The Minnesota Department of Human Rights (MDHR) recently made updates to several documents and definitions for Minnesota government contractors. This is the third article in a series focused on the compliance responsibilities of Minnesota contractors holding workforce certificates that the MDHR issued. The first part in the series covered the workforce certificate application, affirmative action program template, annual compliance report (ACR), ACR instructions, and nondiscrimination poster. Part two covers the Minnesota Equal Pay Certificate. In part three, we discuss workforce certificate audits. The Minnesota Department of Human Rights (MDHR) may request information from a workforce certificate holder to evaluate the contractor’s efforts to implement its compliance plan to maintain a workforce free from discrimination under the Minnesota Human Rights Act (MHRA). According to the MDHR, workforce certificate holders can expect to be audited at least once during each four-year certification period. These audits may involve on-site reviews.

Quick Hits

• The MDHR conducts audits (including on-site visits) of workforce certificate holders’ efforts to comply with the MHRA and contractors’ compliance plans.
• The MDHR is likely to conduct audits of workforce certificate holders at least once during each four-year certification period.

How Does the MDHR Analyze Workforce Certificate Compliance?

In determining a contractor’s workforce certificate compliance, the MDHR may analyze:

• the contractor’s compliance with Minnesota’s anti-discrimination laws, MN Rules 5000.3400 to 5000.3600;
• the contractor’s compliance with contractual equal opportunity terms;
• whether the contractor’s efforts to implement its compliance plan are sincere;
• whether the contractor promptly addresses identified deficiencies;
• whether the contractor submitted timely annual compliance reports (ACRs); and
• whether the contractor permitted the on-site compliance review and readily made records and documents available for review.

What Does a Workforce Certificate Audit Involve?

Minnesota contractors selected for audit will receive a letter from the MDHR requesting data and information to be submitted within thirty days of the audit letter date. Contractors may request additional time to respond by calling the MDHR. Although the MDHR is currently in the process of updating information on its website related to workforce certificate audits, it is reasonable to expect the MDHR to investigate adherence to the MHRA and the contractor’s compliance plan requirements, such as proof that:

• the contractor has conducted nondiscrimination training for all personnel involved in recruitment, screening, selection, promotion, and discipline;
• the contractor at least annually reviews its job descriptions to ensure their requirements do not screen out qualified individuals with disabilities, that requirements are job-related and consistent with business necessity and safe performance of the job, and changes to job descriptions are distributed to relevant employees, like recruiters and hiring managers;
• pre-employment inquiries and application forms satisfy state law requirements concerning not requiring criminal records or criminal history before the interview or conditional offer stage of the hiring process, unless permitted by state or federal law;
• pre-employment inquiries and application forms do not ask about past or current pay;
• the contractor is maintaining records to complete its ACR, including records concerning applicants, applicants tested, applicants interviewed, hires, promotions, demotions, transfers, employment terminations, and employees trained on MDHR compliance plan requirements;
• the contractor regularly distributes its EEO policy to employees and new hires during orientation;
• the contractor’s EEO policy and MDHR’s “Our Commitment to a Workplace Free From Discrimination” poster (2025 version) have been posted at all worksites covered by the compliance plan and workforce certificate;
• employee performance is evaluated in part for compliance with the contractor’s EEO policy and other anti-discrimination policies;
• information obtained in response to medical inquiries and exams is kept confidential;
• the contractor is maintaining all job postings and that the postings state that the contractor does not discriminate against applicants on the basis of their race, color, national origin, religion, creed, disability, age, sex, sexual orientation, gender identity, marital status, familial status, status with regard to public assistance, or membership or activity in a local human rights commission;
• all positions for which the contractor posts or advertises externally are listed with the State of Minnesota’s Workforce Centers, America’s Job Bank, or similar government agencies, and the contractor maintains documentation of contacts made and responses received, including requests to the Minnesota Department of Employment and Economic Development to refer qualified individuals with disabilities for employment consideration;
• the company is reaching out to community organizations and recruiting programs at schools and colleges focused on employment of women, people of color, and individuals with disabilities; and
• documentation of requests for accommodations for disabilities and religious observances and practices has been retained.

Conclusion

Minnesota contractors holding an active MDHR workforce certificate can expect to be audited at least once during their four-year certification period. The MDHR has broad discretion in conducting audits, which will focus on what contractors agreed to do in their workforce certification applications and compliance plans. Failure to provide requested materials or allow access to records in an audit may result in suspension or revocation of a contractor’s workforce certificate and possibly termination of a contractor’s state agency contracts.