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Mary M. Krakow

Mary M. Krakow Employment & Labor

mkrakow@fredlaw.com
612.492.7164
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Banks and Minnesota Medical Clinics Are Often Subject to Affirmative Action Requirements

By: MARY M. KRAKOW

March 2008

Employers covered by federal, state, county, or city affirmative action requirements must prepare a written affirmative action program (AAP) and fulfill other applicable requirements. Details regarding these requirements were included in the article “Are You Covered by Affirmative Action Requirements?” in our January 2008 FredNEWS edition.

Although federal, state, county, or city affirmative action requirements apply across industries to all employers of sufficient size, two particular industries—banks and Minnesota medical clinics—often trigger affirmative action requirements.

Banks’ Affirmative Action Requirements


Banks with 50 or more employees (counting full-time, part-time, and temporary employees at all branches and drive-ups) must prepare and maintain a federal written affirmative action program (AAP) for each of their establishments if they:

  • Issue and redeem U.S. Savings Bonds or Notes in any amount,
  • Serve as a depository of federal government funds in any amount, or 
  • Otherwise have a federal contract or subcontract that pays the bank $50,000 or more annually.

Most banks issue and redeem U.S. Savings Bonds, and many banks serve as a depository of federal government funds for one or more entity customers. Any bank with 50 or more total employees that provides one or both of these services to its customers must prepare and implement an AAP that meets all of the federal requirements and update it annually.

The AAP must cover women, minorities, qualified individuals with disabilities, and covered veterans. The AAP is not sent to any federal office. Instead, it must be available for two years  in case the Office of Federal Contract Compliance Programs (OFCCP) were to conduct a compliance review of the bank. The bank must also:

  • Maintain personnel and employment records generally for not less than two years from the date the record is made or the personnel action taken, whichever is longer,
  • Track applicants, hires, promotions, and terminations by gender, race and ethnicity, making the records available to the OFCCP upon request, and
  • Fulfill additional record-retention requirements if the bank solicits or accepts job applications or résumés from job candidates via the Internet or other electronic methods.

Minnesota Medical Clinics’ Affirmative Action Requirements


Minnesota employers with 41 or more full-time employees that enter into a contract for more than $100,000 annually with any state agency must prepare a Minnesota written AAP and must submit the AAP to the Minnesota Department of Human Rights (MDHR) for approval and certification.

Most Minnesota medical clinics receive Medical Assistance reimbursement from the Minnesota Department of Health and Human Services. This requires that the medical clinic comply with the Minnesota affirmative action requirements if the clinic:

  • Has 41 or more full-time employees,
  • Contracts directly with Health and Human Services for Medical Assistance reimbursement, and
  • Receives more than $100,000 in Medical Assistance reimbursement annually.

Complying with the requirements involves preparing a written AAP covering women, minorities, and qualified individuals with disabilities and submitting the plan to the MDHR for approval every two years. It also means tracking applicants, hires, promotions, transfers, and terminations by gender, race and ethnicity and providing that tracking data to the MDHR annually.

Although receipt of Medical Assistance reimbursement triggers Minnesota’s affirmative action requirements, receipt of Medicare reimbursement, no matter the amount, does not trigger Minnesota or federal affirmative action requirements.

If you have questions or would like assistance preparing a Minnesota or federal affirmative action plan, please contact an attorney in Fredrikson & Byron’s Employment & Labor Law Group.

Takeaway


Although affirmative action requirements apply across industries to all employers of sufficient size, banks and medical clinics often trigger affirmative action requirements due to the services they provide, and should review whether they are required to fulfill several requirements.