96-8513. Coverage of Apprenticeship Programs Under the Age Discrimination in Employment Act (ADEA)  

  • [Federal Register Volume 61, Number 68 (Monday, April 8, 1996)]
    [Rules and Regulations]
    [Pages 15374-15378]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 96-8513]
    
    
    
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    EQUAL EMPLOYMENT OPPORTUNITY COMMISSION
    
    29 CFR Part 1625
    
    
    Coverage of Apprenticeship Programs Under the Age Discrimination 
    in Employment Act (ADEA)
    
    AGENCY: Equal Employment Opportunity Commission.
    
    ACTION: Final rule.
    
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    SUMMARY: On July 3, 1995 pursuant to Executive Orders 12067 and 12866, 
    the Commission approved for inter-agency coordination and subsequent 
    review by the Office of Management and Budget (OMB) a Notice of 
    Proposed Rulemaking (NPRM) that would rescind the current 
    apprenticeship regulation (29 C.F.R. Sec. 1625.13) and replace it with 
    a legislative regulation providing that apprenticeship programs are 
    subject to the ADEA. The Commission then published the NPRM in the 
    Federal Register for public comment on October 3, 1995. See 60 FR 51762 
    (Oct. 3, 1995). Based on a careful analysis of the comments received in 
    response to the NPRM, a reassessment of the statutory language and 
    legislative history of the ADEA, a review of case law and related 
    statutes, and a thorough examination of the history of apprenticeship 
    programs, the Commission has determined that a rule covering 
    apprenticeship programs will better advance the ADEA's objectives of 
    promoting the employment of older persons based on their ability rather 
    than age and prohibiting arbitrary age discrimination in employment. 
    Therefore, pursuant to sec. 9 of the ADEA, 29 U.S.C. Sec. 628, the 
    Commission is removing sec. 1625.13 from its Interpretive Regulations, 
    found in 29 C.F.R. Part 1625 and is adding in Part 1625, a new sec. 
    1625.21 under Subpart B - Substantive Regulations. The new sec. 1625.21 
    will subject all apprenticeship programs to the prohibitions of the Act 
    unless otherwise specifically exempted under sec. 9, 29 U.S.C. 
    Sec. 628, in accordance with the procedures set forth in 29 C.F.R. 
    1627.15, or if excepted under section 4(f)(1) of the ADEA, 29 U.S.C. 
    Sec. 623 (f)(1).
    
        Copies of this final rule are available in the following alternate 
    formats: large print, braille, electronic file on computer disk, and 
    audio tape. Copies may be obtained from the Office of Equal Employment 
    Opportunity by calling (202) 663-4395 (voice) or (202) 663-4399 (TDD).
    
    EFFECTIVE DATE: This rule takes effect on May 8, 1996.
    
    FOR FURTHER INFORMATION CONTACT: Joseph N. Cleary, Assistant Legal 
    Counsel or James E. Cooks, Senior Attorney Advisor, (202) 663-4690 
    (voice), (202) 663-7026 (TDD).
    
    SUPPLEMENTARY INFORMATION:
    
    Historical Background.
    
        The Department of Labor (DOL) was initially given jurisdiction over 
    the enforcement of the ADEA. In 1969, DOL published an interpretation 
    that excluded apprenticeship programs from the ADEA. See 34 Fed. Reg. 
    323 (January 9, 1969). The rationale given by DOL for the ``no-
    coverage'' position was that apprenticeship programs had been 
    traditionally limited to youths under a specified age in recognition of 
    apprenticeship as an extension of the educational process.
        The Commission assumed responsibility for enforcing the ADEA 
    pursuant to Reorganization Plan No. 1 of 1978. See 45 Fed. Reg. 19807 
    (May 9, 1978). In June of 1979, the Commission published a notice in 
    the Federal Register advising the public that all DOL interpretive 
    guidelines on the ADEA would remain in effect until such time as the 
    Commission could issue its own guidelines. See 44 Fed. Reg. 37974 (June 
    29, 1979). In November of 1979, the Commission published its own 
    proposed ADEA Guidelines, but did not include a proposal on the 
    apprenticeship issue. See 44 Fed. Reg. 68858 (Nov. 30, 1979).
        On September 23, 1980, the Commission preliminarily approved a 
    proposed recision of the DOL position on apprenticeship and voted to 
    replace it with a legislative rule providing for coverage of 
    apprenticeship programs. The Commission then published for comment a 
    proposed legislative rule stating that age limitations in 
    apprenticeship programs would be unlawful under the ADEA unless
    
    [[Page 15375]]
    justified as a bona fide occupational qualification (BFOQ) or 
    specifically exempted by the Commission under sec. 9 of the Act. See 45 
    Fed. Reg. 64212 (Sept. 29, 1980).
        After considering the public comments submitted in response to this 
    proposal, the Commission declined to adopt it by a vote of 2-2. It then 
    republished the DOL interpretive rule as part of its final ADEA 
    interpretations. See 46 Fed. Reg. 47726 (Sept. 29, 1981).
        In August of 1983, a United States District Court in New York 
    reviewed the Commission's position on the applicability of the ADEA to 
    apprenticeship programs in Quinn v. New York State Electric and Gas 
    Corp., 569 F. Supp. 655 (1983). The Quinn court, inter alia, found the 
    interpretation invalid because it was not supported by ``the language, 
    purpose, and legislative history of the ADEA.'' Quinn, 569 F. Supp. at 
    664. The Commission, however, was not a party in this case, and the 
    court's decision did not require that the Agency take any action 
    regarding its apprenticeship interpretation.
        In 1984 the Commission revisited the issue, expressing serious 
    concern about the interpretation. Prompted by this concern, the 
    Commission voted 4-0 to send a proposal to the Office of Management and 
    Budget (OMB) that would rescind the apprenticeship interpretation and 
    replace it with a legislative rule covering apprenticeship programs 
    under the Act. However, the proposal was never published in the Federal 
    Register for public comment. On July 30, 1987, the Commission voted 3-1 
    to terminate the proposed regulatory action and affirmatively approved 
    the interpretation excluding apprenticeship programs. See 52 Fed. Reg. 
    33809 (Sept. 8, 1987).
        In 1995, a lawsuit was filed against the Commission challenging the 
    interpretation as an arbitrary and capricious agency action within the 
    meaning of the Administrative Procedure Act. 5 U.S.C. 551 et seq. The 
    Commission has taken the position that its prior actions with respect 
    to the difficult issue of the proper relationship between the ADEA and 
    apprenticeship programs were reasonable, deliberate, and taken in good 
    faith. The Commission has rejected any claim that it acted in a manner 
    that is arbitrary and capricious or otherwise inconsistent with law.
        The Commission also determined, however, that neither the ADEA nor 
    its legislative history required the existing position or prohibited 
    the adoption of a new rule--both are silent on the issue. Therefore, 
    because of changing circumstances in the workforce and structural 
    changes in the workplace, the Commission decided to propose for comment 
    a new legislative rule covering apprenticeship programs under the ADEA. 
    See 60 FR 51762 (Oct.3, 1995). The Commission took the position that 
    this action was necessary to insure the most appropriate policy in 
    light of present circumstances in the country which affect both 
    employers and employees.1
    
        \1\ An ``[a]dministrative agency concerned with furtherance of 
    the public interest is not bound to rigid adherence to its prior 
    rulings.'' Columbia Broadcasting System v. Federal Communications 
    Commission, 454 F.2d 1018, 1026 (D.C. Cir. 1971).
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    Public Comment
    
    A. Introduction
    
        Through the Notice of Proposed Rulemaking, the Commission sought to 
    examine various factors which contribute to many of the problems facing 
    older workers, applicants for employment generally, and employers. The 
    Commission submitted a series of questions for public consideration 
    which it deemed vital to its assessment of whether apprenticeship 
    programs should be covered under the ADEA. Members of the public were 
    given a 60 day period within which to comment, and the Commission has 
    carefully studied the viewpoints of the commenters.
        The comments received represented the views of employers, labor 
    organizations, state and local government agencies, a legal services 
    organization, and advocacy groups for older workers, women, and 
    minorities. A clear majority of commenters, representing the interests 
    of large constituencies, favor rescinding the current interpretation 
    and promulgating the proposed rule. However, a large industry 
    membership organization was among the commenters who favor retaining 
    the current interpretation. The discussion which follows is a question-
    by-question analysis of the comments received.
    
    B. Analysis of Comments
    
    1. The EEOC's Authority to Issue the New Rule
        Commenters supporting the proposed rule argue that the ADEA is a 
    remedial civil rights statute and as such its coverage should be 
    interpreted broadly by the Commission with exceptions narrowly 
    construed. They believe that the existing rule exceeded the authority 
    of the Commission as well as the Department of Labor. They believe that 
    the Commission has full authority to promulgate a new regulatory 
    position regarding coverage of apprenticeship programs.
        On the other hand, one commenter favoring retention of the current 
    position states that Congress never intended to cover apprenticeship 
    programs under the ADEA, and that the Commission is without authority 
    to change its existing interpretation on coverage of apprenticeship 
    programs. This commenter cites to statements by individual legislators 
    to the effect that only ``qualified'' older workers were covered by the 
    Act, arguing that this supports the view that apprentices are excluded 
    from coverage. It notes that the present interpretation has gone 
    unchallenged by Congress in the over 26 years it has been in existence. 
    The commenter draws an inference in support of its position from the 
    fact that Congress omitted from the ADEA explicit language covering 
    apprenticeship programs even though it had included such specific 
    language in Title VII of the Civil Rights Act of 1964, as amended. See 
    42 U.S.C. 2000e-2 (d).
        The Commission certainly agrees that it would not have authority to 
    promulgate this rule if it were clear from the statute or its 
    legislative history that Congress exempted apprenticeship programs from 
    the ADEA. In the Commission's view, however, nothing in the statute or 
    its legislative history prevents it from exercising its broad 
    legislative rulemaking authority under sec. 9 of the Act, 29 U.S.C. 
    628, and promulgating a rule covering apprenticeship programs.
        The ADEA is a remedial statute which should be broadly 
    construed.2 The statute and its history are silent regarding 
    apprenticeship programs and neither compel nor preclude their coverage. 
    The references in the legislative history to ``qualified older 
    workers'' are properly construed to mean only that employers could 
    reject applicants for apprenticeship programs who were not 
    ``qualified'' for admission. The omission by Congress of specific 
    language covering apprenticeship programs is not dispositive because 
    the Act plainly covers employers and unions. Either separately or in 
    combination these entities sponsor virtually all apprenticeship 
    programs. Thus, Congress had no need to address apprenticeship programs 
    explicitly.
    
        \2\ See Oscar Mayer and Co. v. Evans, 441 U.S. 750, 765 (1979); 
    United Air Lines, Inc. v. McMann, 434 U.S. 192, 217-18 (1977).
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        Moreover, the mere fact of the longevity of the previous 
    interpretation is not a bar to change. Indeed, an agency has a 
    continuing obligation to insure that its enforcement positions are
    
    [[Page 15376]]
    correct, which includes reevaluating them if necessary. An 
    ``(a)dministrative agency concerned with furtherance of the public 
    interest is not bound to rigid adherence to its prior rulings.'' 3 
    A contrary view would lock an agency into a prior regulatory position 
    even when the position is later determined by the agency to be unwise 
    as a matter of policy or legally incorrect.
    
        \3\ See footnote 1 supra.
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        Thus, the Commission concludes that it has authority to promulgate 
    this rule. The existence of its prior position excluding apprenticeship 
    programs from the ADEA does not act as a bar to changing that position 
    pursuant to its regulatory authority under sec. 9 of the ADEA. 29 
    U.S.C. 628. At the same time, however, the Commission reaffirms its 
    view that such position was reasonable, deliberate and taken in good 
    faith.
    2. The EEOC's Ability To Establish sec. 9 Exemptions To Meet Legitimate 
    Needs for Age Limits
        All commenters who address this issue are in agreement that the 
    Commission possesses the authority under section 9 of the Act, 29 
    U.S.C. 628, to grant exemptions from coverage for apprenticeship 
    programs when such action is necessary and proper in the public 
    interest. Commenters favoring a change in the interpretation emphasize 
    that if there are apprenticeship programs with special needs for age 
    limitations, the Commission has the flexibility to provide them with 
    relief under sec. 9. Commenters with this point of view argue that the 
    Commission's authority to be responsive to specific requests for relief 
    from the Act when required in the public interest is a compelling 
    reason to change the existing blanket exclusion of apprenticeship 
    programs.
        A commenter opposed to adoption of the new rule states that if a 
    new position is implemented, the EEOC should adopt guidelines which set 
    forth in detail the standards that must be met to establish an 
    exemption under sec. 9, or a bona fide occupational qualification 
    (BFOQ) under sec. 4(f)(1) of the ADEA. 29 U.S.C. Sec. 623 (f) (1). The 
    commenter argues that these guidelines `` should clarify if and to what 
    extent economic factors will be given weight in establishing an 
    exemption or BFOQ.''
        The Commission agrees with the commenters that it possesses 
    authority to recognize and accommodate the needs of individual 
    apprenticeship programs that may have a need for age limitations if to 
    do so is necessary and proper in the public interest. The Commission 
    also agrees with those who argue that the existence of this authority, 
    which can be used on a case-by-case basis, calls into question the need 
    for the existing interpretation with its sweeping reach.
        The Commission does not believe that there is a need to develop 
    guidance on the sec. 9 exemption process or the BFOQ exemption in 
    advance of taking action on the apprenticeship interpretation. The 
    Commission has regulatory guidance in place on both topics. See 29 
    C.F.R. 1625.6 (BFOQ) and 1627.15 (Administrative Exemptions). There is 
    also substantial caselaw on the BFOQ topic. However, the Commission 
    will closely monitor requests for exemptions and will revisit the need 
    for further guidance as appropriate.
    3. What Impact Will a Change in the Interpretation Have on Displaced 
    Older Workers?
        A legal services organization favoring the new rule presented data 
    showing that ``over the past twenty years dislocations in the American 
    economy have required millions of American workers to look for new 
    jobs,'' often resulting in unemployment and underemployment. Numerous 
    commenters note that such dislocations have had a particularly harsh 
    impact on mid-life and older workers, and one commenter points to 
    language in the Act recognizing that older workers are ``especially 
    disadvantaged in their efforts to regain employment when displaced from 
    jobs.'' 29 U.S.C. 621(a)(1). The proponents of changing the 
    interpretation cite employer downsizing at a time of shrinking 
    opportunities for new employment as a ``compelling reason'' for 
    adoption of the proposed rule.
        Proponents of the proposed rule also argue that lifting age 
    restrictions would provide employers with a larger pool of qualified 
    and talented employees. One set of comments offered by a state 
    government agency points out the tremendous potential of older workers 
    as a valuable resource for the nation's employers that can and should 
    be utilized. A number of proponents reason that ``downsizing, changing 
    technologies, and new growth industries all have created a demand for 
    workers with more advanced technical skills who can adapt quickly to 
    changing employer needs.'' Many believe ``that workers who can acquire 
    these skills will be well positioned to take advantage of the best job 
    opportunities'' and that older persons are needed to fill the void for 
    employers.
        None of the opposition commenters argue that older workers would 
    not benefit by the removal of age limitations from apprenticeship 
    programs. Rather, commenters opposed to adoption of the proposed rule 
    contend that there are ample government-sponsored training programs to 
    assist older workers and that apprenticeship programs should not be 
    compelled to include them.
        The Commission believes that eliminating age barriers in 
    apprenticeship programs will clearly benefit older workers. As noted 
    above, even opposition commenters do not argue to the contrary. The 
    Commission also believes that employers will benefit from an enhanced 
    pool of qualified workers.
        The comments make clear that large numbers of older workers have 
    been laid off. Once laid off, older workers experience particular 
    problems in finding new employment. In addition to negative 
    stereotypical assumptions about older workers that make it difficult 
    for them to find new employment, changing technology has left many 
    older workers without the necessary skills to reenter the workforce. 
    The Commission believes that apprenticeship programs can play an 
    important role in providing the training necessary to overcome these 
    barriers to reemployment.
        Employers would also benefit from an enhanced pool of qualified 
    persons to fill their needs. Demographic data demonstrates that older 
    workers comprise a substantial proportion of the potential workforce. 
    There may not be a sufficient number of younger persons to meet the 
    needs of America's employers. Older workers can be trained just as 
    readily as younger ones to handle emerging technologies.
    4. What Impact Will Change in the Interpretation Have on Employers and 
    Future Sponsorship of Apprenticeship Programs?
        Opponents of changing the apprenticeship interpretation argue that 
    a change would make it more difficult for program sponsors to recoup 
    their investments. They claim that older apprentices do not remain with 
    a particular employer, or in the workforce, as long as younger ones and 
    that older persons are less likely to complete an apprenticeship 
    program. They argue that sponsors of programs who see a diminishing 
    return on investment will discontinue the programs and turn to 
    recruitment to fill staffing needs. Opponents express the view that 
    changing the interpretation would lead to the unintended consequence of 
    fewer apprenticeship opportunities for all persons.
        Supporters of the proposed rule maintain that there is no evidence 
    to
    
    [[Page 15377]]
    support the assertion that eliminating age barriers will make it more 
    difficult for employers to recoup their investment in apprenticeship 
    programs. These commenters point to: the continuation of apprenticeship 
    programs in states that prohibit age discrimination in such programs; 
    the increased mobility of workers of all ages which diminishes the 
    likelihood that employers will recoup a training investment through the 
    lifetime employment of any worker on the basis of age; and the growing 
    need for employers to invest in retraining for employees of all ages 
    given rapid advances in technology. Supporters of the proposed rule 
    also rely on data showing that older workers on average remain with the 
    same employer longer than younger workers.
        The Commission is persuaded by the arguments of those in favor of 
    changing the interpretation. To begin with, they point to the lack of 
    objective evidence to support the claim of increased cost or 
    diminishing opportunities. Indeed, no such data has been presented to 
    the Commission. This is in spite of the fact that approximately one-
    half of the states currently bar age discrimination in apprenticeship 
    programs. Moreover, opponents argue that older workers will leave the 
    workforce far sooner than younger workers, that older workers are less 
    likely to complete an apprenticeship program, and that older workers 
    will retire at the earliest opportunity. But such arguments fail to 
    consider research: refuting a link between age and declining 
    performance; showing that technology has shortened the time within 
    which a return on investment in apprenticeship for any worker can be 
    realized; or demonstrating positive virtues and work ethics on the part 
    of older persons. They also fail to consider information regarding 
    increased job mobility in the workforce for people of all ages, and 
    demographics demonstrating that older workers are an important resource 
    needed to maintain America's competitive position in the world.
        In addition, no current useful data was presented regarding the 
    costs of apprenticeship programs. The only broad-based data submitted 
    was from a fifteen-year old study. One commenter submitted very high 
    cost figures regarding its own program but did so without any analysis 
    or explanation. As a result it was not possible to evaluate this 
    commenter's assertions. Insofar as the claims of increased costs are 
    based on stereotypical assumptions about the behavior of older persons, 
    the Commission is mindful of the fact that a principal purpose for the 
    enactment of the ADEA was precisely to prohibit employment actions 
    based on such assumptions. Hazen Paper Co. v. Biggins, 507 U.S. 604 
    (1993). Accordingly, the Commission rejects as unsupported the claim 
    that adoption of the proposed rule will harm employers and prevent the 
    future sponsorship of apprenticeship programs throughout the country.
    5. What is the Impact of the Current Interpretation on Groups Such as 
    Minorities and Women That Have Been Disadvantaged by Historical 
    Employment Discrimination?
        None of the commenters disagree that women and minorities are 
    underrepresented in craft occupations. Moreover, these employment 
    patterns have not changed significantly over the past fifteen years. 
    Supporters of changing the interpretation present data demonstrating 
    that African-Americans and Hispanics have been particularly hard hit by 
    job displacements over the past two decades and that permitting age 
    limitations in apprenticeship programs locks in the effects of past 
    discrimination and occupational segregation. One commenter supports its 
    position by pointing to the well documented history of race 
    discrimination in the crafts. Proponents also point to the fact that 
    minorities are often the last hired and the first fired in a reduction-
    in-force. They state that overall unemployment rates for African-
    Americans and other minorities are disproportionately high in 
    comparison to Whites and attribute much of the problem to minority 
    members' lack of seniority and lack of acquired skills in the crafts. 
    They view apprenticeship as a way in which minorities can acquire much 
    needed training in our rapidly changing workplace and state that older 
    minorities, especially, stand to benefit from apprenticeship training 
    in areas experiencing rapid technological change.
        Similarly, supporters of the NPRM point to the problems women have 
    faced in gaining access to non-traditional jobs. Specifically, several 
    proponents of the proposed rule note that women go into the trades at a 
    later age than men, often because younger women pursue--and are 
    encouraged to pursue--more traditionally female occupations. This 
    commenter asserts that age limits lock in the effects of prior sex 
    discrimination just as they lock in the effects of prior race 
    discrimination.
        One commenter cites statistics demonstrating a difference between 
    the weekly earnings for males and females between the ages of 45 and 64 
    of $221 in favor of males, in support of a need for greater access to 
    apprenticeship programs for older women. A number of commenters also 
    argue that access is extremely important for the ``more than 3 million 
    displaced homemakers--women who have been out of the workforce for some 
    time and are now seeking employment--[they are] older women between the 
    ages of 45 and 64.''
        According to one proponent of change, statistics reveal that 90% of 
    single parent families in the United States are maintained by women. 
    Another supporter references statistics showing that 55% of all 
    households in West Virginia are headed by women. The commenter notes 
    that although women occupy this critical responsibility for the 
    children of America, they are often clustered in low paying 
    traditionally female jobs.
        Another commenter contends that removing age limits from 
    apprenticeship programs would go hand-in-hand with current welfare 
    reform efforts. This commenter argues that apprenticeships will lead to 
    jobs in the trades for many older welfare recipients allowing them to 
    support themselves and their children--precisely as they will be 
    required to do.
        Finally, proponents of change point to the fact that patterns of 
    underrepresentation have persisted in the skilled trades, despite the 
    Commission interpretation. They argue that this demonstrates that 
    eliminating opportunities for older workers will not work to the 
    benefit of younger minorities and women--even if it were appropriate to 
    favor younger workers over older workers, a point they do not concede.
        Opponents of changing the interpretation state that age limitations 
    in apprenticeship programs will create new opportunities for minority 
    youth and younger women. However, they offer no explanation to support 
    this claim nor an explanation of why there has not been an expanded 
    representation of minorities and women in the crafts in the years that 
    apprenticeship programs have been permitted to limit opportunities to 
    younger workers.
        The Commission is persuaded by the arguments of those favoring a 
    change in the interpretation. It is clear that minorities and women are 
    substantially underrepresented in the crafts and that the exclusion of 
    apprenticeship programs from prohibitions against age discrimination 
    has not opened up opportunities for these persons.
    
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    6. What Impact Will Changing the Interpretation Have on Opportunities 
    for Youth?
        Responding to the question of whether removing age limits would 
    diminish training opportunities for youth, several commenters favoring 
    a change in position note that Congress has created major training 
    programs designed specifically for youth.4 These commenters state 
    that Congress has set aside over a billion dollars to fund these 
    programs. For this reason, these proponents conclude that access to 
    apprenticeship programs should be available to workers of all ages. One 
    commenter contends that removal of age limitations would not diminish 
    training opportunities for youth, but would result in an inter-
    generational approach to apprenticeship that promotes greater harmony 
    in the workplace.
    
        \4\ Commenters referenced such programs as the Carl D. Perkins 
    Vocational and Applied Technology Act, 20 U.S.C. 2301 et seq. and 
    the Job Training Partnership Act (JTPA) as proof of the availability 
    of opportunities for youth.
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        An opponent of the proposed rule argues that apprenticeship 
    programs should be reserved for youth, citing high unemployment rates 
    for young people and arguing that they are in great need of educational 
    and employment opportunities. This commenter states that youth should 
    not have to compete with older persons who might otherwise have an 
    advantage over them solely by reason of their having lived longer.
        While the Commission believes that apprenticeship programs continue 
    to be an important source of training for young people, it also takes 
    the position that apprenticeship programs can operate successfully by 
    utilizing the talents of individuals of all ages. The Commission was 
    not provided with any information demonstrating that youth have been 
    negatively affected in any of the states that prohibit age limits in 
    apprenticeship programs. Moreover, some apprenticeship programs with a 
    desire to assist specific disadvantaged groups may be able to do so 
    under the existing exemption from the ADEA found at 29 CFR 1627.16. In 
    the alternative, such programs could seek an exemption under the 
    procedures set out at 29 CFR 1627.15.
    7. What is the Relationship of Apprenticeship Programs to Employment 
    and Education?
        A number of those who favor the proposed rule argue that 
    apprenticeship programs are more in the nature of employment than 
    education. Some of those opposed to the proposed rule contend that the 
    contrary is true. These comments support the position, which has been 
    previously taken by the Commission, that, in fact, apprenticeship 
    programs have both employment and education components. However, the 
    Commission is also of the view that the employment and education 
    aspects of apprenticeship programs are so inextricably interwoven as to 
    mandate coverage under the Act. As most of the commenters who address 
    this question note, the indicia of an employer/employee relationship 
    are almost always present. For example, apprentices frequently perform 
    functions for the employer that the employer would otherwise have to 
    pay someone else to perform; apprentices are always or almost always 
    paid a wage; many apprenticeship programs seek certification from DOL 
    that permits them to pay apprentices less than the prevailing rate for 
    journeymen employees on certain jobs.
    
    Findings
    
        After careful review of the available data, including the comments 
    discussed above, the EEOC has determined that employers and employees 
    alike will be better served by an interpretation of the ADEA which 
    covers apprenticeship programs. Therefore, the Commission is rescinding 
    its current interpretation and issuing a new rule as set forth below.
    
    Executive Order 12866, Regulatory Planning and Review
    
        The Equal Employment Opportunity Commission has determined under 
    Executive Order 12866 that this rule is a significant regulatory 
    action, however, it will not have an annual effect on the economy of 
    $100 million or more or adversely affect in a material way the economy, 
    a sector of the economy, productivity, competition, jobs, the 
    environment, public health or safety, or state, or local or tribal 
    governments or communities. The rule will not create a serious 
    inconsistency or otherwise interfere with an action taken or planned by 
    another agency.
        The rule does not contain any information collection or record 
    keeping requirements as defined in the Paperwork Reduction Act of 1980 
    (Pub. L. 96-511). Similarly, the Commission certifies under 5 U.S.C. 
    605(b), enacted by the Regulatory Flexibility Act (Pub. L. 96-354), 
    that this rule will not result in a significant economic impact on a 
    substantial number of small entities. For this reason, a regulatory 
    flexibility analysis is not required.
        In addition, in accordance with Executive Order 12067, the 
    Commission has solicited the views of affected Federal agencies.
        The final rule appears below.
    
    List of Subjects in 29 CFR Part 1625
    
        Advertising, Age, Employee benefit plans, Equal employment 
    opportunity, Retirement.
    
        Signed at Washington, DC this 2nd day of April 1996.
    Gilbert F. Casellas,
    Chairman.
    
    Adoption of the Amendment
    
        Accordingly, chapter XIV of title 29 of the Code of Federal 
    Regulations is amended as follows:
    
    PART 1625--AGE DISCRIMINATION IN EMPLOYMENT ACT
    
        1. The authority citation for part 1625 continues to read as 
    follows:
    
        Authority: 81 Stat. 602; 29 U.S.C. 621, 5 U.S.C. 301, 
    Secretary's Order No. 10-68; Secretary's Order No. 11-68; sec. 12, 
    29 U.S.C. 631, Pub. L. 99-592, 100 Stat. 3342; sec. 2, Reorg. Plan 
    No. 1 of 1978, 43 FR 19807.
    
    
    Sec. 1625.13  [Removed]
    
        2. In Part 1625, Sec. 1625.13 is removed.
    
    Subpart B--Substantive Regulations
    
        3. In Part 1625, Sec. 1625.21 is added to Subpart B--Substantive 
    Regulations to read as follows:
    
    
    Sec. 1625.21  Apprenticeship programs.
    
        All apprenticeship programs, including those apprenticeship 
    programs created or maintained by joint labor-management organizations, 
    are subject to the prohibitions of sec. 4 of the Age Discrimination in 
    Employment Act of 1967, as amended, 29 U.S.C. 623. Age limitations in 
    apprenticeship programs are valid only if excepted under sec. 4(f)(1) 
    of the Act, 29 U.S.C. 623(f)(1), or exempted by the Commission under 
    sec. 9 of the Act, 29 U.S.C. 628, in accordance with the procedures set 
    forth in 29 CFR 1627.15.
    
    [FR Doc. 96-8513 Filed 4-5-96; 8:45 am]
    BILLING CODE 6570-01-P
    
    

Document Information

Effective Date:
5/8/1996
Published:
04/08/1996
Department:
Equal Employment Opportunity Commission
Entry Type:
Rule
Action:
Final rule.
Document Number:
96-8513
Dates:
This rule takes effect on May 8, 1996.
Pages:
15374-15378 (5 pages)
PDF File:
96-8513.pdf
CFR: (5)
29 CFR 9
29 CFR 623
29 CFR 628
29 CFR 1625.13
29 CFR 1625.21