```

[Federal Register Volume 80, Number 215 (Friday, November 6, 2015)]
[Proposed Rules]
[Pages 68907-68966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27316]

[[Page 68907]]

Vol. 80

Friday,

No. 215

November 6, 2015

Part II

Department of Labor

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29 CFR Parts 29 and 30

 Apprenticeship Programs; Equal Employment Opportunity; Proposed Rules

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

[[Page 68908]]

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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.

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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-by-section 
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

[[Page 68909]]

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\
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    \1\ Fiscal Year (FY) 2013 national results available at http://doleta.gov/oa/data_statistics.cfm.
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    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\
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    \2\ High growth industries include: Advanced manufacturing, 
construction, energy, health care, homeland security, hospitality, 
and transportation.
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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,'' ``pre-apprenticeship,'' 
``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

[[Page 68910]]

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.
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    \3\ See Macy v. Holder, Appeal No. 0120120821, 2012 WL 1435995, 
at *7 (EEOC) (2012), available at http://www.eeoc.gov/decisions/0120120821%20Macy%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).
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    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\
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    \4\ https://www.aclu.org/maps/non-discrimination-laws-state-state-information-map (last accessed Aug. 27, 2015).
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    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.

[[Page 68911]]

    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.
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    \5\ Federal Plain Language Guidelines at 25 (March 2011), 
available at http://www.plainlanguage.gov/howto/guidelines/FederalPLGuidelines/FederalPLGuidelines.pdf (last accessed Dec. 2, 
2014).
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    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 non-construction industries. OA reviewed data in OA's Registered 
Apprenticeship Partners Information Data System (RAPIDS) \6\ and 
analyzed workforce-related 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.
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    \6\ RAPIDS 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.
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    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

[[Page 68912]]

 
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.
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    \7\ Source: Query of RAPIDS database--February 2014.

  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             16.1            83.9
 and National Security..................
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 high-growth 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 high-growth 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.
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    \8\ Source: Query of RAPIDS database--February 2014.
    \9\ Source: Query of RAPIDS database--February 2014, and CPS, 
February 2013 (http://www.bls.gov/cps/cpsaat16.htm).

    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..................            10.4            89.6
                                                Workforce.......................            29.0            71.0
Construction..................................  Apprenticeship..................             2.3            97.7
                                                Workforce.......................             8.9            91.1
Utilities.....................................  Apprenticeship..................             1.8            98.2
                                                Workforce.......................            23.4            76.6
Health Care and Social Assistance.............  Apprenticeship..................            95.5             4.5
                                                Workforce.......................            78.4            21.6
Homeland Security Public Administration and     Apprenticeship..................            16.1            83.9
 National Security.                             Workforce.......................            45.4            54.6
Educational Services..........................  Apprenticeship..................             3.9            96.1
                                                Workforce.......................            68.6            31.4
Transportation................................  Apprenticeship..................             3.7            96.3
                                                Workforce.......................            23.2            76.8
----------------------------------------------------------------------------------------------------------------
Apprenticeship = National Federal Workload only tracked in RAPIDS.
Workforce = Civilian Population Survey (CPS) February 2013.

[[Page 68913]]

    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,..............  $25-$35 per hour..........           1-8.5
                                          Pipe Fitter,..............
                                          Painter...................
Intermediate Pay Level Occupations......  Correction Officer,.......  $15-$20 per hour..........           10-50
                                          Cook/Chef.................
Lowest Paid Occupations.................  Child Care Development      Less than $15 per hour....           85-99
                                           Specialist,.
                                          Certified Nursing
                                           Assistant.
----------------------------------------------------------------------------------------------------------------

    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).
---------------------------------------------------------------------------

    \10\ Source: Query of RAPIDS database for all active 
apprentices--February 2014.
    \11\ Table 5 uses multiple data sources. The RAPIDS database is 
the source for apprenticeship data. Other sources are the CPS and 
the ACS.
[GRAPHIC] [TIFF OMITTED] TP06NO15.000

    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

[[Page 68914]]

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\
---------------------------------------------------------------------------

    \12\ See, 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).
    \13\ See, 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).
    \14\ Bilginsoy, 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).
    \15\ The 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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \16\ RAPIDS 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).
[GRAPHIC] [TIFF OMITTED] TP06NO15.001

    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\
---------------------------------------------------------------------------

    \17\ Washington 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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \18\ Source: Labor Force Statistics from the Current Population 
Survey, BLS (http://www.bls.gov/cps/cpsaat18.htm)
---------------------------------------------------------------------------

    More detailed analyses at the occupation level reveal further 
disparities. For instance, Hispanics or

[[Page 68915]]

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\
---------------------------------------------------------------------------

    \19\ Source: Query of RAPIDS database--February 2014 and Labor 
Force Statistics from the Current Population Survey, BLS (http://www.bls.gov/cps/cpsaat11.htm).
    \20\ Source: Query of RAPIDS database--February 2014 and Labor 
Force Statistics from the Current Population Survey, BLS (http://www.bls.gov/cps/cpsaat11.htm).
    \21\ Hamilton, 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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \22\ Mean hourly earnings from the 2012 National Occupational 
Employment and Wage Estimates, BLS (http://www.bls.gov/oes/current/oes_nat.htm).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \23\ Matthew W. Brault, ``Americans With Disabilities: 2010,'' 
U.S. Census Bureau (2012), http://www.census.gov/prod/2012pubs/p70-131.pdf.
    \24\ The working age population consists of people between the 
ages of 16 and 64, excluding those in the military and people who 
are in institutions.
    \25\ Source: Persons with a disability: Labor force 
characteristics (June 2013), BLS (http://www.bls.gov/news.release/disabl.nr0.htm).
---------------------------------------------------------------------------

    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

[[Page 68916]]

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 (Sec.  30.1)

    In general, Sec.  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 Sec.  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 
Sec.  30.1 is divided into three paragraphs: Sec.  30.1(a) would set 
forth the purpose of the rule; Sec.  30.1(b) would address to whom the 
rule applies; and Sec.  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 Sec.  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 Sec.  30.1 also would add in Sec.  
30.1(a) that the required contents of a sponsor's affirmative action 
program are covered under part 30.
    Proposed Sec.  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 non-discriminatory 
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 Sec.  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 Sec.  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 (Sec.  30.2)

    Proposed Sec.  30.2 would revise and re-designate 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 Sec.  
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 Sec.  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 Sec.  30.2 also would add definitions for several new 
terms: ``pre-apprenticeship program,'' ``ethnicity,'' ``race,'' and 
``selection procedure.'' The current part 30 regulations refer to 
``programs of pre-apprenticeship'' in the requirements for AAPs in 
Sec.  30.4. However, there is no standard definition or even 
application of the term ``pre-apprenticeship.'' 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

[[Page 68917]]

Training and Employment Notice (TEN 13-12), Defining a Quality Pre-
Apprenticeship Program and Related Tools and Resources, to inform the 
public workforce system about the pre-apprenticeship program definition 
and quality framework, as well as to promote tools and materials to 
improve the consistency and quality of pre-apprenticeship programs. The 
pre-apprenticeship 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 hands-on training that does not displace paid 
employees; and facilitated entry and/or articulation.
---------------------------------------------------------------------------

    \26\ Available on-line at http://www.aspenwsi.org/WSIwork-sector.asp.
---------------------------------------------------------------------------

    The definition for ``pre-apprenticeship'' 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 Sec.  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 (Sec.  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, Sec.  30.3 requires 
that a sponsor: Not discriminate on the basis of race, color, religion, 
national origin, and sex (Sec.  30.3(a)(1) and (2)); engage in 
affirmative action (Sec.  30.3(a)(3)); incorporate an equal opportunity 
pledge into its apprenticeship program standards (Sec.  30.3(b)); and, 
for programs with five or more apprentices, adopt an affirmative action 
program, as required by Sec.  30.4, and a selection procedure, as 
required by Sec.  30.5 (Sec.  30.3(c)).
    Current Sec.  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 (Sec.  30.3(e)) and for 
those programs with fewer than five apprentices (Sec.  30.3(f)). In 
addition, Sec.  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 (Sec.  30.3(c)). The Department 
finds the current regulatory structure confusing and in need of 
reorganization. The proposed rule seeks to reorganize Sec.  30.3 for 
clarity purposes.
    Proposed Sec.  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 Sec.  
30.3. Instead, they pertain to: The effective date of the part 30 
regulations for programs presently registered (current Sec.  30.3(c)); 
the registration requirements for sponsors seeking registration of new 
programs (current Sec.  30.3(d)); and the bases for exemption from the 
requirement to develop an affirmative action program (current Sec.  
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 Sec.  30.3 is divided into three paragraphs, each 
paragraph addressing an equal opportunity standard required of 
sponsors. Proposed Sec.  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 
labor-management 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 Sec.  30.3(a) also would incorporate the concepts set 
forth in the current regulation (Sec.  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 Sec.  30.3(b) requires that all sponsors, regardless of 
size, take affirmative steps to provide equal opportunity in 
apprenticeship. Under Sec.  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

[[Page 68918]]

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 Sec.  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 Sec.  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 Sec.  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 Sec.  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 Sec.  30.4(c)(4) of the current 
part 30, which addresses internal communication of the sponsor's equal 
opportunity policy. However, proposed Sec.  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 Sec.  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 Sec.  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 Sec.  30.3(b)(2)(i) carries forward the existing 
requirement in current Sec.  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 Sec.  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 Sec.  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 Sec.  30.3(b)(2)(i) and (ii).
    The orientation and information sessions required by proposed Sec.  
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 Sec.  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 Sec.  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,

[[Page 68919]]

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, pre-
apprenticeship programs, and Federally-funded, 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 Sec.  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 Sec.  30.3(b)(4) would be to reduce 
workplace harassment and retaliation. The Department expects that 
sponsors' compliance with the obligations of proposed Sec.  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 Sec.  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 Sec.  30.10.
    The Department does not expect that the steps outlined in proposed 
Sec.  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 Sec.  30.3(c) would carry forward the requirement 
set forth in the current Sec.  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 
Sec.  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 (Sec.  30.4)

    Current Sec.  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 Sec.  30.4(a); the 
definition of affirmative action in Sec.  30.4(b); the requirements for 
broad outreach and recruitment in Sec.  30.4(c); the mandate that a 
sponsor include goals and timetables where underutilization occurs in 
Sec.  30.4(d); the factors for determining whether goals and timetables 
are needed in Sec.  30.4(e); the establishment and attainment of goals 
and timetables in Sec.  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 Sec.  30.4(g). Exemptions from 
the requirement to adopt an affirmative action program are found in the 
current part 30 at Sec.  30.3(e) and (f).
    The proposed rule substantially restructures Sec.  30.4 to 
streamline, clarify, update, and strengthen the affirmative action 
requirements.
    Proposed Sec.  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 Sec.  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 Sec.  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,

[[Page 68920]]

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 Sec.  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 Sec.  
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 Sec.  30.4(b) sets forth who must adopt an 
affirmative action program. This proposed paragraph would require that 
unless otherwise exempted by proposed Sec.  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 Sec.  
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 Sec.  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 Sec.  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.
---------------------------------------------------------------------------

    \27\ See http://www.doleta.gov/oa/bul10/Bulletin%202010-11a_AppendixC_inj.pdf (last accessed Sept. 10, 2015).
---------------------------------------------------------------------------

    The Department proposes to replace the current Sec.  30.4(c) 
requirements related to outreach and positive recruitment with proposed 
Sec.  30.8, discussed later in the preamble, which addresses the 
regulatory requirements related to targeted outreach, recruitment, and 
retention.
    Proposed Sec.  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 Sec.  
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 Sec.  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 Sec.  30.4 by serving as a 
checklist in determining whether the sponsor has met all of the 
affirmative action program requirements.
    Proposed Sec.  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 Sec.  30.3(e) (programs subject to an approved equal 
employment opportunity program) and Sec.  30.3(f) (programs with fewer 
than five apprentices). Both exemptions are carried forward into the 
proposed rule at Sec.  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 Sec.  30.4, which addresses the 
requirement to conduct affirmative action programs. This re-designation 
from Sec.  30.3, which discusses equal opportunity standards, to Sec.  
30.4, which addresses affirmative

[[Page 68921]]

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 Sec.  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 Sec.  30.5, 
outlined below, replaces the current Sec.  30.4(e). The proposed rule 
also deletes current Sec.  30.4(f) and addresses the establishment of 
utilization goals for race, sex, and ethnicity in proposed Sec.  30.6 
and for individuals with disabilities in proposed Sec.  30.7.
    Finally, the proposed regulation adds a new Sec.  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 Sec.  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 (Sec.  30.5)

    The Department proposes revising the current Sec.  30.5, entitled 
``Selection of apprentices,'' and moving the revised language to Sec.  
30.10; the revised language is discussed later in the preamble at Sec.  
30.10. In its place, the Department proposes a new Sec.  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 Sec.  30.5 replaces current Sec.  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 Sec.  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 Sec.  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 Sec.  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 
Sec.  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

[[Page 68922]]

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 Sec.  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 Sec.  
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/eeotables20062010.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 post-
secondary 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 Sec.  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 Sec.  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 Sec.  30.5(d) would require a sponsor to 
establish a utilization goal in accordance with the procedures set 
forth in proposed Sec.  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 Sec.  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 Sec.  30.5 and related provisions for goal-setting in 
proposed Sec.  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 sub-regulatory policy and program guidance to assist 
program sponsors and Registration Agencies to comply with the proposed 
Sec.  30.5 and proposed Sec.  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

[[Page 68923]]

the relevant recruitment area without such capacity.

Establishment of Utilization Goals for Race, Sex, and Ethnicity (Sec.  
30.6)

    The Department proposes to remove current Sec.  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 Sec.  30.10 discussed later 
in the preamble.
    Proposed Sec.  30.6 describes the procedures for establishing 
utilization goals and would replace the existing procedures set forth 
in Sec.  30.4(f) of the current part 30. Under the current Sec.  
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 Sec.  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 Sec.  
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 Sec.  
30.4(e)) whether goals are needed and make adjustments to their goals 
as needed. Third, proposed Sec.  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 Sec.  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 Sec.  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 (Sec.  30.7)

    Current Sec.  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 Sec.  30.7. In contrast to 
the framework set forth for establishing utilization goals for race, 
sex, and ethnicity, proposed Sec.  30.7 would establish a single, 
national utilization goal of 7 percent for individuals with 
disabilities that applies to all sponsors subject to proposed Sec.  
30.4, Affirmative Action Programs. Proposed Sec.  30.7(a) sets forth 
this goal.
    Proposed Sec.  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 Sec.  30.7(c) provides that the Administrator of OA will 
periodically review and update, as appropriate, the utilization goal 
established in proposed Sec.  30.7(a).
    Proposed Sec.  30.7(d) sets out the steps that the sponsor must use 
to determine whether it has met the utilization goal. Proposed Sec.  
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 Sec.  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 Sec.  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 Sec.  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 Sec.  30.4(e)).
    When the percentage of apprentices with disabilities in one or more 
industry groups is less than the utilization goal proposed in Sec.  
30.7(a), proposed Sec.  30.7(e) requires that the sponsor take steps to 
determine whether and where impediments to equal opportunity exist. 
Proposed Sec.  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 Sec.  30.9. If, in reviewing its personnel 
processes, the sponsor identifies any barriers to equal opportunity, 
then proposed Sec.  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 Sec.  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

[[Page 68924]]

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 Sec.  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 then-pending 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\
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    \28\ Senate 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).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \30\ The working age population consists of people between the 
ages of 16 and 64, excluding those in the military and people who 
are in institutions.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \31\ A 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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \32\ The 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.
---------------------------------------------------------------------------

    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

[[Page 68925]]

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.
---------------------------------------------------------------------------

    \33\ The 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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \34\ This number was derived from an updated 2009 version of 
Table 24 in Affirmative Action for People with Disabilities--Volume 
I: Data Sources and Models, Economic Systems, Inc. (April 30, 2010) 
at 64. The original table uses ACS data from 2008.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \35\ As 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.
---------------------------------------------------------------------------

    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 Sec.  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 
Sec.  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 Sec.  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 Sec.  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 (Sec.  30.8)

    The Department proposes to revise current Sec.  30.8 entitled 
``Records'' and to move that language to proposed Sec.  30.11, as 
discussed later in the preamble. Proposed Sec.  30.8 instead would 
replace the current requirements related to outreach and positive 
recruitment discussed in Sec.  30.4(c) of the current part 30 by 
addressing the regulatory requirements related to targeted outreach, 
recruitment, and retention.
    Under proposed Sec.  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 Sec.  30.6,

[[Page 68926]]

and/or where a sponsor has determined, pursuant to proposed Sec.  
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 Sec.  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 Sec.  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 Sec.  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 Sec.  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 
Sec.  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 Sec.  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 Sec. Sec.  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 Sec.  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 Sec.  30.6 and/or who has determined pursuant to Sec.  
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 Sec. Sec.  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

[[Page 68927]]

verifiably effective in recruiting, hiring, advancing, and retaining 
women, minorities, and individuals with disabilities in registered 
apprenticeship.
---------------------------------------------------------------------------

    \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.
    \37\ Programs 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).
    \38\ California Apprenticeship Council, Blue Ribbon Committee on 
Women in Apprenticeship Final Report and Recommendations (California 
2006).
    \39\ See, 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.
    \40\ See, 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).
---------------------------------------------------------------------------

    In terms of conducting both universal outreach and recruitment 
required under proposed Sec.  30.3(b), and targeted outreach and 
recruitment for individuals with disabilities that might be required 
under proposed Sec.  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 
One-Stop 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 Sec.  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 Sec.  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 (Sec.  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 Sec.  30.8(a), as a 
matter of best practice, proposed Sec.  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 (Sec.  30.9)

    The Department proposes to revise and rename the current Sec.  30.9 
entitled ``Compliance reviews,'' and to move that language to Sec.  
30.12, as discussed below in the preamble.
    Proposed Sec.  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 Sec.  30.4(e), in which case the 
review would take place every two years. As part of this review, 
proposed Sec.  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 Sec.  
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 Sec.  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 Sec.  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 (Sec.  30.10)

    The Department proposes to revise current Sec.  30.10 entitled 
``Noncompliance with Federal and [S]tate equal opportunity 
requirements,'' and to move that language to Sec.  30.3(b)(5), as 
discussed above.
    As described earlier in this preamble, under the current Sec.  
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

[[Page 68928]]

selecting apprentices. Another alternative method could use pre-
apprenticeship 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 Sec.  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 (Sec.  
30.11)

    The Department proposes to revise current Sec.  30.11 entitled 
``Complaint procedure,'' and to move that language to Sec.  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 Sec.  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 self-identify 
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 pre-offer 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 Sec.  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 
self-identify 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.
---------------------------------------------------------------------------

    \41\ This issue was addressed in the course of OFCCP's 
rulemaking revising its Section 503 regulations to, among other 
things: Include a pre-offer 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).
---------------------------------------------------------------------------

    Proposed Sec.  30.11(a)(2) requires that the sponsor invite 
applicants to self-identify ``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 self-
identification 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

[[Page 68929]]

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.
---------------------------------------------------------------------------

    \42\ Section 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.
---------------------------------------------------------------------------

    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:

[ballot] YES, I HAVE A DISABILITY (or previously had a disability)
[ballot] NO, I DON'T HAVE A DISABILITY
[ballot] 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 Sec.  30.11(b)(1) requires that the sponsor invite 
applicants, after acceptance into the apprenticeship program, but 
before they begin their apprenticeship, to voluntarily self-identify 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 Sec.  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 Sec.  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 Sec.  30.11(d) emphasizes that the sponsor is prohibited 
from compelling or coercing individuals to self-identify. While 
proposed Sec.  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 Sec.  30.12. Proposed Sec.  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 Sec.  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 Sec.  30.11(g) clarifies that nothing in this 
proposed section may relieve the sponsor from liability for 
discrimination in violation of this part.

Recordkeeping (Sec.  30.12)

    The Department proposes to remove current Sec.  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 Sec.  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 
Sec.  30.12 retains, in large part, the recordkeeping requirements 
currently in Sec.  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 Sec.  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 Sec.  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 Sec.  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.
---------------------------------------------------------------------------

    \43\ OA 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.
---------------------------------------------------------------------------

    In addition, proposed Sec.  30.12 would remove any reference to the 
recordkeeping requirements of State

[[Page 68930]]

Apprenticeship Councils. The Department proposes to move these 
requirements to proposed Sec.  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 Sec.  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 (Sec.  30.13)

    The Department proposes to revise current Sec.  30.13 entitled 
``Sanctions'', re-title the section ``Enforcement actions,'' and move 
the revised language to Sec.  30.15, as discussed later in this 
preamble.
    Proposed Sec.  30.13 would carry forward the current provision at 
Sec.  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 Sec.  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 Sec.  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 Sec.  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 Sec.  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 Sec.  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 Sec.  30.9(d) 
simply states that the Department must notify the sponsor in writing of 
its results from a compliance review.
    Finally, proposed Sec.  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 Sec.  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, 
action-oriented 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 Sec.  30.15.

Complaints (Sec.  30.14)

    The Department proposes to revise current Sec.  30.14 entitled 
``Reinstatement of program registration'' and to move that language to 
Sec.  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 Sec.  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 Sec.  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 Sec.  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 Sec.  30.14 would delete the provisions concerning private 
review bodies in the current part 30, at Sec.  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 Sec.  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 Sec.  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 Sec.  30.3(b)(2)(ii).
    Also, in an effort to ensure consistency in how Registration 
Agencies process complaints and conduct investigations, proposed Sec.  
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 Sec.  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 Sec.  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

[[Page 68931]]

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 Sec.  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 
Sec.  29.12(f) of this title.

Enforcement Actions (Sec.  30.15)

    The Department proposes to revise current Sec.  30.15 entitled 
``State Apprenticeship Councils'' and to move that language to Sec.  
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 Sec.  30.15 would make several revisions to the 
requirements that are outlined in the current Sec.  30.13. First, 
proposed Sec.  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 
Sec.  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 Sec.  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 Sec.  30.15(c) would adopt the deregistration 
procedures of Sec. Sec.  29.8(b)(5) through (8) of this title, 
including the hearing procedures in Sec.  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 Sec.  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 (Sec.  30.16)

    Current Sec.  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 Sec.  
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 Sec.  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 Sec. Sec.  
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.
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    \44\ Secretary'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.
---------------------------------------------------------------------------

Intimidation and Retaliation Prohibited (Sec.  30.17)

    The Department proposes to revise the title of the current Sec.  
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 Sec.  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 Sec.  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 Sec.  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 (Sec.  30.18)

    The Department proposes to revise current Sec.  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 Sec.  30.4, as discussed earlier in the 
preamble.
    Proposed Sec.  30.18 revises current Sec.  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.

[[Page 68932]]

    Proposed Sec.  30.18 differs significantly from the current Sec.  
30.15, because proposed Sec.  30.18 does not include State 
Apprenticeship Councils as entities eligible for recognition. As 
provided in Sec.  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 Sec.  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 Sec.  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 Sec.  
30.18(a) also specifies a collaborative, iterative process whereby SAAs 
seeking recognition can achieve conformity with this part. Proposed 
Sec.  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 Sec.  30.18(b) carries forward existing recordkeeping 
requirements at current Sec.  30.8(d), using the term ``State 
Apprenticeship Agency'' instead of ``State Apprenticeship Council.'' 
Proposed Sec.  30.18(c) also carries forward provisions in Sec.  
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 Sec.  
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 Sec.  30.18(d) clarifies that SAAs will be subject to the 
derecognition procedures established in Sec.  29.14 of this title, for 
failure to comply with the requirements of this part.

Exemptions (Sec.  30.19)

    Section 30.19 of the current rule addresses exemptions. Under 
current Sec.  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 Sec.  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 Sec.  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 Sec.  29.13 of this title. This proposed 
regulatory requirement is to ensure consistency with respect to when 
exemptions may be granted.

Effective Date (Sec.  30.20)

    Proposed Sec.  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 Sec.  30.20(a) would require all 
apprenticeship program sponsors to amend its Standards of 
Apprenticeship to include the equal opportunity pledge prescribed by 
Sec.  30.3(c), and to comply with the non-discrimination requirements 
prescribed by Sec.  30.3(a).
    Proposed Sec.  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 Sec.  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 Sec.  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, Sec.  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 Sec.  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 Sec.  30.4(e), 
discussed below, are met), reviews will be less frequent.

[[Page 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 Sec.  30.3(b) and replacing it with an updated reference 
to Sec.  30.3(c). Second, the reference to the part 30 section on 
selection of apprentices would be revised by deleting the reference to 
Sec.  30.5, where this reference sits in current part 30, and replacing 
it with a reference to Sec.  30.10, where this reference now would sit 
under this NPRM. Third, the reference to requirements in Sec.  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 Sec.  29.8(b)(5) 
through (8), and would delete separate proceedings for deregistration 
proceedings for violations of part 30. Therefore, the final sentence in 
Sec.  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 Sec.  29.14(a).
    Additionally, this NPRM proposes three substantive changes to Sec.  
29.7, which sets the requirements for apprenticeship agreements. An 
apprenticeship agreement, as defined in Sec.  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 Sec.  30.3(a), the proposed changes to Sec.  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 
Sec.  29.7 also update the apprenticeship agreement to accommodate 
recordkeeping requirements in proposed Sec.  30.12(b), in which the 
sponsor must be able to identify the race, ethnicity, and when known, 
disability status, of each apprentice. Proposed Sec.  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;

[[Page 68934]]

    (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 Sec.  30.6 and/or 
where a sponsor has determined pursuant to Sec.  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;
---------------------------------------------------------------------------

    \45\ As 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.
---------------------------------------------------------------------------

    (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 self-identify 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.
---------------------------------------------------------------------------

    \46\ 43 FR 20760, May 12, 1978 (requiring the inclusion of 
female apprentices in AAPs).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \47\ OMB Circular No. A-4, ``Regulatory Analysis,'' M-03-21 
(Sept. 2003).
---------------------------------------------------------------------------

    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-by-subject 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\
---------------------------------------------------------------------------

    \48\ OMB Circular No. A-4, p. 14.
---------------------------------------------------------------------------

    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

[[Page 68935]]

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.
---------------------------------------------------------------------------

    \49\ Holzer, H. and Neumark, D., ``Assessing Affirmative 
Action,'' Journal of Economic Literature, Vol. XXXVII (2000).
    \50\ Id.
    \51\ Schotter, A., and Weigelt, K., ``Asymmetric Tournaments, 
Equal Opportunity Laws and Affirmative Action: Some Experimental 
Results,'' The Quarterly Journal of Economics, (May 1992).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \52\ Holzer, 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).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \54\ Holzer, H. and Neumark, D., ``Assessing Affirmative 
Action,'' Journal of Economic Literature, Vol. XXXVII (2000).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \55\ See ``A Profile of the Working Poor, 2008'' Report 1022, 
published by BLS annually, for a breakdown of the working poor.
    \56\ World Institute on Disability, http://www.wid.org/about-wid.
    \57\ Median 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.
---------------------------------------------------------------------------

    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 x 660,718, this means that the 
proposed rule requiring a 7% enrollment rate will result in (.07-.054) 
x 660,718 = 10,373 more people with disabilities as new 
apprentices.\58\
---------------------------------------------------------------------------

    \58\ We 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.
---------------------------------------------------------------------------

    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
----------------------------------------------------------------------------------------------------------------
                                                                                                  Projected new
                Industry                   Industry hiring    Projected new     Target  (7%-    apprentices with
                                              rate  (%)        apprentices      current) (%)       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

[[Page 68936]]

 
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\
---------------------------------------------------------------------------

    \59\ We 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 x 1.43).
    \60\ To calculate the labor burden, we multiplied the time to 
complete the task by the hourly compensation rate for sponsors 
($68.55 x 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 x 23,014). This burden occurs in the first year 
of the analysis period for existing sponsors, and every year 
thereafter only for new sponsors.
---------------------------------------------------------------------------

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 Sec.  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 Sec. Sec.  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 Sec.  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 Sec.  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 Sec.  
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 x 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.
---------------------------------------------------------------------------

    \61\ We 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 x 1.43).
---------------------------------------------------------------------------

    To estimate the materials cost, the Department assumed that the 
pledge is

[[Page 68937]]

one page, and that the cost per page for photocopying is $0.15, 
resulting in a materials cost of $0.15 ($0.15 x 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.
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    \62\ We 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 x $22.28 x 
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 x 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.
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    Proposed Sec.  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 Sec.  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 x 4 hours x $68.55 x 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.
---------------------------------------------------------------------------

    \63\ We 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 x 1.43).
    \64\ We 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 
x 1.43).
---------------------------------------------------------------------------

    Third, under the current Sec.  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 Sec.  
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 Sec.  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.
---------------------------------------------------------------------------

    \65\ To 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 x .5 = $34.27) and an administrative assistant 
($22.28 x .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) x 23,014 
x 5) in 2015. We repeated this calculation for each year of the 
analysis period, using the projected number of sponsors for each 
year.
---------------------------------------------------------------------------

    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\

[[Page 68938]]

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.
---------------------------------------------------------------------------

    \66\ To 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 x .25 = $17.14 for the low cost and 
$68.55 x 1.25 = $85.69 for the high cost) and an administrative 
assistant ($22.28 x .25 = $5.57 for the low cost and $22.28 x 1.25 = 
$27.85 for the high cost). 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 $2.6 million for the low time assumption 
(($17.14 + $555.57) x 23,014 x 5) and $13.0 million for the high 
time assumption (($85.6927+ $27.85) x 23,014 x 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.
---------------------------------------------------------------------------

    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 Sec.  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.
---------------------------------------------------------------------------

    \67\ Blau 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.
---------------------------------------------------------------------------

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 Sec. Sec.  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.
---------------------------------------------------------------------------

    \69\ An 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.
---------------------------------------------------------------------------

    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 x 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\
---------------------------------------------------------------------------

    \70\ To 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 x 1 x 23,014 x 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.
---------------------------------------------------------------------------

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 Sec.  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 Sec.  30.6 and/or who has 
determined pursuant to proposed Sec.  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 Sec.  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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    \71\ For 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 sponsors will meet their recruitment goals and 
not be required to complete this additional outreach.

---------------------------------------------------------------------------

[[Page 68939]]

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 x 0.5) + 
($22.28 x 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 x 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 Sec.  30.9), or every two years if it 
meets the requirements set forth in proposed Sec.  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 Sec.  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 Sec.  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 
Sec.  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 Sec.  
30.13). The proposed provision on compliance reviews would carry 
forward the current provision at Sec.  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 Sec.  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 Sec.  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

[[Page 68940]]

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).
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    \72\ We 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 x 1.52) and $31.50 ($18.64 x 1.69) at a 
Federal agency.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \73\ To calculate the labor cost, we multiplied the time 
required by the hourly compensation rate, resulting in a cost of 
$7.16 (0.25 x $28.64) for State Apprenticeship Agencies and $7.87 
(0.25 x $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).
---------------------------------------------------------------------------

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 Sec.  
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 Sec.  
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 Sec. Sec.  30.15 through 30.16). For consistency and 
simplicity, proposed Sec.  30.15(c) would adopt the deregistration 
procedures of Sec.  29.8(b)(5) through (8) of this title, including the 
hearing procedures in Sec.  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 Sec.  30.11 requires 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.
    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

[[Page 68941]]

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 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 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 x 5 listings x 10 
applicants x 0.08 hour x $18.59). The burden at the stages of post-
offer and post-enrollment is estimated at $173,825 (23,014 sponsors x 5 
listings x 0.08 hour x $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 x 0.5 hour x $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\
---------------------------------------------------------------------------

    \74\ Note 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.
    \75\ We 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 x 1.52).
    \76\ The 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 x $59.75 x 25). This cost only accrues in the first 
year of the ten-year analysis period.
---------------------------------------------------------------------------

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 Sec.  
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\
---------------------------------------------------------------------------

    \77\ In addition, this NPRM clarifies the need for recordkeeping 
(proposed Sec.  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.
---------------------------------------------------------------------------

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

[[Page 68942]]

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.
---------------------------------------------------------------------------

    \78\ Beth Loy, ``Accommodation and Compliance Series Workplace 
Accommodations: Low Cost, High Impact,'' Job Accommodation Network 
(JAN) (2014), http://askjan.org/media/lowcosthighimpact.html.
---------------------------------------------------------------------------

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
------------------------------------------------------------------------
                                                         Monetized cost
            Provision               Entity affected       ($millions)
------------------------------------------------------------------------
1. Post equal opportunity pledge  Sponsor............              $0.05
2. Disseminate information to     Sponsor............  .................
 organizations serving the
 underutilized g.
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      Sponsor............               6.31
 review NPRM.
8. Orientation and periodic       Sponsor/Apprentice.               2.57
 information sessions.
9. Invitation to self-identify    Sponsor/Apprentice.               3.96
 as an individual with a
 disability.
                                                      ------------------
    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
------------------------------------------------------------------------
                               Monetized benefits      Monetized costs
            Year                ($millions/year)      ($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%                         4.21                109.61
         discounting........
        Total with 3%                         5.28                134.98
         discounting........
------------------------------------------------------------------------

    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)

[[Page 68943]]

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 x 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 x 50 percent x $59.75 x 40 x 10 percent) and $3.06 million 
for OA (23,014 x 50 percent x $55.87 x 40 x 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).
---------------------------------------------------------------------------

    \79\ We 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 x 1.69).
    \80\ To 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 x 25 State Apprenticeship Agencies x $50.25), as calculated 
above for the proposed regulation.
---------------------------------------------------------------------------

    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.

[[Page 68944]]

                                   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 x 75 percent) sponsors in 
the first year. The resulting cost in the first year is $1.18 million 
(1 x $68.55 x 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 Sec.  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

[[Page 68945]]

via regular compliance reviews. This alternative reduces the burden on 
sponsors by relying on a complaint-based system. Under this 
alternative, apprentices' rights for non-discrimination 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 Sec.  30.11 and current Sec.  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 Sec.  30.12 and current Sec.  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 self-evaluation, 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 x 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 x $59.75 x 40) for SAAs and $6.12 million (2,301 
x $66.43 x 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 x 1 x 8 x 
$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 x 100) each year of the analysis period.
---------------------------------------------------------------------------

    \81\ According 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.
---------------------------------------------------------------------------

    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 x 8 x 
$59.75) for the SAAs and $26,572 (50 x 8 x $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]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Net benefit
                                                                     Benefits          Costs           (NPV)
----------------------------------------------------------------------------------------------------------------
7-percent discount:
    No Action...................................................            0.00            0.00            0.00

[[Page 68946]]

 
    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

[[Page 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 non-discrimination 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     Proposed rule
                                     (Current Sec.      (Proposed Sec.
                                        30.11)              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 x 
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 Sec.  30.17) would create a one-time 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 x 25 responses = 52,000 
hours).
    Exhibit 7 below summarizes the burden hours for SAAs currently 
approved under OMB Control Number

[[Page 68948]]

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 Sec.        Proposed Sec.
                                   30.8.               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      0.083 hours (5
                                   minutes).           minutes).
    Burden......................  1,067 hours.......  975 hours.
State EEO Plan..................  Current Sec.        Proposed Sec.
                                   30.15.              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 Sec.  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 Sec.  
30.4, affirmative action (1 hour for each new sponsor with five or more 
apprentices = 180 hours); current Sec.  30.5, selection procedures (0.5 
hours for 5,900 active apprenticeship program sponsors with five or 
more apprentices = 2,950 hours), and Sec.  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 Sec.  30.6, existing list of eligibles and public notice, and 
would simplify the regulatory structure governing procedures for 
selecting apprentices (current Sec.  30.5 and proposed Sec.  30.10). 
Burden hours for affirmative action obligations in current Sec.  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 Sec. Sec.  30.4, 30.5, 30.6, 30.8, and 30.9. 
These requirements would apply to program sponsors subject to proposed 
Sec.  30.4(b), the adoption of affirmative action programs. As 
discussed elsewhere in the preamble, proposed Sec.  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 Sec.  
30.5; (3) 0.5 hours for establishment of utilization goals for race, 
sex, and ethnicity in proposed Sec.  30.6; (4) one hour for outreach, 
recruitment and retention for targeted groups in proposed Sec.  30.8; 
and (5) one hour for targeted outreach, recruitment, and retention for 
individuals with disabilities in proposed Sec.  30.8; and (6) one hour 
for the review of personnel processes (proposed Sec.  30.9).
    Collection of Voluntary Self-Identification of Disability 
Information: The system for voluntary self-identification 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 self-
identification 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 x 10 applicants 
x 5 job openings per year x 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 x 5 applicants per 
year x 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 x 5 new 
apprentices per year x 5 minutes). The

[[Page 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 x 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 Sec.        Proposed Sec.
                                   30.3.               30.3.
    Total Respondents...........  New sponsors with   860.
                                   five or fewer
                                   apprentices.
    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 Sec.        Proposed Sec.
                                   30.4.               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 Sec.        Proposed Sec.
                                   30.3.               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    Current Sec.        0.
 public notice.                    30.6.
    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           Current Sec.        Proposed Sec.
 apprentices.                      30.8.               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 Sec.   30.4, then total six burden
  hours are associated with meeting the requirements of proposed Sec.
  Sec.   30.5, 30.6, 30.8, and 30.9.

[[Page 68950]]

    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 Sec.  
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 well-being. The Department concludes that this NPRM will not 
adversely affect the

[[Page 68951]]

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\
---------------------------------------------------------------------------

    \82\ According 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.
    \83\ RAPIDS 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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \84\ When 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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \85\ The 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).
---------------------------------------------------------------------------

    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

[[Page 68952]]

and Disposal; and $10.5 million for Radio and TV Broadcasting.\86\
---------------------------------------------------------------------------

    \86\ Utilities 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.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \87\ The 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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \88\ 43 FR 20760 (May 12, 1978) (requiring the inclusion of 
female apprentices in AAPs).
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \89\ Source: 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 sector-specific size standard.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \90\ See 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/guide-government-agencies-how-comply-with-regulatory-flexibility-act-0 
(last accessed Apr. 7, 2011). The Department has used the 1 percent 
threshold in previous regulations.
    \91\ The 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.
---------------------------------------------------------------------------

    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 per-entity 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.
---------------------------------------------------------------------------

    \92\ A large entity could have a single apprentice or a small 
entity could have multiple apprentices.
    \93\ Because 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.
---------------------------------------------------------------------------

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 Sec.  
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 x 0.083).
---------------------------------------------------------------------------

    \94\ The 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 x 1.43).
---------------------------------------------------------------------------

    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 x 1) per sponsor. Summing the labor 
and materials costs results in an annual per-

[[Page 68953]]

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\
---------------------------------------------------------------------------

    \95\ The 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 x 
1.43). The average hourly compensation rate for an administrative 
assistant is $22.28, as calculated above.
---------------------------------------------------------------------------

    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 x 0.5) + ($22.28 x 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 x 5) for each entity.\96\
---------------------------------------------------------------------------

    \96\ Total does not add up precisely due to rounding.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \97\ To 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 x .25 = $17.14 for the low cost and 
$68.55 x 1.25 = $85.69 for the high cost) and an administrative 
assistant ($22.28 x .25 = $5.57 for the low cost and $22.28 x 1.25 = 
$27.85 for the high cost). We then multiplied the total per-sponsor 
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) x 5) and $567.70 for the high time 
assumption (($85.69 + $27.85) x 5) in 2015.
---------------------------------------------------------------------------

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 Sec.  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 Sec.  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 Sec.  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 Sec. Sec.  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.
---------------------------------------------------------------------------

    \98\ The 25 percent of sponsors who employ five or more 
apprenticeships was estimated from the RAPIDS data set maintained by 
the Department.
---------------------------------------------------------------------------

    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 x 0.5) + ($22.28 x 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

[[Page 68954]]

number of sponsors, or 5,754 (23,014 x 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 x 4). This cost 
occurs only in the year when the rule is published.
e. Orientation and Periodic Information Sessions
    Proposed Sec.  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 Sec.  30.11 requires 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.
    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
------------------------------------------------------------------------
                                      Average cost  as
                                        a percent of     Affected  small
              Industry                average  revenue      entities
                                             (%)
------------------------------------------------------------------------
1. Construction.....................              0.06             9,154

[[Page 68955]]

 
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

0
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).

0
2. Amend Sec.  29.5 by revising paragraph (b)(21) to read as follows:

Sec.  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.
* * * * *
0
3. Amend Sec.  29.7 by revising paragraph (j) and adding paragraph (l) 
to read as follows:

Sec.  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.
0
4. Amend Sec.  29.8 by revising paragraph (b)(1)(i) to read as follows:

Sec.  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 on-the-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.
* * * * *
0
5. Amend Sec.  29.14 by revising paragraph (a) to read as to read as 
follows:

Sec.  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

0
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.

[[Page 68956]]

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.

Sec.  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.

Sec.  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 Sec.  29.4 of this 
title under standards of apprenticeship fulfilling the requirements of 
Sec.  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\ The 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.
---------------------------------------------------------------------------

    (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

[[Page 68957]]

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\
---------------------------------------------------------------------------

    \2\ The 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).
---------------------------------------------------------------------------

    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 pre-apprenticeship 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.

[[Page 68958]]

    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.

Sec.  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 Sec.  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 Sec.  
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,

[[Page 68959]]

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; pre-
apprenticeship programs; and Federally-funded, 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 
Sec.  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 Sec.  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.

Sec.  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.

[[Page 68960]]

    (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 Sec.  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 Sec.  30.3(a):
    (1) Utilization analysis for race, sex, and ethnicity, as described 
in Sec.  30.5;
    (2) Establishment of utilization goals for race, sex, and 
ethnicity, as described in Sec.  30.6;
    (3) Utilization goals for individuals with disabilities, as 
described in Sec.  30.7;
    (4) Targeted outreach, recruitment, and retention, as described in 
Sec.  30.8; and
    (5) Review of personnel processes, as described in Sec.  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 Sec.  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.

Sec.  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 Sec.  
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

[[Page 68961]]

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 Sec.  
30.6. Sponsors are not required or expected to establish goals where no 
disparity in utilization rates has been found.

Sec.  30.6  Establishment of utilization goals for race, sex, and 
ethnicity.

    (a) Where, pursuant to Sec.  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 Sec.  30.5(c).
    (b) A sponsor's determination under Sec.  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 set-asides 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 less-qualified person in preference 
to a more qualified one.

Sec.  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 two-step process. First, as 
required in Sec.  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 Sec.  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 Sec.  30.9.
    (f) Action-oriented programs. The sponsor must undertake action 
oriented programs, including targeted outreach, recruitment, and 
retention activities identified in Sec.  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.

Sec.  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 Sec.  30.6, and/or where a sponsor has 
determined pursuant to Sec.  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

[[Page 68962]]

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.

Sec.  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.

Sec.  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 Sec.  
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.

Sec.  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 Sec.  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 Sec.  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 Sec.  30.2. 
This invitation shall be extended the first year the sponsor

[[Page 68963]]

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 Sec.  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.

Sec.  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 Sec.  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 Sec.  30.14 or with 
other enforcement agencies;
    (4) Compliance with the requirements of Sec.  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/non-Hispanic 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 Sec.  
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 Sec.  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.

Sec.  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

[[Page 68964]]

    (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 Sec.  30.15.

Sec.  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

[[Page 68965]]

from that given in this section provided it is submitted for review to 
and receives approval by the Administrator.

Sec.  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.

Sec.  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.

Sec.  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 Sec.  30.15.

Sec.  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 Sec.  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 Sec.  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 
Sec.  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 Sec.  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 Sec. Sec.  29.8(b) and 
29.10 of this title; and
    (4) Refer any matter pertaining to Sec.  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 Sec.  29.14 of this title.

Sec.  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.

Sec.  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 Sec.  30.3(c);
    (2) Comply with the non-discrimination requirements prescribed by 
Sec.  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 Sec.  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

[[Page 68966]]

written approval of a State's EEO plan, as provided under Sec.  
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 
Sec.  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]
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