Minnesota Changes: 2025 Guide to Workforce Certificates & Annual Compliance Reports

By Sally Makreff

BLOG OVERVIEW:
The Minnesota Department of Human Rights has updated its requirements for state contractors looking to obtain a State of Minnesota Workforce Certificate, as well as requirements for the Annual Compliance Report. These changes include updates to required reports, additional narrative requirements, and new data to be used for availability analyses.

In spring of 2025, the Minnesota Department of Human Rights (MDHR) released a number of updated compliance documents and forms that are required of Minnesota contractors in order to obtain and maintain a State of Minnesota Workforce Certificate. The Workforce Certificate is required for contractors who meet the compliance thresholds of having a Minnesota contract valued over $100,000 and having at least 40 full-time employees either in Minnesota or in the state of their primary place of business.

While the foundational pieces of the requirements such as the need for a Compliance Plan (formerly called an “Affirmative Action Plan”) every four years and the need for an annual compliance report have not been altered, substantial changes have been made to the documents, forms, and language.

Updated Workforce Certificate Application Form, Compliance Plan Template, and Workforce and Utilization Analysis Form

Every four years, contractors are required to submit an Application Form, a Compliance Plan, and a Workforce Utilization Analysis form in order to obtain a Workforce Certificate. Numerous changes have been made to these items, which are detailed below.

Workforce Certificate Application Form

Changes to the Workforce Certificate application form include the removal of all references to and uses of “Affirmative Action” and “AAP”. In addition, the form removed the “Company Agreement” section that had required a signature from the contractor’s CEO/President or Board Chairperson. While no signature is required, it is important to note that contractors are still required to identify the CEO/President or Board Chairperson in the application form and show that person in the Compliance Plan EEO policy statement and in the Workforce Analysis.

Compliance Plan Template

The most significant change is the removal of any reference to “affirmative action” and “goal setting” as well as definitions of terms used in the plan. In addition, other sections removed include those regarding dissemination of affirmative action policies and plans, workforce analysis, goals and timetables, and action-oriented programs. While those sections were removed, MDHR added a new section called “Anti-Discrimination Policy“ and revised another section called “Equal Employment Opportunity Official and Role”, which was formally titled “Assignment of Responsibility for Affirmative Action Program”. This section specifically removes the requirements to “coordinate the recruitment and employment of women, people of color, and individuals with disabilities, and coordinate the recruitment and utilization of businesses owned by women, people of color, and individuals with disabilities.”

Workforce and Utilization Analysis Form

The name of this form was changed from “Workforce and Utilization Analysis” (WUA) to “Workforce and Utilization Analysis & Availability and Underutilization Analysis”. While the required elements of this report haven’t changed, the names of the spreadsheets have changed to better align with the new title of the report (i.e., the Analysis worksheet is now the “WUA” worksheet and the “AUUA” worksheet is now the “AUA” worksheet. It is important to note that Minnesota now requires the use of 2018 census data. There is a link to this data directly from the AUA worksheet.

Updated Annual Compliance Report

To maintain the Workforce Certificate, contractors are required to provide data to MDHR on an annual basis in a report called the “Annual Compliance Report” (ACR). This report had previously been one Excel workbook with multiple worksheets in which organizations would enter their personnel activity data, availability and underutilization analysis (AUUA), as well as provide a narrative describing the efforts that would be undertaken during the current year to meet the goals established in the AUUA. The ACR has undergone a major revision this year and is now split into Part 1 and Part 2.

Annual Compliance Report Part 1: Year in Review Narrative

This new document requires contractors to provide examples of initiatives or actions that they have taken during the year to show they are meeting the obligations outlined in both the compliance plan and in the EEO policy. Items to cover may include the following:

• Reviewing policies such as equal opportunity and harassment as well as the training given to employees that is connected to these policies
• Updating job descriptions to ensure accuracy, specifically physical and mental qualifications
• Reviewing policies and procedures pertaining to recruitment, screening, selection, promotion, disciplinary, and other employment related processes to ensure they are free from discrimination
• Reviewing company-sponsored programs and activities to ensure they are inclusive and open to everyone in the organization

Lastly, there is a section that requires information on any corrective actions that were undertaken in the prior year to bring the organization into compliance with the Minnesota Human Rights Act. These actions may include review and adjustments of policies, procedures, job descriptions, and trainings, as well as ensuring required posters are displayed.

Annual Compliance Report Part 2: Data Analysis

This report essentially requires the same data as the previous ACR. There is one worksheet where contractors can enter the personnel activity information. Clarification on the information needed in this section includes:

• Employees Transferred Out and In sections include employees that transferred in and out of the company’s facility
• Employees-Trained section applies to company-sponsored equal employment opportunity (EEO) training
• Employees Terminated section includes both voluntary, involuntary, and layoffs

The other worksheet connected to this report is the Availability & Underutilization report where contractors can add the results of the availability/underutilization analysis. MDHR provides the formulas for calculating underutilization which cannot be altered. MDHR is still using the any difference/whole person rule to determine underutilization.

Additional Items

Reporting Period

Currently, MDHR allows contractors to use a reporting period that is two months prior to the certificate approval date so that there is enough time to gather the required data and prepare the reports. For workforce certificates approved after July 1, 2025, the reporting period will increase to 3 months prior to the workforce certificate date and contractors will no longer be required to use a date that matches the certificate approval date for the reporting period as they have previously.

Composite Availability Calculator

This form was updated in March 2025. While the format is the same as the previous version, it clearly states that contractors are required to use the 2018 census information for the availability/underutilization analysis portion of the ACR.

Posters

Once MDHR issues a Workforce Certificate, they provide contractors with the “Our Commitment to a Workplace Free from Discrimination” poster both in English and Spanish. The poster is required to be displayed at each location in Minnesota, including construction sites.

Takeaways for Minnesota Contractors

The changes to MDHR’s forms bring the requirements a bit closer in alignment with the Trump Administration’s Executive Order 14173, which eliminated affirmative action requirements for minorities and females. With these new changes, here are a few tips for a successful submission:

1. Ensure your organization is using the most recent MDHR forms by downloading the latest versions from their website as you start preparing your submission. The State of Minnesota tends to update forms and instructions often and they historically do not publicly announce the changes. DCI will continue to alert employers through our blog.
2. Ensure you have the Our Commitment to a Workplace Free from Discrimination poster displayed where both applicants and employees can see it.
3. When preparing the Availability and Underutilization Analysis for both the 4-year Workforce Certificate submission and as part of the ACR, ensure you are using the 2018 census information that Minnesota provides.
4. While this hasn’t changed, it is important to note that MDHR is still reviewing the data in the ACR for accuracy. The employee counts at the start of the reporting period must match the employee counts at the end of the reporting period when factoring in personnel activity. Ensure no records are missing and that both Minnesota employees and employees from the corporate headquarters are included in the reports.
5. Prior to the due date of the ACR, reflect on how to respond to the Part 1 narrative of the ACR. Make a list of the items such as the ones previously mentioned in this blog that were done during the last reporting period to comply with the compliance plan and the EEO statement. In addition, make a list of any corrective actions taken during the year to bring the organization into compliance with the Minnesota Human Rights Act.

DCI will continue to monitor any developments as they occur.