ABC Resources on the U.S. DOL’s National Apprenticeship System Enhancements Proposed Rule

On Jan. 17, 2024, the Federal Register published a controversial U.S. Department of Labor proposed rule that would make significant revisions to the National Apprenticeship System, which will affect ABC members, chapters, apprentices and other industry stakeholders participating in government-registered apprenticeship programs. ABC submitted 45 pages of comments expressing concerns about the proposal on March 18, 2024.

On Dec. 2, 2024, the Office of Information and Regulatory Affairs announced that the final rule had been withdrawn. As described in ABC’s press release, this is a major victory for the construction industry and workforce development stakeholders, which will not be subjected to the proposed rule’s costly new requirements and elimination of flexible approaches to workforce development. This follows ABC’s continued advocacy efforts including 45 pages of comments opposing the proposal.

ABC was concerned that this proposal would have discouraged employer participation in the GRAP system by adding more costly bureaucracy and paperwork requirements, eliminating flexible competency-based approaches to workforce development that benefit apprentices and employers and increasing overall uncertainty for the regulatory community.

While the final rule will no longer be released, ABC has compiled the below resources for stakeholders seeking information on the changes the NPRM had proposed to the GRAP system.

ABC Resources:

News Updates:

Federal Government Resources:

ABC’s all-of-the-above approach to upskilling the construction industry workforce has produced a network of more than 800 apprenticeship, craft, health and safety and management education programs—including more than 450 government-registered apprenticeship programs across 20 different occupations—in order to develop a safe, skilled and productive workforce. ABC chapters also have 328 entry-point programs in place nationally to welcome all to begin a career in construction.

In 2024, the construction industry faces a skilled labor shortage of more than half a million workers. Unfortunately, recent analysis of U.S. DOL data by ABC found that it would take more than a decade for all federal and state construction industry government-registered apprenticeship programs to meet industry labor needs in 2024. ABC estimates that the construction industry’s federal and state government-registered apprenticeship system yielded just 45,000 completers of four-to-five-year apprenticeship programs, and just 250,000 apprentices were enrolled in all construction industry registered apprenticeship programs.

Regrettably, new federal government policy is likely to exacerbate the construction industry’s skilled labor shortage and undermine taxpayer investments in infrastructure needed to ensure a strong American economy.

ABC will continue to advocate for an all-of-the-above workforce development strategy, including industry-driven and government-registered apprenticeship programs, so workers and employers have freedom to choose the best way to provide value and help rebuild America.

Apprenticeship Executive Order

Separately from the proposed rule, President Joe Biden’s March 6 Executive Order 14119 on Scaling and Expanding the Use of Registered Apprenticeships in Industries and the Federal Government and Promoting Labor-Management Forums has the stated goal of expanding the usage of government-registered apprenticeship programs by the federal government.

The order directs federal agencies to identify where they can implement new requirements or incentives for federal contractors and recipients of federal financial assistance to employ workers who are active participants or graduates of a GRAP.

While specific details on how these new requirements will be implemented are not yet available until a rulemaking is completed, ABC is concerned that any new mandates or incentives on federal contracts and grants will reduce competition from contractors that choose not to participate in the GRAP system or lack access to these programs.

Resources: