Frequently Asked Questions (FAQs) - Training Fund - Maryland Apprenticeship and Training Program (MATP)

1. When does this law become effective?
2. Who is covered by this law?
3. What do contractors and covered subcontractors need to do prior to commencing work on a State prevailing wage project?
4. What do contractors and covered subcontractors obligations once work has commenced?
5. What do approved apprenticeship programs need to do?
6. How does a contractor or subcontractor calculate the credit if the contractor or subcontractor pays an annual or semi-annual tuition?

1. When does this law become effective?
The State Apprenticeship and Training Fund law applies to prevailing wage projects that were advertised for bid or proposal on or after July 1, 2013.

2. Who is covered by this law?
The requirements of this law apply to contractors and certain subcontractors (those performing work on a prevailing wage project valued at $100,000 or more) on State public work projects.

Approved apprenticeship programs, an apprenticeship program or organization with an apprenticeship program, that are registered with and approved by the Maryland Apprenticeship and Training Council or the U.S. Department of Labor, have certain obligations under this law if they receive contributions from contractors and subcontractors.

3. What do contractors and covered subcontractors need to do prior to commencing work on a State prevailing wage project?
The first step for contractors and covered subcontractors is to register online with the Division of Labor and Industry, Prevailing Wage Unit.

Contractors and covered subcontractors will be required to complete the required project log information including the project number, contract value, identification of all subcontractors on the project and the subcontract amount.

Contractors and covered subcontractors also will be required to select the approved apprenticeship program or the State Apprenticeship and Training Fund to receive their contributions prior to the commencement of work on a State prevailing wage project.

Contractors and certain subcontractors who hire subcontractors performing work valued at $100,000 or more are required to provide their covered subcontractors with written notice of the requirement that subcontractors and their subcontractors performing work valued at $100,000 or more are required to register and complete the required project log information and make contributions under this law.

Contractors and covered subcontractors are required to retain a copy of the written notice provided to subcontractors for 3 years after the completion of their work on the public work project.

4. What do contractors and covered subcontractors obligations once work has commenced?
Contractors and covered subcontractors are required to make a contribution of $0.25 per person per hour for each employee in each covered craft on the prevailing wage project to an approved apprenticeship program or the State Apprenticeship and Training Fund.

It is important to note that a contractor's and covered subcontractor's obligations under the Maryland Prevailing Wage Law still apply so a contractor or subcontractor is obligated to pay the full prevailing wage rate that includes the basic wage rate and fringe benefits. A contractor or subcontractor may count the $0.25 apprenticeship contribution toward the fringe benefit portion of a prevailing wage rate required under the applicable wage determination. However, if there are no fringe benefits in the wage determination, an employer under the Apprenticeship and Training Fund law is still required to make a contribution of $0.25 per person per hour for each employee in each covered craft while continuing to pay the prevailing wage basic wage rate.

The contributions of $0.25 are required to be reported on the contractor and subcontractor electronic certified payroll reporting system that is required for all State prevailing wage projects. Please use the Training Fund form (Excel) to track your required contributions. This form should be included with your contribution to your sponsor program.

Contractors and subcontractors are required to certify that their contributions were received by an approved apprenticeship program or the Fund.

Contractor and subcontractor payments to the State Apprenticeship and Training Fund shall be made payable to the State of Maryland and mailed to the Prevailing Wage Unit, Department of Labor, 1100 North Eutaw Street, Room 607, Baltimore, Maryland 21201. Payments to the State Apprenticeship and Training Fund are due within 14 days after the end of the previous month.

5. What do approved apprenticeship programs need to do?
The Prevailing Wage Unit of the Division of Labor and Industry will notify an approved apprenticeship program that it has been designated by a contractor or subcontractor for contributions.

Once an approved apprenticeship program has received notice from the Prevailing Wage Unit, the approved apprenticeship program is required to register on the Department's website.

Once registered, the approved apprenticeship program is required to report on-line the contributions received on a quarterly basis.

Approved apprenticeship programs are required to certify that the contributions that they have received from contractors and subcontractors are being used for the purpose of improving or expanding apprenticeship training in the State.

6. How does a contractor or subcontractor calculate the credit if the contractor or subcontractor pays an annual or semi-annual tuition?
If a contractor or subcontractor pays an annual or semi-annual tuition to a registered program on behalf of an apprentice, the tuition may be credited to cover a contractor or subcontractors obligation under the Apprenticeship and Training Fund law for that particular employee if the following are met. The tuition payment must correspond to the time when the work is performed and the tuition amount must be equal to at least $.025 per hour for that employee in their covered craft. In addition, all accounting issues must be handled between the contractor and the registered apprenticeship program.

For example, if a contractor makes an annual tuition payment in September of 2015, the employer and the registered apprenticeship program will need to determine how the payment is allocated for that school year and make sure that tuition amount is equal to at least $.025 per hour for that employee. The credit would apply for the September 2015-August 2016 time period only.