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01-13-2020-R
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01-13-2020-R
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Guide to Understanding Pay Equity Compliance Tests – 10/16 Page 5 <br /> <br /> <br /> <br />In the example on page three, t-test results <br />would not be used because the <br />underpayment ratio is above 80%, but let's <br />assume we needed to check these results. <br />First, we would find 16 in the DF column <br />and then look across to find the value of t at <br />1.746. Since our t-test number is -3.732, <br />well below the value of t on the table, these <br />results would show that on average, females <br />are not underpaid compared to males. <br /> T-Test Table (5% Significance) <br />DF Value of t DF Value of t DF Value of t <br />1 6.314 12 1.782 23 1.714 2 2.920 13 1.771 24 1.711 3 2.353 14 1.761 25 1.708 4 2.132 15 1.753 26 1.706 5 2.015 16 1.746 27 1.703 6 1.943 17 1.740 28 1.701 7 1.895 18 1.734 29 1.699 8 1.860 19 1.729 30 1.697 9 1.833 20 1.725 40 1.684 10 1.812 21 1.721 60 1.671 11 1.796 22 1.717 120 1.658 <br /> Infinity 1.645 <br /> <br /> <br />While the entire method for calculating t-test <br />results cannot be explained here, it is a <br />commonly accepted mathematical technique <br />for measuring statistical significance. The <br />formula is fairly complex, but basically it <br />factors in predicted pay, the dollar <br />difference from predicted pay and the <br />number of employees. The DF number is <br />the total number of employees in male or <br />female dominated classes only, minus two. <br /> <br />8. Average Dollar Amount Male Classes are <br />Above or Below Predicted Pay <br /> <br />In the example on page three, the maximum <br />monthly salary for male classes, on average, <br />is $2 above predicted pay. <br /> <br />9. Average Dollar Amount Female Classes <br />are Above or Below Predicted Pay <br /> <br />In the example on page three, the maximum <br />monthly salary for female classes, on <br />average, is $75 above predicted pay. <br /> <br />10. Salary Range Test <br />This number must be either 0% or 80% or <br />more to pass this test. In the example on <br />page three, 105.71% is passing. <br />Jurisdictions not passing this test can pass it <br /> <br />by reducing the number of years it takes for <br />female classes to reach maximum salaries, <br />increasing the number of years for males to <br />reach maximum salaries, or some <br />combination of both. A result of 0% would <br />mean that either there are no male classes <br />with an established number of years to move <br />through a salary range, no female classes <br />with an established number of years to move <br />through a salary range, or both. A <br />description of how the salary range test is <br />calculated is on page 18. <br /> <br />11. Exceptional Service Pay Test <br />This number must be either 0% or 80% or <br />more to pass this test. In the example on <br />page three, 50% is not passing. Jurisdictions <br />not passing this test can pass it by either <br />increasing the number of female classes that <br />receive exceptional service pay, decreasing <br />the number of male classes that receive <br />exceptional service pay, or some <br />combination of both. A result of 0% could <br />mean that fewer than 20% of male classes <br />receive exceptional service pay or that no <br />female classes receive exceptional service <br />pay. A description of how the exceptional <br />service pay test is calculated is on page 19.
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