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Compliance Report <br />Explanations below correspand to shaded <br />numbers on page three. <br />1. Average Magimum Manthly Salary for <br />Employees in Male Classes <br />2. Average Maximum Mo�tthly Salary for <br />Employees in Female Classes <br />3. Overall Average Maximum Monthly <br />Salary for an Emgloyee <br />4. Underpayment Ratio <br />Tha rninimum requirement ta pass the <br />statist�ical analysis test is an underpayment <br />ratio of SO%. The underpayment ratio is <br />calculated by dividing the percentage of <br />male classes below predicted pay (item five) <br />by the percentage of fe�rtale classes below <br />predicted pay {item six). In the example on <br />page �hree, 37.5 = 25 = i50%. Jurisdictians <br />with ari underpayment ratio below 80% can <br />im�rove their score by increasing salaries <br />for female classes to at ox abave predicted <br />pay. Mor� details regarding predicted pay <br />are on pagas six, and i4 thraugh 17. <br />If the underpayxnent ratio �s iess than 8p%, a <br />jurisdiction may still pass the statistica! <br />analysis test if the t-test res�tlts {explained in <br />item 7) are not statis�ically signiiicant. The <br />t-test measures the average dollar difference <br />from predicted pay for maIe and female <br />classes. <br />5. Percentage of Male Classes Belaw <br />Predicted Pay <br />This percentage is calculated by dividing the <br />number of male classes below predicted pay <br />by tY�e overall total of male cIasses. In the <br />example on page three, the total of nnale <br />ctasses is eight, and three fall below <br />predicted pay. There�ore, �= 8= 37.50%. <br />6. Percentage of Female C[asses Selow <br />Predicted Pay <br />This percentage is calculated by dividing the <br />number of female classes below predicted pay <br />by the overall total of female cIasses. In the <br />example on page three, the total of female <br />classes is four and ane af those falls below <br />predicted pay. Therefare, 1� 4— 25%. <br />7. T-Test & Degrees of Freedom <br />These numbers are used only for <br />jurisdictions with an underpayment ratio <br />below 80%, at ieast six rnale cfasses and at <br />Ieast one class with a saiary range. Xf the <br />underpayment ratio is SO% or more, <br />these numbers are not used nor are Ehey <br />used for jarisdietioz�s in the alternativc <br />analysis. <br />These nutr�bers show the average dollar <br />amount that males and fe�nales are frorn <br />predicted pay and answer the question: Are <br />females paid Iess tY�an males on average and, <br />is the underpayment of females staiistically <br />significant? <br />To deter�r,ine if these numbers show <br />statistical significar�ce, they must he checked <br />against the table on page five. Find the DP <br />number in the "Degrees of Freedom" <br />column and then look across for the "Value <br />of T." If the "value of t" on the cornpliance <br />repart is less than the "value of t" on the <br />table, it means that either there is no <br />ur�derpay�nent of female classes or that the <br />undetpay ment is not statistically significant. <br />If the t-test n�unber is the same or more than <br />the "value of t" on the table, the <br />underpayment for fe�nale classes is <br />statistically significant and the jurisdiction <br />would not pass the test. <br />Salary i�ncreases for female classes sufficient <br />to eliminate statistical significance wo�ld <br />allow a jurisdiction to pass the statistical <br />anaIysis test even with an underpayrrient <br />ratio helow 80°/o. <br />Guide to Understanding Pay Equity Gampliance and Computer ReporTs —1 I114 Page 4 <br />