Section 80. Procedure for deregistration of a registered program

A. Deregistration of a program may be effected (i) upon the voluntary action of the sponsor by submitting a request to the department for cancellation of the registration in accordance with subsection B of this section or (ii) upon reasonable cause, by the department instituting formal deregistration proceedings in accordance with subsection C of this section.

B. Deregistration at the request of the sponsor. The department may cancel the registration of an apprenticeship program by written acknowledgment of such request stating the following:

1. The registration is canceled at the sponsor's request and the effective date thereof.

2. That, within 15 days of the date of the acknowledgment, the sponsor will notify all apprentices of such cancellation and the effective date; that such cancellation automatically deprives the apprentice of individual registration; that the deregistration of the program removes the apprentice from coverage for federal purposes that require the commissioner's approval of an apprenticeship program; and that all apprentices are referred to the department for information about potential transfer to other registered apprenticeship programs.

C. Deregistration upon reasonable cause.

1. Deregistration proceedings may be undertaken when the apprenticeship program is not conducted, operated, or administered in accordance with the program's registered provisions or the requirements of this chapter, including not but limited to (i) failure to provide on-the-job learning; (ii) failure to provide related instruction; (iii) failure to pay the apprentice a progressively increasing schedule of wages consistent with the apprentice's skills acquired; or (iv) persistent and significant failure to perform successfully. Deregistration proceedings for violation of equal opportunity requirements must be processed in accordance with the provisions under 29 CFR Part 30. For purposes of this section, persistent and significant failure to perform successfully occurs when a program sponsor:

a. Consistently fails to register at least one apprentice.

b. Shows a pattern of poor quality assessment results over a period of several years.

c. Demonstrates an ongoing pattern of very low completion rates over a period of several years.

d. Shows no indication of improvement in the areas identified by the department during a review process as requiring corrective action.

2. Where it appears the program is not being operated in accordance with the registered standards or with requirements of this chapter the department must notify the program sponsor in writing.

3. The notice sent to the program sponsor's contact person must:

a. Be sent by registered or certified mail with return receipt requested or by personal service.

b. State the shortcoming and the remedy required.

c. State that determination of reasonable cause for deregistration will be made unless corrective action is effected within 30 days.

4. Upon request by the sponsor for good cause, the department may extend the 30-day term for an additional 30 days. During the period for corrective action, the department, within available resources, must assist the sponsor in every reasonable way to achieve conformity.

5. If the required correction is not effected within the allotted period for corrective action, the department must send a notice to the sponsor, by registered or certified mail with return receipt requested or by personal service, stating the following:

a. The notice is sent under this section.

b. Certain deficiencies were called to the sponsor's attention (enumerating them and the remedial measures requested, with the dates of such occasions and letters), and that the sponsor has failed or refused to effect correction.

c. Based upon the stated deficiencies and failure to remedy them, a determination by the department has been made that there is reasonable cause to deregister the program and the program may be deregistered unless, within 15 days of the receipt of the notice, the sponsor requests a hearing with the Office of Apprenticeship, USDOL.

d. If the sponsor does not request a hearing, the entire matter will be submitted to the Administrator, Office of Apprenticeship, USDOL, for a decision on the record with respect to deregistration.

6. If the sponsor does not request a hearing, the department will transmit to the administrator a report containing all pertinent facts and circumstances concerning the nonconformity, including the findings and recommendation for deregistration, and copies of all relevant documents and records. Statements concerning interviews, meetings, and conferences will include the time, date, place, and persons present. The administrator will make a final order on the basis of the record presented.

7. If the sponsor requests a hearing, the department will submit to the administrator a report containing all the data listed in this section, and the administrator will refer the matter to the Office of Administrative Law Judge of USDOL. An administrative law judge will convene a hearing in accordance with 29 CFR 29.10.

8. The sponsor must, within 15 days of the effective date of the orders of deregistration, notify all registered apprentices of the deregistration of the program; the effective date thereof; that such cancellation automatically deprives the apprentice of individual registration; that the deregistration removes the apprentices from coverage for federal purposes that requires the commissioner's approval of an apprenticeship program; and that all apprentices are referred to the department for information about potential transfer to other registered apprenticeship programs.

Historical Notes

Derived from Volume 31, Issue 01, eff. October 8, 2014.

Statutory Authority

§ 40.1-118 of the Code of Virginia.