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REQUEST FOR COUNCIL ACTION Date: 1/26/15 Item No.: 8.d Department Approval City Manager Approval Approve 2014 Pay Equity Report Item Description: B ACKGROUND 1 2 The City is required once every three years under the 1984 Local Government Pay Equity Act 3 (M. S. 471.991-471.999 and the Minnesota Rules, Chapter 3920 to provide a pay equity report of 4 its employees. Under the pay equity act employers must test and report on the principle that men 5 and women should be compensated equally for work requiring comparable skills, 6 responsibilities, and effort. Thus, we test our compensation structures and class valuations 7 internally to assure and prove compliance as required. Adjusting male dominated classes in a 8 different fashion than female dominated classes can alter compliance within a class and 9 compensation structure. Non-compliance results in substantial fines until the non-compliance is 10 resolved. 11 12 The regulations for the reporting require the data is to be reviewed by City Council and approved 13 by signature of the Mayor. In order to meet the statutory delivery requirement, this report must 14 be signed and electronically delivered to the Minnesota Department of Management and Budget 15 no later than 1/31/15. 16 17 As is shown on the compliance report (attachment B) it indicates that the City’s compensation 18 system approved by the Council is in compliance at a range rate of 98.50%. A minimum of 80% 19 is required to be compliant. The state makes the final determination on compliance. 20 PO OLICYBJECTIVE 21 To maintain compliance with the Local Government Pay Equity Act. 22 BI UDGET MPLICATIONS 23 There are no budget implications unless the City is found to be out of compliance which does not 24 appear to be the case. If the City is found out of compliance fines may be assessed daily until the 25 City achieves compliance. 26 SR TAFF ECOMMENDATION 27 Staff recommends approval of the 2014 pay equity report. 28 Page 1 of 2