HomeMy WebLinkAbout5C, Pay Equity Report�
EN HILLS
Requesti for Council Action
�
�
Fre�ared By: Sue Iverson, Director of Finance �
and Administrative Services � Council Meeting Date: Januazy 31, 20i i
Approve Pay Eqnity Report
Budgeted AmounY: Acivai Amaunt: Funding Source:
NA NA NA
RecommendaEion:
Motion to approve the Pay Equity report dated 11271] 1 as presented.
Supportin�Documents:
1. Memorandum dated January 31, 2011 from Sue Iv�rson.
2. Aay Equity Report dated 1I27I11
3. Guide to Understanding Pay Equity Compliance and Camputer Repart
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�i�EN�H�LLS
MEMORANDUM
DATE; January 31, 2011
TO: Honorable Mayor and City Councilmembers
Patrick HIaers, City Administrator
FROM: Sue I�erson, Director of Finance and Administrative Services
SUBJECT: Pay Equity Report
Sa.ck�round
In 1984, the Minnesota Legislature passed the Local Government Pay Equity Act
(LGPEA) (M.�. 471.991-.999}. Locai gover�ents were given until December 31, 1991
to comply with ihe law and w�re required to file reports with Minnesota Management &
Budget (MMB} by January 31, 1992. AlI jurisdictions were then placed on a three year
reporting cycle with a third of them reporting each year beginning in 7anuary 1994.
Arden Hills last submitted a report in January 2008 which was for salary data as of
December 21, 2007.
Discussion
Our current reporting deadline is January 31, 2011. Attached is the report that will be
submitted for the City of Arden Hills based on salary data as of December 31, 2Q10. Pay
equity is determined based upon saiary data and practices within our own City and not
outside sources. This report shows #hat we are in compliance within our own systern.
Since the reports can be confusing and hard to understand, I have at�ached the "Guide to
Understanding Pay Equity Cornpliance and Computer RepoNt" for your reference in
interpreting the report.
The job points and pay system that was used for tliis report was the one created when the
City Iast did a cornpensaiion systenn and market study in late 2007.
Recommendation
Motion to the Arden Hills Pay Equity report dated 11271ll.
Attachment
Pay Equity Report
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City ofArden Hills
City Council Meetrng for January 31, 2011
Pay Equity Implementation Repart
PartA: Jurisdiction Identification
Jurisdiction: Arden Hi[Is
1245 West Highway 98
Arden Hills
Coniact: 5ue I�erson
Phone: (651) 792-7800
Part B: Official Verifcation
9, The job evaluation system used measured skill, effort
respons9biliiy and working conditions and the same
system was used fpr all classes of empfoyees.
The system used was: Consultant's System
Description: Riley �ettma�n and KeEsey
2. HeaEth Insurance benefits for male and female classes of
comparabEe value ha�e been evaluatecE and:
'Fhere is no difference and female classes are not at a
disad�antage.
J�risdiction Type: City
1/27/2011
E-Mail: sue.iverson@ci.arden-hills.mn.us
3. An official notice has been posked a#:
City Ffal1 Empioyee Bul[etin Board
(Prominent location)
informing employees that the Pay Equity
Irr�piementation Report has been filed and is
availabls io emp[oyees upon req�est. A copy of the
notice has been senk to each exclusi�e
representati�e, if any, and also to the public library.
The report was appro�ed by:
City of Arden Hills
(governing body)
Oavid Grant
(chief elecied afficial)
Mayor
(title)
Part C: Total Payroll
$1,569,225.10
is the annual payrall for the calendar year just encEed
�ecernber 31.
MN 55112
XQ Checking this bax indicates the folfowir�g:
- signature of chi�f elected o�rcial
- appro�al by gaverning bady
- al! information is complets and accurate,
and
- all employees over whic� the jurisdiction has
final budgetary authority are i�cluded
Date Submitted: 0 1 12712 0 1 1
Compliance Report
Jurisdiction: Arder� Hills Repart Year. 2011
1245 West Highway 96 Case: 2- 2Q11 DATA {Shared (Jur and MMB))
Arden Hilis MN 551�2
Contact: Sue l�erson Phane: (651) 792-7800 E-Mail: sue.i�erson@ci.arden-hills.mn,us
The statistical analysis, salary range and exceptional service pay test results are showr� below. Part I is general information
from your pay equity report data. !'arts II, Ill and IV give you the tes# results.
For more detail on each test, refer to the Guide to Pay Equity CorrEpliance and Computer Reports.
I. GEN�RAL JOB GLASS [NFpRMATIbN
# Job Classes
# Ernployees
Avg. Max Monthly
Pay per employee
Ma [e
Classes
8
15
5,223.07
Female
Classes
s
10
5, 099.60
Balancet{ Alf Job
Class�s Classes
a �7
0 25
II. STATISTICAL ANALYSIS T�Si'
A. Underpayment Ratio = 750.00 *
5,173.68
NEale Female
Classes Classes
a. # At ar above Predicted Pay 4 6
b. # Below Rredicted Pay 4 3
c. TOTAL 8 9
d. % Below Predicted Pay 50.00 33.33
(b divided by c = d)
"'(Result is % of male classes below predicted pay dE�ided by % of female classes below predic#ed pay.)
B. T-test Ftes�lts
Qegrees of Freedam (DF) = 23
a. A�g. diff. in pay from predicted pay for rnale jobs = ($13}
b. A�g. diff. in pay from predicted pay for #emale jobs = $4
IIL SALARY RANlGE TEST W 92.86 (Resul# is A di�ided by Bj
A. A�g. # of years tfl max salary for mafe jobs = 6.50
B. Avg. # of years to max salary for fema[e jobs = 7.00
11/. EXCEPTIONAL SERVICE PAY TEST � 0.00 (Result is B divided by A)
A. % of maEe classes receiving ESP 0.00 *
B. % of female classes receiving ESP 0.00
*(If 2D% or less, test result will be D.DO)
Valus of T = -p.439
Arden HilEs
Job Class Data Entry Verification Lisi LGID 378
Case: 2Q'! 1 DATA
Job Class Nbr Nbr Class Jobs Min Mo Max Mo Yrs to Max Yrs of Exceptional
Nbr Title Males Females T e Points Sala Sala Sala Service Service Pa
9 C�stomer Support Rep. 0 1 F 390 $3,070.00 $3,837.00 i.00 0.00
2 O�ce Support Specialist 0 2 F 390 $3,a�a.00 $3,837.00 7.00 0.00
'[6 Recreation Programmer 0 1 F 390 $3,D70A0 $3,837.00 7.00 0.00
3 Accouniing Cferk 0 1 F 455 $3,339.00 $4,173.00 7.00 0.00
4 PW Maintenace Worker 8 D M 457 $3,023.00 $4,243.00 3.00 O.flO
5 Building Enspector 1 0 M 566 $4,159.00 $5,199.Q0 7.00 0.00
't8 Deputy Cleric 0 1 F 566 $4,159.00 $5,999.00 7.00 0.06
S Accounting Analyst 1 0 M 593 $4,159.00 $5,i99.00 7.00 O.Oa
17 FinanceAnalyst 1 0 M 593 $4,159.00 $5,199.00 7.00 O.OQ
7 City Planner 0 1 F 659 $4,456.00 $5,5i0.�0 7.Q0 QOQ
8 PW Superintendent 1 0 M 692 $4,456.00 $5,570.00 7.00 O.OQ
9 Parks and Rec Manager Q 1 F 694 $4,456.Q0 $5,570.00 7.Q0 0.0�
�0 Building Offcial 1 0 M 736 $5,D01.�0 $8,251.QQ 7.00 0.00
�2 Finance �irlTreasurer 0 1 F 958 $6,055.00 $7,568.D0 7.00 0.00
13 Community De�elopment f 0 1 F 958 $6,055.00 $7,568.D0 7.00 0.00
14 PW Director 1 0 M 966 $6,D55.00 $7,568.00 7.00 0.00
15 City Administrator 1 0 M 1,325 $7,533.00 $9,416.D0 7.00 0.00
Job Number Count: 17
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Attachment
Guide to Understanding Pay Equity
Compliance and Computer Report
�
��,�,�s
City ofgrden Hills
City Council Meeting for January 31, 2011
Guide to Understanding
Pay Equity Compliance
and C omputer Rep ort
November 2010
Pay ]Equ�ty �ffice
Minnesota Management & Budge�
4Q0 Centenn�ai Office Bui�ding
65 S Cedar Street
Si. Pau�, MN SS 15S
(651) 259-3761 {Voice)
(651 } 282-2699 (TTY)
www.mmb.staie.mn.us
Table of Confents
I. Guide to Understanding Pay Equity Compliance
II. Tests for Coznpliance
III. Determining Whether the Alternative or Statistical
Analysis Will Be Used
IV. Explanation af Computer Reports
A. Compliance Report
B. Predicted Pay Report
C. Optional Graph Sample
D. Data Entry List Report
V. Alternative Analysis Test
VI. Salary Range Test
VII. Exceptional Service Pay Test
V�II. Method Usec� For Predicted Pay Line Calculation in the Statistical Analysis
Page2
1
2
2
2
3
6
7
7
S
12
13
14
Guide to Understanding Pay Equity Co�npliance and Computer Reports —11/10
Guide �#o Understanding Pay Equity Compliance
In 1984, the Minnesota Legislature passed the Local Government Pay Equity Act (LGPEA) (M.S.
�71.991-.999). Local governments were given until December 31, 1991 to catnply with the law and were
required to file reports with Minnesota Managemen# & Budget (NIlVIB) by January 31, 1992. All
jurisdictions were then placed on a three year reporting cycle with a third of them reportin� each year
beginning in January of 1994. This booklet gives a general overview of how data from the Iocal
government reports is analyzed and how the tests for coanplia�nce are conducted. Complete details of
compliance requirements are in Minnesota Rules Chapter 3920.
This booklet also describes ihe co:mputer software develaped by MMB, This software calculates several
of the tests %r campliance and the reports produced by the software are explained an pages three through
seven.
Guide to Understanding Pay Equity Compliance and Computer Reports —11110 Page 1
Tes�s #'or Compliance
1. Completeness and Accuracy Test -
determines whether j�risdictions have �led
reports on time, included correct data and
supplied all required infonnation.
Statistical Analysis Test - described on
pages three through five, compares salary
data to determine if feznale classes are paid
consistently beiow male classes of
comparable work value (job points). MMB
has developed software that caIcuIates the
results far this test. This test is generally
appIied to larger jurisdictions. For srr�aller
jurisdictions, the alternative analysis is used.
3. Alternative Analysis Test - described on
pages eight through 11, compares salary
data to determine if fennale classes are gaid
below male cIasses even thaugh the female
classes have similar or greater work vaiue
(job points). The software is na� used for
this test.
4. Salary Range Test - described on page 12,
compares the average number of years it
takes for individuats to move t�rougl� salary
ratig�s estabIished �or female classes
compared to male classes. This test only
applies to jurisdictio�s that have a system
where there is an established numher of
years to move through salary ranges.
5. Exceptional Service Pay Test - described
on page 13, compares how often individua�s
in male cIasses receive Iongevity ar
performance pay above the normal saIary
range compared to haw often individuals in
female classas receive this type of pay. This
test applies only to jurisdictions that have a
system that includes exceptianal service pay
Determining Whefher fhe
Alternati�e or Sta�istical
Analysis Will Be Used
1. Alternafive analysis - jurisdiction has:
• Three or fewer male ciasses.
NOTE: Jurisdictions with three or
fewer maie classes may want to skip
over the information an pagas iwo
through seven describing the statistical
analysis and co nnp�ter reparts.
2. StatistieaC analysis - jurisdiction has:
• Six or mora male classes and at least
one class with an established salary
range, or
• Faur or five male classes and an
underpayment ratio of 80% ar more.
May or znay not have classes with an
established salary range.
3. Start iu statistacal analysis but go to
alteraative analysis - jurisdiction has:
• Four or five male classes and an
underpayment ratio below $0%, or
• An underpayment ratio below 80%, six
or more male classes, but no classas
with a salary range.
Explanation of
Computer Reports
In�'ormation contained in the next few pages is
intended to explain the three reports produced by
th� Pay Equity AnaIysis System Software. Look
at the sample reports as you read the following
explanations. Each numbered explanation
corresponds to a shaded nurnber on the examples
on pages three, five and six. For informational
purposes, a sample of an optional graph
produced with tk�a Pay Equify Analysis software
is shown on page seven.
Guide to Understanding Pay Equity Campliance and Computer Reports — 11/10 Page 2
Compliance Report
The statistical analysis, salary range and
exceptional service pay test results are shown
belflw. Part I is general inforrriation from the
Pay Equity Implementation Report data. Parts
II, III and IV of the Compliance Report give test
res�tl#s. For more detaii on each test, refer to
Minnesota Rulas Chaptaz' 3920.
I. GENERAL JOS CLASS IN�ORMATI4N
# 7ob Classes
# Employees
Avg. Max Monthly
Pay Per Employee
Ma�e 1 '� Female ' 2 "
'� E
Classes Classes
8 �
14 4
537.22 1,79b.87
Salanced Ai� Job
Classes Classes
2 14
24 42
1,b56.86 =�' �s �';
Fe�r►ale
Classes
II. STATISTICAL ANALYSIS TEST
4 `;
A. Underpayment Ratio = 150.0* ' Male
Classes
a. � At or above Predicted Pay
b. # Below Predicted Pay
c. TOTAL
d. °/a Be1ow Predicted Pay
(b divided by c = d}
*{Result is % of male classes beIow predicted pay divided by % of fe�x�ale classes below
pr�dicted pay.)
B. T-test Results
Degrees of Freedom (DF} = 1& Value of T=�3.732 ?�
a. Avg. diff. in pay �t'om predicted pay for male jobs =$ 2 '$:_°
b. Avg. diff. in pay frona predictaci pay for female jobs =$75 9:;
10 .�
n?�;;';;;
III. SALARY RANGE TEST = 05.71°/a (Result is A divided by B)
A. Avg. # of years to rna�c satary for male jobs = 5.29
B. Avg. # of years ta ma�c satary for female jobs = 5.00
��K��
IV. EXCEPTIONAL SERV�CE PAY TEST = Sb.00% (Result is B divided by A)
A. % of male classes receiving ESP 50.00*
B. % of female classes receiving ESP 25.00
*(If 20% or less, test rasult wil! be OAO.)
8 4
3'7.50 5. : ' 25.00 s `_
Guide to Understanding Pay Equity Compliance and Computer Reports — 1 ll10 Page 3
Compliance Report
Explanations below correspand to shaded
numbers on page three.
1. Average Magimum Manthly Salary for
Employees in Male Classes
2. Average Maximum Mo�tthly Salary for
Employees in Female Classes
3. Overall Average Maximum Monthly
Salary for an Emgloyee
4. Underpayment Ratio
Tha rninimum requirement ta pass the
statist�ical analysis test is an underpayment
ratio of SO%. The underpayment ratio is
calculated by dividing the percentage of
male classes below predicted pay (item five)
by the percentage of fe�rtale classes below
predicted pay {item six). In the example on
page �hree, 37.5 = 25 = i50%. Jurisdictians
with ari underpayment ratio below 80% can
im�rove their score by increasing salaries
for female classes to at ox abave predicted
pay. Mor� details regarding predicted pay
are on pagas six, and i4 thraugh 17.
If the underpayxnent ratio �s iess than 8p%, a
jurisdiction may still pass the statistica!
analysis test if the t-test res�tlts {explained in
item 7) are not statis�ically signiiicant. The
t-test measures the average dollar difference
from predicted pay for maIe and female
classes.
5. Percentage of Male Classes Belaw
Predicted Pay
This percentage is calculated by dividing the
number of male classes below predicted pay
by tY�e overall total of male cIasses. In the
example on page three, the total of nnale
ctasses is eight, and three fall below
predicted pay. There�ore, �= 8= 37.50%.
6. Percentage of Female C[asses Selow
Predicted Pay
This percentage is calculated by dividing the
number of female classes below predicted pay
by the overall total of female cIasses. In the
example on page three, the total of female
classes is four and ane af those falls below
predicted pay. Therefare, 1� 4— 25%.
7. T-Test & Degrees of Freedom
These numbers are used only for
jurisdictions with an underpayment ratio
below 80%, at ieast six rnale cfasses and at
Ieast one class with a saiary range. Xf the
underpayment ratio is SO% or more,
these numbers are not used nor are Ehey
used for jarisdietioz�s in the alternativc
analysis.
These nutr�bers show the average dollar
amount that males and fe�nales are frorn
predicted pay and answer the question: Are
females paid Iess tY�an males on average and,
is the underpayment of females staiistically
significant?
To deter�r,ine if these numbers show
statistical significar�ce, they must he checked
against the table on page five. Find the DP
number in the "Degrees of Freedom"
column and then look across for the "Value
of T." If the "value of t" on the cornpliance
repart is less than the "value of t" on the
table, it means that either there is no
ur�derpay�nent of female classes or that the
undetpay ment is not statistically significant.
If the t-test n�unber is the same or more than
the "value of t" on the table, the
underpayment for fe�nale classes is
statistically significant and the jurisdiction
would not pass the test.
Salary i�ncreases for female classes sufficient
to eliminate statistical significance wo�ld
allow a jurisdiction to pass the statistical
anaIysis test even with an underpayrrient
ratio helow 80°/o.
Guide to Understanding Pay Equity Gampliance and Computer ReporTs —1 I114 Page 4
In Ehe exaEnple on page three, i-test
results would not be used beeause the
underpayment ratio is above SO%, bui
let's assu�ne we needed to check tl�ese
results. First, we would find 16 in the DF
colunnn and then Ioak acrass to �ind the
value af t at 1.746. Since aur t-test number
is -3.732, well below the value of t on the
table, th�se resuIts would show that on
average, females are not underpaid
compared to rnales.
T-Test Table
{5% Significance)
DF
1
2
3
4
6
7
8
9
10
11
Value of t DF Value of t DF
6.314
2.920
2.353
2.132
2.Q1S
1,943
1.895
1.860
1.833
1.812
1.796
12 1.782
13 1.771
14 I.761
15 1 7S3
� �
`'ti�w�kir��.,�'�� s��;������A.. � . ��:a:�t`�6n=�� r-,_::s>
17 I.740
18 I.734
l9 �.729
24 �.725
21 1.721
22 1.717
23
24
25
26
27
28
29
3Q
40
60
120
Value of t
1.7I4
1.7II
1.7Q8
1.706
1.703
1.701
1.699
1.697
1.b84
1.671
1.658
1.fi45
While the entire method for caIculaiing t-test
results cannot be explained here, it is a
coznmonly accepted rnathematical technique
for measuring statistical significance. The
formula is fairly complex, bu# basicalIy it
factors in predicted pay, the dollar
difference fram predicted pay and the
number of employees. The DF number is
the total number of employees in rrzale or
female daminated classas only, �ninus two.
8. Average Dollar Amount Male Classes are
Above or Below Predicted Pay
In the example on page three, the maximum
monthly salary far male cIasses, on average,
is $2 above predicted pay.
9. Average Dollar Amount Female Classes
are Above or Below Predicted Pay
In the example on page th�'ee, the maximum
monthly salary for female classes, on
auerage, is $75 above pr�dicted pay.
10. Sa[ary Range Test
This number must be either 0% or 80% or
more to pass this test. In the example on
paga three, i 45.7 i% is passing.
Jurisdictions not passing this test can pass it
by reducing the number of years it takes for
ferriale classes to reach maximum salaries,
increasing the number of years for males to
reach maximum salaxzes, or some
combination af both. A result of 0% would
mean that either there are no male classes
with an estabIished nu�nber of years to move
through a salary range, no female classes
with an estabIished nu�nber of years to move
through a saIary range, or l�oth. A
descriptian of how the salary range test is
calculated is on page 12.
1 I. Exceptiona[ Service Pay Test
This number nnust be either 0% ar 84% or
more ta pass this test. In the exatnple on
page three, 50% is not passing. Jurisdictions
not passing this test can pass it by either
increasing ihe nunnber of fernale classes that
receive exceptional service pay, decreasing
the number of �nale classes that receive
exceptional service pay, or sozne
combination of both. A result of p% could
mean that fewer than 20% of male cIasses
receive exceptional service pay or that no
female classes receive exceptional service
pay. A description of how the exceptional
service pay test is caIcuIated is on page 13.
Guide to Understanding Pay Equity Compliance and Computer Reports — 11110 Page 5
Predicted Pay Report
Explanations correspond to shaded numbers
below.
This report can be printed after the results are
computed. The predicted pay and pay di�arence
columns are helpful in analyzing tha cost of
adjusting the salary for any given class.
1. Predicied Pay
Ti�e most simpizstic de�nition af predicted
pay is tnat it is the average pay of maIe
classes at any given point vaiue. Predicted
pay is calculated by averaging the maxianum
monthly salaries far male classes in the
jurisdictian. It is the standard for comparing
how males and females are campensated.
Predicted pay is a mirror, or z'eflection, of
the current corz�pensation practice within a
juzisdiction for male classes, but is not
necessarily the salary that "should° be paid
o4lzo�9z
7ob
Number Class Title
i Box Ofiice
2 Stage Crew
3 Props Chief
4 Costume Designer
s s�c T��n.
6 Lighting Tech.
7 Effects Eng.
8 Stage Manager
9 Wz�ter
10 Marketing
Director
11 Actor/Actress
12 Director
13 �roc�ucer
14 General Manager
1 9 : 2 ;...
;:,,,-\ \
Page 1
at any particular point level. Speci�c detaiis
af the metl�od used to calculate predicted
pay is explained in pages 14 through 17.
The graph on page seven shows a"predicted
pay Iine" and how male and feznale cIasses
scatter around that line. Predicted pay
amoun.ts are determined onIy fram the
jurisdiction itself, not from any externa�
factors or salaries.
2. Pay Di#ference
Shows the dollax amount that m�imum
�nanthly salaries fall above or below
predicted pay. If a jurisdiction daes not pass
#he statistical test attd needs to increase
salaries for #�emale classes, either to reach an
underpayrt�ent ratio of &0% ar eliminate the
statistical significance of the t-test, #his
information is useful in calculating the cost.
For example, the cost to increase the female
class of "stage manager" to predicted pay
would be $6.20 per rnanth.
Predicted Pxy Report
Male Female Total
Empl Empi Emp[
1
6
r
0
i
1
1
a
i
1
I
I
a
I
4
Q
4
i
a
0
2
7
i
1
1
1
1
1
i
I
10
1
Q
a
12
0
1
i
22
1
I
1
Work M�. Mo. Predicted � Pay
Sex Points Salary Pay Difference
�
M
M
F
M
M
M
F
M
M
B
M
F
F
110
130
14Q
142
isa
164
179
180
rso
200
217
24&
2b4
300
I ,4fl0.41
1,450.26
1,4b0.94
1,575.89
1,5b0.75
1,625.50
1,645.22
1610.30
1,590.19
1,640.85
1,730.85
1,795.7b
1,900.60
2,100.67
1344.82
1 ��47.15
1495.59
1505.17
1540.12
1598.54
1b17.17
1616.50
i6i6.sa
1689.43
1714.27
1799.79
1830.73
1933.91
55.59
3.11
-34.55
70.72
2fl.63
26.96
28.OS
-6.20
-26.31
1.42
16.48
-4.43
69.87
16b.76
Guide to Understanding Pay Equity Comp[iance and Corttputer Reports - 11110 Page 6
Opfiional Graph
Pred�cted Pay for Sfageville Theatre
22fl�
2114.4
2028.8
1943.2
t 857.B
r
�
� 1772
Q
w
1886.4
16D0.8
1515.2
1429.6
1344
i
POI NTS
Data Entry List Repoirt
Shows the data that has been entered for computation. This report should be carefully re�iewed before
computing ik�e results. If any errors are found, they must be carrected before computing results.
Data Entry List
❑ O 0
Predicted Female Jobs Male Jobs Balanced Jabs
04/20/92
7ob
Number
1
2
3
4
5
6
7
$
9
IO
I1
I2
13
Ih
Class Title
Box OFfice
Stage Crew
Praps Chief
Costume Designer
Set Tech.
Lightzng Tech.
Effects Eng,
Stage Manager
W riter
Marke#ing
Director
A.ctarlAct�ess
Director
Producer
General Manaeer
Male Female Work Min. Mo. Max Mo.
Empl Empl Points Salary Salary
1 1 J.10 1,20Q.D0 1,400.41
6 1 13 0 1,25Q.00 1,450.26
1 0 140 1,260.00 1, 460.9�
0 1 142 I,375.Q0 1,575.89
1 0 150 I,3b0.00 1,560.75
1 0 164 I,400.00 1,625.Sa
1 0 179 1,425.00 1,645.22
0 1 180 1,425.Q0 1,610.30
1 0 180 1,4QO.Q0 1,590.19
1 0 200 1,490.00 1,b90.8S
10 12 217 1,500.00 1,730.85
1 0 248 1,b00.00 1,795.76
0 1 260 1,700.00 1,900.60
0 1 300 1,800.00 2,i40.67
Page 1
Years Nbr Yrs Exceptioz�al
to Max Service Service Pay
4
5
5
5
5
b
6
5
6
4
Longevity
�.angevity
Longevity
Longevity
I.ongevity
4
Performance
Guide Eo UncEerstanding �ay Equity Compliance and Computer Reports — 1 i110 Page 7
Alterna�i�e Analysis Test
The minimum requirement to pass this test is that:
a) th�re is no compensation disadvantage far at least SO% of female classes compared to male
classes; or,
b) compensation differences can be accounted far by years of service or performance.
On the next few pages the four possibilities that exist for inequities or a compensation disadvantage are
described.
1. A female cIass with higher points has less cotnpensation than a male class with lower points.
Exa�ple: In this case, the female job class af city clerlc has more points but less pay than the male
job class of nnaintenance supervisor.
Max.
Class Monthly
Job Title Tvpe Points Sala
City Cler�C F 275 $1b65
Maint. Sup. M 171 $1925
The minirr�um requirement to correct this inequity is that the female class must have a salary at least
equal to that of the male class.
Graph illustrating inequi�y for feznale job class.
�e�a�� �I�ss Mare P��r�� �ut Less Pay
.�,
�
.
�
�
�
�
Guide to Understanding Pay Equity Compliance and Cornputer Reports —11/10 Page 8
'�f��} '�8� �I�� 220 �4� 2�{� �${}
Paint� ����'���s
i���le�s
2. A fernale class has the same points as a male class but less compensatian.
Egample: In this case, the female job class of secretary and the male job class of maintenar►ce have
the same points but fhe secre#ary receives less pay.
Max.
Class Monthly
Job Tit1e Tvt�e Paints Sa�
City Clerk F 275 $22b5
Maintenance M 171 $1900
Secretary F 171 $1630
The mini�num requirement to correct this inequity is that the female class �nust have a salary at least
equal to the male class.
Graph illustrating inequiiy for fe�nale job class.
���}�
22�0
2���
��0�
�
�
d- i 900
�5��
� 7�f�
16�1�
�er��i���' �I��� �a�rie �'t�l�� i�€�� �.es� ���
�
Ferr��E� �I��� ���h s��e pc3i��s
, �' �� e��le cias�s
��� ��a
��
.�.
I
��a ��� ��� �sa
��.�����
Guide to Understanding Pay Equity Compliance and Computer Reports —11/10 Page 9
3. A female class has points between two male cIasses but compensation is not between or above the
two male classes.
Example: In this case, the female job class of receptionist has points between two male classes but
receives less pay than either of �hem.
M�.
Class Monthly
7ob Title Tvpe Points Sala
City Clerk F 275 $2370
Maintenance M 17I $1900
Receptionist F 141 $1250
Custodian M 11I $1500
The minimum requiretxaent to correct this inequity is that Ehe female class must have a salary
somewhere between the two maie classes.
Graph illustrating inequity for female job class.
F�rr�af� �I��� �nr�th Pc�in� �etr�r��n ��� L��� F���
��oo�...�..__.�. ��..��.,� �..W__.. �...�...._ __ __ �_�....�.,r
��
t��
�
� � ��30
.��
�
'� 400 F����� ���� ���rnr��n
� �a ��fi� �iass�s
i;,���
1 �t�t�
���i ��� 140 ��Q �8(} �OC� ��C# ��D 2fiQ 2��
I��i�t'�s F�m��es
`����,� Iltt����
Guide to Understanding Pay Equity Gompliance and Computer Reports — l l/lfl Page 10
4. A fe�nale class{es} rated lower �han all zx�aIa classes is not compensated as reasonably proportionate to
points as other classes.
Example: In this case, the reiaiI clerk has a salary of $700 per month below the custodian but only
six fewer points. For all other jab classes where there is a salary difference, there is a larger
difference in points. Far exatnple, the rnaintenance supervisor's salary is $300/month less than the
palice afficer and there is a difference af 23 points.
Job Titie
City Clerk/Admin
Police Of�cer
Maintenance Sup
Adz�riin. Sec.
Custodian
Retail Clerk
While some difference in salary is acceptable due to the point difference, the saIary for the retail clerk
with 105 points must be rr�uch closer to the saiary for the custodian with 111 points. When there is a
question regarding the salary for f��naIe class or classes rated lower thar► all �nale ciasses, #he
judgm�nt is mada an a case-by-case basis, and the main consideratians are tne reiationship of points
and pay between other classes in the jurisdiction and past history of pay relationships that were
prevaously in comgliance. In this case, tha zxAinimum requirement to correct this inequity would be
that the salary for the retaiI clerk would be approximately $1,650/mon#h.
Graph illustrating inequity for female class.
���� ��
350D
�{����
�
C�t3
� 25�0
2�0�0-
�
'i 5ti� �
�
���� � �
���
�.
�
0
Max.
Class Monthly
Tvne Points Salary
F 275 $3500
M 236 $3200
M 213 $2900
F 173 $2400
M ll 1 $ i 800
F 105 $1100
��
��n�fe G�a� r�C�d lo�2r
than a�1 mate clas5�s
'� �� � �� � �� �I $Q �i�� ��� ��� ���} ���}
��m�l��
PointS �� ������.
Guide to Understanding �ay Equity Compliance and Computet Reports —11/I0 Page 11
Salary Range Test
This is an example to show how the salary range test is calculated. It is not necessary to calculate this test
manually if the software is being used. If the software is not being used, the fottowing steps will produce
a result %r this test. Information is recorded for male ar female classes on�y, not balanced classes. The
information for this example is taken from the Data Entry List Report on page seven.
Ji3RISDICTION: Stageville Theatre
Step 1
LooCc at the "years to max" column and identi�y male classes with an established number af years to
move through a salary range.
Title
Stage Crew
Praps ChieF
Set Tech
Lighting Tech
�ffects Tech
Writer
Marketin Director
7 total classes
r�
Years to Mag
5
5
5
6
6
6
4
37
Calculate t�e average years to reach rnEaximun� salary for �ma[e classes:
A. Total years from Step 1 37
B. Total classes from Step 1 7
C. Divide 2A by 2B 37 = 7= 5.28
�
total years
average years to m�
Look at the "years to xnax" columz� and ide�ti�'y female classes rvith an esiableshed number af years
to move through a salary range.
Title
Costume Designer
Stage Manager
2 total classes
Step 4
Years to Max
5
5
l0 total years
Calculate the average years to reach maximum sa[ary for female c[asses:
A. Tota� years from Step 3 IO
B. Tokal classes from Step 3 2
C. Divide 4A by AB 10 -�- 2= 5
Step 5
Divide 2C by 4C and muitiply by 100. 5.28 = 5= 1.05 x 1p0 = 1OS%
Enter this result in Part C of the Pay Equify In�plemeutatio� Report.
average years to max
Guide to Understanding Pay Equity CompIiance and Computer Reports — 11110 Page 12
Exceptional Service Pay Test
This is an example to show how the exceptional service pay test is calculated. It is not necessary to
calcuIate this test manually if the software is being used. If the soflware is not being used, the following
steps will produce a resuit for this test. The information foX this example is �aken from the Data Entry
List Report on page seven. Infortnation is recorded for male or female classes only, not balanced classes.
St�p 1
Look at the "exceptiona[ service pay" column and calculate the �ercentage of male classes receiving
exceptional service pay.
A. Total number of male classes where an empIoyee 4
receives exceptional service pay.
B. Total number of male cIasses in the jurisdictian. 8
C. Divide IA by 1B and multipiy by 100. 4= 8=.54 x 140 = 50%
If result of iC is 20% or less, stap here and check appropriaie box in Part D of report for�n.
If result is more than 20°/a, go on to Step 2.
Step 2
Look at the "exceptional service pay" column and calculate the percentage of female classes
receiving exceptional service pay.
A. 7'otal number of female classes where an employee 1
receives exceptianal service pay.
B. '�otal number of ferriale classes.
4
C. Di�ide 2A by 2B and rr�ultiply by 100. 1= 4=.25 x I00 = 25%
Step 3
Calculate the ratio af femalelmale classes receiving exceptional service pay.
Divide 2C by 1C and multiply by 100. 25 = 50 =.50 x 100 = 50%
Enter result in Part D of the Pay Equity Implemen�ation Report.
Guide to Understanding Pay Equity Co�npliance and Computer Reports -� 11/10 Page 13
Method Used for Predicted Pay Line Calcufation in the Statistical
AnaNysis
The fo�lowing explanation is a general
description of i�ow predicted pay is calculated
but doas n.ot include all details of the formula in
Minnesota Rules Chapter 3920.
Basis of the Statistieal Analysis
A. The definition in �he Loca1 Government Pay
Equity Act for equitable compsnsation
relationship says "...compensation for
female-dominated ciasses is not consistently
below the compensation for �nale-dominated
classes of c�mpa�rable value..."
B. The fozmula for the statistical analysis is
based an three concepts found in the above
definition: compaxable value, mala
compensation and consistently below.
�,
:�
�
� +
3�0 �----�-----••------- . ........ ...............-• ----- ��. . ..... ......--
� T1'il
l �fjf.�
�
* *
��� aub n
........ __'— 1� y,� .... . .... ................
� i, * �` i class 3eing analyzen
.......... I . ....i _ ... . . .
� .I � ......... .......
I �
t I
F I
Except for classes in the lower and upper
i0% of the point range, comparable value is
da�ned by drawing a 20% window around
the job class being analyzed. Each windaw
extends 10% of the range of points on each
side of the class. In the exaznple, there is a
range of 200 points from lowest to highest,
so 10% wouid be 20 points. Each window
tnust have at least three rnale classes {two of
which have different points) and rt�ust
include at least 20% of all male classes in
�he jurisdiction. If this cri�eria is not met,
the window wili expand at 5% incremen�s
on either side until the required number of
male classes are incluc�ed. The drawing
below shows one window for one class.
�----- *
�
------� �-��--... � . ..........................--...
....---��-----.....--�•---...----••----..........-------�--'
+
.............---...---...---.........••••..........---....._s
i
�
. . . . . ... . . ... . . .. • • •. . .. _.. . • • • •...---.....---- ----.. . .... �
1�f� '�t� � f� 18� �UD 2�� �4� 260 2�} 30�
Poir�
* h![a[e Jab� �+ F�rn Joba .._!
L Defining "Comparable Value
Guide to Understanding Pay Equrty Compliance and Computer Reports —1 II10 Page 1�
II. Defir�ing "Ma[e Carr�pensation" or "Predicted Pay
A. The first step in defining male compensation is to draw a"mini" regression line through the male
classes in the window.
dt100
�..
3.*'i00� .... .. ...... .._.. _ ..,..........
�
class he'sng analyzed y.
1 # t
�
....... � -- ;.,y �,�,......._......._.-�----..... .............
f ��
[ .� {
...---�-E •
o f
E
4
�
150D+�-
�0�
- •-•-- # � i
+
.....--•----- •--•• -•-......L .. __* ......... .....•- ••--- ••---...--�i
140 1�0 194 �00 :�4 240
PaInL�
� *' M�de,lohs � �e,m ik�
c :�;
B. The second step in deiining male compensation is to look at the class ba�ng analyzed and #he same
point on the mini regresszon line. This point is calIed predicted pay.
�iIOQ i . .. ._ . ._
�
�.�M7�'I •, .,._ ....................�--....-•---...--•--................._.. ,....... ..._....z...._.�..._..-•--•----.......
+
300�� � .......--��---....--------� .......................... ............----�---...----....---..... ......_......
+
class 6eing an�yzed *
�
-------
2�00 -•...---•._� �� �1 ... ...............•--...._..,....__...._...........
. . _.. ...--------------••-•---..
I f
� ��'�f PF9�IGC�d �dy
I�� } E
........ ..._ ....... ........
....u_..._I � ..............__.........__.._..."'....__....."
�� �
� 5k1� k •• �
1�Q 120 14Q 1�,7 1�0 �CO 22{3 24t? 2�D ��U :it][1
Poinls
+ M�le Jol� ^ F��l ,�utx� �
Guide to Undarstanding Pay Equity Compliance and Computer Reports —11/10 Page 15
III. Defining "Corosistently Below"
A. A deterrnination is made as to wheth�r the
class being analyzed falis above or below
predicted pay. In the example, the female
class being anaiyzed is abave predicted pay.
B. A new window is drawn when the next class
is analyzed. This continues until all classes
have been analyzed.
�
�
r"'�if�i[I -•-•---._...._._...._......... � # .
F
�� � �iw * k
{fi�WL ... � -.-......T-__��'_'-'_'-_-'_"__.-._..._.._�.........�.�....�'�.��'��.�..��.....��.�....i
r��71rJ
1 � �
� G�[a YaIFLQN � # I �' �
�F��('RIY�x i I �
. •� • . �
� ..._�• � - o � �....._...._._.....__......__.....--•-�--�--._._._..._._...-�-�--�-�-
I : "�I.naxl clesshe*'C enei�=a�i
i I
� ,i, i •r I
�?L�`,l � ; i ; i . ... .. ,. ... . .,_ . . . . .
, .
, , . i
. .
150�" � ' � ' '
1 pQ 1�Q �d� 1f+� ��0 �Q ?�0 2�30 �3 �4 �:
��
�` l�r��.lab� � F�rn J�s
C. When ali the cIasses have been analyzed, a predicted pay line is drawn.
�
�
rEF�
�
� l f
........................... � �.+..�..._.. ..--- ��---.._I
� �` �
........................... ... ........... _....�...
�r-�-..__ _ .
...y^-�
� t
........... . . � . � �❑.......................
��........
�*
.. ..... +� . .. "
p��
150�; �-�� �--• � �
100 12� 1�� 10Q 1�i1 200 2�R 24Q ��3 28� 30D
�ain1S
I.... Pr�ed #�a�r * Mal� .Irrtxs � Fe�n .lnbs..
predicted
pay line
Guide to Understanding Pay Equity Compliance and Computer Repor#s --1 I110 Page 16
D. The tabulatian of the number of rriale and
female classes above and below the
predicted pay line is �►ade.
For example:
F above = 3 M above = 6
F below = 1 M belaw = 4
Total = 4 Total = 10
E. The percentage of male and female classes
below predicted pay is calculated by
dividing the number of classes below by the
total number af classes in each group.
Female classes: i= 4 — 25%
Male classes: 4= 10 = 40%
F. The percentage of male cIasses below
p:redicted pay is divided by the percentage of
female classes below predicted pay. This
produces the "underpayment ratio."
40% = 25% =160%
G. An underpayment ratio below 80°/a shows
that female classes are compensated
"consistently below" male classes o�
compa.rable value. If�e underpayment
ratio is below 80%, �urther analysis is done
to determina if the underpayment of females
is statistically significant. Using the t-test, a
determination is made whether or not the
doliar difference is statistically signiiicant.
Details af the t-test can be faund on page
four.
Guide to Understanding Pay Bquity Campliance and Computer Reports — l l/lfl Page I7