“A bill 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 nine terms used in the Act: (1) American workforce contract, meaning a contract approved by the Director and entered into by an employer and prospective trainee under section 4(b)(6); (2) American workforce program, meaning a program established under section 4(a) that provides participating trainees with paid, full-time positions involving structured on-the-job work and specified educational workforce training; (3) competency-based credential, meaning a credential awarded based on a performance-based test of industry- or occupation-essential knowledge and abilities without restrictions on prior study; (4) Director, meaning the Director of the American Workforce Division appointed under section 3(b); (5) employer, meaning a for-profit employer as defined in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203) other than a public agency; (6) prospective trainee, meaning an individual applying to an employer for an American workforce contract who meets trainee eligibility requirements; (7) Secretary, meaning the Secretary of Commerce; (8) trainee, meaning a U.S. citizen with a high school diploma or equivalent who has not earned a bachelor's or higher degree and who has entered into an effective American workforce contract; and (9) workforce project, meaning a project carried out under an American workforce contract as part of an American workforce program.
This section establishes the American Workforce Division in the Economic Development Administration of the Department of Commerce 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 confirmation, who must have significant private-sector experience, reports directly to the Secretary of Commerce, and performs duties including (1) approving or disapproving proposed American workforce contracts within one month of receipt; (2) maintaining contract records, ensuring 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 for employers to post worker demand by industry or occupation and for prospective trainees to search options; (6) preparing five- and 10-year reports to Congress; and (7) annually collecting and reporting program data, including trainee numbers, completion and retention rates, credentials attained, earnings, subsidies per trainee, and demographics. The section further authorizes trainees to file whistleblower complaints alleging employer noncompliance with contracts, requires the Director to begin investigations within one month and issue preliminary determinations within 90 days based on clear and convincing evidence, and provides for temporary acting Directors pending Senate-confirmed appointments.
This section establishes an American workforce program, subject to appropriations, under which the Director supports workforce projects through American workforce contracts, workforce education subsidies, hiring bonuses, and technical and administrative support. To be eligible for subsidies, bonuses, or support, an employer and prospective trainee must submit a proposed American workforce contract—using a Director-provided standardized template—for review and approval. The contract must identify involved parties (including any third-party training entity); specify a term of at least 6 weeks, including time allocations for on-the-job work and educational training; detail the work and training plan and skills to be attained; and include a written workforce agreement outlining work terms, trainee and estimated post-training wages, completion standards, expected outcomes and industry growth projections, wage increase circumstances, mentorship opportunities, subsidy disclosures, and available competency-based or other credentials. Within 1 month of receipt, the Director must review contract credentials (suggesting additional ones if appropriate, without rejecting the entire contract on that basis) and approve or disapprove the contract (with a presumption of approval on day 32 if not acted upon), citing any statutory noncompliance and providing amendment recommendations.
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 associated training costs thereafter; (2) allowing individuals not meeting criteria in section 2(8)(A) to participate in similarly structured projects if funded by the employer or a non-federal organization for wages and training; (3) prohibiting the Secretary from pressuring or incentivizing an employer's choice of third-party training entity, which must be made solely by the employer; (4) authorizing the Secretary beginning five years after enactment to issue regulations specifying ratios of job openings to trainees by job category, considering objectives of reasonable trainee hiring opportunities and preserving employer hiring discretion (e.g., for difficult or dangerous positions); (5) permitting the Secretary to establish technical criteria and provide assistance for Act requirements; and (6) requiring issuance of mandated regulations within three months after enactment, unless 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 and (2) not later than 10 years after enactment—each comparing the program to federal programs such as the registered apprenticeship program (under the National Apprenticeship Act) and workforce investment activities (under the Workforce Innovation and Opportunity Act) based on metrics including participant completion rates, earnings, program growth relative to the labor force, employer engagement and satisfaction, and industry diversity; overall and project-specific completion and dropout rates; statistically significant surveys of trainees and employers; data on trainee uptake and recommendations to increase it; analysis of intermediary institutions, expanded eligibility for non-high school graduates, industry-recognized credentials, certain regulations, small business participation, high school student engagement, and program improvements; and recommendations for reauthorization. This section sunsets 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.