“To establish a program of workforce development as an alternative to college for all, and for other purposes.”
No CRS summary available for this bill.
This section defines terms for purposes of the Act, including: (1) "American workforce contract" as a contract approved by the Director and entered into by an employer and prospective trainee under section 4(b)(6); (2) "American workforce program" as a program established under section 4(a) providing each participating trainee a paid, full-time position involving structured on-the-job work and educational workforce training; (3) "competency-based credential" as a credential awarded based on a performance-based test demonstrating industry-essential proficiency without restrictions on prior study; (4) "Director" as the Director of the American Workforce Division, appointed under section 3(b); (5) "employer" as a for-profit employer under the Fair Labor Standards Act (29 U.S.C. 203), excluding public agencies; (6) "prospective trainee" as an individual applying to an employer for an American workforce contract and meeting trainee requirements under paragraph (8)(A); (7) "Secretary" as the Secretary of Commerce; (8) "trainee" as a U.S. citizen with a high school diploma or equivalent who has not earned a bachelor's or higher degree and has an active American workforce contract; and (9) "workforce project" as a project carried out under an American workforce contract as part of the American workforce program.
This section establishes in the Economic Development Administration of the Department of Commerce the American Workforce Division to administer, subject to appropriations, the American workforce program under section 4(a). The division is headed by a Director appointed by the President with Senate advice and consent, who must have significant private sector experience, reports directly to the Secretary of Commerce, and performs additional duties as prescribed by the Secretary; until Senate confirmation of the initial Director (and thereafter upon vacancy), the Secretary designates an acting Director. The Director's responsibilities include (1) reviewing and approving or disapproving proposed American workforce contracts within one month of receipt; (2) maintaining records and ensuring contract compliance, and publishing a standardized three-page contract template; (3) receiving complaints, conducting investigations, and imposing disciplinary or corrective actions; (4) coordinating with state and local governments to publicize subsidies and recruit secondary school students; (5) developing a public website enabling employers to post workforce demands and trainees to search options; (6) annually collecting specified data on trainees (e.g., numbers, completion and retention rates, earnings, credentials, demographics) and employer contacts; and (7) preparing five- and ten-year reports to Congress under section 6. This section further authorizes trainees to file whistleblower complaints alleging employer noncompliance with contracts, requires the Director to initiate investigations within one month and issue preliminary determinations within 90 days based on clear and convincing evidence, and directs associated disciplinary or corrective actions.
This section establishes an American workforce program, subject to appropriations, to be carried out by the Director through American workforce contracts, workforce education subsidies, hiring bonuses, and technical and administrative support for workforce projects. To be eligible for subsidies, bonuses, or support, an employer and prospective trainee must submit a proposed American workforce contract—based on the Director's standardized template—for review and approval. The contract must specify (1) the parties involved (including any third-party training entity); (2) the project term (not shorter than 6 weeks) and time allocation for on-the-job work and training; (3) the work and training plan, including curriculum, skills, and competencies; and (4) a written workforce agreement detailing terms and conditions, trainee and estimated starting wages, completion standards, expected outcomes and industry growth projections, wage increase circumstances, mentorship opportunities, subsidy disclosures, costs to the trainee, and relevant credentials (competency-based or other). Within one month of receipt, the Director must review contract credentials (potentially noting additions, without rejecting the entire contract or requiring credential attainment) and approve or disapprove the contract (only for noncompliance with the Act, with reasons and amendment recommendations provided); approval is presumed on the 32nd day if not disapproved.
This section establishes general provisions for the Act, including (1) clarifying that a workforce project need not end after the three-year maximum period for employer payments through a workforce education subsidy if the employer funds subsequent educational workforce training; (2) permitting individuals not meeting eligibility criteria under section 2(8)(A) to participate in similarly structured projects if funded by the employer or a non-federal organization; (3) prohibiting the Secretary from pressuring or incentivizing an employer's choice of third-party training entity; (4) authorizing the Secretary, beginning five years after enactment, to issue regulations specifying ratios—by job category—between job openings for full-time regular positions and trainees to ensure reasonable hiring opportunities without limiting employer discretion or incentivizing lowered standards for difficult or dangerous jobs; (5) authorizing the Secretary to establish criteria on technical matters and provide technical assistance; and (6) requiring issuance of mandated regulations within three months of enactment, except as otherwise specified.
This section directs the Secretary to submit to Congress two reports on the American workforce program: (1) not later than five years after enactment, evaluating the program against other major federal career and technical education, apprenticeship, and workforce programs—such as the registered apprenticeship program (under the National Apprenticeship Act, 29 U.S.C. 50 et seq.) and Workforce Innovation and Opportunity Act (WIOA, 29 U.S.C. 3101 et seq.) programs—based on participant completion rates, average earnings during and up to five years after program completion, participant growth relative to labor force growth, employer engagement and satisfaction, and industry/occupation diversity; overall and project-specific completion and dropout rates; statistically significant surveys of trainees and employers (by employer size); data on trainee uptake and credentials; program administration details; and recommendations on intermediary institutions, eligibility expansion (e.g., for non-high school graduates), high school integration, small business participation, and program improvements/reauthorization; and (2) not later than 10 years after enactment, containing the same information, analysis, and recommendations. This section terminates the American workforce program (authorized under section 4) and the position of the Director on the earlier of the submission date of the 10-year report or 11 years after enactment. (Thus, the program ends no later than 11 years after enactment.)