HomeMy WebLinkAbout6.g. Pay Equity
EXECUTIVE SUMMARY
City Council Meeting: January 31, 2022
AGENDA ITEM: Pay Equity Annual Report AGENDA SECTION:
Consent
PREPARED BY: Emmy Foster, Assistant City
Administrator AGENDA NO. 6.g.
ATTACHMENTS: Baker Tilly Compliance Letter &
Pay Equity Compliance Report APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve the 2022 Pay Equity Implementation
Report for 2021Compliance
BACKGROUND
Local Government Pay Equity State law requires us to submit our 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, 2021.
Staff has worked with Ann Antonsen of Baker Tilly 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. This will be the last year using the “Hay Management” system as we have
converted to the new SAFE system effective this year in conjunction with our compensation study.
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 2019 and the City was found in compliance.
RECOMMENDATION
Staff recommends the City Council approve the 2022 Pay Equity Implementation Report for 2021
Compliance.
January 21, 2022 Ms. Emmy Foster Assistant City Administrator City of Rosemount 2875 145th Street Rosemount, MN 55068 Dear Ms. Foster: Baker Tilly 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 2021 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, 2022. Baker Tilly 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 4 or 5 male classes and an underpayment ratio of 80 or more. The City has an underpayment ratio of 182.1428 which is well above the established standard and indicates that 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 results of the salary range test for the City is 94.29, 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 25% of male classes receive exceptional service pay or be above 80. The results of this test are 101.96, which is above the established standard 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, 2022. Baker Tilly 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 Director
Baker Tilly US, LLP
225 S. Sixth St. Street, Suite 2300
Minneapolis, MN 55402-4661
T: +1 (612) 876 4500
F: +1 (612) 238 8900
bakertilly.com
Compliance Report
Jurisdiction:Rosemount Report Year:2022
2875 - 145th Street West Case:1 - 2021 Data (Private (Jur
Only))
Rosemount, MN 55068
Contact:Emmy Foster Phone:(651) 322-2002 E-Mail:emmy.foster@ci.rosem
ount.mn.us
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 28 21 2 51
# Employees 64 25 23 112
Avg. Max Monthly Pay per employee 6417.98 6591.29 6533.04
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 182.1428 *
Male Classes Female Classes
a. # At or above Predicted Pay 11 14
b. # Below Predicted Pay 17 7
c. TOTAL 28 21
d. % Below Predicted Pay (b divided by c = d)60.71 33.33
*(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.)
B. T-test Results
Degrees of Freedom (DF) = 87 Value of T = -0.917
a. Avg. diff. in pay from predicted pay for male jobs = 44
b. Avg. diff. in pay from predicted pay for female jobs = 101
III. SALARY RANGE TEST = 94.29 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 4.71
B. Avg. # of years to max salary for female jobs = 5.00
IV. EXCEPTIONAL SERVICE PAY TEST = 101.96 (Result is B divided by A)
A. % of male classes receiving ESP = 60.71 *
B. % of female classes receiving ESP = 61.90
*(If 20% or less, test result will be 0.00)
Page 1 of 1 1/21/2022 12:59:06 PM