AB 779

Apprenticeship and youth apprenticeship

Under current law, any person 16 years of age or older may enter into an

apprenticeship, which is a contract whereby the person (apprentice) receives from

his or her employer in consideration for the apprentice's services, instruction in any

trade, craft, or business. That instruction may include related classroom instruction.

Apprenticeship programs are operated by sponsors and approved by the Department

of Workforce Development. In some cases, the sponsor of an apprenticeship program

is the employer, while in other cases, apprenticeship programs are operated by other

types of sponsors, such as apprenticeship committees. Current law also provides for

a youth apprenticeship program, under which DWD develops curricula for several

specified occupational areas. As established by DWD, a youth apprenticeship is

available to high school pupils and consists of work for an employer and related

classroom instruction. The apprenticeship and youth apprenticeship programs are

administered by DWD. This bill makes various changes related to apprenticeships

and youth apprenticeships, including the following:

Skilled wage rate

Under DWD's current apprenticeship rules, an apprentice contract wage scale

is deemed adequate when, during the term of training, it averages 60 percent of the

current journeyworker rate or skilled wage rate. The skilled wage rate is therefore

used to determine what constitutes an adequate wage scale for apprentices. For

apprentices in construction who are not covered under a collective bargaining

agreement, the skilled wage rate is the rate average, calculated as the mean, based

on the geographical area of the appropriate local apprenticeship committee. For

apprentices in other (nonconstruction) industry sectors who are not covered under

a collective bargaining agreement, the skilled wage rate is the rate paid to the

greatest number of competent journeyworkers in like establishments in the

community or another rate deemed adequate by DWD. The rate for apprentices who

are covered under a collective bargaining agreement is determined by the

agreement.

The bill provides that the skilled wage rate for apprentices in all industries who

are not covered under a collective bargaining agreement is the average rate paid to

competent journeyworkers in like establishments in the area, as determined by the

sponsor. The bill maintains the wage scale requirement described above and the

requirement that, in determining the skilled wage rate for apprentices whose

employment is governed by a collective bargaining agreement, the rate specified in

the collective bargaining agreement applies.

Apprenticeship completion awards

Current law provides for an apprenticeship completion award program

(ACAP), administered by DWD, under which apprentices and their sponsors may

receive reimbursement for tuition costs charged to an apprentice to participate in the