HomeMy WebLinkAbout[9b] Pay Equity Report
CITY OF liT. JOSt:PH
Council Agenda Item ~
MEETING DATE:
January 17, 2007
AGENDA ITEM:
Pay Equity Compliance
SUBMITTED BY:
Ad ministration/Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: Pay Equity is a method of eliminating discrimination against women who are
paid less than men for jobs requiring comparable levels of expertise. This goes beyond the familiar idea of "equal
pay for equal work" where men and women with the same jobs must be paid equally. A policy to establish pay
equity usually means: 1) that all jobs will be evaluated and given points according to the level of knowledge and
responsibility required to do the job; and 2) that salary adjustments will be made if it is discovered that women are
consistently paid less then men for jobs with similar points. The following example from a 1982 evaluation of state
government jobs shows a typical sex-based wage disparity.
It is important to remember that pay equity laws in Minnesota address only sex-based wage disparities and not all
types of wage disparities. Pay equity does not replace collective bargaining and does not address all compensation
issues.
The above two paragraphs are an extract from the pay equity law. The Finance Director has placed the City wage
information into the software provided by the Department of Employee Relations. Once the Council authorizes
execution of the certificate, the information will be posted and forwarded to the unions as required by law.
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
Pay Equity Reports
Guide to Understanding Pay Equity
REQUESTED COUNCIL ACTION: Accept the report as presented, authorizing the Mayor to execute the Pay Equity
Certificate.
~ Department
(j Q/"Employee
Q Relations ~
200 Centennial Office Building
658 Cedar Street
St. P~ul, MN 55155
651.259.3637
TTY 651.282.2699
www.doer.state.mn.us
DATE:
November.15,2007
Ja~L-(
~r (j)
fl,.:- S-r ~ j Cl{..;
Lacal Government Officials
City Clerk, Administrator ar Manager
Superintendent of Schools
County Personnel Directar or Auditor
FROM: Faith Zwemke ~~'h
Pay Equity Coardinator
TO:
PHONE: (651) 259-3761
RE: PAY EQUITY REPORT FORMS
Thank yau for yaur previous caaperatian in meeting requirements to. comply with the 1984 Local
Government Pay Equity Act. As you know, yaur jurisdictian was faund to be in compliance
based an yaur previaus report, and naw yaur next repart is due January 31,2008. This repart
must shaw data in place as of December 31, 2007.
This e-mail cantains the material yau will need to. file your 2008 Pay Equity Implementation
Report. (Only one~third of all jurisdictions are reporting in 2008, so your neighboring
jurisdictions may have other reporting dates.) This report is required by the Local Government
Pay Equity Act, M.S. 471.991-471.999 and Minnesata Rules, Chapter 3920. The material
enclosed is:
· Natice - 2008 Pay Equity Repart
· Checklist to. Avoid Comman Reparting Errars
The "Guide to Understanding Pay Equity Campliance & Camputer Reports" and the
"Instructions for Campleting Pay Equity Implementatian Repart" can be found an DOER's
webpage at www.daer.state.mn.us/Lr-peqty/Resaurce.htm. Ifyau are unable to. download either
the Guide ar the Instructians, please cantact Ann Maile at (651) 259-3750 sa materials can be
sent to. yau:
Equal Employment Opportunity
Minnesota Department of Employee Relations
Pay Equity Implementation Report
Send completed report to:
Pay Equity Coordinator
Department of Employee Relations
200 Centennial Building
658 Cedar Street
Sf. Paul, MN 55155-1603
For Department Use Only
Postmark Date of Report
- _____ ..u __",
I
r
I
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- u__ -_____ _____ ____ _. __ . _u__.J
(651) 259-3761 (Voice)
(651) 282-2699 (TOO)
1284
Jurisdiction 10 Number
Part A: Jurisdiction Identification
Jurisdiction: City of St. Joseph P.O. Box 668
25 College Ave N
St. Joseph, MN 56374-0668
Jurisdiction Type: CITY
Contact: Finance Director Lori Bartlett
Fax: 3203630432
Email: Ibartlett@cityofstjoseph.com .
Phone: (320) 363-7201
Part B: Official Verification
. The job evaluation system used measured skill, effort
responsibility and working conditions and the same
system was used for all classes of employees.
The system used was: ~~a~~_I()~_.~~tch~_~ ",..
o No salary ranges/performance differences.
[1 'Leave blank unless BOTH of the following apply:
a. Jurisdiction does not have a salary range for any job
class.
o Health Insurance benefits for male and female
classes of comparable value have been evaluated and:
rrhere isno difference _~~'';] and
female'classes.are not at a disadvantage.
b. Upon request, jurisdiction will supply documentation
showing that inequities between male and female
classes are due to performance differences.
Note: Do not include any documentation regarding
performance with this form.
o [?T Information in this report is complete and accurate.
o An official notice has been posted at;
~5_~'?lIege ~~~~:J~s.~ph~ ~N
(prominent location)
informing employees that the Pay Equity Implementation
Report has been filed and is available to employees upon
request. A copy of the notice has been sent to each exclusive
representative, if any, and also to the public library.
o 0 The report includes all classes of employees over
which the jurisdiction has final budgetary approval
authority.
The report was approved by:
City of St. Joseph
(governing body)
AI Rassier
'art C: Total Payroll
(chief elected official)
[~,056, 156.OOl
is the annual payroll for the calendar year just ended December 31.
Mayor
- . - (title)
L_ J Checking this box indicates legal signature by above official.
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Predicted Pay Report for City of St. Joseph 01/11/2008
P.O. Box 668
Case: 2008 Data
Job Male Female Total Work Max Mo. Predicted Pay
Nbr Jobs Title Empl Empl Empl Sex Points Salary Pay Difference
--.--.--- - -.-. ---.
Administrator 0 F 480 $7,913.00 $9,000.16 $-1,087.16
2 Police Chief 0 M 395 $6,784.00 $6,533.00 $251.00
3 Public Workers Superintendent 0 M 395 $6,282.00 $6,533.00 $-251.00
4 Finance Director 0 F 342 $5,817.00 $5,446.18 $370.82
5 Police Sergeant 0 M 329 $4.617.00 $5,210.74 $-593.74
6 Maintenance Supervisor 0 M 291 $4,618.00 $4,410.90 $207.10
7 Police Officer 6 0 6 M 275 $4,274.00 $4,312.92 $-38.92
8 Utilities 'Operator 2 0 2 M 228 $3,958.00 $3,940.96 $17.04
9 Accounting Technician 0 F t- 169 $3,790.00 $3,519.70 $270.30
10 Maintenance Worker 4 0 4 M 190 $3,665.00 $3,669.71 $-4.71
11 Billing/License Technician 0 F 169 $4,362.00 $3,519.70 $842.30
12 Records Specialist 0 F 140 $3,393.00 $3,312.77 $80.23
13 Office Spe,ciaUst 0 F 140 $3,393.00 $3,312.77 $80.23
Page 1 of 1
Compliance Report
01/11/200E
Jurisdiction: City of 81. Joseph
P.O. Box 668
Contact: Lori Bartlett
Finance Director
Phone: (320) 363-7201
The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from
your pay equity Report data. Parts II, III and IV give you the test results.
For more detail on each test, refer to the guidebook.
I. GENERAL JOB CLASS INFORMATION
# Job Classes
# Employees
Avg. Max Monthly
Pay per Employee
Male Female
Classes Classes
7 6
16 6
$4,407.56 $4,778.00
Balanced All Job
Classes Classes
0 13
0 22
$4,508.59
Male Female
Classes Classes
3 5
4 1
7 6
57.14 16.67
II. STATISTICAL ANALYSIS TEST
A. UNDERPAYMENT RATIO = 342.9
a. # at or above Predicted Pay
b. # Below Predicted Pay
c. TOTAL
*
..
d. % Below Predicted Pay
(b divided by c = d)
* (Result is % of male classes below predicted pay divided by % of female classes below predicted pay)
B. T -TEST RESULTS
Degrees of Freedom (OF) = 20
Value ofT =
-0.761
a. Avg. diff. in pay from predicted pay for male jobs =
b. Avg. diff. in pay from predicted pay for female jobs =
-$38
$93
III. SALARY RANGE TEST = 100.00 % (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 8.00
B. Avg. # of years to max salary for female jobs = 8.00
IV. EXCEPTIONAL SERVICE PAY TEST 38.89
A. % of male classes receiving ESP
B. % of female classes receiving ESP
* (if 20% or '.ess, test resu'lt will be 0.00)
85.71
33.33
Guide to Understanding
Pay Equity Compliance
and Computer Reports
November 2007
Pay Equity Office
Minnesota Department of Employee Relations
200 Centennial Office Building
658 Cedar Street
St. Paul, MN 55155
(651) 259-3761 (Voice)
(651) 282-2699 (TTY)
www.doer.state.mn.us
Table of Contents
Page
I. Guide to Understanding Pay Equity Compliance
1
II. Tests for Compliance
2
III. Determining Whether the Alternative or Statistical
Analysis Will Be Used
2
IV. Explanation of Computer Reports 2
A. Compliance Report 3
B. Job List Report 6
C. Optional Graph Sample .7
D. Data Entry Listing Report 7
V. Alternative Analysis Test 8
VI. Salary Range Test 12
VII. Exceptional Service Pay Test 13
VIII. Method Used for Pay Line Calculation in the Statistical Analysis 14
Guide to Understanding Pay Equity Compliance and Computer Reports-11/07
Guide to Understanding Pay Equity Compliance
In 1984, the Minnesota Legislature passed the Local Government Pay Equity Act (LGPEA) (M.S.
471.991-.999). Local governments were given until December 31, 1991 to comply with the law and were
required to file reports with the Department of Employee Relations (DOER) by January 31, 1992. All
jurisdictions were then placed on a three year reporting cycle with a third of them reporting each year
beginning in January of 1994. This booklet gives a general overview of how data from the local
government reports is analyzed and how the tests for compliance are conducted. Complete details of
compliance requirements are in Minnesota Rules Chapter 3920.
This booklet also describes the computer software developed by DOER. This software calculates several
of the tests for compliance and the reports produced by the software are explained on pages three through
seven.
Guide to Understanding Pay Equity Compliance and Computer Reports -11 /07
Page 1
Tests for Compliance
1. Completeness and Accuracy Test -
determines whether jurisdictions have filed
reports on time, included correct data and
supplied all required information.
2. Statistical Analysis Test - described on
pages three through five, compares salary data
to determine if female classes are paid consis-
tently below male classes of comparable work
value (job points). DOER has developed
software that calculates the results for this test.
This test is generally applied to larger jurisdic-
tions. For smaller jurisdictions, the alternative
analysis is used.
3. Alternative Analysis Test - described on
pages eight through 11, compares salary data to
determine if female classes are paid below
male classes even though the female classes
have similar or greater work value (job points).
The software is not used for this test.
4. Salary Range Test - described on page 12,
compares the average number of years it takes
for individuals to move through salary ranges
established for female classes compared to
male classes. This test only applies to jurisdic-
tions that have a system where there is an
established number of years to move through
salary ranges.
5. Exceptional Service Pay Test - described on
page 13, compares how often individuals in
male classes receive longevity or performance
pay above the normal salary range compared to
how often individuals in female classes receive
this type of pay. This test applies only to
jurisdictions that have a system that includes
exceptional service pay.
Determining Whether the
Alternative or Statistical
Analysis Will Be Used
1. Alternative analysis - jurisdiction has:
· Three or fewer male classes.
NOTE: Jurisdictions with three or fewer
male classes may want to skip over the
information on pages two through seven
describing the statistical analysis and
. computer reports.
2. Statistical analysis - Jurisdiction has:
· Six or more male classes and at least one
class with an established salary range, or
. Four or five male classes and an underpay-
ment ratio of 80% or more. Mayor may not
have classes with an established salary
range.
3. Start in statistical analysis but go to
alternative analysis - jurisdiction has:
· Four or five male classes and an underpay-
ment ratio below 80%, or
· An underpayment ratio below 80%, six or
more male classes, but no classes with a
salary range.
Explanation of Computer
Reports
Information contained in the next few pages is
intended to explain the three reports produced by
the Pay Equity Analysis System Software. Look
at the sam~le reports as you read the following
explanations. Each numbered explanation
corresponds to a shaded number on the examples
on pages three, five and six. For informational
purposes, a sample of an optional graph produced
with the Pay Equity Analysis software is shown on
page seven.
Page 2
Guide to Understanding Pay Equity Compliance and Computer Reports -11 /07
Compliance Report
The statistical analysis, salary range and excep-
tional service pay test results are shown below.
Part I is general information from the Pay Equity
Implementation Report data. Parts II, III and IV
of the Compliance Report give test results. For
more detail on each test, refer to Minnesota Rules
Chapter 3920.
I. GENERAL JOB CLASS INFORMATION
# Job Classes
# Employees
A vg. Max Monthly
Pay Per Employee
Female
Classes
Balanced
Classes
All Job
Classes
2
24
14
42
~i.~
C!,796.8i)
II. STATISTICAL ANALYSIS TEST
A.
Underpayment Ratio = @-~
Male
Classes
Female
Classes
a. # At or above Predicted Pay
b. # Below Predicted Pay
c. TOTAL
5
3
8
3
1
4
@-'6
d. % Below Predicted Pay
(b divided by c = d)
@-s
*(Result is % of male classes below predicted pay divided by % of female classes below
predicted pay.)
B. T -test Results
Degrees of Freedom (DF) = 16
Value ofT = -3.732
7
a. A vg. diff. in pay from predicted pay for male jobs = ~8
b. Avg. diff. in pay from predicted pay for female jobs =~..9
10
III. SALARY RANGE TEST =(lOS.710/;J(ReSUIt is A divided by B)
A. Avg. # of years to max salary for male jobs = 5.29
B. Avg. # of years to max salary for female jobs = 5.00
11
IV. EXCEPTIONAL SERVICE PAY TEST = CsO.OO~(ReSUIt is B divided by A)
A. % of male classes receiving ESP 50.00*
B. % offemale classes receiving ESP 25.00
*(If 20% or less, test result will be 0.00.)
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
Page 3
Compliance Report
Explanations below correspond to shaded numbers
on page three.
1. Average Maximum Monthly Salary for
Em ployees in Male Classes
2. Average Maximum Monthly Salary for
Employees in Female Classes
3. Overall Average Maximum Monthly
Salary for an Employee
4. Underpayment Ratio
The minimum requirement to pass the
statistical analysis test is an underpayment
ratio of 80%. The underpayment ratio is
calculated by dividing the percentage of male
classes below predicted pay (item five) by
the percentage of female classes below
predicted pay (item six). In the example on
page three, 37.5 -;- 25 = 150%. Jurisdictions
with an underpayment ratio below 80% can
improve their score by increasing salaries for
female classes to at or above predicted pay.
More details regarding predicted pay are on
pages six, and 14 through 17.
If the underpayment ratio is less than 80%, a
jurisdiction may still pass the statistical analysis
test if the t-test results (explained in item 7) are
not statistically significant. The t-test mea-
sures the average dollar difference from
predicted pay for male and female classes.
5. Percentage of Male Classes Below
Predicted Pay
This percentage is calculated by dividing the
number of male classes below predicted pay by
the overall total of male classes. In the ex-
ample on page three, the total of male classes
is eight, and three fall below predicted pay.
Therefore, 3 -;- 8 = 37.50%.
6. Percentage of Female Classes Below
Predicted Pay
This percentage is calculated by dividing the
number of female classes below predicted pay
by the overall total of female classes. In the
example on page three, the total of female
classes is four and one of those falls below
predicted pay. Therefore, 1 -;- 4 = 25%.
7. T-Test & Degrees of Freedom
These numbers are used only for jurisdictions
with an underpayment ratio below 80%, at least
six male classes and at least one class with a
salary range. If the underpayment ratio is
800/0 or more, these numbers are not used
nor are they used for jurisdictions in the
alternative analysis.
These numbers show the average dollar
amount that males and females are from
predicted pay and answer the question: Are
females paid less than males on average and, is
the underpayment of females statistically
significant?
To determine if these numbers show statistical
significance, they must be checked against the
table on page five. Find the DF number in the
"Degrees of Freedom" column and then look
across for the "Value ofT." If the "value oft"
on the compliance report is less than the "value
of t" on the table, it means that either there is
no underpayment of female classes or that the
underpayment is not statistically significant. If
the t-test number is the same or more than the
"value oft" on the table, the underpayment for
female classes is statistically significant and the
jurisdiction would not pass the test.
Salary increases for female classes sufficient
to eliminate statistical significance would allow
ajurisdiction to pass the statistical analysis test
even with an underpayment ratio below 80%.
Page 4
Guide to Understanding Pay Equity Compliance and Computer Reports -11/07
In the example on page three, t-test
results would not be used because the
underpayment ratio is above 80%, but
let's assume we needed to check these
results. First, we would find 16 in the DF
column and then look across to find the value
oft at 1.746. Since our t-test number is -
3.732, well below the value oft on the table,
these results would show that on average,
females are not underpaid compared to
males.
10. Salary Range Test
This number must be either 0% or 80% or
more to pass this test. In the example on page
three; 105.71 % is passing. Jurisdictions not
passing this test can pass it by reducing the
number of years it takes for female classes to
reach maximum salaries, increasing the
number of years for males to reach maximum
salaries, or some combination of both. A result
T-Test Table
(5% Significance)
DF Value of t DF Value of t DF Value of t
1 6.314 12 1.782 23 1.714
2 2.920 13 1.771 24 1.711
3 2.353 14 1.761 25 1.708
4 2.132 15 1.753 26 1.706
5 2.015 :~J6 1. 746 27 1. 703
6 1.943 17 1.740 28 1.701
7 1.895 18 1. 734 29 1.699
8 1.860 19 1.729 30 1.697
9 1.833 20 1.725 40 1.684
10 1.812 21 1.721 60 1.671
11 1.796 22 1.717 120 .1.658
infInity 1.645
While the entire method for calculating t-test
results cannot be explained here, it is a
commonly accepted mathematical technique
for measuring statistical significance. The
formula is fairly complex, but basically it
factors in predicted pay, the dollar difference
from predicted pay and the number of employ-
ees. The DF number is the total number of
employees in male or female dominated
classes only, minus two.
8. Average Dollar Amount Male Classes
are Above or Below Predicted Pay
In the example on page three, the maximum
monthly salary for male classes, on average, is
$2 above predicted pay.
9. Average Dollar Amount Female Classes
are Above or Below Predicted Pay
In the example on page three, the maximum
monthly salary for female classes, on average,
is $75 above predicted pay.
of 0% would mean that either there are no
male classes with an established number of
years to move through a salary range, no
female classes with an established number of
years to move through a salary range, or both.
A description of how the salary range test is
calculated is on page 12.
11. Exceptional Service Pay Test
This number must be either 0% or 80% or
more to pass this test. In the example on page
three, 50% is not passing. Jurisdictions not
passing this test can pass it by either
increasing the number of female classes that
receive exceptional service pay, decreasing
the number of male classes that receive
exceptional service pay, or some combination
of both. A result of 0% could mean that fewer
than 20% of male classes receive exceptional
service payor that no female classes receive
exceptional service pay. A description of how
the exceptional service pay test is calculated is
on page 13.
Page 5
Guide to Understanding Pay Equity Compliance and Computer Reports -11/07
Predicted Pay Report
Explanations correspond to shaded numbers below.
This report can be printed after the results are
computed. The predicted pay and pay difference
columns are helpful in analyzing the cost of
adjusting the salary for any given class.
1. Predicted Pay
The most simplistic definition of predicted pay
is that it is the average pay of male classes at
any given point value. Predicted pay is
calculated by averaging the maximum
monthly salaries for male classes in the
jurisdiction. It is the standard for comparing
how males and females are compensated.
Predicted pay is a mirror, or reflection, of the
current compensation practice within a
jurisdiction for male classes, but is not
necessarily the salary that "should" be paid at
any particular point level. Specific details of
the method used to calculate predicted pay is
explained in pages 14 through 17. The graph
on page seven shows a "predicted pay line"
and how male and female classes scatter
around that line. Predicted pay amounts are
determined only from the jurisdiction itself, not
from any external factors or salaries.
2.
Pay Difference
Shows the dollar amount that maximum
monthly salaries fall above or below predicted
pay. Ifajurisdiction does not pass the
statistical test and needs to increase salaries
for female classes, either to reach an
underpayment ratio of 80% or eliminate the
statistical significance of the t-test, this
information is useful in calculating the cost.
For example, the cost to increase the female
class of "stage manager" to predicted pay
would be $6.20 per month.
Predicted Pay Report
l'
2
\ \
04/20/92 Page 1
Job Male Female Total Work Max Mo. Predicted Pay
Number Class Title Empl Empl Empl Sex Points Salary Pay Difference
I Box Office I 1 2 B 110 1,400.41 1344.82 55.59
2 Stage Crew 6 1 7 M 130 1,450.26 1447.15 3.11
3 Props Chief I 0 I M 140 1,460.94 1495.59 - 34.65
4 Costume Designer 0 I 1 F 142 1,575.89 1505.17 70.72
5 Set Tech. 1 0 1 M 150 1,560.75 1540.12 20.63
6 Lighting Tech. 1 0 1 M 164 1,625.50 1598.54 26.96
7 Effects Eng. 1 0 I M 179 1,645.22 1617.17 28.05
8 Stage Manager 0 I I F 180 1,610.30 1616.50 -6.20
9 Writer 1 0 1 M 180 1,590.19 1616.50 -26.31
10 Marketing Director 1 0 1 M 200 1,690.85 1689.43 1.42
II Actor/Actress 10 12 22 B 217 1,730.85 1714.27 16.48
12 Director 1 0 1 M 248 1,795.76 1799.79 -4.03
13 Producer 0 1 1 F 260 1,900.60 1830.73 69.87
14 General Manager 0 1 1 F 300 2,100.67 1933.91 166.76
Page 6
Guide to Understanding Pay Equity Compliance and Computer Reports -11/07
Optional Graph
Predicted Pay for Stageville Theatre
2200
2114.4
2028.8
1943.2
1857.6
~
:S 1772
<(
CI)
1686.4
1600.8
1515.2
1429.6
1344
0 0
M
~
o
o
DO
0 0 0 0 0 0 0 0 0
U') ~ 0> N M U') t- O> ;;;
~ ~ '" N '" '"
POINTS
0 0 0
Female Jobs Male Jobs Balanced Jobs
Predicted
Data Entry List Report
Shows the data that has been entered for computa-
tion. This report should be carefully reviewed
before computing the results. If any errors are
found, they must be corrected before computing
results.
Data Entry List
04/20/92
Page I
Male Female Work Min Mo. Max Mo. Years Nbr Yrs Exceptional
lQb.J:fu Class Title Emplovees Employees fciJlll ~ ~ 1!L..Mill> ~ Service Pay
I Box Office I I 110 1,200.00 1,400.41 4
2 Stage Crew 6 I 130 1,250.00 1,450.26 5 Longevity
3 Props Chief I 0 140 1,260.00 1,460.94 5 Longevity
4 Costume Designer 0 I 142 1,375.00 1,575.89 5
5 Set Tech. I 0 150 1,360.00 1,560.75 5 Longevity
6 Lighting Tech. I 0 164 1,400.00 1,625.50 6 Longevity
7 Effects Eng. I 0 179 1,425.00 1,645.22 6
8 Stage Manager 0 1 180 1,425.00 1,610.30 5 Lo.ngevity
9 Writer I 0 180 1,400.00 1,590.19 6
10 Marketing Director I 0 200 1,490.00 1,690.85 4
11 Actor/Actress 10 12 217 1,500.00 1,730.85 4 Performance
12 Director I 0 248 1,600.00 1,795.76
13 Producer 0 I 260 1,700.00 1,900.60
14 General Manager 0 I 300 1,800.00 2,100.67
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
Page 7
Alternative Analysis
The minimum requirement to pass this test is that:
a) there is no compensation disadvantage for at least 80% offemale classes compared to male
classes; or,
b) compensation differences can be accounted for by years of service or performance.
On the next few pages the four possibilities that exist for inequities or a compensation disadvantage are
described.
1. A female class with higher points has less compensation than a male class with lower points.
Example: In this case, the female job class of city clerk has more points but less pay than the male
job class of maintenance supervisor.
Max.
Class Monthly
Job Title ~ Points ~
City Clerk F 275 $1665
Maint. Sup. M 171 $1925
The minimum requirement to correct this inequity is that the female class must have a salary at least
equal to that of the male class.
Graph illustrating inequity for female job class.
1950
+
1900 .............................................................................................................................................
1850 .............................................................................................................................................
~ 1800
a.
1750 ..........................................---.....--................ ..... ....
1700 .............................................................................................................................................
female class with higher points
than male dass ~ 0
1650
160
180
200
220
Points
240
260
280
I + Male Jobs 0 Fern Jobs I
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
Page 8
2. A female class has the same points as a male class but less compensation.
Example: In this case, the female job class of secretary and the male job class of maintenance have
the same points but the secretary receives less pay.
Max.
Class Monthly
Job Title ~ Points Salary
City Clerk F 275 $2265
Maintenance M 171 $1900
Secretary F 171 $1630
The minimum requirement to correct this inequity is that the female class must have a salary at least
equal to the male class.
Graph illustrating inequity for female job class.
2300
o
2200 .......... ... ................................................................... .............................................................
2100 ................. .................................................. ........................ ..................................................
2000 .......................................................... .... ..... ...... .... ..... ... ........................................................
~
a..
1900 . ......... .+.............................. ........... ...... .......n ...... .... .......... ....... ......... ........ ......... ..... .............
1800 ......................................................................... ............. ........ ...... ............... ... .... ............. ......
1700 ......................................................................................n.....................................................
/ female dass with same points
o 1L' as male class
1600
160
180
200
220
Points
240
260
280
I + Male Jobs 0 Fern J~
Guide to Understanding Pay Equity Compliance and Computer Reports -11 /07
Page 9
3. A female class has points between two male classes but compensation is not between or above the
two male classes.
Example: In this case, the female job class of receptionist has points between two male classes but
receives less pay than either of them.
Max.
Class Monthly
Job Title ~ Points Salary
City Clerk F 275 $2370
Maintenance M 171 $1900
Receptionist F 141 $1250
Custodian M 111 $1500
The minimum requirement to correct this inequity is that the female class must have a salary
somewhere between the two male classes.
Graph illustrating inequity for female job class.
2400
o
2200
2000 .........................................................................................................................-..-................
+
~ 1800 ....................-..-......................................
1600 .-.....-.................-......................--...-........-...................................................................-......
+
1400 .............................................................................................................................................
./ female class between
two male classes
o
1200
100 120 140 160 180 200 220 240 260 280
Points
I + Male Jobs 0 Fern Jobs I
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
Page 1 0
4. A female class(es) rated lower than all male classes is not compensated as reasonably proportionate
to points as other classes.
Example: In this case, the retail clerk has a salary of $700 per month below the custodian but only
six fewer points. For all other job classes where there is a salary difference, there is a larger differ-
ence in points. For example, the maintenance supervisor's salary is $300/month less than the police
officer and there is a difference of 23 points.
Max.
Class Monthly
Job Title ~ Points Salary
City Clerk! Admin F 275 $3800
Police Officer M 236 $3200
Maintenance Sup M 213 $2900
Admin. Sec. F 173 $2400
Custodian M 111 $1800
Retail Clerk F 105 $1100
While some difference in salary is acceptable due to the point difference, the salary for the retail clerk
with 105 points must be much closer to the salary for the custodian with III points. When there is a
question regarding the salary for female class or classes rated lower than all male classes, the judg-
ment is made on a case-by-case basis, and the main considerations are the relationship of points and
pay between other classes in the jurisdiction and past history of pay relationships that were previously
in compliance. In this case, the minimum requirement to correct this inequity would be that the salary
for the retail clerk would be approximately $1 ,650/month.
Graph illustrating inequity for female class.
.4000
o
3500 . ............................................................................................................................................
+
3000 .... ...... ........ ............. '__.....m. .... ....... ...............--....................... ....................... m..m........ ........
+
>-
rtl 2500 ""......mmn. .................. ...... ... ....m..m.. ....m....m.......... .......mmm.........................................
a.. 0
2000 ...........--...... ............ ........... ... ....m....... ....................... .............. ......mmm. ......m........ ...m.....
+
1500 ........ .....m ............mm............__. ....................................... ............ ........m.__................ ...........
/ female class rated lower
~ tL than all male classes
1000 ~
100 120 140 160
180 200
Points
220
240
260
280
I + Male Jobs 0 Fern Jobs J
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
Page 11
Salary Range Test
This is an example to show how the salary range test is calculated. It is not necessary to calculate this
test manually ifthe software is being used. If the software is not being used, the following steps will
produce a result for this test. Information is recorded for male or female classes only, not balanced
classes. The information for this example is taken from the Data Entry List Report on page seven.
JURISDICTION: Stageville Theatre
Step 1
Look at the "years to max" column and identify male classes with an established number of years to
move through a salary range.
Title
Stage Crew
Props Chief
Set Tech
Lighting Tech
Effects Tech
Writer
Marketing Director
7 total classes
Years to Max
5
5
5
6
6
6
4
3 7 total years
Step 2
Calculate the average years to reach maximum salary for male classes:
A.
B.
C.
Total years from Step I
Total classes from Step I
Divide 2A by 2B
37
l-
37 -;- 7 = 5.28 average years to max
Step 3
Look at the "years to max" column and identify female classes with an established number of years to
move through a salary range.
Title
Costume Designer
Stage Manager
2 total classes
Years to Max
5
-2
10 total years
Step 4
Calculate the average years to reach maximum salary for female classes:
-A.
B.
C.
Total years from Step 3
Total classes from Step 3
Divide 4A by 4B
10
~
10 -;- 2 = 5
average years to max
Step 5
Divide 2C by 4C and multiply by 100. 5.28 -;- 5 = 1.05 x 100 = 105%
Enter this result in Part C of the Pay Equity Implementation Report.
Guide to Understanding Pay Equity Compliance and Computer Reports -11/07
Page 12
Exceptional Service Pay Test
This is an example to show how the exceptional service pay test is calculated. It is not necessary to
calculate this test manually if the software is being used. If the software is not being used, the following
steps will produce a result for this test. The information for this example is taken from the Data Entry
List Report on page seven. Information is recorded for male or female classes only, not balanced classes.
Step 1
Look at the "exceptional service pay" column and calculate the percentage of male classes
receiving exceptional service pay.
A. Total number of male classes where an employee
receives exceptional service pay.
4
B. Total number of male classes in the jurisdiction.
8
C. Divide 1A by 1B and multiply by 100.
4 -;- 8 = .50 x 100
50%
If result of 1C is 20% or less, stop here and check appropriate box in Part D of report form.
If result is more than 20%, go on to Step 2.
Step 2
Look at the "exceptional service pay" column and calculate the percentage of female classes
receiving exceptional service pay.
A. Total number of female classes where an employee
receives exceptional service pay.
1
B. Total number of female classes.
4
C. Divide 2A by 2B and multiply by 100.
I -;- 4 = .25 x 100
25%
Step 3
Calculate the ratio of female/male classes receiving exceptional service pay.
Divide 2C by I C and multiply by 100.
25 -;- 50= .50 x 100
50%
Enter result in Part D of the Pay Equity Implementation Report.
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
Page 13
Method Used for Predicted Pay Line Calculation in the
Statistical Analysis
The following explanation is a general description
of how predicted pay is calculated but does not
include all details of the formula in Minnesota
Rules Chapter 3920.
Basis of the Statistical Analysis
A. The definition in the Local Government Pay
Equity Act for equitable compensation
relationship says "...compensation for female-
dominated classes is not consistently below the
compensation for male-dominated classes of
comparable value..."
B. The formula for the statistical analysis is based
on three concepts found in the above definition:
comparable value, male compensation and
consistently below.
4000
I. Defining "Comparable Value"
Except for classes in the lower and upper 10%
of the point range, comparable value is defined
by drawing a 20% window around the job
class being analyzed. Each window extends
10% of the range of points on each side of the
class. In the example, there is a range of 200
points from lowest to highest, so 10% would be
20 points. Each window must have at least
three male classes (two of which have differ-
ent points) and must include at least 20% of all
male classes in the jurisdiction. Ifthis criteria
is not met, the window will expand at 5%
increments on either side until the required
number of male classes are included. The
drawing below shows one window for one
class.
+
+
3500 ..........................................................................................B-.......~.....................................
+
3000 ...............................................L............................................:..............................................
+
k: +
2500 .............I!" .!.I)"l. ~'g,~........_~_......................................................................................
I "" I
I + + ~, dass being analyzed ,
2000 .....~.....I r....................j.............................................................................
I I
I I
1500
100 120 140 160 180 200 220 240 260 280 300
Points
+
I + Male Jobs 0 Fern Jobs I
Page 14
Guide to Understanding Pay Equity Compliance and Computer Reports - 11/07
II. Defining "Male Compensation" or "Predicted Pay"
A. The first step in defining male compensation is to draw a "mini" regression line through the male
classes in the window.
4000
+
+
3500 ..........................................................................................o.......~.....................................
+
3000 .............................................................................................................................................
+
~ class being analyzed + +
a.. 2500 ............r~-- i---.........~.......................................................................................
I I
I I
, + I
2000 .............1 t.............................................................................:................~..
o I I
I I
I I
1500, ~
100 120 140 160 180 200 220 240 260 280 300
Points
I + Male Jobs D Fern Jobs I
B. The second step in defining male compensation is to look at the class being analyzed and the same
point on the mini regression line. This point is called predicted pay.
4000
+
+
3500 ..........................................................................................e-.....~.~.....................................
+
3000.............................................................................................................................................
+
~
a..
class being analyzed + +
J.. 0
2500 ...........i- - -@ ~...................................................................................................
:~ f---!predicted pay.
2000 .............( r................................................................................ .................
o I I
I I
I . ,
1500 ,
100 120 140 160 180 200 220 240 260 280 300
Points
I + Male Jobs 0 Fern Jobs I
Guide to Understanding Pay Equity Compliance and Computer Reports -11 /07
Page 15
III. Defining "Consistently Below"
A. A determination is made as to whether the
class being analyzed falls above or below
predicted pay. In the example, the female
class being analyzed is above predicted pay.
B. A new window is drawn when the next class is
analyzed. This continues until all classes have
been analyzed.
4000
+
.
..........-.----.--.--.--.-....---.-...-.-.-....e-....~...--.-...........................
new window +
~
3000 .......-.---.r-----,.--.-.-.-.....-.-.........-....................................-....-........---
I I .
~ old windOW: + I +
ll. disappears I I l:I
2500 "-~:' or - D' . - ~ ~-......-..-.-.....-................-...-_..--....-..-.................
: I ~naxt class being analyzed
. 1 I
:.' . I
2000 ..-..-.~ : L.._...._.__......._...._......................................_......._.....
~ . I
~ . I I
: I
I 1
1500
100
120
140
160
180 200
Points
220 240
260
280 300
I · Male Jobs l:I Fern Jobs
C. When all the classes have been analyzed, a predicted pay line is drawn.
4000
3000
+
predicted
pay line
3500 ...................................................--................-..-.-.--.....-.....-e.......~... ................................
~
a..
1500
100 120 140 160 180 200 220 240 260 280 300
Points
1- Pred Pay + Male Jobs 0 Fern Jobs I
Guide to Understanding Pay Equity Compliance and Computer Reports -11/07
Page 16
D. The tabulation of the number of male and
female classes above and below the predicted
pay line is made.
Forexample:
F above
F below
Total
M above
M below
Total
6
4
10
3
1
4
E. The percentage of male and female classes
below predicted pay is calculated by dividing
the number of classes below by the total
number of classes in each group.
Female classes: 1 + 4 25%
Male classes: 4 + 10 40%
F. The percentage of male classes below pre-
dicted pay is divided by the percentage of
female classes below predicted pay. This
produces the "underpayment ratio."
40% + 25% = 160%
G. An underpayment ratio below 80% shows that
female classes are compensated "consistently
below" male classes of comparable value. If
the underpayment ratio is below 80%, further
analysis is done to determine if the
underpayment of females is statistically
significant. Using the t-test, a determination is
made whether or not the dollar difference is
statistically significant. Details of the t-test
can be found on page four.
Guide to Understanding Pay Equity Compliance and Computer Reports -11/07
Page 17