Loading...
CR2013-010 Approval of the Pay Equity IMplementation ReportJanuary 19, 2013 Report 2013-010 APPROVAL OF THE PAY EQUITY IMPLEMENTATION REPORT Proposed Action. Staff recommends adoption of the following motion: Move that the Hopkins City Council approve, and authorize the Mayor to sign, 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 471.998 1, 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, 2013. This report must be based upon the employees hired and salaries paid as of December 31, 2012. 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 Implementation Report • Pay Equity Background Y `f r James A. Genellie Assistant City Manager Council Report 2013-010 Page 2 Analvsis of the Issues: • Is the City in compliance with the comparable worth law? The City has a copy of 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 82.3% 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. Although the City's value of T, 2.634, means that the difference in predicted pay between male and female classes is statistically significant, Hopkins will still be in compliance because of our underpayment ratio of 82.3%. 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 significant difference. The last test is the Exceptional Service Pay Test which examines additional pay such as longevity. Only two unions receive longevity pay: the police officers and the sergeants. The officers are actually a balanced class for purposes of pay equity. • Has the City submitted reports to DOER in the past? The City last submitted a report in 2010. 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. Pay Equity Implementation Report For Department Use Only Send completed report to: Pay Equity Coordinator Department of Employee Relations 200 Centennial Building 658 Cedar Street (651) 259-3761 (Voice) L 0 St. Paul, MN 55155-1603 (651) 282-2699 (TDD) Part A: Jurisdiction Identification Jurisdiction: City of Hopkins Hopkins, MN 55343 Contact: Assistant City Manager Fax: 6126052330 Email: genellie@hopkinsmn.com Postmark Date of Report Jurisdiction ID Number 1010 1st St S Jurisdiction Type: CITY Jim Genellie Phone: (952) 935-8474 Part B: Official Verification 0 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 System (Specify; Describe: FOCAS system - Center for Evaluation Research 0 Health Insurance benefits for male and female classes of comparable value have been evaluated and There is a difference _:ri and the maximum salaries reported include the monthly amount paid by the employer for health insurance 0 V Information in this report is complete and accurate. 0 ✓1 The report includes all classes of employees over which the jurisdiction has final budgetary approval authority. Part C: Total Payroll $7,959,015.00 is the annual payroll for the calendar year just ended December 31. 0 No salary ranges/performance differences. Leave blank unless BOTH of the following apply: a. Jurisdiction does not have a salary range for any job class. b. Upon request, jurisdiction will supply documentation showing that inequities between male and female classes are due to performance differences. Note: Do not include any documentation regarding performance with this form. 0 An official notice has been posted at: Hopkins City Hall, 1010 1st St S, Hopkins, MN (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: Hopkins City Council Eugene J Maxwell (governing body) (chief elected official) Mayor (title) 1✓I Checking this box indicates legal signature by above official. Date Submitted 01/10/2013 Compliance Report Jurisdiction: City of Hopkins 1010 1st St S Contact: Jim Genellie Assistant City Manager 01/10/201 Phone: (952) 935-8474 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 guidebook. I. GENERAL JOB CLASS INFORMATION B. T -TEST RESULTS Degrees of Freedom (DF) = 75 Value of T = 2.634 a. Avg. diff. in pay from predicted pay for male jobs = $87 b. Avg. diff. in pay from predicted pay for female jobs = -$233 III. SALARY RANGE TEST = 99.47 % (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 8.50 B. Avg. # of years to max salary for female jobs = 8.55 IV. EXCEPTIONAL SERVICE PAY TEST 0.00 A. % of male classes receiving ESP 4.76 B. % of female classes receiving ESP 0.00 * (if 20% or less, test result will be 0.00) Male Female Balanced All Job Classes Classes Classes Classes # Job Classes 21 11 8 40 # Employees 53 24 76 153 Avg. Max Monthly $6,002.36 $5,787.63 $5,217.18 Pay per Employee II. STATISTICAL ANALYSIS TEST Male Female A. UNDERPAYMENT RATIO = 82.3 Classes Classes a. # at or above Predicted Pay 10 4 b. # Below Predicted Pay 11 7 C. TOTAL 21 11 d. % Below Predicted Pay 52.38 63.64 (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) = 75 Value of T = 2.634 a. Avg. diff. in pay from predicted pay for male jobs = $87 b. Avg. diff. in pay from predicted pay for female jobs = -$233 III. SALARY RANGE TEST = 99.47 % (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 8.50 B. Avg. # of years to max salary for female jobs = 8.55 IV. EXCEPTIONAL SERVICE PAY TEST 0.00 A. % of male classes receiving ESP 4.76 B. % of female classes receiving ESP 0.00 * (if 20% or less, test result will be 0.00) BACKGROUND The Minnesota Legislature passed the Local Government Pay Equity Act (Act) in 1984. The Act requireed political subdivisions of the state to establish equitable compensation relationships between female -dominated, male -dominated and balanced classes of employees in order to eliminate sex -based wage disparities in public employment. Federal law already prohibited employers from paying males and females different wages for the same job. The Pay Equity Act required public employers in the State of Minnesota to develop pay systems which would pay similar wages to males and females for different but equivalent jobs. In other words the compensation for positions which require comparable skill, effort, responsibility, working conditions, and other relevant work-related criteria should be comparable. Every political subdivision had to use a job evaluation system in order to determine the comparable work value of the work performed by each class of its employees. The system had to be maintained and updated to account for new employee classes and any changes in factors affecting the comparable work value of existing classes. The City of Hopkins joined with a number of other cities to develop a methodology for comparing different jobs in the organization. The cities ended up developing a system called HRFocus. Below is a brief description on how the HRFocus system evaluates jobs. Job Evaluation Employees from a number of different cities helped put together Questionnaires detailing tasks performed in their jobs. The Job evaluation technique was based on a process of assigning values to all tasks defined within the Questionnaires. Each task was assigned a numerical value to indicate its value. This value was determined by three factors" Complexity- skill, knowledge and creativity required to perform tasks Importance/Responsibility - the significance, impact and consequence of error inherent in the task Unfavorability - adverse working conditions, the level of effort or stress that may be present Every task in the Questionnaires was assigned a total value based upon the three factors. Once the Questionnaires were completed they were given to employees in each individual city. Employees marked the tasks that they performed in their jobs and the approximate time spent on each task. All the task values were added together to come with a total value for each job in the City. This became the basis for comparing disimilar jobs, for example, a secretary's job could now be compared to a maintenance worker's job. Wage adjustments were made in the 1980s as a result of the initial study. Additional changes have been made since that time with a major revision in 2000. The City of Hopkins continues to use an offshoot of the original HRFocus system.