What happened?

On November 27, 2024, the Department of Labor (DOL) confirmed via the Office of Information and Regulatory Affairs (OIRA) that the Proposed Rule to modernize Apprenticeships was withdrawn.

Overview

• The U.S. Department of Labor withdrew its proposed overhaul of workplace apprenticeship programs after receiving significant feedback from industry and business groups.
• The proposal aimed to modernize the system but faced opposition due to concerns about increased oversight, costs, and new diversity requirements.

Additional Details:

• The DOL cited a need to modernize an on-the-job training system that has remained the same since 2008.
• The proposed changes aimed to modernize the National Apprenticeship System raised concerns about negative impacts on small businesses and increased oversight, such as new DEI requirements, mandated specific hours for on-the-job and classroom training, and required preferential recruiting from “underserved communities,” with at least 2,000 hours of paid training.
• Employers do not need to make any changes at this time but should monitor the landscapes for any relevant updates. VensureHR will inform employers if any development occurs.

Source References

• DOL Proposed Rule Intends to Modernize Apprenticeships (VensureHR)
• OIRA Conclusion of EO 12866 Regulatory Review (Proposed Apprenticeship Rule)
• DOL Proposed Rule: National Apprenticeship System (Withdrawn)

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