Letter to The Honorable Julie Su, Acting Secretary, Department of Labor (February 15, 2024)

Summary

In a letter dated February 15, 2024, to Acting Secretary Julie Su of the Department of Labor, the House Committee on Small Business writes to inquire about the Department of Labor's recently proposed rule to enhance the National Apprenticeship System by modernizing regulations for registered apprenticeships. The letter says the proposed rule would require adoption of a time-based model, eliminating flexible competency-based approaches, and that the new requirements will discourage small business participation. It requests documents and information no later than February 29, 2024, including what additional incentives the rule provides small businesses. The signature block names Roger Williams, Chairman, and Aaron Bean, Member.

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Full text

                                             February 15, 2024

The Honorable Julie Su
Acting Secretary
Department of Labor
200 Constitution Ave. NW
Washington, DC 20210

Dear Secretary Su:

        The House Committee on Small Business (the Committee) writes to inquire about the
Department of Labor’s (DOL) recently proposed rule, which seeks to enhance the National
Apprenticeship System by modernizing regulations for registered apprenticeships.1 The proposed
rule would introduce significant changes to how training programs are structured, making it more
difficult for small businesses to participate in the program.2 This rule places an especially high
burden on small businesses by imposing difficult administrative requirements ranging from
mandatory disclosures for training program sponsors to providing details about the operation,
performance, and advancement of the training program.3 It seems the DOL may not have
properly considered small businesses in this rulemaking process.

        The proposed rule, among other things, would require the adoption of a time-based
model—eliminating the current flexible competency-based approaches to certify an individual
has completed their training.4 Further, the rule adds additional quality and content requirements,
and establishes new procedures concerning the registration, cancellation, and deregistration of
apprenticeship programs.5 These new requirements will discourage small business participation
in the apprenticeship programs. Discouraging participation in a program designed to bolster the
American workforce is counterproductive. Especially given the labor shortage of skilled workers
nationwide—nearly 90 percent of small business owners with job openings are struggling to find
qualified applicants.6

       It is important for agencies to examine the interests of small businesses—which make up
99.9 percent of all businesses in the United States—when passing any new rule. America’s small


1
  National Apprenticeship System Enhancements, 89 F.R. § 3118 (2024) (to be codified at 29 C.F.R. §§ 29 & 30).
2
  Id.
3
  National Apprenticeship System Enhancements, 89 FR 3118 (2024) (to be codified at 29 C.F.R. §§ 29 & 30).
4
  Rebecca Rainey, New Apprenticeship Proposal Draws Warning on Scope of Overhaul, BLOOMBERG LAW (Dec.
27, 2023).
5
  Id.
6
  NAT’L FED’N OF INDEP. BUS., SMALL BUS. OPTIMISM INDEX, 2 (Dec. 2023).
The Honorable Julie Su
February 15, 2024
Page 2 of 2

businesses deserve to have their voices heard and considered. We therefore request the following
documents and information as soon as possible but no later than February 29, 2024:

      1. What additional incentives does the rule provide small businesses to offer apprenticeship
         opportunities given the increased costs being imposed on their operation by this rule?

      2. To what extent would the proposed rule minimize revenue that could be used by small
         businesses to facilitate investment, consequently hindering their growth and
         development?

      3. To what extent would the rule limit small businesses to offer job training opportunities
         given the veto authority labor unions will be entrusted with over new apprenticeship
         programs?

      4. How might the rule’s penalties for non-compliance impact the ability of small businesses
         to participate in the program compared to larger, more financially robust corporations?

      5. Whether the DOL took into account how the rule change would affect the small business
         apprenticeship and job market given the current workforce shortages, and how that was
         factored into the analysis.

       To schedule the delivery of your response or ask any related follow-up questions, please
contact the Committee on Small Business Majority Staff at (202) 225-5821. The Committee on
Small Business has broad authority to investigate “problems of all types of small business” under
House Rule X. Thank you in advance for your cooperation with this inquiry.

                                          In God We Trust,



_________________________                              _________________________
Roger Williams                                         Aaron Bean
Chairman                                               Member
Committee on Small Business                            Committee on Small Business




cc:      The Honorable Nydia M. Velasquez, Ranking Member
         Committee on Small Business


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