This bill, titled the Employer-Directed Skills Act, significantly amends the Workforce Innovation and Opportunity Act (WIOA) by introducing and defining employer-directed skills development . This new program type is specifically selected or designed by an employer, or a group of employers, to address their unique skill demands. A crucial component is the employer's commitment to hire the individual upon successful completion of the program. Employers are also required to contribute a portion of the program's cost, with the percentage escalating based on company size: 10% for employers with 50 or fewer employees, 25% for those with 51 to 99 employees, and 50% for employers with 100 or more employees. The legislation makes several conforming changes throughout WIOA, replacing references to "customized training" with this new employer-directed model in various sections. It modifies the primary indicators of performance to include the ratio of participants completing employer-directed skills development, ensuring accountability for these programs. Additionally, the bill streamlines the referral process, allowing individuals referred by an employer for such training to bypass initial interviews or assessments if the employer certifies their need for training and qualifications. Local boards are authorized to contract with employers to provide these programs, requiring detailed applications outlining the program, cost, employer contribution, and hiring commitment.
Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Labor and Employment
Employer-Directed Skills Act
USA119th CongressS-3846| Senate
| Updated: 2/11/2026
This bill, titled the Employer-Directed Skills Act, significantly amends the Workforce Innovation and Opportunity Act (WIOA) by introducing and defining employer-directed skills development . This new program type is specifically selected or designed by an employer, or a group of employers, to address their unique skill demands. A crucial component is the employer's commitment to hire the individual upon successful completion of the program. Employers are also required to contribute a portion of the program's cost, with the percentage escalating based on company size: 10% for employers with 50 or fewer employees, 25% for those with 51 to 99 employees, and 50% for employers with 100 or more employees. The legislation makes several conforming changes throughout WIOA, replacing references to "customized training" with this new employer-directed model in various sections. It modifies the primary indicators of performance to include the ratio of participants completing employer-directed skills development, ensuring accountability for these programs. Additionally, the bill streamlines the referral process, allowing individuals referred by an employer for such training to bypass initial interviews or assessments if the employer certifies their need for training and qualifications. Local boards are authorized to contract with employers to provide these programs, requiring detailed applications outlining the program, cost, employer contribution, and hiring commitment.