HR 2690119th CongressIn Committee

Improve Employer-Directed Skills Act

Introduced: Apr 7, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Improve Employer-Directed Skills Act (H.R. 2690) amends the Workforce Innovation and Opportunity Act (WIOA) to formalize and expand employer-directed training. Introduced by Rep. Miller-Meeks (with Rep. Moolenaar) in the 119th Congress, the bill defines “employer-directed skills development” and creates new pathways for employers to fund and direct training for participants. It includes an interview/evaluation shortcut for individuals referred by an employer and requires local workforce boards to enter into formal agreements with employers to deliver these programs, outlining program details, costs, expected outcomes, and a commitment to hire upon completion. It also updates terminology across WIOA to replace “customized training” with “employer-directed skills development.” In practical terms, the bill aims to boost private-sector involvement in training, speed up placement into jobs, and ensure that employer-sponsored training links to specific credentials or skills and to subsequent employment with the sponsoring employer.

Key Points

1Interview exception for employer referrals: If an employer refers a candidate for on-the-job training or employer-directed skills development and certifies the candidate’s need for training and their qualifications to participate, a one-stop operator or partner is not required to conduct an interview, evaluation, or assessment.
2New employer-directed skills development agreement: Local Workforce Development Boards may contract with employers to deliver employer-directed skills development. The agreement must specify the provider (which may be the employer), program length, credentials or skills gained, program cost, expected earnings, the employer’s share of the cost (not less than a specified minimum), and a commitment from the employer to hire participants who complete the program.
3Cost-sharing and outcomes: The bill requires a defined employer cost contribution to the training and ties the program to anticipated earnings and employment outcomes after completion.
4Expanded scope of training program terminology: Replaces the term “customized training” with “employer-directed skills development” throughout Title I of WIOA.
5Short title: The act is titled the “Improve Employer-Directed Skills Act.”

Impact Areas

Primary group/area affected: Job seekers and workers seeking training who participate in WIOA programs, particularly those routed through employer-directed training and on-the-job experiences.Secondary group/area affected: Employers (including employers who want to fund and direct training for their employees or for potential hires) and local workforce development boards/One-Stop career centers that administer WIOA services.Additional impacts: Training providers (who may partner with employers), and the broader public fisc. The bill introduces new cost-sharing obligations for employers and creates formal performance/earnings-outcome expectations tied to training. It could affect access to training for individuals who are not connected to an employer, depending on implementation, and it raises questions about oversight, training quality, and equity in access to employer-directed programs.

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