Employer-Directed Skills Act
Bill: H.R.6255 | Sponsor: Rep. Stefanik, Elise M. (R-NY)
Policy area: Labor and Employment

Summary:
Employer-Directed Skills Act
This bill allows for an employer to sponsor skills development programs with partial federal reimbursement under the Workforce Innovation and Opportunity Act (WIOA). These new skills development programs are exempt from the program application and participant assessment requirements that typically apply to WIOA employment and training activities. However, these skills development programs must be conducted according to an employer-sponsored skills development agreement that includes, among other required provisions, a commitment by the employer to employ an individual upon successful completion of the program.
The bill also requires the federal share of these skills development programs and the federal share of existing on-the-job training programs to be paid by reimbursement from employer-directed skills accounts that must be established by local one-stop operators.

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)''; and
                    (B) in section 211(e)(3) (20 U.S.C. 3291(e)(3)), by 
                striking ``section 3(45)'' and inserting ``section 
                3(46)''.
    (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 one-stop operator 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 one-stop operator 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 one-stop 
                                        operator 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 one-stop operator 
                                involved reviews and approves each 
                                certification and agreement received 
                                under subclause (III).
                            ``(ii) Payment to employers.--The one-stop 
                        operator 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 one-stop operator 
                                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 one-
                                stop operator 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.
                            ``(iii) 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 one-stop 
                                operator 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.
                            ``(iv) 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; and
                                    ``(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).''.
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