H.R. 2690: Improve Employer-Directed Skills Act

This bill, known as the Improve Employer-Directed Skills Act, aims to make changes to the Workforce Innovation and Opportunity Act, focusing on how skills development programs are defined and implemented for workers. Here are the key components of the bill:

1. Changes to Interview Requirements

The bill modifies the requirements regarding interviews and evaluations for individuals seeking skills development training. Specifically:

• If a person is referred by an employer for on-the-job training or skills development, that individual does not need to undergo an interview or assessment by a one-stop operator or partner.
• The employer must certify that the individual needs training services to secure unaided employment and possesses the necessary skills for the training program.

2. Employer-Directed Skills Development Agreement

Under the revisions, employers can enter into contracts with local boards to provide skills development training to individuals or groups. These agreements will need to include:

• The provider of the skills development program (which could be the employer itself).
• The length of the program.
• The recognized credentials or occupational skills that participants will gain.
• The cost of the program.
• The estimated earnings for participants after completing the program.
• The minimum amount the employer will contribute to the program cost.
• A commitment from the employer to hire participants upon successful completion of the training.

3. Terminology Updates

The bill replaces all mentions of “customized training” in the Workforce Innovation and Opportunity Act with the term “employer-directed skills development.” This change aims to clarify the focus on skills development that is directly aligned with employer needs.

Impact on Employment and Training Programs

Overall, this legislation is designed to streamline the process by which employers can provide training to potential employees, potentially leading to a closer alignment between workforce skills and employer requirements. By easing the process of referral and reducing the initial hurdles for candidates directed by employers, the bill aims to facilitate more efficient job training and employment opportunities.

Relevant Companies

• AMZN (Amazon): As a major employer with a focus on skill development, Amazon may engage with employer-directed training initiatives.
• MCD (McDonald's): McDonald’s may utilize the provisions of the bill to streamline their training programs for new employees.
• IBM (International Business Machines): IBM might be impacted by the ability to create tailored training programs for its workforce under this legislation.