The State of Minnesota Department of Human Rights (MDHR) has updated their process for state contractors needing to obtain and maintain a Workforce Certificate. A Workforce Certificate is required for businesses with at least 40 full-time employees that hold contracts with the state and state agencies valued at $100,000 or more.
In the past few weeks, the application, plan template, workforce analysis, and the annual compliance report process have all been updated. It is important that holders of active Workforce Certificates are aware of these changes and are prepared to accurately file the annual compliance report with the state this year. If you are applying for a new Certificate, understanding the requirements will help make the process go more smoothly.
There are still three parts to the process (in addition to payment), but each of the forms and templates for these steps have changed.
The application has been updated to include a checklist of all the items in the Good Faith Efforts Agreement. All items must be checked for the application to be accepted, so make sure that you have reviewed and agreed to all of them.
The plan template has been renamed from an “Affirmative Action Plan” to a “Compliance Plan.” While state contractors applying for a Workforce Certificate are not required to use the Compliance Plan template provided by the state, it is recommended that you do so – with appropriate customizations - to make sure that all required elements are included. The Compliance Plan template has also removed any reference to goals and goal setting, as that is no longer required by certificate holders.
The data analysis form includes the Workforce and Utilization Analysis (WUA) and the Availability and Underutilization Analysis (AUA). The WUA has not changed recently, but the AUA has been updated to remove the calculation for goals.
Note: Current workforce certificate holders do not need to make any updates now but will use the updated versions upon re-application.
Active certificate holders must complete an Annual Compliance Report (ACR) every year and there have been significant changes to this process. Previously, there was a single Excel file to complete that included the annual transaction numbers, AUA with updated goal –setting, and a read out on Good Faith Efforts from the prior year.
The new process is completed in two parts:
Part 1 is a “Year in Review,” which is a narrative on the Good Faith Efforts undertaken in the previous year. There are two questions to answer regarding how the Compliance Plan was implemented in the previous year and how the EO Statement was implemented in the previous year. Additionally, the contractor is to indicate specifically if there were areas of “non-compliance" found in the past year and, if so, what corrective action was taken as a result. This is a departure from the previous read out on good faith efforts. Construction contractors have additional reporting requirements for the narrative.
Part 2 is Data Analysis. This is an Excel file with two tabs. The first tab is the Annual Compliance Report that is the same as in previous data collection. The second tab is the Availability and Underutilization Analysis. In this section, contractors determine their underutilization of Women and People of Color & Indigenous People using availability and the whole person rule to determine underutilization. What has been removed from this section is goal-setting where underutilization is found. Contractors still need to show how availability was calculated, and must use the 2018 Census (American Community Survey) data for these calculations.
Given the current political climate, contractors may want to consider either submitting additional data regarding men and Whites, and/or a notice that the organization’s efforts are not limited to particular groups, even though neither is required. We recommend that you confer with legal counsel if you are unsure.
Additionally, there is updated guidance on the dates to be used for the ACR for any certificate that is approved (not submitted) after July 1, 2025. This will apply to the first ACR created, which would be July 1, 2026 or later. Any active certificate that was in place before July 1, 2025 will continue to use the current methods for the duration of their certificate.
These updates and changes are of significant importance for contractors looking to obtain and maintain a Workforce Certificate with the State of Minnesota. Berkshire has been helping clients navigate the process with the state for many years, and our consultants are well versed in the steps needed to complete the process. Please reach out to your consultant or contact Berkshire for assistance obtaining or maintaining your State of Minnesota Workforce Certificate.