News

California No Longer an Apprenticeship Council State

California lost its ability to be an apprenticeship council state because of the Department of Labor’s Administrative Review Board ruling (Department of Labor v. California Department of Industrial Relations, DOL ARB, No. 05-093 11/31/07).

The California Department of Industrial Relations (CDIR) and the California Apprenticeship Council (CAC) became approved State Apprenticeship Councils (SACs) in 1978 because the apprenticeship law conformed to the federal standards and requirements. Until Jan. 31, 2007, California was one of 27 states that had apprentice programs approved by the U.S. Labor Department under 29 CFR 29.12.

California’s labor code was amended in 1999 to allow for approval of new apprentice programs to be based on a “needs test." Under this amendment, training programs would be approved if there is no such similar program in that geographical area, existing programs don’t create enough qualified workers, or existing programs are not sufficient in accomplishing their training obligations. This amendment was not approved by the Department of Labor’s Office of Apprenticeship Training, Employment and Labor Services (OATELS).

Open-shop contractors opposed this amendment because they believe the amended code aids union-backed programs and penalizes nonunion programs.

The Department of Labor started the process to revoke SAC certification in 2002 after failed attempts to get California’s standards up to par with the federal standards.

OATELS, along with the CDIR and CAC, requested a hearing before the U.S. Department of Labor Administrative Law Judge (ALJ). The ALJ said the language of the amendment is “undoubtedly restrictive." It was concluded that OATELS has the authority to derecognize the state council for failing to conform to federal standards.

Gov. Schwarzenegger specified that he would like California’s needs standard to be reviewed and changed as necessary.

You can learn more about the case by clicking here.

2/20/2007