CONTRACT COMPLIANCE: SHIFTING THE PARADIGM FROM QUANTITATIVE TO QUALITATIVE ANALYSIS

Assistant Commissioner Tim FlynnMinnesota Department of Human Rights

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Old Paradigm

Historically, the Minnesota Department of Human Rights (MDHR) has taken only a quantitative approach in determining compliance.

• MDHR reviewed construction reports and reported minority and female labor hours versus total labor hours

• MDHR reviewed Affirmative Action Plans for inclusion rates in various fields versus the latest census demographic information

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Old Paradigm

• MDHR focused little time in analyzing how much time contractors were spending working with youth, schools, post-secondary schools, and training programs to create a pipeline of new employees.

• MDHR spent little time analyzing the efforts of contractors to retain and promote diverse employees.

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Changing the Paradigm

If MDHR took a more qualitative approach to its compliance efforts, it would routinely gather rich data that could be analyzed by stakeholders to improve:

• employment opportunities,

• education planning, and

• workforce training planning.

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Changing the Paradigm

MDHR can change the paradigm by simply enforcing current statues and communicating its intention to do so.

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Minnesota Law & Good Faith Efforts

Minnesota law allows MDHR to consider Contractors’:

• Efforts in after-school programs, work-study jobs, summer jobs and summer work study programs.

• Efforts to work with community agencies, community leaders, secondary schools, technical colleges, junior colleges and colleges.

• Active participation in community events such as “job fairs” especially when they empower their representatives with the authority to make on-the-spot commitments.

(Minn. Admin. Rule 5000.3440-3480)

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New Paradigm

MDHR has begun to change its focus concerning good faith efforts and focus more toward a qualitative analysis that evaluates the actions of the contractor in working with schools, training programs and community groups to create a more viable pipeline of employees.

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New Paradigm: Certificate of Compliance

2013 statute change makes Certificates of Compliance good for 4 years instead of 2 years. With this change, MDHR is:

• Streamlining its review of initial Affirmative Action Plan reviews

• Initiating an in-depth review of Annual Reports:• Over time, are contractor’s effectively implementing

their plans when they hire, promote and/or terminate employees

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New Paradigm: Construction Reports

Pre-Construction Good Faith Efforts Work Plan:

• Due with Pre-Construction Packet when contractor receives notice award

• Due prior to the beginning of construction work

• Detailed plan for the prime contractor and each subcontractor

• Detailed estimate of minority & female labor hours for prime contractor and each subcontractor

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New Paradigm: Construction Reports

• Details the contractor’s efforts to work with:• Business & Construction Trade Councils and

Construction Trade Unions

• Community Construction Job Training Organizations

• Educational Institutions

• Philanthropic community

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The Goal

• Help to create jobs and reduce unemployment through efforts that specifically target people of color and women.

• Help ensure that the construction industry is able to find sufficiently trained workers within the Minnesota labor force.

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