West Virginia House Passes Workforce Upskilling Incentive Bill

The West Virginia House of Delegates has approved House Bill 4004, part of the Republican-led “Jobs First – Opportunity Everywhere” economic development initiative, aimed at encouraging employers to enhance the skills of current workers. The legislation, which passed with an 86-7 vote, establishes the Recharge West Virginia Program, a competitive reimbursement initiative to support technical training that leads to higher wages and industry-recognized credentials.

Under the program, administered by the Division of Economic Development, private companies can receive reimbursements for employee training that results in a minimum 25% wage increase and leads to an upskilling credential. The state will cover up to $10,000 per employee, with a maximum of $50,000 annually per employer. Eligible training includes cross-training, reskilling, leadership development, and registered apprenticeships in technical fields.

To qualify, employers must be registered with the Secretary of State’s Office, maintain good standing with WorkForce West Virginia on unemployment matters, and operate physically within the state. Employees must have been full-time residents and workers for at least six months prior to participation.

The bill includes accountability measures: employers must report any wage reductions for participating employees within two years of receiving funds, and unjustified cuts could lead to disqualification from future grants. Businesses are also required to keep records such as training curricula, payroll data, and proof of eligibility for five years.

Supporters argue the program addresses a critical shortage of skilled labor in industries like manufacturing, welding, and fabrication. Delegate Evan Worrell, R-Cabell and primary sponsor, emphasized its potential to help small businesses train trusted workers and fill entry-level roles with more qualified personnel. He cited West Virginia’s labor force participation rate of 54.6% in December—among the lowest in the nation—as a key motivation.

House Finance Committee Vice Chairman Clay Riley, R-Harrison, described the initiative as a strategic investment, evaluating applications based on wage growth, regional economic distress, employer contributions, and past program engagement. He likened the effort to hitting “singles, doubles, and triples” in building a stronger, more competitive economy.

While the bill received bipartisan backing—including support from all nine House Democrats—Minority Leader Pro Tempore Kayla Young, D-Kanawha, expressed concern over the absence of a fiscal note detailing taxpayer costs. Despite this, she endorsed the goal of workforce development.

Seven Republican delegates opposed the measure, citing concerns about potential use of public funds to subsidize private enterprises and lack of restrictions on noncitizen participation.

HB 4004 is one of 11 bills in the Jobs First agenda. Five have already advanced to the state Senate, including legislation to establish a research hub at Marshall University, expand youth apprenticeships, increase funding for industrial road access, and create grant programs for preparing industrial land.
— news from weirtondailytimes.com

— News Original —
House of Delegates passes another bill in Jobs First economic development platform
CHARLESTON — Another bill in the House of Delegates Republican caucus’ “Jobs First – Opportunity Everywhere” economic development agenda – a bill to incentivize West Virginia employers to upskill existing employees – passed the House. n nHouse Bill 4004, creating the Recharge West Virginia Program, passed the House Wednesday in an 86-7 vote with six absent or not voting. The bill now heads to the state Senate. n nHB 4004 would establish a competitive reimbursement program designed to upskill the state’s existing workforce. The Recharge West Virginia Act would incentivize private employers to invest in specialized technical training for their employees. To qualify for reimbursement, the training must result in an industry-recognized “upskill credential” and a minimum 25 percent wage increase for the participating employee. n nThe program, which would be administered by the Division of Economic Development, includes a reimbursement cap of $10,000 per individual employee and a total annual cap of $50,000 per qualifying employer. The goal of Recharge West Virginia is to bridge skill gaps, increase workforce participation and support talent retention within the state. n n“An eligible employee is someone who is currently employed by the qualifying employer, who has resided and has been employed full-time for the previous six months, has a qualifying wage that as a new wage is paid will increase at least 25 percent greater than the employee’s current average wage,” explained House Finance Committee Vice Chairman Clay Riley, R-Harrison. n n“It’s a competitive program which will be evaluated based upon the wage increase of the employee, the level of economic distress in the region, the amount of the employer-paid contribution, the employer’s history with the work program,” he continued. “This will be a reimbursement program of which the employer must enter into a grant agreement with the division.” n nQualifying employers must be registered with the Secretary of State’s Office, in good standing with WorkForce West Virginia regarding unemployment compensation, and must be physically located in West Virginia. n nThe training must be “upskilling training,” defined as specialized technical training such as cross-training, reskilling, leadership development or registered apprenticeships. This training must lead to an upskill credential, which is an industry-recognized certification verifying the individual’s competence. n nThe bill requires employers to notify the division if they reduce the wages of an employee who received a qualifying wage increase up to two years following the grant award. Unjustified reductions may disqualify employers from future awards. Employers are required to maintain records – including training curricula, payroll data and employee eligibility proof – for at least five years. n n“This is not just for employees and employers. It’s also for the small businesses,” said Del. Evan Worrell, R-Cabell, the lead sponsor of the bill. “I have a lot of machine shops, welding companies, fabrication companies in my district, and I’ve spoken to a lot of them already, and they’re thrilled about this program.” n nAccording to the latest figures for the St. Louis Federal Reserve, West Virginia’s seasonally adjusted labor force participation rate was 54.6 percent as of December, remaining one of the worst rates in the nation. Worrell said the Recharge West Virginia Program would allow employers to award their most reliable employees and also create more job opportunities for entry-level workers. n n“It’s a very big problem in our state to find skilled, drug-free tradespeople,” said Worrell, who also chairs the House Health and Human Resources Committee. “This bill helps that because they have the employees they trust … Now they can apply for this program to upskill their training, have that skilled, drug-free workforce, and then once again backfill those positions with general labor.” n nThe bill had bipartisan support from the nine-member House Democratic caucus. But House Minority Leader Pro Tempore Kayla Young, D-Kanawha, said she was disappointed there was no fiscal note provided to show how much the program could cost taxpayers. n n“I think this is a great idea,” Young said. “I think anything we can do to help with upskilling our employees is fantastic … I would just think with something that is a landmark piece of legislation, as I’ve seen it and others describe, that we would put a little more thought into it and have a little bit more of these questions answered. I wish we had a fiscal note. I wish we knew how much this was going to cost. But I’m happy to support it because I want to be upskilling our workers.” n nSeven members of the House Republican supermajority voted against the bill, raising concerns that it includes no prohibitions against noncitizens from participating and the use of taxpayer dollars to subsidize private businesses. n n“I understand the stated intent of this piece of legislation, but I think … it’s more the exception than the rule that when government creates a new program, it’s the exception that we don’t just continually fund it and increase that funding year over year,” said Del. Henry Dillon, R-Wayne. “That’s the rule. That’s how government generally tends to go.” n nBut Riley, one of the architects of the House GOP’s Jobs First agenda, said HB 4004 would create smart incentives for companies to grow in West Virginia, create new opportunities for workers in the state to earn industry-recognized credentials and close the skills gap, and help keep talented West Virginia workers in the state. n n“We’re hitting a lot of singles. I think this is a double, maybe a triple,” Riley said. “I think this is a win, win, win. I think workers gain skills and better pay, businesses gain a stronger workforce, and our state gains a stronger, stronger and more competitive economy. So, let’s recharge West Virginia, and let’s make opportunity a reality.” n nHB 4004 is one of about 11 bills in the “Jobs First — Opportunity Everywhere” economic development agenda first announced by House Speaker Roger Hanshaw, R-Clay, and the House Republican caucus last December. The House has already passed five Jobs First bills to the state Senate, including: n n• HB 4002, establishing the West Virginia Collaboratory, a research hub based at Marshall University designed to connect academic expertise with state policy needs. n n• HB 4005, allowing individuals age 16 and older to earn educational credits through a combination of classroom instruction and supervised on-the-job training. The bill revises existing child labor laws to clarify which occupations are prohibited or permitted for minors, aligns state law with federal law and grants limited exceptions for students to perform certain hazardous tasks under strict supervision. n n• HB 4007, increasing the annual funding cap for the Industrial Access Road Fund. n n• HB 4008, creating a framework for the Department of Economic Development to evaluate, certify and fund the preparation of industrial land through matching grants and micro-grants.

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