Amends the definitions in section 3 of WIOA by removing an existing paragraph (14), redesignating paragraphs (15)–(18) as (14)–(17), and adding a new paragraph (18) that defines "employer-directed skills development" and sets employer cost-share thresholds and an employment commitment requirement.

Replaces the phrase "customized training programs" with "employer-directed skills development" in section 108(b)(4)(B) of WIOA.

Modifies primary indicators of performance by altering language in clause (i) (striking and replacing subclause (VI)) and by striking clause (iv).

Amends section 122(h) by changing the heading, replacing references to "customized training" with "employer-directed skills development" in paragraph (1), and striking and replacing the first sentence of paragraph (2).

Replaces the phrase "customized training" with "employer-directed skills development" in the identified subclause of section 134(a)(2)(B)(v)(II).

Replaces the phrase "customized training" with "employer-directed skills development" in section 134(a)(3)(A)(i).

Makes multiple amendments to section 134(c)(3): adjusts cross-references within subparagraph (A), redesignates an internal clause, inserts a new clause (iii) establishing an "Employer referral" provision with priority rules, replaces a clause in subparagraph (D) to refer to "employer-directed skills development," substitutes the term in subparagraph (G)(ii)(II), and adds a new subparagraph (I) authorizing local boards to contract with employers for employer-directed skills development subject to specified application contents.