DAS Did Not Properly Administer Apprentice Agreements

The audit found DAS apprentice agreements, which are used by program sponsors to enroll workers in their programs, were often missing required information.

Overview

We found problems in the way DAS administered apprentice agreements. DAS develops standard apprentice agreements that it gives to its program sponsors, which use them to enroll people in their programs. However, in many cases the sponsor and/or apprentice did not provide the following information in the agreement:

• Three of the 30 agreements did not include the names and signatures of the sponsors’ representatives.
• Fourteen of the 30 agreements did not specify the number of hours of instruction that the apprentice would receive annually in technical subjects related to his/her occupation.
• One of the 30 agreements did not include a statement of the graduated scale of wages to be paid to the apprentice.
• Twelve of the 30 agreements did not indicate whether the apprentice had been advised that DAS’s deputy director is available to receive, investigate, and resolve complaints or concerns.
• Twelve of the 30 agreements lacked an acknowledgement that the apprentice had been advised that the apprentice program is governed by Sections 11E through 11L of Chapter 23 of the Massachusetts General Laws and 454 CMR 26, which describe the purpose and goals of the apprentice program.
• Fourteen of the 30 agreements did not include the amount of credit the apprentice had already earned toward program completion from previous related job training and instruction.
• Twelve of the 30 agreements did not include an acknowledgment that the apprentice had received a complete copy of the apprentice agreement and a copy of the “Apprentice Rights and Responsibilities.”

If apprentices are not fully informed of all program requirements and of their right to obtain proper training, they might not receive the full benefits and training to which they are entitled.

Authoritative Guidance

According to 454 CMR 26.06(4),

The apprentice agreement shall contain the following terms, conditions, and information: . . .

1. The names and signatures of the contracting parties . . .
2. A statement showing . . .
3. The number of hours per year of instruction in technical subjects related to the occupation that the apprentice will receive . . .
4. A statement of the graduated scale of wages to be paid to the apprentice . . .
5. A statement that if the apprentice has a complaint or concern relative to the apprentice program which, after fully exhausting all internal procedures, is not resolved by the apprentice program sponsor to the apprentice’s satisfaction, then the Deputy Director is available to receive, investigate, and resolve the complaint or concern . . .
6. A statement that the apprentice’s participation in the apprentice program is governed by M.G.L. c. 23, §§ 11E through 11L and 454 CMR 26.00;
7. The amount of credit which the apprentice program sponsor will give to the apprentice towards completion of the program, if any, for any relevant hands-on training or related instruction which the apprentice may have obtained while previously participating in other apprentice programs or while employed by previous employers; and
8. An acknowledgement that the apprentice has received a complete copy of the apprentice agreement, and a copy of the “Apprentice Rights and Responsibilities.”

Reasons for Noncompliance

DAS’s deputy director acknowledged that the division’s staff could be more vigilant about making sure that apprentice agreements comply with all regulatory requirements and that program applicants and program sponsors submit all required information. DAS has not established any monitoring controls to ensure that all regulatory requirements regarding apprentice agreements are met.

Recommendations

1. DAS should develop a new apprentice agreement to include all requirements described in 454 CMR 26.06(4).
2. DAS management should develop monitoring controls to ensure that all regulatory requirements are included on the apprentice agreements and that program applicants and sponsors submit all required information.

Auditee’s Response

Since the period covered by the audit, DAS has developed two new apprentice agreements, one for the building trades and one for so-called expansion industries. Both applications will fully comply with the requirements described in 454 CMR 26.06(4).

To ensure that apprentice applicants and sponsors submit all required information, DAS’s current practice requires peer review of all submissions for completeness first by a Program Coordinator and then by an Office Support Specialist who enters data into required fields in a Microsoft Access database.

Auditor’s Reply

Based on its response, DAS is taking measures to address our concerns regarding this matter.

Date published:	August 15, 2019