Why It Matters
The Labor Department ended affirmative action requirements for Registered Apprenticeship program sponsors, the organizations that operate apprenticeship programs.
The final rule takes effect Jan. 5, 2027, replacing requirements that the department says have applied to sponsors since 1971 with a single standard requiring compliance with applicable federal and state nondiscrimination laws. The department says more than 700,000 apprentices were active at the end of fiscal 2025 across 26,628 active programs. The rule replaces the 2016 version of the regulation, which the department says imposed a general duty to take affirmative action.
The department says the rule carries out Executive Order 14192, "Unleashing Prosperity Through Deregulation." Bloomberg Law reported on Oct. 6 that the rule had completed White House review before publication.
The Big Picture
The Joint Center, with the National Taskforce on Tradeswomen's Issues and more than 70 organizations, opposed the proposal and urged the department to withdraw it, arguing that equal apprenticeship access for women, people of color, and other historically excluded groups benefits workers broadly. Associated Builders and Contractors backed the proposal, saying it would reduce sponsors' administrative burdens and ease entry for new sponsors, particularly small businesses, while retaining broad protections for apprentices and applicants.
The rule's operative text says sponsors "must comply with all applicable Federal and State laws and regulations prohibiting illegal discrimination" based on race, color, religion, national origin, sex, age (40 or older), genetic information, or disability. The department's summary describes the removed requirements as "onerous and legally questionable."
Under the department's summary, sponsors will no longer be required to designate an equal employment opportunity coordinator, post an equal opportunity pledge, conduct anti-harassment training, maintain a list of recruitment sources, or give apprentices written notice of their right to file complaints.
Sponsors with five or more apprentices also will no longer be required to prepare an affirmative action plan, conduct utilization analyses by race, sex and ethnicity, or set numerical goals. The department has discontinued disability self-identification data collection on its apprentice form. Race, sex and ethnicity data collection continues on a voluntary basis.
The department says it will no longer investigate discrimination complaints independently. The department will refer complaints to civil rights enforcement agencies, such as the Equal Employment Opportunity Commission. A program may face deregistration proceedings after a court or enforcement entity makes a final, nonappealable determination of a nondiscrimination violation and the sponsor fails to implement a compliance action plan consistent with the prescribed remedy.
Broader Context
Currently, 29 CFR 30.3 prohibits discrimination on grounds including sexual orientation in specified employment conditions and imposes affirmative action duties. Under the new rule, the section becomes a single paragraph requiring compliance with existing federal and state nondiscrimination laws and lists protected categories without explicitly naming sexual orientation or gender identity. The department says the change does not alter protections under Title VII or the Supreme Court's decision in Bostock v. Clayton County, which held that Title VII's prohibition on sex discrimination encompasses discrimination based on sexual orientation or transgender status.
The department says its revised framework follows the employer-size thresholds Congress established in Title VII of the Civil Rights Act, the Americans with Disabilities Act and the Age Discrimination in Employment Act. A commenter argued that this would eliminate protections for apprentices at small employers excluded from those laws. The department responded that it declined to impose obligations on small employers that Congress excluded from those statutes.
The department's estimates, in 2025 dollars over 10 years:
- Cost savings to sponsors: $1,016.11 million undiscounted, with annualized savings of $101.61 million.
- Costs: $9.87 million undiscounted, all incurred in the first year.
- First-year cost per affected small entity: $125.69.
Commenters argued the analysis should have accounted for missed apprenticeship opportunities and reduced career earnings. The department responded that it does not expect the rule to cause individuals to miss apprenticeship opportunities. On administrative burden, commenters cited a study finding that compliance with Part 30 accounted for 0.13% of total sponsor costs. The department responded that compliance costs are "non-productive overhead."
New America analysts Morgan Polk and Ivy Sullivan wrote that the proposal would remove outreach and recruitment requirements they viewed as safeguards for access, and they questioned the department's cost claims. HR Dive reported that the department says the changes are intended to reduce administrative burdens and encourage program growth.
The Bottom Line
State Apprenticeship Agencies seeking to obtain or maintain federal recognition must submit a state plan for nondiscrimination in apprenticeship within one year of Jan. 5, 2027, unless the department grants an extension for good cause. That sets the deadline at Jan. 5, 2028.
If a state does not submit an adequate revised plan within 90 days after receiving written notice of deficiencies and technical assistance from the department, the department may initiate proceedings to withdraw the agency's recognition. State-registered programs have 180 days from approval of their state's plan to comply.
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