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HomeMy WebLinkAbout[08a] Pay Equity 8(a) Council Agenda Item ___________ MEETING DATE: January 16, 2014 AGENDA ITEM: Pay Equity Compliance SUBMITTED BY: Finance BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A PREVIOUS COUNCIL ACTION: None BACKGROUND INFORMATION: Every three years all municipalities are required to submit pay equity reports to the Minnesota Management and Budget (MMB). MMB notifies municipalities when they are required to submit and we received notice that the report must be submitted by January 31, 2014. 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. 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 taken from the pay equity law resources. The City wage information into the software provided by MMB. After entering the City data the reports indicate the City of St. Joseph is in compliance with the Pay Equity laws. The underpayment ratio must be a minimum of 80% and the City results indicate 200%. Since this test was passed, the T-test results are not used, but the software still calculates the results. Once the Council authorizes the execution of the certificate, the reports will be forwarded to MMB and the information will be posted at city hall and forwarded to the unions as per law. Upon review by MMB the City will receive a certificate of compliance and we will not have to prepare again until 2017. BUDGET/FISCAL IMPACT: Indirect impact with wage/benefit negotiations ATTACHMENTS: Request for Council Action 2014 Pay Equity Reports REQUESTED COUNCIL ACTION: Accept the 2014 Pay Equity report as presented.