HR4050119th CongressWALLET

Advancing Skills-Based Hiring Act of 2025

Sponsored By: Representative Rep. Stefanik, Elise M. [R-NY-21]

Introduced

Summary

Encourages skills-based hiring by letting employers voluntarily submit validation evidence for employment tests to the Equal Employment Opportunity Commission for review.

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  • Employers could send validation studies such as criterion-related, content, construct, or transportability studies to the EEOC for review. A fee would apply for employers with more than 100 employees.
  • Job seekers may benefit as employers get confirmation that competency-based assessments are job-related, which could support hiring based on skills rather than credentials.
  • The EEOC would issue either a determination that a test is job-related and consistent with business necessity or provide technical assistance explaining what is missing. A favorable EEOC determination would satisfy the employer's burden of proof under the Civil Rights Act, and submissions and technical assistance would be protected from use in enforcement or court without employer consent.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

Employers can seek EEOC hiring-test review

Employers could ask the EEOC to review their hiring tests. They would submit studies showing the test is tied to the job. Any available data on adverse impact would need to be included. The EEOC would decide if the test is job-related and needed for business, or give steps to fix issues. Information shared, and the EEOC’s advice, would not be used against the employer later without consent. An EEOC finding could help the employer meet its burden in discrimination cases. This would start 90 days after enactment.

Definition of tests and start date

This bill would define a competency-based assessment as a test that measures skills or traits that predict job success. The Act, including this definition, would take effect 90 days after enactment.

EEOC review fee for large employers

Employers with more than 100 employees would pay a reasonable fee to get an EEOC review. The EEOC would set the fee to cover its costs. The fee would apply only if the employer asks for a review. This would start 90 days after enactment.

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Sponsors & CoSponsors

Sponsor

Rep. Stefanik, Elise M. [R-NY-21]

NY • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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