Agenda - Council - 01/09/2024 - Laserfiche WebLink

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5. 23. CC Regular Session Meeting Date: 01/09/2024 Primary Strategic Plan Initiative: Strive for high organizational morale and employee retention Information Title Adopt Resolution #24-026 Directing Staff to Submit the 2023 Pay Equity Report Purpose/Background: The purpose of this case is to seek direction from the City Council to submit the 2023 Pay Equity Report. The Local Government Pay Equity Act and Minnesota Rules require all public jurisdictions such as cities, counties, and school districts to eliminate any sex -based wage inequities in compensation. Pay Equity is a method of eliminating discrimination against women who are paid less than men for jobs requiring comparable levels of expertise. A policy to establish pay equity usually means: 1) that all jobs will be evaluated and given points according to the level of knowledge and responsibility required to do the job; and 2) that salary adjustments will be made if it is discovered that women are consistently paid less than men for jobs with similar points. Attached is the City's 2023 pay equity report which shows that the City is in compliance with the Local Government Pay Equity Act. The compliance report includes four tests: the completeness and accuracy test, the statistical analysis test, the salary range test and exceptional service pay test. The completeness and accuracy test determines whether jurisdictions have filed reports on time, included correct data and supplied all required information. Staff believes the information provided is complete and accurate; however, with submission of the report, the state will determine whether Ramsey has passed the completeness and accuracy test. The statistical analysis test compares salary data to determine if female -dominated classes are paid consistently below male -dominated classes that are of comparable value or job points. The minimum requirement to pass the statistical analysis test is an underpayment ratio of 80%. Ramsey has an underpayment ratio of 86.93182% which means we are in compliance. The T-test results are not considered because the City passed the primary test, the statistical analysis test. The salary range test measures whether male classes are reaching the top of their salary range faster than female classes. This result must be above 80 to be found in compliance. The result of the salary range test for the City is 111.25%, which above 80 and indicates that Ramsey has passed this test. The exceptional service pay test analyzes whether there is a larger percentage of male classes receiving longevity or performance pay than female classes. For this test the result must either be 0 if less than 25% of male classes receive exceptional service pay or above 80. There are no male classes in Ramsey currently receiving exceptional service pay, therefore the result is 0 and indicates that the Ramsey also passes this test. Predicted pay is the average pay of male classes at any given point value. It is calculated by averaging the maximum monthly salaries for male classes in the City. Although predicted pay is the state's standard for comparing how males and females are compensated, it is not necessarily the salary that should be paid at any particular point value. Compensation is typically set by establishing job value points and analyzing internal and external markets without regard for sex; therefore, using the Predicted Pay Report to set wages is discouraged. Included with the Pay Equity Compliance Report you will also find Job Class Data Entry Verification List, which shows the data that has been entered for computation, and a graph that shows how male and female classes cluster around the predicted pay line at various point values. As required by state law, the Pay Equity Compliance Report must be approved by the City Council. Funding Source: