Final Rule on Industry-Recognized Apprenticeship Programs

Final Rule on Industry-Recognized Apprenticeship Programs

Final Rule on Industry-Recognized
November 23, 2020
Apprenticeship Programs
Benjamin Collins
In March 2020, the Department of Labor (DOL) published a final rule establishing policies
Analyst in Labor Policy
related to its Industry-Recognized Apprenticeship Programs (IRAPs). The rule established

criteria and procedures for DOL to approve Standards Recognition Entities (SREs), which have
the authority to recognize IRAPs. The standards that SREs will apply to IRAPs are established in

the rule. The rule defines an IRAP as a workforce training program that includes a paid-work
component and an educational or instructional component and results in an industry-recognized credential.
The final rule was established under the authority of the National Apprenticeship Act (NAA). The rule supplements
previously established regulations related to apprenticeship. It has no direct effect on the existing registered apprenticeship
system.
The rule establishes procedures for DOL to approve SREs as qualified to recognize IRAPs. Entities that can become SREs
include (but are not limited to) trade, industry, and employer groups; corporations; educational institutions; state and local
government agencies; nonprofit organizations; and unions. In their applications, SREs must establish their expertise and
ability to set standards in their specified occupations and industries. SREs must also establish impartiality on several fronts,
including mitigating any conflicts of interest. The rule specifies that DOL shall recognize any SRE that applies and meets the
regulatory criteria.
Once approved, an SRE may recognize IRAPs that comply with the standards established in the rule. The standards for
IRAPs include a paid-work component, an instructional component, written training plans and apprenticeship agreements,
various disclosures to the apprentice, and reporting requirements to DOL.
Recognition as an SRE does not entitle an entity to federal funding. Similarly, IRAPs do not necessarily receive federal
funds. IRAPs may qualify for federal funds through various existing federal programs that support workforce development,
although unlike registered apprenticeship status, their status as IRAPs does not provide categorical eligibility for certain types
of federal aid.

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Contents
Introduction and Background ............................................................................................ 1
Legislative Background and the Registered Apprenticeship System ................................... 1
Prior Actions Related to Industry-Recognized Apprenticeship Programs ............................ 1
Description of the Final Rule ............................................................................................ 2
Standards Recognition Entities (SREs).......................................................................... 2
Requirements for IRAPs ............................................................................................. 3
Reporting Requirements ............................................................................................. 4
Oversight, Suspension, and Derecognition of SREs......................................................... 5
Exclusion of Construction Activities ............................................................................. 5
Implementation of the Final Rule....................................................................................... 5
Comparison of Registered Apprenticeship Programs and IRAPs............................................. 6
Structure and Duration of Programs.............................................................................. 6
Schedule of Wage Increases ........................................................................................ 7
Equal Employment Opportunity Provisions ................................................................... 7
Integration with Other Federal Programs ....................................................................... 7

Contacts
Author Information ......................................................................................................... 8

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Final Rule on Industry-Recognized Apprenticeship Programs

Introduction and Background
On March 11, 2020, the Department of Labor (DOL) published a final rule in the Federal
Register to establish a process for recognizing new Standards Recognition Entities (SREs) that
have the authority to approve Industry-Recognized Apprenticeship Programs (IRAPs).1 The
requirements that SREs may apply to IRAPs are established in the rule.
The rule does not have a direct impact on DOL’s existing registered apprenticeship system, in
which governmental agencies approve apprenticeship programs as being in compliance with
federal standards. Instead, the new system of SREs and IRAPs may operate as an alternative
system, co-existing with the established registered apprenticeship system.
This report focuses on the final rule and provides limited information on the broader federal
approach to apprenticeship. A more detailed description of established federal efforts related to
registered apprenticeship is available in CRS Report R45171, Registered Apprenticeship: Federal
Role and Recent Federal Efforts.
Legislative Background and the Registered Apprenticeship System
The National Apprenticeship Act (NAA), enacted in 1937, is a relatively brief statute that directs
DOL to “safeguard the welfare of apprentices” and “bring together employers and labor for the
formulation of programs of apprenticeship.”2 To carry out this law, DOL established regulations
that set standards for apprenticeship programs and procedures for registration agencies to register
individual apprenticeship programs that are in conformity with those standards (“registered
apprenticeships”). Regulations also establish oversight responsibilities and procedures for
registration agencies.3 The newly established IRAP regulations supplement the previously
established registered apprenticeship regulations. A brief comparison of the two systems is
provided at the end of this report.
The emphasis of the NAA and associated regulations is on creating administrative systems that
wil support the objectives of the law. The NAA does not authorize grants or other appropriations
to provide direct financial support for apprentices or apprenticeship sponsors.
Prior Actions Related to Industry-Recognized Apprenticeship
Programs
The final rule is the latest in a series of ongoing efforts by the Trump Administration to increase
the role of private industry in setting and implementing standards in the federal apprenticeship
system. In June 2017, President Trump issued Executive Order (EO) 13801, “Expanding
Apprenticeships in America.”4 The EO directed DOL to “consider proposing regulations” that

1 T he full notice was published as pages 14294-14392 in Vol. 85, No. 48 of the Federal Register (hereinafter, “ Federal
Register notice”). See https://www.govinfo.gov/content/pkg/FR-2020-03-11/pdf/2020-03605.pdf.
2 29 U.S.C. 50 et seq.
3 29 C.F.R. 29-30.
4 For full text of EO 13801, see https://www.govinfo.gov/content/pkg/FR-2017-06-20/pdf/2017-13012.pdf.
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Final Rule on Industry-Recognized Apprenticeship Programs

“reflect an assessment of whether” to modify the registration process to increase the role of
nongovernment entities.
The EO also directs DOL to convene a task force “to identify strategies and proposals to promote
apprenticeships, especial y in sectors where apprenticeship programs are insufficient.” The first
meeting of the task force was in October 2017 and its final report was issued in May 2018. The
recommendations in the final report included the broad contours of an IRAP system.5
DOL published a proposed rule related to IRAPs on July 25, 2019. The proposed rule specified
that comments had to be submitted by August 26, 2019.
Description of the Final Rule
Under the final rule, the Office of Apprenticeship (OA) within DOL6 may approve SREs that
meet specified requirements. The rule further establishes a process by which SREs may consider
individual apprenticeship programs in the context of standards established by the rule and
formal y recognize individual IRAPs that are in conformity with those standards.
The final rule defines IRAPs as “high-quality apprenticeship programs, wherein an individual
obtains workplace-relevant knowledge and progressively advancing skil s, that include a paid-
work component and an educational or instructional component, and that result in an industry-
recognized credential.”7
Standards Recognition Entities (SREs)
Under the final rule, DOL-approved SREs are responsible for approving programs that are in
compliance with federal requirements. The rule specifies the types of entities that can become
SREs:
 trade, industry, and employer groups or associations;
 corporations and other organized entities;
 educational institutions, such as universities or community colleges;
 state and local government agencies or entities;
 nonprofit organizations;
 unions;
 joint labor-management organizations;
 certification and accreditation bodies or entities for a profession or industry; or
 a consortium or partnership of entities such as those listed above.8
To apply to be an SRE, an entity (or consortium thereof) must submit an application to DOL. The
application must demonstrate that the entity has sufficient expertise in the applicable industries or

5 See recommendations 14-26 of the final report, available at https://www.dol.gov/apprenticeship/docs/task-force-
apprenticeship-expansion-report.pdf.
6 T he text of the final rule assigns numerous administrative responsibilities to the administrator, wh ich is the chief
official of DOL’s Office of Apprenticeship. In the interest of simplicity and readability, this report will typically refer
to “DOL” when the regulations refer to “the administrator” or an individual designated by the administrator.
7 29 C.F.R. 29.20(b).
8 29 C.F.R. 29.20(a)(1).
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occupational areas and that it has the capacity and resources to operate in its intended geographic
area for a five-year period.
In its application, a prospective SRE must establish policies and procedures that demonstrate
impartiality on several fronts. The SRE must actively mitigate any actual or potential conflict of
interest, including those that may arise from an SRE recognizing its own apprenticeship programs
and those related to the SRE’s provision of service to actual or potential IRAPs.9
The regulations specify that DOL wil recognize an SRE if it is qualified.10 If DOL does not
approve the application, it must specify the reasons for denial and what remedies must be made
for the application to be approved.
If DOL approves an SRE’s application, the SRE wil be recognized for five years. After five
years, the SRE must submit an application for re-recognition. An SRE is required to notify DOL
if it makes major changes that “material y affect the SRE’s ability to function in its recognition
capacity” or if it seeks to recognize programs in additional industries, occupational areas, or
geographic areas.11
Requirements for IRAPs
Under the final rule, an SRE may only recognize an IRAP if the program meets 10
requirements.12
1. The program must train apprentices for employment in jobs that require
specialized knowledge and experience and involve the performance of complex
tasks.
2. The program has a written training plan that is consistent with the SRE’s
requirements and standards and was developed through a consensus-based
process involving industry experts. The plan, which must be provided to an
apprentice prior to the beginning of the IRAP, must detail the IRAP’s structured
work experiences, and appropriate classroom or related instruction, be designed
so that apprentices demonstrate proficiency and earn credential(s), and provide
apprentices progressively advancing industry-essential skil s.
3. The program ensures that, where appropriate, apprentices receive credit for prior
knowledge and experience relevant to the instruction of the program.
4. The program provides apprentices with industry-recognized credential(s) during
participation in or upon completion of the program.
5. The program provides a safe working environment for apprentices that adheres to
al applicable federal, state, and local safety laws and regulations along with any
additional safety requirements of the SRE.
6. The program provides apprentices with structured mentorship opportunities
throughout the duration of the apprenticeship that involve ongoing, focused
supervision and training by experienced instructors and employees, to ensure
they have additional guidance on the progress of their training and their
employability.

9 29 C.F.R. 29.21(b)(4)-(6).
10 29 U.S.C. 22.21(c).
11 29 U.S.C. 22.21(c)(1)-(3).
12 Requirements are largely verbatim from 29 C.F.R. 29.22(a)(4).
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7. The program ensures that apprentices are paid at least the applicable federal,
state, or local minimum wage and ensures that the program’s charging of costs or
expenses comply with al applicable federal, state, and local wage laws and
regulations. The program provides a written notice to apprentices of what wages
they wil receive and under what circumstances their wages wil increase.
8. The program affirms its adherence to al applicable federal, state, and local laws
pertaining to Equal Employment Opportunity (EEO).
9. The program discloses to apprentices, prior to when they agree to participate in
the program, any costs or expenses that wil be charged to them (such as costs
related to tools or educational materials).
10. The program maintains a written apprenticeship agreement for each apprentice
that outlines the terms and conditions of the apprentice’s employment and
training and is consistent with the SRE’s requirements.
An SRE must establish its IRAPs’ conformity with the aforementioned requirements at the time
of recognition and on an annual basis thereafter.13 The regulations further specify that an SRE
must “maintain an ongoing quality-control relationship with IRAPs it has recognized” and that
such relationship shal “involve periodic compliance reviews … to ensure compliance” with the
previously listed standards.14
Reporting Requirements
The final rule requires DOL to make publicly available a list of SREs and the IRAPs that they
have recognized.15 The rule does not specify how often this list must be updated.
The rule requires SREs to report to DOL and make publicly available, on an annual basis,
information on each program they recognize, including the following:16
 up-to-date contact information for each program;
 the total number of new and continuing apprentices in each IRAP under an
apprenticeship agreement;
 the total number of apprentices who successfully completed the IRAP annual y;
 the annual completion rate for apprentices;17
 the median length of time for program completion;
 the post-apprenticeship employment retention rate, calculated 6 and 12 months
after program completion;
 the industry-recognized credentials attained by apprentices in an IRAP, and the
annual number of such credentials attained;

13 29 C.F.R. 29.22(b).
14 29 C.F.R. 29.22(f).
15 T he list must also include suspended and derecognized IRAPs. 29 C.F.R. 29.24.
16 29 C.F.R. 29.22(h).
17 Regulations specify that “Annual completion rate must be calculated by comparing the number of apprentices in a
designated apprenticeship cohort who successfully completed the IRAP requirements and attained an industry-
recognized credential with the number of apprentices in that cohort who initially began training in the IRAP.” 29
C.F.R. 29.22(h)(4).
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 the annualized average earnings of an IRAP’s former apprentices, calculated over
the six-month period after IRAP completion;
 training cost per apprentice; and
 basic demographic information on participants.
Oversight, Suspension, and Derecognition of SREs
Regulations specify that DOL may “conduct periodic compliance assistance reviews of SREs to
ascertain their conformity with” the requirements of the rules.18 DOL may also initiate a review of
an SRE if a complaint is filed or if DOL receives other information indicating that the SRE is not
in compliance with the regulations or is otherwise no longer capable of continuing as an SRE.19
Upon conclusion of the review, DOL may decide to take no action or suspend the SRE for 45
calendar days. If the SRE remedies the issues that led to the suspension, the suspension wil end.
If the SRE does not remedy the issues “after the close of the 45-day period and any extensions …
[DOL] wil derecognize the SRE and must notify the SRE in writing and specify the reasons for
the derecognition.”20
Following a SRE’s derecognition, an IRAP that has been recognized by the SRE is to maintain its
status for one year. At the end of one year, the IRAP wil lose its status unless it is recognized by
another SRE.21
Exclusion of Construction Activities
The rule states an intention of creating an additional option for occupations and industries that do
not make wide use of the existing registered apprenticeship system. As such, “programs that seek
to train apprentices to perform construction activities” are excluded from being recognized as
IRAP programs. The rule specifies that SREs are prohibited from recognizing IRAPs that seek to
train apprentices to perform construction activities and that DOL wil not recognize SREs that
intend to recognize programs in construction activities. The rule defines construction activities as
the “erecting of buildings and other structures (including additions); heavy construction other
than buildings; and alterations, reconstruction, instal ation, and maintenance and repairs.”22
Implementation of the Final Rule
The final rule took effect May 11, 2020, two months after it was issued. DOL began accepting
online applications from prospective SREs that day.23 On September 23, 2020, DOL announced
the first group of SREs. DOL noted that 18 SREs had been approved to recognize IRAPs in 20
industries and nearly 130 occupations.24

18 29 C.F.R. 29.23.
19 29 C.F.R. 29.25-26.
20 29 C.F.R. 29.27(c)(1)(ii).
21 29 C.F.R. 29.28.
22 29 C.F.R. 29.30.
23 U.S. Department of Labor, “U.S. Department of Labor Launches Industry -Recognized Apprenticeship Program
Standards Recognition Entity Application Portal,” May 11, 2020, https://www.dol.gov/newsroom/releases/eta/
eta20200511-0.
24 U.S. Department of Labor, “U.S. Department of Labor Announces First Group of Standards Recognition Entities for
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When it announced the initial group of SREs, DOL said that additional SRE applications wil be
reviewed on a quarterly basis. To be considered for the next review cycle, applications are due by
November 30, 2020, and determinations are to be made within about 90 days of that date.25
On October 1, 2020, DOL announced the recognition of the first IRAP program.26
Comparison of Registered Apprenticeship Programs
and IRAPs
The final IRAP rule is frequently discussed in the context of the existing registered apprenticeship
system that it supplements. The structure and design of the regulations governing registered
apprenticeship are not directly paral el to the rule for SREs and IRAPs, so direct comparisons of
many aspects of the respective frameworks are chal enging. For example, in some instances the
registered apprenticeship regulations establish a standard that is specific to registered
apprenticeship programs while IRAPs may be silent on the issue and defer to federal policies that
apply to al workers.
This section of the report highlights some differences between the existing registered
apprenticeship regulations and the IRAP rule. It should not be considered a comprehensive
comparison.
Structure and Duration of Programs
The existing registered apprenticeship regulations specify that programs can be time-based (i.e.,
an apprentice establishes competency by spending a specified amount of time on the skil ),
competency-based (i.e., an apprentice establishes a skil acquisition through demonstration of the
skil as verified by the sponsor), or a hybrid of the two. The IRAP rule does not explicitly limit
IRAPs to competency-based programs, but it does specify that SREs must demonstrate “expertise
to competency-based standards.”27 The explanatory text accompanying the IRAP rule clarify a
requirement for competency-based standards, but further note that “SREs are not precluded from
including time-based requirements as a function of or in addition to competency-based
standards.”28
The existing registered apprenticeship regulations define an eligible occupation as one that,
among other requirements, requires the attainment of skil s and knowledge for which at least
2,000 hours of on-the-job training would be necessary.29 The IRAP rule does not include any
provisions related to the expected or minimum duration of an IRAP. Similarly, the registered
apprenticeship regulations establish a minimum of 144 hours per year of related instruction, while

Industry-Recognized Apprenticeship Programs,” September 23, 2020, https://www.dol.gov/newsroom/releases/eta/
eta20200923.
25 Ibid.
26 U.S. Department of Labor, “U.S. Department of Labor Announces First Industry -Recognized Apprenticeship
Program,” October 1, 2020, https://www.dol.gov/newsroom/releases/eta/eta20201001-0.
27 29 C.F.R. 29.21(b)(1).
28 Federal Register notice, p. 14388.
29 29 C.F.R. 29.4.
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IRAP regulations specify a requirement for related instruction but do not establish a minimum
amount of time.30
The existing registered apprenticeship regulations do not require sponsors to have a system to
evaluate and recognize an apprentice’s prior knowledge and experience. The IRAP rule requires
industry programs to demonstrate that apprentices receive credit for prior knowledge and
experience.31
Schedule of Wage Increases
Both the registered apprenticeship regulations and the IRAP regulations establish that apprentices
must be paid at least the federal minimum wage (or higher if specified by state or local law). The
registered apprenticeship regulations further require “[a] progressively increasing schedule of
wages to be paid to the apprentice consistent with the skil acquired.”32 The IRAP rule requires
that IRAP sponsors “provide a written notice to apprentices of what wages apprentices wil
receive and under what circumstances apprentices’ wages wil increase.”33
Equal Employment Opportunity Provisions
Registered apprenticeship programs are subject to a dedicated set of EEO regulations in 29 C.F.R.
30. The IRAP rule requires IRAP programs to affirm their “adherence to al applicable Federal,
State, and local laws pertaining to Equal Employment Opportunity” but are not subject to
apprenticeship-specific EEO policies.34
Integration with Other Federal Programs
While registered apprenticeship programs do not necessarily qualify for federal funds, there are a
number of federal funding streams for which registered apprenticeship is an al owable use and
registered apprenticeship programs may receive special consideration.35 For example, registered
apprenticeship programs are automatical y eligible for state formula grant funds under the
Workforce Innovation and Opportunity Act (WIOA).36 Similarly, registered apprenticeship
programs are “deemed approved” for the GI Bil and do not have to complete an in-depth
review.37
The IRAP rule does not align IRAPs with the funding streams. The explanations accompanying
the rule specify that the special considerations afforded to registered apprenticeship programs by
some other programs do not extend to IRAP programs, but they note that IRAP programs may

30 See 29 C.F.R. 29.5(a)(4) for registered apprenticeship policy.
31 29 C.F.R. 29.22(a)(4)(iii).
32 29 C.F.R. 29.5(b)(5).
33 29 C.F.R. 22(a)(4)(vii).
34 29 C.F.R. 29.22(a)(4)(viii). For a discussion of the IRAP EEO provisions compared to the registered apprenti ceship
EEO provisions, see the Federal Register notice, pp. 14323-14324.
35 For a summary of these funding sources, see U.S. Department of Labor, The Federal Resources Playbook for
Registered Apprenticeship, https://www.doleta.gov/oa/federalresources/playbook.pdf.
36 For a detailed discussion of the interaction of registered apprenticeship and WIOA, see DOL T raining and
Employment Guidance Letter (T EGL) 13-16, January 12, 2017, https://wdr.doleta.gov/directives/attach/TEGL/
T EGL_13-16_acc.pdf.
37 See 38 U.S.C. 3672 and CRS Report R44728, The Role of State Approving Agencies in the Administration of GI Bill
Benefits.
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Final Rule on Industry-Recognized Apprenticeship Programs

qualify for more general forms of workforce funding.38 The IRAP rule further clarifies that the
exception to prevailing wage laws under the Davis-Bacon Act for participants in registered
apprenticeship programs does not extend to IRAPs.39

Author Information

Benjamin Collins

Analyst in Labor Policy

Disclaimer
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under the direction of Congress. Information in a CRS Report should n ot be relied upon for purposes other
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38 See the Federal Register notice, p. 14299, which specifies “ where Federal programs confer categorical eligibility,
exclusive funding, or special status to registered apprenticeship programs, such benefits do not extend to IRAPs.”
39 Federal Register notice, p. 14323.
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