HomeMy WebLinkAboutNew [08a] Pay Equity ComplianceCouncil Agenda Item --I a
crrY OF MT. JUS!"
MEETING DATE: January 6, 20011
AGENDA ITEM: Pay Equity Compliance
SUBMITTED BY: Administration/Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION:
BACKGROUND INFORMATION: Every three years all municipalities are required to submit pay equity reports to
the Minnesota Department of Employee Relations (DOER). DOER notifies municipalities when they are required to
submit and we received notice that the report must be submitted by January 31, 2011. 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 -than 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. After entering the qty data the
reports indicate that the City of St. Joseph is in compliance with Pay Equity laws. Then underpayment ratio must
be a minimum of 80% and the City results indicate 250%. Since this test was passed the T-test results are not used,
but the software still calculates. Once the Council authorizes execution of the certificate, the reports will be
forwarded to DOER and the information will be posted and forwarded to the unions as required by law. Upon
review by DOER the City will receive a certificate of compliance and we will not have to prepare this report again
until 2014.
The full text of the pay equity laws can be found by going to the Minnesota Department of Employee Relations
website: httv://www.mmb.state.mn.us/comg)-t)av-eguity
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Request for Council Action............................................................ 8(a):1-2
PayEquity Reports ................................................ _....................... 8(a):3-7
Extract of Pay Equity Regulations ................................................ 8(a):8-9
REQUESTED COUNCIL ACTION: Accept the report as presented, authorizing the Mayor to execute the Pay Equity
Certificate.
8(a):1
Pay Equity Implementation Report
Part A: Jurisdiction Identification
Jurisdiction: City of St. Joseph
PO Box 668
25 College Ave N
St. Joseph, MN 56374-0668
Contact: Lori Bartlett Phone: 320-363-7201
Part B: Official Verification
1. 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:
Description:
State Job Match
2. Health Insurance benefits for male and female classes of
comparable value have been evaluated and:
There is no difference
Part C: Total Payroll
612130pl9l
is the annual payroll for the calendar year just ended
December 31.
12/15/2010
Jurisdiction Type: City
E -Mail: lbartlet0cityofst josep
3. An official notice has been posted at:
25 College Ave N, St. Joseph, MQ
(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.
The report was approved by:
City of St. Joseph
(governing may)
Xick Schultz
(chief elected oMdsQ
Mayor
(tide)
[] Checking this box indicates the following:
- signature of chief elected official
- approval by governing body
- all information is complete and accurate,
and
- all employees over which the jurisdiction has
final budgetary authority are included
Date Submitted:
8(a):3
Print and Post This Notice
Posting date:
Jurisdiction Name: City of St. Joseph
NOTICE
2011 Pay Equity Report
This jurisdiction is submitting a pay equity implementation report to Minnesota
Management & Budget as required by the Local Government Pay Equity Act, Minnesota
Statutes 471.991 to 471.999. The report must be submitted to the department by January
31, 2011.
The report is public data under the Minnesota Government Data Practices Act, Minnesota
Statutes, Chapter 13. That means that the report is available to anyone requesting this
information.
This notice is being sent to all union representatives (if any) in this jurisdiction. in
addition, this notice must remain posted in a prominent location for at least 90 days from
the date the report was submitted.
For more information about this jurisdiction's pay equity program, or to request a copy of
the implementation report, please contact:
Lori Bartlett
PO Box 668
25 College Ave N, St. Joseph, MV
320-363-7201
(local contact person's name, address, telephone)
For more information about the state pay equity law, you may contact:
Pay Equity Coordinator
Minnesota Management & Budget
400 Centennial Office Building
658 Cedar Street
St. Paul, MN 55155
8(a):4
Compliance Report
Jurisdiction: St. Joseph Report Year: 2011
P.O. Box 668 Case: 1 - 2011 DATA (Shared (Jur and MMB))
25 College Avenue N.
St. Joseph MN 56374
Contact: Lori Bartlett Phone: (320) 363-7201 E-Mail: Ibarti"cityoisljoseph.com
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 11, Ili and IV give you the test results.
For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports.
L GENERAL JOB CLASS INFORMATION
Male Female Balanced AN Job
Classes CMOs" Classes classes
# Job Classes 10 5 0 15
# Employees 15 5 0 20
Avg. Max Monthly
Pay per employ" 4,667.94 5,306.71 4,827.63
N. STATISTICAL ANALYSIS TEST
A. Underpsymmd Ratio • 250.00 •
Male Femds
Classes Classes
i
a. # At or above Predicted Pay 5 4
b. alt Below Predicted Pay 5 1
a TOTAL 10 5
d. % Below Predicted Pay 50.00 20.00
(b divided by c = d)
'(Result is % of male classes below predicted pay divided by % of female due" below predicEed pay.)
B. Tallest Results
Degrees of Freedom (OF) = 18 Value of T = -0.946
a. Avg. diff. in pay from predicted pay for male jobs = ($29)
b. Avg. diff. in pay iron predicted pay for female jobs = $172
Nl. 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 • 100.00 (Resuk is B divided by A)
A. % of male classes receiving ESP 60.00 •
B. % of female classes receiving ESP 60.00
*(If 20% or less, test result win be 0.00)
8(a):5
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Compliance Report
Explanations below correspond to shaded
numbers on page three.
1. Average Maximum Monthly Salary for
Employees 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 800/c, a
jurisdiction may still pass the statistical
analysis test if the t-test results (explained in
item 7) are not statistically significant. The
West measures 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
example on page three, the total of male
classes is eight, and three fall below
predicted pay. 'Therefore, 3 s 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 80% 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
of T." If the "value of t" 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 of t" 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 a jurisdiction to pass the statistical
analysis test even with an underpayment
ratio below 80%.
Guide to Understanding Pay Equity Compliance and Computer Reports —11/10 P8WA):8
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. If a jurisdiction 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
04/20/92
Pop 1
Job
Male
Female
Total
Work
Max. Mo.
Predicted
Pay
Number
Class Title
Empl
Empl
Empl
Sex
Points
Salary
Pay
Difference
1
Box Office
1
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
1
0
1
M
140
1,460.94
1495.59
-34.65
4
Costume Designer
0
1
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
1
M
179
1,645.22
1617.17
28.05
8
Stage Manager
0
1
1
F
180
1610.30
1616.50
-6.20
9
Writer
1
0
1
M
180
1,590.19
1616.50
-26.31
10
Marketing
1
0
1
M
200
1,690.85
1689.43
1.42
Director
11
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
Guide to Understanding Pay Equity Compliance and Computer Reports -11/10 Pamg);g