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HomeMy WebLinkAboutItem 06.m Date: Item No. Pay Equity Compliance Report Proposed Action Staff recommends adoption of the following motion: Move to approve the Pay Equity Report. Overview Local Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter 3920 requires local jurisdictions to submit a pay equity report to the State of Minnesota every three years. The law requires cities to analyze their pay structure for evidence of inequities and to report this information to the Department of Management and Budget every three years. The City Council adopted the Systems Analysis and Factor Evaluation (SAFE) system as the City’s job classification system with an effective date of January 1, 2019. The evaluation system assigns points to each job based on 9 job factors that include training and ability, experience, level of work, human relations, physical demands, working conditions and hazards, independence of actions, impact of end results, and supervision. The “job points” along with compensation information are analyzed and a resulting “Predicted Pay” is provided for each position. The data is summarized on the attached compliance report. The minimum required to pass the statistical analysis test is an underpayment ratio of 80%. The report, using salaries in effect on December 31, 2019, indicates that we continue to maintain compliance. The pay equity report was submitted on January 31, 2020. Primary Issues to Consider • None Supporting Information • Pay Equity Compliance Report Financial Impact: $ Budgeted: Y☐ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Good Value for Public Services Report Completed by: Tammy Schutta, HR Manager February 18, 2020 Various Funds Pay Equity Implementation Report Part A: Jurisdiction Identification Jurisdiction:Lakeville Jurisdiction Type:City 20195 Holyoke Avenue Lakeville, MN 55044 Contact:Tammy Schutta Phone:(952) 985-4491 E-Mail:tschutta@lakevillemn.g ov Part B: Official Verification 1.The job evaluation system used measured skill, effort responsibility and working conditions and the same system was used for all classes of employees. The system used was: Consultant Description: A new system. Springsted, Inc. SAFE Job Evaluation System 2.Health Insurance benefits for male and female classes of comparable value have been evaluated and: There is no difference and female classes are not at a disadvantage. 3.An official notice has been posted at: Lakeville City Hall (prominent location) informing employees that the Pay Equity Implementation Report has been filed and is available to employees upon request. A copy of the notice has been sent to each exclusive representative, if any, and also to the public library. The report was approved by: Lakeville City Council (governing body) Douglas P. Anderson (chief elected official) Mayor (title) Part C: Total Payroll 19209247.9000 is the annual payroll for the calendar year just ended December 31. [X]Checking this box indicates the following: - signature of chief elected official - approval by governing body - all information is complete and accurate, and - all employees over which the jurisdiction has final budgetary authority are included Date Submitted:1/31/2020 Page 1 of 1 1/31/2020 2:37:57 PM Compliance Report Jurisdiction:Lakeville Report Year:2020 20195 Holyoke Avenue Case:1 - 2019 DATA (Submitted) Lakeville, MN 55044 Contact:Tammy Schutta Phone:(952) 985-4491 E-Mail:tschutta@lakevillemn.g ov 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 56 32 11 99 # Employees 119 53 96 268 Avg. Max Monthly Pay per employee 7007.24 6426.83 6302.35 II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 276.1905 * Male Classes Female Classes a. # At or above Predicted Pay 27 26 b. # Below Predicted Pay 29 6 c. TOTAL 56 32 d. % Below Predicted Pay (b divided by c = d)51.79 18.75 *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T-test Results Degrees of Freedom (DF) = 170 Value of T = -4.417 a. Avg. diff. in pay from predicted pay for male jobs = -6 b. Avg. diff. in pay from predicted pay for female jobs = 150 III. SALARY RANGE TEST = 85.42 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 5.13 B. Avg. # of years to max salary for female jobs = 6.00 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP = 3.57 * B. % of female classes receiving ESP = 0.00 *(If 20% or less, test result will be 0.00) Page 1 of 1 1/31/2020 2:35:07 PM