H.R. 4050: Advancing Skills-Based Hiring Act of 2025

The Advancing Skills-Based Hiring Act of 2025 is a legislative proposal designed to promote a skills-based approach to hiring by offering support to employers regarding the use of employment tests and selection procedures. Here’s a breakdown of what the bill proposes:

Purpose of the Act

The Act aims to:

• Encourage employers to adopt a skills-based hiring approach.
• Establish a voluntary program where employers can submit information to the Equal Employment Opportunity Commission (EEOC) about their use of employment tests to ensure these tests are job-related and necessary for their business, as per established legal standards.

Voluntary Submission and Review Process

The EEOC will set up a process for employers to:

• Voluntarily submit evidence regarding the validity of their competency-based assessments.
• Obtain a determination from the EEOC on whether their methods are appropriate and in line with legal requirements.

Employers can submit:

• Criterion-related validity studies
• Content validity studies
• Construct validity studies
• Transportability studies, including evidence of job similarity from other studies

Submissions can be made even if there is no evidence of adverse impact on protected groups; however, any adverse impacts must be disclosed if they exist.

EEOC Review and Determination

The EEOC will review submitted information and can either:

• Determine if the assessment is job-related and necessary for business.
• Provide technical assistance if the determination cannot be made, outlining potential steps the employer can take to comply.

Safe Harbor Provision

If the EEOC finds that the employer’s assessment methods comply with legal standards, this determination can be used by the employer to help prove their compliance in future legal matters.

Fee for Review

Employers with over 100 employees must pay a reasonable fee to the EEOC for this review process. This fee is intended to help cover the costs incurred by the EEOC in providing the review.

Protection of Submitted Information

Any information submitted to the EEOC by employers and any assistance provided by the EEOC cannot be used against the employer in future enforcement actions or be admitted in court without the employer's consent.

Education and Technical Assistance

The EEOC is tasked with providing education and technical assistance related to employment tests and selection procedures. This includes guidance on validation methods and the voluntary submission process for determining compliance with job-relatedness standards.

Definition of Competency-Based Assessment

For the purposes of this Act, a "competency-based assessment" is defined as any assessment that measures the knowledge, skills, abilities, or personal characteristics necessary for successful job performance.

Effective Date

The provisions of this Act will become effective 90 days after its enactment.

Relevant Companies

None found.