What is Registered Apprenticeship?
The Registered Apprenticeship system provides the opportunity for workers seeking high-skilled, high- paying jobs and for employers seeking to build a qualified workforce. In this regard, the Registered Apprenticeship system effectively meets the needs of both employers and workers.
Registered Apprenticeship is highly active in traditional industries such as construction and manufacturing, but it is also instrumental in the training and development of emerging industries such as healthcare, energy, and homeland security.
Apprenticeship and Jobs Training Act of 2015
Amends the Internal Revenue Code to allow employers a business-related tax credit for up to $5,000 for the training of a qualified individual in a qualified apprenticeship program. Defines a "qualified individual" as an individual who: (1) is an apprentice participating in a qualified apprenticeship program, (2) has been employed in such a program for a period of at least seven months that ends within the taxable year, and (3) is not a highly compensated employee or a seasonal worker.
Defines a "qualified apprenticeship program" as a program that: (1) provides qualified individuals with on-the-job training and instruction for a qualified occupation (i.e., a skilled trade occupation in a high-demand mechanical, technical, health care, or technology field); (2) is registered with the Office of Apprenticeship of the Department of Labor; and (3) maintains records relating to the qualified individual.
Allows a premature distribution, without penalty, from a tax-qualified retirement plan to an employee who is serving as a mentor. Defines a "mentor" as a working individual who: (1) has attained age 55; (2) works reduced hours and engages in mentoring activities for at least 20% of such hours; and (3) is responsible for the training and education of employees or students in an area of expertise for which such individual has a professional credential, certificate, or degree.
It's an Immediate Job
It's On-the-Job Learning and Education
It's a Credential
What are the Advantages of Registered Apprenticeship?
The Registered Apprenticeship system provides a wide array of benefits.
- Improved skills and competencies that meet the specific needs of the employer
- Incremental wage increases as their skills improve
- On-the-job training and occupation focused education
- Career advancement
- Industry issued, nationally recognized credentials
- Articulation agreements between certain apprenticeship training programs and 2- and 4-year colleges that create opportunities for college credit and future degrees
For employers, benefits include:
- Customized training that results in highly skilled employees trained to industry/employer specifications
- Increased productivity and knowledge transfer due to on-the-job learning from an assigned mentor combined with related technical instruction
- Enhanced retention 87 percent of program completers in 2011 were still employed nine months after completing their apprenticeship
- Emphasis on safety training that may reduce workers' compensation costs
- A stable and predictable pipeline for the development of qualified workers
- Recognition of the training program
- A systematic approach to training that ensures that employees are trained and certified to produce at the highest skill levels required for that occupation
- The ability to conduct a ready assessment of where the employer and employee are in terms of the continuous improvement process
- A proven training model that allows employers to set the benchmark and the structure that can determine the Return on Investment in training dollars
What is the Role of the Government?
- Registering apprenticeship programs that meet Federal and State standards
- Protecting the safety and welfare of apprentices
- Issuing nationally recognized and portable Certificates of Completion to apprentices
- Promoting the development of new programs through marketing and technical assistance
- Assuring that all programs provide high quality training
- Assuring that all programs produce skilled competent workers
What are the Program's Requirements?
A Registered Apprenticeship program is sponsored by an individual business or an employer association and may be partnered with a labor organization through a collective bargaining agreement. Upon finishing the training program, an apprentice earns a "Completion of Registered Apprenticeship" certificate, an industry issued, nationally recognized credential that validates proficiency in an apprentice able occupation.
Registered Apprenticeship program sponsors identify the minimum qualifications to apply into their apprenticeship program. The eligible starting age can be no less than 16 years of age; however, individuals must usually be 18 to be an apprentice in hazardous occupations. Program sponsors may also identify additional minimum qualifications and credentials to apply, e.g., education, ability to physically perform the essential functions of the occupation, and proof of age. Based on the selection method utilized by the sponsor, additional qualification standards, such as fair aptitude tests and interviews, school grades, and previous work experience may be identified.\