The Employer-Directed Skills Act modifies the federal Workforce Innovation and Opportunity Act to create employer-directed skills accounts, which allow employers to receive federal funding to train workers in specific skills needed for their businesses. Under this program, employers select individuals for on-the-job training or employer-sponsored skills development and must contribute a portion of training costs themselves—at least 10 percent for small employers with 50 or fewer employees, 25 percent for mid-size employers with 51-100 employees, and 50 percent for larger employers with over 100 employees. The bill affects job seekers, employers of all sizes, local workforce boards that administer the accounts, and the federal workforce development system. Local workforce boards must review and approve training agreements submitted by employers, with priority given to small businesses, and can only fund programs that align with local workforce needs and ideally lead to recognized credentials in in-demand fields. The legislation does not specify new federal funding amounts or implementation timelines, instead restructuring how existing workforce development funds can be used to support employer-led training initiatives.
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