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v <br />LMC INFORMATION MEMO <br />LEAGUE of Local Government Pay Equity Act: An <br />MINNESOTA <br />OverviewCITI <br />Learn about Minnesota law requirements to analyze city employee pay structure for evidence of <br />gender inequity. How to use a job evaluation system to determine the comparable work value of each <br />employee class. State requirements for a pay equity implementation report. Maintaining equitable pay <br />relationships; effects of noncompliance. <br />RELEVANT LINKS: <br />1. History <br />Minn. Stat. §§ 471.998 - .999. <br />In 1984 the Minnesota Legislature passed a bill extending pay equity to all <br />Minn. Stat. § 471.992 subd. <br />1. <br />local governments in the State. The law requires each local government to <br />Minn. R. 3920.0200. <br />analyze its pay structure for evidence of inequities, and to report this <br />information to the Department of Management and Budget (the <br />"Department") every three years. Most Minnesota cities are also subject to <br />the Equal Pay for Equal Work Law, which is a different law from the Pay <br />Equity Act but also prohibits discrimination in pay based on sex. <br />11. Concept of pay equity <br />Compensation programs generally have three parts: <br />• Pay level the level an employer pays in comparison to other <br />employers. <br />• Pay structure the relationships among jobs in an organization. <br />• Pay method the set of policies and procedures for paying individual <br />employees. <br />Pay equity is designed to address the problem of a wage structure in which <br />there is one pay pattern for jobs performed mostly by men and another pay <br />pattern for jobs performed mostly by women. Pay equity primarily affects <br />pay structure, not pay level or pay method. An employer can still have a pay <br />level that is different than other employers. The city can still pay more to <br />For information on types of <br />recognize individuals' seniority and performance. One way to do this is to <br />pay systems see HR <br />establish salary ranges for each job class and reward employees for <br />Reference Manual, Chapter 4. <br />seniority, performance, or both by moving them through the salary range. <br />III. Job evaluation system <br />Minn. R. 3920.0100 subp. 8. <br />Every city must use a job evaluation system to determine the comparable <br />Minn. Stat. § 471.994. <br />work value of the work performed by each class of its employees. System <br />options are: <br />This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. <br />145 University Ave. West www.Imc.org 11/17/2020 <br />Saint Paul, MN 55103-2044 (651) 281-1200 or (800) 925-1122 © 2020 All Rights Reserved <br />