CONTRACT COMPLIANCE: SHIFTING THE PARADIGM FROM QUANTITATIVE TO QUALITATIVE ANALYSIS Assistant Commissioner Tim Flynn Minnesota Department of Human Rights

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 Minnesota Department of Human Rights 2 December 5, 2013

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. Minnesota Department of Human Rights 3 December 5, 2013

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. Minnesota Department of Human Rights 4 December 5, 2013

Changing the Paradigm MDHR can change the paradigm by simply enforcing current statues and communicating its intention to do so. Minnesota Department of Human Rights 5 December 5, 2013

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 ) Minnesota Department of Human Rights 6 December 5, 2013

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. Minnesota Department of Human Rights 7 December 5, 2013

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 Minnesota Department of Human Rights 8 December 5, 2013

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 Minnesota Department of Human Rights 9 December 5, 2013

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 Minnesota Department of Human Rights 10 December 5, 2013

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. Minnesota Department of Human Rights 11 December 5, 2013