Agenda - Council - 01/26/2021 - Laserfiche WebLink

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CC Regular Session Meeting Date: 01/26/2021 By: Colleen Lasher, Administrative Services Information Title Adopt Resolution #21-03 5 Directing Staff to Submit the 2021 Pay Equity Report 5.13. Purpose/Background: The purpose of this case is to seek direction from the City Council to submit the 2021 Pay Equity Report. The law requires each local government to analyze its pay structure for evidence of inequities, and to report this information to the Department of Management and Budget every three years. Most Minnesota cities are also subject to the Equal Pay for Equal Work Law, which is a different law from the Pay Equity Act but also prohibits discrimination in pay based on sex. Pay equity is designed to address the problem of a wage structure in which there is one pay pattern for jobs performed mostly by men and another pay pattern for jobs performed mostly by women. Pay equity primarily affects pay structure, not pay level or pay method. An employer can still have a pay level that is different than other employers. Attached is the City's 2021 pay equity report which shows that the City is currently out of compliance with the Local Government Pay Equity Act. The report includes four tests: the completeness and accuracy test, the statistical analysis test, the salary range test and exceptional service pay test. Of the four tests, one test (statistical analysis) is noncompliant with a score of 62.06896 which required a minimum score of 80. Per the League's memo (attached) If a city is found not in compliance, a notice will be issued to that city. A city in disagreement with such a finding may notify the Commissioner and will be given a defined period of time during which additional information may be submitted for reconsideration of the finding. In the event compliance is not achieved within the defined time period set by the commissioner, the commissioner will notify the city and the commissioner of revenue the city is subject to a five percent reduction in the aid that would otherwise be payable to that city, or to a fine of $100 per day, whichever is greatest. Cities may appeal the imposition of a penalty by filing a notice of appeal with the commissioner within 30 days of the commissioner's notification to the city of the penalty. No penalty may be imposed while an appeal is pending. Staff will be working closely with the Pay Equity Coordinator, the League of Minnesota Cities, as well as the City Attorney in order to form a recommendation to overturn or correct the findings of the report. As required by state law, the Pay Equity Compliance Report must be approved by the City Council. There are multiple attachments for review. Funding Source: There is no cost associated with approving and submitting this report. Recommendation: Direct staff to submit the 2021 Pay Equity Report. Action: