H.R. 4050 — Advancing Skills-Based Hiring Act of 2025

This section declares the purposes of the Act to (1) empower employers to adopt a skills-based approach to hiring through a voluntary compliance assistance program regarding the appropriate use of employment tests and selection procedures, and (2) enable employers to proactively submit validation information to the Equal Employment Opportunity Commission (EEOC) for review to ensure such tests and procedures are job-related for the position in question and consistent with business necessity under section 703(k)(1)(A)(i) of the Civil Rights Act of 1964 (42 U.S.C. 2000e–2(k)(1)(A)(i)).

This section establishes a voluntary process at the Equal Employment Opportunity Commission (EEOC) for employers to submit validity evidence—such as criterion-related, content, construct, or transportability studies—on competency-based assessments or selection procedures used for employment decisions. (As background, under Title VII of the Civil Rights Act of 1964, employers may defend against disparate impact claims by demonstrating that such procedures are job-related for the position and consistent with business necessity.) The EEOC must review submissions (1) to determine if the procedure meets that standard or (2) to provide technical assistance explaining deficiencies and suggested remedies; employers with more than 100 employees must pay a reasonable fee set by the EEOC to cover review costs. A favorable EEOC determination creates a safe harbor, satisfying the employer's burden of proof under section 703(k)(1)(A)(i) (42 U.S.C. 2000e-2(k)(1)(A)(i)) in disparate impact litigation. Submitted information and any technical assistance provided are inadmissible in federal or state court without employer consent and cannot form the basis for future EEOC enforcement actions.

This section directs the Commission to provide education and technical assistance on the use of employment tests or other selection procedures, including on methods to validate such tests or procedures and on the opportunity for employers to voluntarily submit validity evidence to the Commission for a determination that the test or procedure is job-related and consistent with business necessity.

This section defines the term “competency-based assessment” for purposes of this Act as an assessment or selection procedure that purports to measure the knowledge, skills, abilities, or personal or behavioral characteristics necessary for, or shown to predict, successful job performance.