HomeMy WebLinkAbout6.h. Pay Equity
EXECUTIVE SUMMARY
City Council Meeting: February 5, 2019
AGENDA ITEM: Pay Equity AGENDA SECTION:
Consent
PREPARED BY: Emmy Foster, Assistant City
Administrator AGENDA NO. 6.h.
ATTACHMENTS: Springsted Compliance Letter &
Pay Equity Compliance Report APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve the 2019 Pay Equity Implementation
Report for 2018 Compliance
ISSUE
Local Government Pay Equity State law requires us to submit a Pay Equity Report every three years. The
report is to be submitted to Minnesota Management and Budget upon approval. This report shows data in
place as of December 31, 2018.
Staff worked with Ann Antonsen of Springsted, Incorporated to prepare the City’s Pay Equity
Implementation Report. The report indicates that Minnesota Management and Budget should find the
City in compliance. Please see the attached letter which explains the 4 tests of compliance. The job
classification points are assigned using the “Hay Management Consultant” job evaluation system and are
based on benchmarked job values under this system.
City Council is required to approve the Pay Equity Report. The report is required by the Local
Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter 3920. The City’s next
compliance report will be due in three years.
The previous Pay Equity Report was submitted in January 2016 and the City was found in compliance.
RECOMMENDATION
It is requested that the City Council approve the 2019 Pay Equity Implementation Report for 2018
Compliance.
January 17, 2019 Ms. Emmy Foster Assistant City Administrator City of Rosemount 2875 – 145th Street West Rosemount, MN 55068 Dear Ms. Foster: Springsted has prepared the City’s Pay Equity Implementation Report and utilized the Minnesota Management and Budget web-based pay equity reporting system to analyze the City’s 2018 wage information. There are four tests for compliance with the State of Minnesota Local Government Pay Equity Act. Following are the tests and the results: 1. Completeness and Accuracy Test: The City will pass this test if the report is submitted electronically by January 31, 2019. Springsted will submit the report for the City upon approval of the report by the City Council. 2. Statistical Analysis Test: To pass this test the City must have 6 or more male classes and at least one class with an established salary range, or four or five male classes and an underpayment ratio of 80 or more. The City’s underpayment ratio is 240, which is well above the established standard, therefore the City would be found in compliance with this test. 3. Salary Range Test: For organizations with established salary ranges for positions, this measures whether male classes are reaching the top of their salary range faster than female classes. This result must either be 0 or above 80 to be found in compliance. The result of the salary range test for the City is 97.60, which is also above the established standard and indicates that the City would also pass this test. 4. Exceptional Service Pay Test: This test analyzes whether there is a larger percentage of male classes receiving longevity or performance pay than female classes. For this test the result must either be 0 if less than 20% of male classes receive exceptional service pay or be above 80. The results of this test are 107.14 and indicates that the City also passes this test. Please review the enclosed information and if there are no changes please have the report reviewed and approved by the City Council prior to January 31, 2019. Springsted will submit the report to the Department of Management and Budget upon notification of approval by the City Council. Please let me know if you have any questions or concerns. Sincerely, Ann Antonsen Ann Antonsen, Vice President Consultant
Springsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101-2887
Tel: 651-223-3000
Fax: 651-223-3002
www.springsted.com
Compliance Report
Jurisdiction:
Contact:Phone:
Rosemount
2875 - 145th Street West
Rosemount MN 55068
2019
Case:
Report Year:
1 - 2018 Data (Private (Jur Only))
Emmy Foster emmy.foster@ci.rosemount.mn.us(651) 322-2002 E-Mail:
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
Classes
Female
Classes
Balanced
Classes
All Job
Classes
# Job Classes
# Employees
Avg. Max Monthly
Pay per employee
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio =
Male
Classes
Female
Classes
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 (DF) = Value of T =
a. Avg. diff. in pay from predicted pay for male jobs =
b. Avg. diff. in pay from predicted pay for female jobs =
III. SALARY RANGE TEST = (Result is A divided by B)
A. Avg. # of years to max salary for male jobs =
B. Avg. # of years to max salary for female jobs =
IV. EXCEPTIONAL SERVICE PAY TEST = (Result is B divided by A)
A. % of male classes receiving ESP *
B. % of female classes receiving ESP
*(If 20% or less, test result will be 0.00)
25 20 2 47
48 24 36 108
6,414.30 6,000.51 5,801.09
240.00
13 16
12 4
25 20
48.00 20.00
70 -1.541
$48
$154
97.60
4.88
5.00
107.14
56.00
60.00