PolicyBrief
H.R. 2690
119th CongressApr 7th 2025
Improve Employer-Directed Skills Act
IN COMMITTEE

This bill streamlines the process for employer-directed skills training by allowing one-stop operators to bypass certain assessments for employer-referred individuals and enabling employers to contract with local boards to provide skills development programs tailored to their needs.

Mariannette Miller-Meeks
R

Mariannette Miller-Meeks

Representative

IA-1

LEGISLATION

Employers Could Design Job Training and Skip Assessments Under Proposed Workforce Act Changes

Congress is looking at shaking up how some job training programs work through the Workforce Innovation and Opportunity Act (WIOA). The 'Improve Employer-Directed Skills Act' aims to give companies a bigger role in shaping training for potential hires. Essentially, it allows employers who refer someone for on-the-job training or specific skills development to bypass the usual individual interviews and assessments typically required by local workforce programs (amending 29 U.S.C. 3174(c)(3)(A)). The catch? The employer has to certify the person needs the training for a job with them and has the basic ability to succeed in the program.

Your Boss, The New Training Director?

This bill swaps out the term 'customized training' for 'employer-directed skills development' throughout a key section of WIOA. More than just a name change, this signals a shift. Employers could directly contract with local workforce boards to set up training programs (amending 29 U.S.C. 3174(c)(3)). They'd need to outline specifics like who's providing the training, how long it lasts, what skills or credentials participants will get, the cost, expected earnings after completion, and how much the employer is kicking in financially. Crucially, the agreement must include a commitment from the employer to hire participants who successfully finish the program.

Faster Track or Narrow Path?

So, what does this mean on the ground? If you're job hunting and a company likes you but thinks you need specific skills, they might be able to fast-track you into a training program they helped design, potentially skipping some initial hoops. This could mean quicker paths to employment aligned directly with what a specific employer needs. Think of a local manufacturer needing specialized machine operators – they could potentially set up a targeted program and pull candidates directly into it.

However, skipping individual assessments might mean missing opportunities to identify broader skill gaps or career interests beyond that one specific job. While the employer must commit to hiring successful trainees, the bill doesn't detail enforcement if they don't follow through. There's a balance here: potential efficiency and direct job pipelines versus the risk of training becoming overly narrow, focused only on one company's immediate needs, and potentially leaving workers without easily transferable skills if that promised job doesn't materialize or last.