HomeMy WebLinkAbout[04c] Pay Equity Compliance
Council Agenda Item 4c
MEETING DATE: January 21, 2020
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, 2020.
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 12/31/19 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 120%. 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
138.89%, respectively. Once the council authorizes the execution of the certificate, the reports will be
forwarded to MMB and the information will be posted at the government center 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 2023.
BUDGET/FISCAL IMPACT: Indirect impact with wage/benefit negotiations
ATTACHMENTS: Request for Council Action – Pay Equity
2020 Pay Equity Report
REQUESTED COUNCIL ACTION: Consider acceptance of the 2020 Pay Equity report as presented.
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