Former Knutson employee says company pressured employees to lie about their race on forms

A former Knutson Construction concrete worker has filed a discrimination lawsuit against the Minneapolis-based company, alleging, among other things, that she was abruptly fired for refusing to lie about her race on an equal employment opportunity form.

Laura Larson, who is white and non-disabled, alleges in her Aug. 19 filing with the Minnesota Department of Human Rights that a Knutson human resources manager pressured her to indicate on an EEO form that she was of Asian descent and disabled. The forms contain information about an employee's race, gender and disability status and are used for government record-keeping and reporting requirements.

In the motion, Larson said she had previously worked for Knutson and applied for “reemployment” on May 6. Larson told the manager on June 24 that she did not agree with the “misrepresentation” of her race. Three days later, Larson said in the motion, the company fired her “with the false claim that I had performance issues.”

A Knutson official told Finance & Commerce that the company is investigating Larson's allegations and is committed to diversity, equity and inclusion.

But Larson has a different perspective, and she is not alone.

In an interview, Larson claimed that at least five workers had been “misclassified as minorities” over the past eight months and that another senior executive was fired about three weeks after advocating for Larson and raising her concerns with other company executives.

The Minnesota Department of Human Rights said it could not comment on the case.

“State law generally does not allow the Minnesota Department of Human Rights to confirm or deny the existence of an open case or to release information about a case until it is closed,” a department spokesperson said in an email to Finance & Commerce.

Casey Sarver, Knutson's vice president of human resources, said in an interview that Knutson is investigating Larson's allegations. Sarver said the company could not provide details of the investigation or comment on the reasons for Larson's firing.

“We are aware of some concerns that Laura raised even after her employment with Knutson ended,” Sarver said. “She raised those concerns directly with me and another member of the HR team. We have a process in place to investigate concerns. We are committed to doing that.”

Sarver said he did not see Larson's complaint with the Department of Human Rights until last week, when Finance & Commerce emailed the company a copy of the filing.

“Some of the content is inconsistent and does not match what Laura told our HR team in our conversation,” Sarver said. “That is the current state of affairs.”

When asked if the company had taken disciplinary action or fired anyone in connection with the allegations, Sarver said, “My approach is that you look at a reported issue. If you see early signs that something might be going on, you contain it and then figure out, 'Where do the facts take you?'”

“We are still following the facts. We are still working on our process.”

Other former or current Knutson employees with similar concerns also spoke to Finance & Commerce but asked to remain anonymous for fear of reprisal. Finance & Commerce reviewed screenshots of text conversations, copies of EEO forms and other documents that appear to support the allegations.

For example, Larson is described as an Asian woman with a disability on an “EEO-1 Data Sheet” for new hires dated May 6, 2024. In September 2020, when Larson was originally hired by Knutson, a similar form classified her as a white woman without a disability.

Larson said she was hired as a concrete worker in September 2020 and will need to be “rehired” after her maternity leave in 2023.

From a business perspective, it pays to have a diverse workforce.

The Minnesota Department of Human Rights sets staffing goals for “people of color and indigenous people and/or women on federal construction projects,” its website says. Staffing goals apply to contracts with the state, large municipal agencies, the University of Minnesota, cities, counties and other entities.

Knutson's portfolio includes major projects for public and private sector clients, including the University of Minnesota, Xcel Energy, Olmsted County, the City of Mankato, the Rosemount School District, the Mayo Clinic, the City of Rochester and others, the company's website states.

Finance & Commerce has reached out to representatives of the Minnesota construction industry for comment on the allegations.

Barb Lau, executive director of the St. Paul-based Association of Women Contractors, said if the “allegations are true, and I don't know if they are, it would be a stain on the work being done to promote equality in the industry. Not only would it damage a reputable contractor's reputation in the marketplace, but it could increase distrust in the contractor community, which I think is truly committed to inclusion.”

In general, Adam Hanson of the Associated Builders and Contractors of Minnesota and North Dakota said the construction industry in Minnesota is “subject to numerous laws, building codes, safety regulations and industry standards.”

“All of these rules must be strictly enforced to make life better for the workers who build our state, the companies that do business here and the communities they serve,” said Hanson, the association's chairman. “Construction projects funded by taxpayers and the awarding of those contracts must be fair and open, and all contractors must follow the same rules.”

Knutson's website states that the company is “deeply committed to promoting and sustaining diversity in our workforce, our relationships and our communities. … We remain committed to our pursuit of a workforce that authentically represents the diverse communities we serve.”

Sarver said the company has worked hard to create a diverse workplace.

“We have individuals leading this effort to try to reach out to the construction industry to bring people from all backgrounds into the field. We want to invite people and create pathways for them to join our organization and have a successful career in construction. That's a commitment we've had and continue to have,” he said.

But Larson, who now works for another company, says people are afraid to speak out for fear of being reprimanded or fired.

“Several people in the company are basically keeping quiet and trying to stay out of trouble,” she said. “Anyone who has brought up the issue has been fired. I'm not the only one.”