H.R. 4049: Employer-Directed Skills Act

This bill, titled the Employer-Directed Skills Act, proposes amendments to the Workforce Innovation and Opportunity Act to create a system of "employer-directed skills accounts." These accounts would enable employers to actively participate in the training and skill development of potential employees. Below are the key features of the proposed bill:

Employer-Directed Skills Accounts

The bill defines "employer-sponsored skills development" as training programs selected by employers to meet their specific skill needs. The key aspects include:

• The employer will select the program and pay part of the cost, based on the size of the business:
• 10% if the employer has up to 50 employees.
• 25% if the employer has between 51 and 100 employees.
• 50% if the employer has more than 100 employees.
• The federal government would fund the remainder of the program's cost through the employer-directed skills accounts.
• There is a commitment for employers to hire individuals who successfully complete the training.

On-the-Job Training

This section outlines that if an employer meets specific conditions, they can receive federal reimbursement for the costs of on-the-job training through the employer-directed skills accounts.

Career Services Enhancements

The bill mandates that local career services provide information about available employer-sponsored skills development programs and assist in establishing agreements for such training. This aims to improve the access of job seekers to applicable training opportunities.

Eligibility for Training Services

The proposed amendments simplify the process for selecting individuals for training. If selected by an employer, participants will not need to undergo additional assessments before receiving on-the-job training or employer-sponsored skills development.

Local Plans and Consumer Choice

Local boards will be required to incorporate employer-directed skills accounts into their training plans and allow for consumer choice regarding training services.

Training Agreements

For on-the-job training and employer-sponsored skills development, agreements must be established and approved, detailing:

• The length and specifics of the training.
• Wage details and required skills.
• The commitment from the employer to hire upon successful completion of the training.

Funding Mechanism

Funds from the employer-directed skills accounts will be used to reimburse employers for training costs after they provide necessary documentation. This ensures that employers are supported financially as they invest in their workforce development.

Relevant Companies

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