The Oklahoma Bar Journal May 2024

required to assign a numeric ratio of apprentices to journeyworkers in their occupational standards for apprenticeship training. This ratio is primarily intended to ensure there are adequate journeyworkers present on the jobsite to supervise the work of apprentices. The proposed regulations require the ratio requirement to be met on a daily basis. This means the number of apprentices on any given day is not allowed to exceed the ratio standards. Any hours in excess of the ratio requirement are excluded from the total labor hours calculation for purposes of meeting the qualified appren tice’s applicable percentage. Implementing standards to meet the daily ratio requirement is cru cial for a contractor or subcontrac tor who is seeking to comply with the PWA requirements. The Participation Requirement The participation requirement requires that each taxpayer, contractor or subcontractor who employs four or more individuals to perform construction, alteration or repair work with respect to the construction of a qualified facility must employ one or more quali fied apprentices to perform such work. This requirement is not a daily requirement and will be met as long as the taxpayer, contractor or subcontractor employs at least one apprentice to perform work on a facility when four or more employees have been hired. 13 Taxpayers, contractors and subcontractors should carefully review their scope of work and labor requirements for each job to proactively plan for the hiring of qualified apprentices. These apprenticeship requirements are more involved than the prevailing

apprenticeship program as evi denced by a written apprentice ship agreement. Such agreement should set forth the terms and conditions of the employment, the apprentice pay rate and the training program of the appren tice. Qualified apprentices may be paid less than the prevailing wage rates in accordance with the registered apprenticeship pro gram agreement; however, if an apprentice is working in a clas sification that is not prescribed in the registered apprenticeship program, then to satisfy the PWA requirements, the full prevailing wage for such laborers or mechan ics must be paid. 12 The Ratio Requirement Under Section 45(b)(8)(B), the labor hours requirement is subject to an apprentice-to-journeyworker ratio requirement prescribed by the DOL or the applicable approved state apprenticeship agency. The DOL or state-approved apprenticeship programs are

Section 3131(e)(3)(B) defines a registered apprenticeship program as an apprenticeship program registered under the Act of August 16, 1937 (com monly known as the National Apprenticeship Act, 50 Stat. 664, chapter 663, 29 U.S.C. 50 et seq. ). 10 The total labor hours that must be performed by qualified appren tices is dependent upon when construction of a qualified facility has commenced. For construction beginning before Jan. 1, 2023, the requirement was that 10% of the total labor hours must be per formed by qualified apprentices. Construction beginning after Dec. 31, 2022, and before Jan. 1, 2024, will be subject to a 12.5%- hour requirement. For any qual ified facility that commences construction after Dec. 31, 2023, the labor hours requirement will be increased to 15%. 11 The proposed regulations provide that the apprentice must be participating in a registered

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

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THE OKLAHOMA BAR JOURNAL