H.R. 4049

[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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