119-hr4049

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4049 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4049

 To amend the Workforce Innovation and Opportunity Act to establish 
 employer-directed skills accounts, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 June 17, 2025

 Ms. Stefanik introduced the following bill; which was referred to the 
 Committee on Education and Workforce

_______________________________________________________________________

 A BILL

 To amend the Workforce Innovation and Opportunity Act to establish 
 employer-directed skills accounts, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Employer-Directed Skills Act''.

SEC. 2. EMPLOYER-DIRECTED SKILLS ACCOUNTS.

    (a) 

=== Definitions. ===
-

    (1) Employer-sponsored skills development.--

Section 3 of 
 the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) 
 is amended--
        (A) by redesignating paragraphs

    (19) through

    (71) as paragraphs

    (20) through

    (72) , respectively; and
        (B) by inserting after paragraph

    (18) , the 
 following:
 ``

    (19) Employer-sponsored skills development.--The term 
 `employer-sponsored skills development' means a skills 
 development program--
 ``
        (A) that is selected by an employer to meet the 
 specific skill demands of the employer;
 ``
        (B) that is conducted pursuant to terms and 
 conditions which are established under an employer-
 sponsored skills development agreement described in 
 

section 134
            (c) (3)
            (I) 
            (iv) , including a commitment by the 
 employer to employ an individual upon successful 
 completion of the program;
 ``
            (C) for which an employer pays a portion of the 
 cost of the program, which shall not be less than--
 ``
            (i) 10 percent of the cost, in the case 
 of an employer with not more than 50 employees;
 ``
            (ii) 25 percent of the cost, in the case 
 of an employer with more than 50 employees but 
 not more than 100 employees; and
 ``
            (iii) 50 percent of the cost, in the case 
 of an employer with more than 100 employees; 
 and
 ``
            (D) for which the Federal share of the cost of 
 the program is provided to the employer through an 
 employer-directed skills account in accordance with 
 

section 134
            (c) (3)
            (I) 
            (ii) .''.

    (2) On-the-job training.--Paragraph

    (45) of 

section 3 of 
 the Workforce Innovation and Opportunity Act (29 U.S.C. 3102) 
 is amended, as redesignated by paragraph

    (1)
        (A) --
        (A) in subparagraph
        (B) , by striking ``and'' at the 
 end;
        (B) in subparagraph
            (C) , by striking the period at 
 the end and inserting ``; and''; and
            (C) by adding at the end the following:
 ``
            (D) in a case in which each of the conditions 
 under 

section 134
            (c) (3)
            (I) 
            (i) are met with respect to 
 such training (including the establishment of an on-
 the-job training agreement described in 

section 134
            (c) (3)
            (I) 
            (iii) ), provides the Federal share of the 
 cost of training to the employer through an employer-
 directed skills account.''.

    (3) Related conforming amendments.--The Workforce 
 Innovation and Opportunity Act (29 U.S.C. 3101 et seq.) is 
 amended--
        (A) in 

section 134
            (c) (3)
        (H)
            (i) (20 U.S.C. 
 3174
            (c) (3)
        (H)
            (i) ), by striking ``

section 3

    (44) '' and by 
 inserting ``

section 3

    (45) '';
        (B) in 

section 211

    (e)

    (3) (20 U.S.C. 3291

    (e)

    (3) ), by 
 striking ``

section 3

    (45) '' and inserting ``

section 3

    (46) '';
            (C) in 

section 181
            (d) (2) (20 U.S.C. 3241
            (d) (2) ), by 
 striking ``transitional employment,'' and inserting 
 ``transitional employment, employer-sponsored skills 
 development''; and
            (D) in 

section 194

    (4) (20 U.S.C. 3254

    (4) ), by 
 inserting ``or employer-sponsored skills development'' 
 after ``On-the-job training''.

    (b) Exceptions for Employer-Sponsored Skills Development.--

Section 122

    (h) of the Workforce Innovation and Opportunity Act (29 U.S.C. 
3152

    (h) ) is amended--

    (1) in paragraph

    (1) , by inserting ``employer-sponsored 
 skills development,'' after ``incumbent worker training,''; and

    (2) in paragraph

    (2) , by inserting ``employer-sponsored 
 skills development,'' after ``incumbent worker training,''.
            (c) Career Services.--

Section 134
            (c) (2)
        (A) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3174
            (c) (2)
        (A) ) is amended--

    (1) in clause
            (xii) , by striking ``and'' at the end;

    (2) in clause
            (xiii) , by striking the period and inserting 
 a semicolon; and

    (3) by adding at the end the following:
 ``
            (xiv) provision of information on 
 employers in the local areas that are offering 
 employer-sponsored skills development or on-
 the-job training programs that may be 
 reimbursed through an employer-directed skills 
 account established under 

section 134
            (c) (3)
            (I) and the performance information available on 
 such programs; and
 ``
            (xv) provision of assistance, in 
 coordination with employers in the local areas 
 that are offering employer-sponsored skills 
 development or on-the-job training, in 
 establishing employer-sponsored skills 
 development agreements or on-the-job training 
 agreements.''.
            (d) Eligibility for Training Services.--

Section 134
            (c) (3) of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3174
            (c) (3) ) is 
amended--

    (1) in subparagraph
        (A) --
        (A) in clause
            (i) , by inserting ``or
            (iii) '' after 
 ``clause
            (ii) '';
        (B) by redesignating clause
            (iii) as clause
            (iv) ; 
 and
            (C) by inserting after clause
            (ii) the following:
 ``
            (iii) Participants selected for on-the-
 job training or employer-sponsored skills 
 development.--A one-stop operator or one-stop 
 partner shall not be required to conduct an 
 interview, evaluation, or assessment of a 
 participant under clause
            (i) if such 
 participant is selected by an employer under 
 

section 134
            (c) (3)
            (I) 
            (i) to receive on-the-job 
 training or employer-sponsored skills 
 development, and the applicable conditions 
 under such section are met for such individual 
 to receive such services.''; and

    (2) in subparagraph
            (D) --
        (A) in clause
            (x) , by striking ``and'' at the end;
        (B) in clause
            (xi) , by striking the period at the 
 end and inserting ``; and''; and
            (C) by adding at the end the following:
 ``
            (xii) employer-sponsored skills 
 development programs conducted with a 
 commitment by an employer to employ an 
 individual upon successful completion of such a 
 program.''.

    (e) Employer-Directed Skills Accounts.--

    (1) Local plan.--

Section 108

    (b)

    (19) of the Workforce 
 Innovation and Opportunity Act (29 U.S.C. 3123) is amended by 
 inserting ``or employer-directed skills accounts'' after 
 ``individual training accounts''.

    (2) Consumer choice requirements.--

Section 134
            (c) (3)
        (F) of 
 the Workforce Innovation and Opportunity Act (29 U.S.C. 
 3174
            (c) (3)
        (F) ) is amended--
        (A) by redesignating clauses
            (iv) and
            (v) as 
 clauses
            (v) and
            (vi) , respectively;
        (B) by inserting after clause
            (iii) , the following:
 ``
            (iv) Employer-directed skills accounts.--
 In a case in which an individual is selected by 
 an employer under 

section 134
            (c) (3)
            (I) 
            (i) to 
 receive on-the-job training or employer-
 sponsored skills development, and the 
 applicable conditions under such section are 
 met for such individual to receive such 
 services, the local board involved shall 
 arrange for payment for such services through 
 an employer-directed skills account in 
 accordance with 

section 134
            (c) (3)
            (I) 
            (ii) .''; 
 and
            (C) in clause
            (v) , as redesignated by subparagraph
        (A) , by inserting ``or employer-directed skills 
 accounts'' after ``individual training accounts''.

    (3) Additional exception to use of individual training 
 accounts.--

Section 134
            (c) (3)
        (G) of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3174
            (c) (3)
        (G) ) is amended--
        (A) by redesignating clauses
            (iii) and
            (iv) as 
 clauses
            (iv) and
            (v) , respectively;
        (B) in clause
            (i) , by striking ``clause
            (ii) '' and 
 inserting ``clauses
            (ii) and
            (iii) '';
            (C) by inserting after clause
            (ii) , the following:
 ``
            (iii) Employer-directed skills 
 accounts.--Services authorized under this 
 paragraph may be provided pursuant to an 
 employer-directed skills account in lieu of an 
 individual training account if such services 
 are employer-sponsored skills development or 
 on-the-job training and the applicable 
 conditions under 

section 134
            (c) (3)
            (I) 
            (i) are 
 met for an individual to receive such 
 services.''; and
            (D) in clause
            (v) (as redesignated by subparagraph
        (A) ), by inserting ``, employer-directed skills 
 accounts,'' after ``individual training accounts''.

    (4) Establishment of employer-directed skills accounts.--
 

Section 134
            (c) (3) of the Workforce Innovation and Opportunity 
 Act (29 U.S.C. 3174
            (c) (3) ) is amended by adding at the end the 
 following:
 ``
            (I) Employer-directed skills accounts.--
 ``
            (i) In general.--An individual shall 
 receive on-the-job training or employer-
 sponsored skills development through the use of 
 an employer-directed skills account, if each of 
 the following conditions are met:
 ``
            (I) An employer selects the 
 individual, who is not an employee of 
 such employer, for on-the-job training 
 or employer-sponsored skills 
 development.
 ``
            (II) (aa) In the case of an 
 individual selected under subclause
            (I) to receive on-the-job training, an on-
 the-job training agreement that meets 
 the requirements of clause
            (iii) is 
 established and signed by the 
 individual and the employer; or
 ``

    (bb) in the case of an individual 
 selected under subclause
            (I) to receive 
 employer-sponsored skills development, 
 an employer-sponsored skills 
 development agreement that meets the 
 requirements of clause
            (iv) is 
 established and signed by the 
 individual and the employer.
 ``
            (III) The employer submits to the 
 local board each of the following:
 ``

    (aa) A certification that 
 the individual requires an on-
 the-job training or employer-
 sponsored skills development 
 program to obtain employment 
 with the employer, and has the 
 skills and qualifications to 
 successfully participate in 
 such a program.
 ``

    (bb) A certification that 
 the employer will submit the 
 necessary performance 
 information to the local board 
 in accordance with 

section 122

    (h) .
 ``
            (cc) The on-the-job 
 training agreement or the 
 employer-sponsored skills 
 development agreement described 
 in subclause
            (II) , as 
 applicable.
 ``
            (IV) The local board involved 
 reviews and approves each certification 
 and agreement received under subclause
            (III) , by considering the following:
 ``
            (ii) Approval of agreements.--In 
 determining whether to approve an employer-
 sponsored skills development agreement or an 
 on-the-job training agreement under clause
            (i) 
            (IV) , the local board involved shall 
 consider the following:
 ``
            (I) The characteristics of the 
 participants of the on-the-job training 
 or employer-sponsored skills 
 development that is the subject of the 
 agreement.
 ``
            (II) The size of the employer 
 submitting such agreement, with a 
 priority on supporting agreements 
 submitted by small businesses.
 ``
            (III) The alignment of the 
 agreement with the workforce investment 
 needs identified in the local plan of 
 the local area under 

section 108.
 ``
            (IV) In the case of an employer-
 sponsored skills development agreement, 
 if the employer-sponsored skills 
 development offered--
 ``

    (aa) is for preparation 
 to work in an in-demand 
 industry sector or occupation; 
 and
 ``

    (bb) leads to a 
 recognized postsecondary 
 credential.
 ``
            (V) Any other factors the local 
 board determines appropriate.
 ``
            (iii) Payment to employers.--The local 
 board involved in on-the-job training or 
 employer-sponsored skills development under 
 clause
            (i) shall arrange for the appropriate 
 payment of such services through an employer-
 directed skills account as follows:
 ``
            (I) On-the-job training.--For on-
 the-job training, the local board 
 involved shall reimburse the employer 
 from funds in the employer-directed 
 skills account in accordance to the 
 reimbursement requirements of 

section 3

    (45)
        (B) and after receipt of 
 documentation of the wages earned by 
 the individual during such training.
 ``
            (II) Employer-sponsored skills 
 development.--For employer-sponsored 
 skills development services, the local 
 board involved shall reimburse the 
 employer from funds in the employer-
 directed skills account for the Federal 
 share of the costs of the program after 
 receipt of documentation from the 
 employer of payment of such costs.
 ``
            (iv) On-the-job training agreement.--An 
 on-the-job training agreement under clause
            (i) shall--
 ``
            (I) establish--
 ``

    (aa) the length of the 
 on-the-job training;
 ``

    (bb) the hourly wage rate 
 of the individual;
 ``
            (cc) the skills necessary 
 for the job and the 
 individual's current skill 
 level as of the date of the 
 agreement; and
 ``
            (dd) the skills to be 
 learned during the on-the-job 
 training; and
 ``
            (II) include an assurance that 
 the employer will provide the local 
 board involved with documentation of 
 the wages earned by the individual 
 while engaged in such on-the-job 
 training for the purpose of 
 reimbursement to the employer.
 ``
            (v) Employer-sponsored skills development 
 agreement.--An employer-sponsored skills 
 development agreement referred to in clause
            (i) shall establish--
 ``
            (I) the provider of the employer-
 sponsored skills development program;
 ``
            (II) the length of such program;
 ``
            (III) the skills to be learned 
 during such program;
 ``
            (IV) a commitment by the employer 
 to employ the individual upon 
 successful completion of the program;
 ``
            (V) the cost of the program;
 ``
            (VI) the amount of such cost that 
 will be paid by the employer (the non-
 Federal share), which shall be not less 
 than the amount specified in 

section 3

    (19)
            (C) ; and
 ``
            (VII) any recognized 
 postsecondary credentials that will be 
 awarded to successful participants.''.
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