to this 

part. OA will: 

(i) Grant the SAA continued 

recognition during this review period; 

(ii) Provide technical assistance to 

facilitate conformity, and provide 

written notification of the areas of 

nonconformity, if any; and 

(iii) Upon successful completion of 

the review process, notify the SAA of 

OA’s determination that the State’s EEO 

plan conforms to this part. 

(3) If the State does not submit a 

revised State EEO plan that addresses 

identified non-conformities within 90 

days from date that OA provides the 

SAA with written notification of the 

areas of nonconformity, OA will begin 

the process set forth in § 29.14 of this 

title to rescind recognition of the SAA. 

(4) An SAA that seeks to obtain or 

maintain recognition must obtain the 

Administrator’s written concurrence in 

any proposed State EEO plan, as well as 

any subsequent modification to that 

plan, as provided in § 29.13(b)(9) of this 

title. 

(b) Recordkeeping requirements. A 

recognized SAA must keep all records 

pertaining to program compliance 

reviews, complaint investigations, and 

any other records pertinent to a 

determination of compliance with this 

part. These records must be maintained 

for three years from the date of their 

creation. 

(c) Retention of authority. As 

provided in § 29.13 of this title, OA 

retains the full authority to: 

(1) Conduct compliance reviews of all 

registered apprenticeship programs; 

(2) Conduct complaint investigations 

of any program sponsor to determine 

whether an apprenticeship program 

registered for Federal purposes is 

operating in accordance with this part; 

(3) Deregister for Federal purposes an 

apprenticeship program registered with 

a recognized SAA as provided in 

§§ 29.8(b) and 29.10 of this title; and 

(4) Refer any matter pertaining to 

§ 30.18(c)(1) or (2) to the following: 

(i) The EEOC or the U.S. Attorney 

General with a recommendation for the 

institution of an enforcement action 

under title VII of the Civil Rights Act of 

1964, as amended; the ADEA; GINA, or 

title I of the ADA; 

(ii) The Department’s OFCCP with a 

recommendation for the institution of 

agency action under Executive Order 

11246; or section 503 of the 

Rehabilitation Act of 1973, as amended; 

or 

(iii) The U.S. Attorney General for 

other action as authorized by law. 

(d) Derecognition. A recognized SAA 

that fails to comply with the 

requirements of this section will be 

subject to derecognition proceedings, as 

provided in § 29.14 of this title. 

§ 30.19 Exemptions. 

Requests for exemption from these 

regulations, or any part thereof, must be 

made in writing to the Registration 

Agency and must contain a statement of 

reasons supporting the request. 

Exemptions may be granted for good 

cause by the Registration Agency. State 

Apprenticeship Agencies must receive 

approval to grant an exemption from the 

Administrator, prior to granting an 

exemption from these regulations. 

§ 30.20 Effective date. 

(a) Effective date for specified 

requirements in all currently registered 

programs. Within 180 days of [effective 

date of the final rule], each sponsor of 

an apprenticeship program currently 

registered with a Registration Agency as 

of [effective date of the final rule] must: 

(1) Amend its Standards of 

Apprenticeship to include the equal 

opportunity pledge prescribed by 

§ 30.3(c); 

(2) Comply with the nondiscrimination requirements prescribed 

by § 30.3(a). 

(b) Effective date for specified 

requirements in programs registered 

with an SAA. Sponsors of programs 

registered with an SAA must adopt an 

affirmative action program as set forth 

in § 30.4 that complies with the 

requirements of this part and have the 

written plan approved by its SAA. For 

programs registered with an SAA as of 

[effective date of the final rule], these 

actions must be completed within 180 

days from the date that OA provides 

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68966 Federal Register / Vol. 80, No. 215 / Friday, November 6, 2015 / Proposed Rules 

written approval of a State’s EEO plan, 

as provided under § 30.18(a). For 

programs registered with an SAA after 

[effective date of the final rule], these 

actions must be completed within 180 

days from the date OA provides written 

approval of a State’s EEO plan or, if OA 

has already approved the State’s EEO 

plan, within one year after registration. 

(c) Effective date for specified 

requirements in programs registered 

with OA. Sponsors of programs 

registered with the Office of 

Apprenticeship must adopt an 

affirmative action program as set forth 

in § 30.4 that complies with the 

requirements of this part and have the 

written plan approved by OA. For 

programs registered as of the [effective 

date of the final rule], these actions 

must be completed within one year after 

[effective date of the final rule]. For 

programs registered after [effective date 

of the final rule], these actions must be 

completed within one year after 

registration. 

[FR Doc. 2015–27316 Filed 11–5–15; 8:45 am] 

BILLING CODE P 

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