This Act establishes a voluntary EEOC review process for employers to validate that their hiring tests are job-related, offering legal "safe harbor" protection for those who comply.
Elise Stefanik
Representative
NY-21
The Advancing Skills-Based Hiring Act of 2025 establishes a voluntary program allowing employers to submit their hiring assessments to the EEOC for review to confirm they are job-related and consistent with business necessity. This process offers employers a "safe harbor" against future legal challenges if the EEOC approves their methods. The Act also mandates the EEOC to provide technical assistance and education on properly validating employment tests. Ultimately, this legislation aims to encourage hiring based on demonstrated skills rather than solely on traditional credentials.
EEOC to Offer 'Safe Harbor' Approvals for Hiring Tests: What It Means for Job Seekers and Big Employers
The Advancing Skills-Based Hiring Act of 2025 sets up a new, voluntary program at the Equal Employment Opportunity Commission (EEOC) aimed at changing how companies hire. The core idea is to encourage employers to focus on actual skills over traditional credentials—think competency tests instead of just degrees. The bill mandates that the EEOC create a system where employers can submit their hiring tests and assessment procedures to get an official sign-off that they are truly job-related and necessary for the business (Sec. 2).
The 'Safe Harbor' Protection for Big Business
This is where things get interesting, especially for large companies. If an employer—specifically one with over 100 employees—pays a fee, the EEOC will review their hiring test. If the EEOC determines the test meets the legal standard, that decision acts as a “safe harbor” (Sec. 3). This means if a job applicant later sues the company claiming the test was discriminatory, the employer can use that EEOC approval as proof they met their legal obligations under the Civil Rights Act. For employers, this is huge: it’s legal certainty that could save them millions in future litigation. For job seekers, however, it creates a significant hurdle, as challenging an EEOC-approved test in court becomes much harder.
The Cost of Certainty and Data Protection
To access this legal certainty, large employers (over 100 employees) must pay a “reasonable fee” to the EEOC to cover the review costs (Sec. 3). This creates a new administrative cost for big companies, but one they’ll likely view as a worthwhile investment in risk management. Crucially, the bill includes a strong protection clause: any information an employer voluntarily submits to the EEOC for review cannot be used by the EEOC to launch an enforcement action against them later, nor can it be used as evidence in court unless the employer agrees (Sec. 3). This is designed to incentivize employers to submit their data, but it also means the EEOC’s hands are tied regarding any potential issues discovered during the review process.
Skills-Based Hiring Meets Bureaucracy
Beyond the safe harbor, the bill requires the EEOC to step up its game in providing education and technical assistance on how to properly validate employment tests (Sec. 4). This is the good part for everyone: it means better guidance on making sure skills tests actually measure the skills needed for the job, helping companies move away from relying on arbitrary requirements. The goal is to make sure assessments—or “competency-based assessments” as the bill defines them—are genuinely relevant (Sec. 5). However, the EEOC is now saddled with the new, complex duties of running a fee-based review service, providing technical help, and giving education, which could strain resources if the fees don't fully cover the costs, potentially slowing down their existing enforcement work.