HomeMy WebLinkAbout[04g] Pay Equity
Council Agenda Item \[04g\]
MEETING DATE: December 5, 2016
AGENDA ITEM: Pay Equity Compliance
SUBMITTED BY: Finance
BOARD/COMMISSION/COMMITTEE RECOMMENDATION: N/A
PREVIOUS COUNCIL ACTION: 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, 2017.
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 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.)
Finance has placed 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 100%. Since this test was passed, the T-test results are not used, but
the software still calculates the results. The Salary Range Test and Exceptional Service Pay Test must report at least
80%. The City results scored 100% and 120%, respectively. 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 2020.
BUDGET/FISCAL IMPACT: Indirect impact with wage/benefit negotiations
ATTACHMENTS: Request for Council Action
2017 Pay Equity Reports
REQUESTED COUNCIL ACTION: Accept the 2017 Pay Equity report as presented and forward an executed
copy to both bargaining units and MMB
Compliance Report
Jurisdiction: St.Joseph Report Year: 2017
P.O. Box 668 Case: 1 -2017 DATA(Private(Jur Only))
25 College Avenue N.
St.Joseph MN 56374
Contact: Lori Bartlett Phone: (320)363-7201 E-Mail: lbartlett@cityofstjoseph.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 II, III and IV give you the test results.
For more detail on each test,refer to the Guide to Pay Equity Compliance and Computer Reports.
I.GENERAL JOB CLASS INFORMATION
Male Female Balanced All Job
Classes Classes Classes Classes
Job Classes 9 6 0 15
Employees 16 6 0 22
Avg.Max Monthly 5,320.33 5,977.08 5,499.44
Pay per employee
II.STATISTICAL ANALYSIS TEST
A. Underpayment Ratio= 100.00 *
Male Female
Classes Classes
a.#At or above Predicted Pay 6 4
b.#Below Predicted Pay 3 2
c.TOTAL 9 6
d.%Below Predicted Pay 33.33 33.33
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(DF)= 20 Value of T= -0.092
a.Avg.diff.in pay from predicted pay for male jobs= ($36)
b.Avg.diff.in pay from predicted pay for female jobs=21)
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=120.00 (Result is B divided by A)
A. %of male classes receiving ESP 55.56 *
B. %of female classes receiving ESP 66.67
If 20%or less,test result will be 0.00)
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