SB586: Bill Text

Analysis by the Legislative Reference Bureau

Introduction

Under current law, any person 16 years of age or over may enter into an indenture, which is a contract whereby the person (apprentice) is to receive from his or her employer, in consideration for the apprentice's services, instruction in any trade, craft, or business. This bill makes various changes relating to the formation and assignment of an apprentice contract, the related instruction that must be provided under an apprentice contract, the procedures for terminating an apprentice contract, and the penalties for nonperformance of an apprentice contract. The bill also makes certain changes relating to the appointment and composition of the Wisconsin Apprenticeship Council.

Apprentice contracts

Formation of apprentice contract. Under current law, an apprentice may enter into an indenture with an employer or with an organization of employees, association of employers, or other similar responsible agency (organization). An indenture must contain the names of the parties; the date of birth of the apprentice; a statement of the trade, craft, or business that the apprentice is to be taught and the time when the apprenticeship will begin and end; an agreement stating the number of hours to be spent in related instruction; an agreement as to the procedures, methods, or plans to be taught; and a statement of the compensation to be paid to the apprentice.

This bill defines or redefines certain terms relating to apprenticeships. Specifically, the bill:

1. Replaces the term "indenture" with the term "apprentice contract" and specifies that an apprentice contract is between the apprentice, the Department of Workforce Development (DWD), and the sponsor of the apprenticeship program or an apprenticeship committee acting as the agent of the sponsor.

2. Replaces the term "organization" with the term "sponsor" and redefines that term to mean any employer, organization of employees, association of employers, committee, or other person operating an apprenticeship program and in whose name the apprenticeship program is approved by DWD.

3. Defines an "apprenticeship committee" as a joint apprenticeship committee, which consists of both employer and employee representatives, or a nonjoint apprenticeship committee, which consists only of employer representatives, designated by a sponsor to administer an apprenticeship program.

4. Defines an "apprenticeship program" as a program approved by DWD providing for the employment and training of apprentices in a trade, craft, or business that includes a plan containing all of the terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices as required under the subchapter of the statutes relating to apprenticeship programs. The bill also requires DWD to promulgate rules providing procedures for approving and rescinding approval of an apprenticeship program.

The bill also eliminates the statutory provisions specifying the provisions that must be included in an indenture and instead requires DWD to promulgate rules specifying the provisions that are required to be included in an apprentice contract.

Assignment of apprentice contract. Current law requires an organization that has entered into an indenture, with the written consent of the other parties to the indenture and the written acceptance of the proposed employer of the apprentice, to assign the indenture to the proposed employer, who is then bound by the terms of the indenture. Similarly, current law permits an employer that has entered into an indenture, with the approval of DWD and the written consent of the other parties to the indenture, to assign the indenture to an organization, which, with the approval of DWD and the written consent of the apprentice, must reassign the indenture to another employer that agrees to perform the unperformed obligations of the indenture. Current law also permits an employer that has entered into an indenture, with the written consent of the other parties to the indenture and the approval of DWD, to assign the indenture to another employer, who must then perform the unperformed obligations of the indenture.

This bill requires a sponsor that is not the proposed employer of an apprentice, or an apprenticeship committee that is acting as the agent of a sponsor, with the written acceptance of the proposed employer of the apprentice, to assign an apprentice contract to the proposed employer, who is then bound by the terms of the apprentice contract. The bill also permits the sponsor or the apprenticeship committee that entered into an apprentice contract to reassign the apprentice contract to a different employer who agrees to perform the unperformed obligations of the apprentice contract.

Related instruction. Current law requires an apprentice to receive not less than four hours per week of related instruction during the first two years of an apprenticeship, to receive a total of not less than 400 hours of related instruction if the apprenticeship is for longer than two years, and to be paid for no fewer than those hours of related instruction at the same rate per hour as the apprentice is paid for services performed. Current law, however, does not prohibit an agreement between the parties requiring the apprentice to take additional instruction on his or her own time in excess of those required hours of related instruction.

This bill requires a sponsor to provide for an apprentice not less than 144 hours per year of related instruction during the first two years of the apprenticeship, not less than a total of 400 hours of related instruction over the term of the apprenticeship if the apprenticeship is for longer than two years, and, if the apprentice is receiving classroom instruction, not less than four hours of related instruction or the equivalent during each week that the school providing the classroom instruction is in session. The bill also requires an employer to pay an apprentice for not less than the number of hours of related instruction required under the bill or under the apprentice contract, whichever is greater, at the same rate per hour as the employer pays the apprentice for services performed, but does not prohibit an agreement between the parties requiring the apprentice to take additional instruction on his or her own time in excess of the number of hours of related instruction required under the bill or under the apprentice contract, whichever is greater. In addition, the bill requires the provider of related instruction to submit reports on grades and attendance to DWD and the sponsor in accordance with standards set by DWD.

Termination of apprentice contract. Under current law, DWD may declare an indenture to be at an end if after due notice and hearing it is proved at the hearing that any apprentice, employer, or organization that is a party to the indenture is unable to continue with the obligations under the indenture or has breached the indenture.

This bill permits DWD to terminate an apprentice contract if after due notice and investigation it is proved that any apprentice, employer, or sponsor that is a party to the apprentice contract is unable to continue with the obligations under the apprentice contract or has breached the apprentice contract. Under the bill, no hearing is required unless the apprentice, employer, or sponsor requests a hearing.

Nonperformance of apprentice contract. Under current law, if either party to an indenture fails to perform any of the stipulations of the indenture, the nonperforming party may be required to forfeit not less than $1 nor more than $100.

This bill increases that penalty to not less than $100 nor more than $1,000 and applies that penalty to an apprentice, sponsor, or assignee employer that fails to perform any of the stipulations of an apprentice contract.

Wisconsin Apprenticeship Council

Appointment and composition of Wisconsin Apprenticeship Council. Under current law, there is created in DWD a Wisconsin Apprenticeship Council (council) whose members are appointed by the Labor and Industry Review Commission (LIRC). This bill requires the council to consist of nine representatives of employers, nine representatives of employees, one representative of the Technical College System (TCS), one representative of the Department of Public Instruction (DPI), two members who represent the public interest, and one permanent classified employee of DWD to serve as nonvoting chairperson of the council. The bill also requires the secretary of workforce development, rather than LIRC, to appoint the members of the council, except that the bill requires the representative of the TCS to be appointed by the director of the TCS and the representative of the DPI to be appointed by the state superintendent of public instruction. In addition, the bill requires all members of the council to be familiar with apprenticeable occupations.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB586, s. 1 Section 1. 15.157 (15) (a) of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,5,6 15.157 (15) (a) Two members who represent major insulation companies that sponsor an apprenticeship training program in installing and maintaining thermal system insulation that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106.

SB586, s. 2 Section 2. 15.157 (15) (c) of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,5,13 15.157 (15) (c) Two members who are mechanics with at least 10 years of experience in the area of heat and frost insulation and who have successfully completed training in installing and maintaining thermal system insulation under an apprenticeship program that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106.

SB586, s. 3 Section 3. 15.227 (13) of the statutes is renumbered 15.227 (13) (a) (intro.) and amended to read:

SB586,5,18 15.227 (13) (a) (intro.) There is created in the department of workforce development a Wisconsin apprenticeship council appointed by the labor and industry review commission. consisting of all of the following:

SB586, s. 4 Section 4. 15.227 (13) (a) 1. to 6. and (b) of the statutes are created to read:

SB586,5,21 15.227 (13) (a) 1. Nine representatives of employers, appointed by the secretary of workforce development.

SB586,5,23 2. Nine representatives of employees, appointed by the secretary of workforce development.

SB586,5,25 3. One representative of the technical college system, appointed by the director of the technical college system.

SB586,6,2 4. One representative of the department of public instruction, appointed by the state superintendent of public instruction.

SB586,6,4 5. Two members who represent the public interest, appointed by the secretary of workforce development.

SB586,6,7 6. One permanent classified employee of the department of workforce development, appointed by the secretary of workforce development, who shall serve as nonvoting chairperson.

SB586,6,9 (b) All members of the Wisconsin apprenticeship council shall be persons who are familiar with apprenticeable occupations.

SB586, s. 5 Section 5. 101.136 (4) (a) of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,6,17 101.136 (4) (a) The department shall employ a person who has at least 10 years of experience as a mechanic, and who has successfully completed an apprenticeship program in installing and maintaining thermal system insulation that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106, as the state inspector. The state inspector shall work under the direct supervision of the secretary or his or her designee.

SB586, s. 6 Section 6. 101.136 (6) (a) 1. of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,6,25 101.136 (6) (a) 1. Except as provided in subd. 2., beginning on July 1, 2011, no person may install or maintain thermal system insulation in any building unless that person is a mechanic licensed by the department under this section, is working under the direct supervision of a licensed mechanic, or is serving an apprenticeship in the installation and maintenance of thermal system insulation that meets the requirements specified under subch. I of ch. 106.

SB586, s. 7 Section 7. 101.136 (6) (c) 2. of the statutes, as created by 2009 Wisconsin Act 16, is amended to read:

SB586,7,6 101.136 (6) (c) 2. He or she has successfully completed training in installing and maintaining thermal system insulation under an apprenticeship program that is approved by the department and that meets the requirements of the department of workforce development under subch. I of ch. 106.

SB586, s. 8 Section 8. 103.70 (1) of the statutes is amended to read:

SB586,7,18 103.70 (1) Except as otherwise provided in sub. (2) and in ss. 103.21 to 103.31, 103.78, 938.245 (2) (a) 5. b., 938.32 (1t) (a) 2., and 938.34 (5) (b) and (5g) (c), and as may be provided under s. 103.79, a minor, may not be employed or permitted to work at any gainful occupation or employment, unless indentured as employed under an apprentice in accordance with contract under s. 106.01, or unless 12 years and over and engaged in farming, or unless 14 years and over and enrolled in a youth apprenticeship program under s. 106.13, shall not be employed or permitted to work at any gainful occupation or employment or unless there is first obtained from the department or a permit officer a written permit authorizing the employment of the minor within those periods of time stated in the permit, which shall may not exceed the maximum hours prescribed by law.

SB586, s. 9 Section 9. 104.08 (2m) of the statutes is amended to read:

SB586,7,22 104.08 (2m) Any person working in a trade industry for which a living wage has been established for minors, and who has no trade, shall be indentured employed under an apprentice contract under s. 106.01.

SB586, s. 10 Section 10. 106.001 (1) of the statutes is amended to read:

SB586,8,3 106.001 (1) "Apprentice" means any person who enters into an indenture with an employer or organization apprentice contract with the department and with a sponsor or an apprenticeship committee acting as the agent of a sponsor.

SB586, s. 11 Section 11. 106.001 (2) of the statutes is amended to read:

SB586,8,10 106.001 (2) "Indenture" " Apprentice contract" means any contract or agreement of service, express or implied, between an apprentice, the department, and a sponsor or an apprenticeship committee acting as the agent of a sponsor whereby an apprentice is to receive from or through the apprentice's employer, in consideration for the apprentice's services in whole or in part, instruction in any trade, craft, or business.

SB586, s. 12 Section 12. 106.001 (2m) of the statutes is created to read:

SB586,8,14 106.001 (2m) "Apprenticeship committee" means a joint apprenticeship committee or a nonjoint apprenticeship committee designated by a sponsor to administer an apprenticeship program.

SB586, s. 13 Section 13. 106.001 (3) of the statutes is renumbered 106.001 (8) and amended to read:

SB586,8,20 106.001 (8) "Organization" " Sponsor" means an any employer, organization of employees, association of employers, committee, or other similar responsible agency in this state person operating an apprenticeship program and in whose name the apprenticeship program is approved by the department.

SB586, s. 14 Section 14. 106.001 (4) of the statutes is created to read:

SB586,9,2 106.001 (4) "Apprenticeship program" means a program approved by the department providing for the employment and training of apprentices in a trade, craft, or business that includes a plan containing all of the terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices as required under this subchapter, including the apprentice contract requirements under s. 106.01.

SB586, s. 15 Section 15. 106.001 (5) of the statutes is created to read:

SB586,9,5 106.001 (5) "Employer" means any person employing an apprentice, whether or not the person is a party to an apprentice contract with the apprentice.

SB586, s. 16 Section 16. 106.001 (6) of the statutes is created to read:

SB586,9,9 106.001 (6) "Joint apprenticeship committee" means an apprenticeship committee that consists of an equal number of representatives of employers and of representatives of employees who are represented by a collective bargaining agent.

SB586, s. 17 Section 17. 106.001 (7) of the statutes is created to read:

SB586,9,13 106.001 (7) "Nonjoint apprenticeship committee" means an apprenticeship committee that consists of representatives of employers, but not of representatives of employees who are represented by a collective bargaining agent.

SB586, s. 18 Section 18. 106.01 (title) of the statutes is repealed and recreated to read:

SB586,9,15 106.01 (title) Apprentice contracts.

SB586, s. 19 Section 19. 106.01 (2) of the statutes is repealed.

SB586, s. 20 Section 20. 106.01 (3) of the statutes is renumbered 106.01 (1) and amended to read:

SB586,9,25 106.01 (1) Formation of apprentice contract. Except as provided in ss. 106.02, 106.025 and 106.03, any minor Any person 16 years of age or over or any adult may, by the execution of an indenture, bind may enter into an apprentice contract binding himself or herself to serve as an apprentice as provided in this section for a . Except as provided in ss. 106.02, 106.025, and 106.03, the term of service of an apprenticeship shall be for not less than one year. Every apprentice contract shall be in writing and shall be signed by the apprentice, the department, and the sponsor or an apprenticeship committee acting as the agent of the sponsor. If the apprentice has not reached 18 years of age, the apprentice contract shall also be signed by one of the apprentice's parents or, if both parents are deceased or legally incapable of giving consent, by the guardian of the apprentice or, if there is no guardian, by a deputy of the department. The department shall specify the provisions that are required to be included in an apprentice contract by rule promulgated under sub. (11).

SB586, s. 21 Section 21. 106.01 (4) of the statutes is repealed.

SB586, s. 22 Section 22. 106.01 (5) (intro.) of the statutes is repealed.

SB586, s. 23 Section 23. 106.01 (5) (a) of the statutes is repealed.

SB586, s. 24 Section 24. 106.01 (5) (b) of the statutes is repealed.

SB586, s. 25 Section 25. 106.01 (5) (c) of the statutes is repealed.

SB586, s. 26 Section 26. 106.01 (5) (d) of the statutes is renumbered 106.01 (6) (b) and amended to read:

SB586,11,2 106.01 (6) (b) An agreement stating the number of hours to be spent in work, and the number of hours to be spent in instruction. During the first 2 years of an apprenticeship, the apprentice's period of instruction shall be not less than 4 hours per week or the equivalent sponsor shall provide for the apprentice not less than 144 hours per year of related instruction. If the apprenticeship is for a longer period than 2 years, the total hours of instruction shall be sponsor shall provide for the apprentice not less than a total of 400 hours of related instruction over the term of the apprenticeship. If the apprentice is receiving classroom instruction, the sponsor shall provide for the apprentice not less than 4 hours of related instruction or the equivalent during each week that the school providing the classroom instruction is in session. The total number of hours of related instruction and work shall that a sponsor may assign to an apprentice may not exceed 55 per week, except that nothing in this paragraph shall be construed to forbid overtime work as provided in sub. (7).

SB586, s. 27 Section 27. 106.01 (5) (e) of the statutes is repealed.

SB586, s. 28 Section 28. 106.01 (5) (f) of the statutes is repealed.

SB586, s. 29 Section 29. 106.01 (5) (g) of the statutes is repealed.

SB586, s. 30 Section 30. 106.01 (5i) (a) of the statutes is repealed.

SB586, s. 31 Section 31. 106.01 (5i) (am) 1. of the statutes is renumbered 106.01 (5m) (a) and amended to read:

SB586,11,16 106.01 (5m) (a) Upon entering into an indenture, an organization apprentice contract, a sponsor that is not the proposed employer of the apprentice, or an apprenticeship committee that is acting as the agent of a sponsor, shall, with the written consent of the other parties to the indenture, and the written acceptance of the indenture acceptance of the apprentice contract by the proposed employer, assign the indenture apprentice contract to the proposed employer, and the proposed employer and the apprentice named in the indenture assignment shall be bound by the terms of the indenture apprentice contract.

SB586, s. 32 Section 32. 106.01 (5i) (am) 2. of the statutes is renumbered 106.01 (5m) (b) and amended to read:

SB586,12,6 106.01 (5m) (b) The consent and department shall furnish a copy of an acceptance described in subd. 1. shall be executed in triplicate. One of the triplicate original consents and acceptances shall be delivered to the department, one to the employer and one to the apprentice, and in each case shall be attached to the proper indenture. The approval of the department is required in each transaction. An organization par. (a) to each party that has signed the apprentice contract. A sponsor or apprenticeship committee that enters into an indenture under par. (a) apprentice contract shall have the exclusive right to assign or reassign the indenture apprentice contract to another sponsor, and the apprentice shall not be permitted to enter into any other indenture apprentice contract. The period transpiring before assignment to an employer or reassignment to another employer shall not be credited toward the period term of apprenticeship. The approval of the department is required in each transaction.

SB586, s. 33 Section 33. 106.01 (5i) (b) of the statutes is repealed.

SB586, s. 34 Section 34. 106.01 (5i) (c) of the statutes is renumbered 106.01 (5m) (c) and amended to read:

SB586,12,24 106.01 (5m) (c) Any employer that has entered into an indenture may, with the written consent, executed in triplicate, of the other parties to the indenture and the approval of the department, assign the indenture to another employer whose written acceptance shall be executed upon the instrument of consent. One of the triplicate original consents and acceptances shall be delivered to the apprentice, one to the assignee employer and one to the department, and shall in each case be attached to the indenture in each party's possession. After assignment, the assignee A sponsor or apprenticeship committee that enters into an apprentice contract may reassign the apprentice contract to a different employer, but the apprentice shall not be bound by a reassignment unless that employer accepts the terms of the apprentice contract and agrees to perform the unperformed obligations of the apprentice contract. After a reassignment, the new employer shall perform the unperformed obligations of the indenture apprentice contract. The department shall continue to have jurisdiction over an indenture assigned apprentice contract reassigned under this paragraph and the parties bound after the assignment reassignment.