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