H.R. 4049

119th CONGRESS 1st Session

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 · Sponsor: Ms. Stefanik · Committee: Committee on Education and Workforce

Table of contents

• H.R. 4049
  • SEC. 1. Short title
  • SEC. 2. Employer-directed skills accounts

SEC. 1. Short title

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

SEC. 2. Employer-directed skills accounts

• (a) Definitions
  • Section 3 of the Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3102
  • Paragraph (45) of section 3 of the Workforce Innovation and Opportunity Act () is amended, as redesignated by paragraph (1)(A)— 29 U.S.C. 3102
  • The Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3101 et seq.
• (b) Exceptions for employer-Sponsored skills development
  • Section 122(h) of the Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3152(h)
    • in paragraph (1), by inserting after ; and
    • in paragraph (2), by inserting after .
• (c) Career services
  • Section 134(c)(2)(A) of the Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3174(c)(2)(A)
    • in clause (xii), by striking and at the end;
    • in clause (xiii), by striking the period and inserting a semicolon; and
      • (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.
    • by adding at the end the following:
• (d) Eligibility for training services
  • Section 134(c)(3) of the Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3174(c)(3)
    • in subparagraph (A)—
      • in clause (i), by inserting after ;
      • by redesignating clause (iii) as clause (iv); and
        • (iii) 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.
      • by inserting after clause (ii) the following:
    • in subparagraph (D)—
      • in clause (x), by striking and at the end;
      • in clause (xi), by striking the period at the end and inserting ; and; and
        • (xii) employer-sponsored skills development programs conducted with a commitment by an employer to employ an individual upon successful completion of such a program.
      • by adding at the end the following:
• (e) Employer-Directed skills accounts
  • (1) Local plan
    • Section 108(b)(19) of the Workforce Innovation and Opportunity Act () is amended by inserting after . 29 U.S.C. 3123
  • (2) Consumer choice requirements
    • Section 134(c)(3)(F) of the Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3174(c)(3)(F)
      • by redesignating clauses (iv) and (v) as clauses (v) and (vi), respectively;
      • by inserting after clause (iii), the following:
        • (iv) 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).
      • in clause (v), as redesignated by subparagraph (A), by inserting after .
  • (3) Additional exception to use of individual training accounts
    • Section 134(c)(3)(G) of the Workforce Innovation and Opportunity Act () is amended— 29 U.S.C. 3174(c)(3)(G)
      • by redesignating clauses (iii) and (iv) as clauses (iv) and (v), respectively;
      • in clause (i), by striking clause (ii)and inserting clauses (ii) and (iii);
        • (iii) 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.
      • by inserting after clause (ii), the following:
      • in clause (v) (as redesignated by subparagraph (A)), by inserting after .
  • (4) Establishment of employer-directed skills accounts
    • Section 134(c)(3) of the Workforce Innovation and Opportunity Act () is amended by adding at the end the following: 29 U.S.C. 3174(c)(3)
      • (I) Employer-directed skills accounts
        • (i) 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:
        • An employer selects the individual, who is not an employee of such employer, for on-the-job training or employer-sponsored skills development.
        • 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
        • 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.
        • The employer submits to the local board each of the following:
        • 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.
        • A certification that the employer will submit the necessary performance information to the local board in accordance with section 122(h).
        • The on-the-job training agreement or the employer-sponsored skills development agreement described in subclause (II), as applicable.
        • The local board involved reviews and approves each certification and agreement received under subclause (III), by considering the following:
        • (ii) 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:
        • The characteristics of the participants of the on-the-job training or employer-sponsored skills development that is the subject of the agreement.
        • The size of the employer submitting such agreement, with a priority on supporting agreements submitted by small businesses.
        • The alignment of the agreement with the workforce investment needs identified in the local plan of the local area under section 108.
        • In the case of an employer-sponsored skills development agreement, if the employer-sponsored skills development offered—
        • is for preparation to work in an in-demand industry sector or occupation; and
        • leads to a recognized postsecondary credential.
        • Any other factors the local board determines appropriate.
        • (iii) 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:
        • 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.
        • 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) An on-the-job training agreement under clause (i) shall—
        • establish—
        • the length of the on-the-job training;
        • the hourly wage rate of the individual;
        • the skills necessary for the job and the individual’s current skill level as of the date of the agreement; and
        • the skills to be learned during the on-the-job training; and
        • 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) An employer-sponsored skills development agreement referred to in clause (i) shall establish—
        • the provider of the employer-sponsored skills development program;
        • the length of such program;
        • the skills to be learned during such program;
        • a commitment by the employer to employ the individual upon successful completion of the program;
        • the cost of the program;
        • 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
        • any recognized postsecondary credentials that will be awarded to successful participants.