Employer-Directed Skills Act

The Employer-Directed Skills Act would overhaul parts of the Workforce Innovation and Opportunity Act (WIOA) to create a new funding mechanism called employer-directed skills accounts (EDSAs). Under the bill, employers would select non-employees for on-the-job training or employer-sponsored skills development (a form of training paid for by the employer), with the federal share of the training cost provided through these accounts. Employers must cover a minimum non-federal share that scales with company size (10% for small employers, 25% for mid-sized, 50% for large employers). Local workforce boards would administer the EDSAs, reimburse employers, and require certain certifications and agreements. The approach aims to align training with specific employer needs, potentially leading to credentials and employment upon completion. In addition to creating EDSAs, the bill broadens eligibility and procedural rules within WIOA to accommodate employer-selected training, modifies career services and consumer-choice provisions, and reduces certain administrative steps (e.g., allowing parties selected by an employer to skip a formal participant interview). Overall, the act would expand the role of employers in financing and directing job-training opportunities while maintaining federal reimbursement through new accounts managed by local boards.