The Legal Column: Minority Set-Asides: Setting the Record Straight

Contractors who have worked on government jobs are probably familiar with “set-asides” for minority- and women-owned businesses. In an effort to encourage the entry of these apparently underrepresented groups into the construction industry, governments will often require that a certain percentage of public contract work be performed by companies controlled by minorities and women. The use of setasides is widespread; they have been adopted by the federal government, 36 states, and more than 190 local governments. In spite of a recent Supreme Court case successfully challenging a local set-aside ordinance, these incentive programs are here to stay. Fullilove The Supreme Court first ruled on the constitutionality of set-asides in 1980 in Fullilove v. Klutznick. In this case, the court upheld the Federal Public Works