IV.5. Approval of the Pay Equity Implementation Report; Lenz
January 18, 2022 Report 2022-005
APPROVAL OF THE PAY EQUITY IMPLEMENTATION REPORT
Proposed Action.
Staff recommends adoption of the following motion: Move that the Hopkins City Council approve the
attached Pay Equity Implementation Report.
Adoption of this motion will allow the City to submit its Pay Equity Implementation Report as required
by state law.
Overview.
In 1984 the Minnesota Legislature passed a "Comparable Worth" or Pay Equity law. The purpose of
this law was to reduce the perceived wage disparity between government jobs held largely by males and
those predominantly held by females. Each local government jurisdiction must periodically submit a
Pay Equity Implementation Report, as provided by Minnesota Statutes, section 471.9981, to determine
whether it is in compliance with the law. The City of Hopkins is required to submit a report to the
Department of Employee Relations (DOER) by January 31, 2022. This report must be based upon the
employees hired and salaries paid as of December 31, 2021.
Attached is a copy of the Compliance report that the City must send to DOER.
Primary Issues to Consider.
Is the City in compliance with the comparable worth law?
Has the City submitted reports to DOER in the past?
Supporting Information.
Pay Equity Compliance Report
_____________________________
Ari Lenz
Assistant City Manager
Council Report 2022-005
Page 2
Analysis of the Issues:
Is the City in compliance with the comparable worth law?
The City has entered data into the computer program that DOER uses to determine compliance with the
law. Based upon this program, the City should be found in compliance with the law. The program
compares salary data to determine if female classes are paid consistently below male classes of
comparable work value (job points). (There are also balanced classes which contain both males and
females. These classes are not used to determine compliance.)
There are two tests to determine whether a City is in compliance, the Underpayment Ratio and the T-
Test Results. The minimum requirement to pass the statistical analysis test is an underpayment ratio of
80%. The underpayment ratio is calculated by dividing the percentage of male classes below predicted
pay by the percentage of female classes below predicted pay. The City's Underpayment Ratio of 91.0%
is above 80%.
If the underpayment ratio is less than 80%, a jurisdiction may still pass the statistical analysis test if the
t-test results are not statistically significant. The t-test is a statistical measure of how significant is the
difference between two numbers. The City's value of T, -4.421, means that the difference in predicted
pay between male and female classes is not statistically significant. This is a major improvement from
our ratings in 2016 where although our underpayment ratio was in compliance at 81.48% our T-value
was 5.594, which was statistically significant. This is due to the implementation of the class and
compensation study results.
Two other tests are mentioned on the compliance report. The Salary Range Test examines how long it
takes male classes and female classes to get to the maximum salary. As you can see there is no
difference. The last test is the Exceptional Service Pay Test which examines additional pay such as
longevity. Although only two unions receive longevity (police officers and sergeants), several other
positions as the result of implementing the new pay system are over their maximums. Those classes are
categorized as female and have aided our Exceptional Service Pay Test results. Many of these classes
are temporary and will be removed through attrition.
Has the City submitted reports to DOER in the past?
The City last submitted a report in 2019. It was found to be in compliance with the law at that time.
Alternatives:
The City has no alternative at this time except to submit the report. There are fines up to $100 per day
for non-compliance, this approval is necessary for submission by the January 31, 2022 deadline.
Compliance Report
Jurisdiction:Hopkins Report Year:2022
1010 - 1st Street South Case:1 - 2021 Data (Private (Jur
Only))
Hopkins, MN 55343
Contact:Ari Lenz Phone:(952) 548-6303 E-Mail:HR@hopkinsmn.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 Classes Female Classes Balanced Classes All Job Classes
# Job Classes 31 15 3 49
# Employees 65 28 27 120
Avg. Max Monthly Pay per employee 7272.29 6902.33 7338.08
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 241.9355 *
Male Classes Female Classes
a. # At or above Predicted Pay 21 13
b. # Below Predicted Pay 10 2
c. TOTAL 31 15
d. % Below Predicted Pay (b divided by c = d)32.26 13.33
*(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.)
B. T-test Results
Degrees of Freedom (DF) = 91 Value of T = -4.421
a. Avg. diff. in pay from predicted pay for male jobs = -15
b. Avg. diff. in pay from predicted pay for female jobs = 124
III. SALARY RANGE TEST = 100.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 13.00
B. Avg. # of years to max salary for female jobs = 13.00
IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A)
A. % of male classes receiving ESP = 3.23 *
B. % of female classes receiving ESP = 6.67
*(If 20% or less, test result will be 0.00)
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