5.d) 2012 Pay Equity Implementation Report Meeting Date: 2/21/2012
Agenda Item: � � �
City Council Agenda Report
City of Scandia
14727 209�' St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Approve the 2012 Pay Equity Implementation report to the State of
Minnesota.
Deadline/Timeline: Deadline was January 31, 2012.
Background: • All Minnesota local governments are required to file a report every
three years. A description of the Local Government Pay Equity
Act is attached.
• Because of the deadline it was necessary to submit the report
(prepared by Springsted, Inc., attached) prior to the Council's
review. Scandia had only four positions (as of 12/31/11) that met
the reporting criteria of having worked an average of 14 hours per
week and 67 days per year in 2011. Two positions reported in
2009 (Maintenance Supervisor and Building Official) have been
eliminated.
• As for prior reports, the State Job Match system was used as the
job evaluation system to determine the number of points for each
position.
• The report shows a significant difference in the wage level
between the Deputy Clerk and the Maintenance Worker positions,
which only have a 2 point differential in the established job points.
This is partly due to the difference in health insurance benefits
paid by the city. A non-compliance notification from the state
may result.
Recommendation: I recommend that the Council approve the report.
Attachments/ • Pay Equity Implementation Report
Materials provided: • "Local Government Pay Equity Act: an Overview", League of
Minnesota Cities
Contact(s):
Prepared by: Anne Hurlburt, Administrator
(pay equity report)
Page 1 of 1
02/09/12
Pay Equity Implementation Report 2/6/2012
Part A:Jurisdiction Identification
Jurisdiction: Scandia Jurisdiction Type: City
14727-209th Street North
Scandia MN 55073
Contact: Anne Hurlburt Phone: (651)433-2274 E-Mail: a.hurlburt@ci.scandia.mn.us
Part B:Official Verifcation
1. The job evaluation system used measured skill,effort 3. An official notice has been posted at:
responsibiliry and working conditions and the same
system was used for all classes of employees. City Hall Bulletin Board
(prominent location)
The system used was: State Job Match
informing employees that the Pay Equity
Description: implementation Report has been filed and is
available to employees upon request. A copy of the
notice has been sent to each exclusive
representative, if any,and also to the public library.
The report was approved by:
City Council
2. Health Insurance benefits for male and female classes of (governing body)
comparable value have been evaluated and:
Randall Simonson
There is a difference and the maximum salaries reported (chief elected official)
include the monthly amount paid by the employer for
health insurance. Mayor
(title)
Part C: Totai Payroll XQ Checking this box indicates the following:
-signature of chief elected official
-approval by governing body
$219,424.00 -all information is complete and accurate,
and
is the annual payroll for the calendar year just ended -all employees over which the jurisdiction has
December 31. final budgetary authority are included
Date Submitted: 01/30/2012
Scandia
Job Class Data Entry Verification List LGID 14fi6
Case: 2011 Data .
Job Class Nbr Nbr Class Jobs Min Mo Nax Mo Yrs to Nax Yrs of E:ceptionai
Nbr Title Males Femates Type Poir�ts Satary Salary Salary Service Service PaY
1 Parks/Grounds Maint 1 0 M 136 $Q.00 $2,080.00 0.00 2.00
2 Depnty Clerk 0 1 F 192 $d.00 $3.651.00 0.00 6.00
3 Maintena�oe Worker FT 2 0 M 194 $3,3fi4•QO $5,427.00 8.00 5.00
4 City Administrator 0 1 F 483 $0.00 $8,316_00 0.00 6.00
Job Number Count 4 �
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j.,EAGUE oF CONNECTING & INNOVATING
MINNESOTA SINCE �913
CITIES
HUMAN RESOURCES & BENEFITS INFORMATION
LOCAL GOVERNMENT PAY EQUITY ACT:
AN OVERVIEW
In 1984 the Minnesota Legislature passed a bill extending pay equity to local governments in the
State. The law requires each local government to analyze its pay structure for evidence of
inequities, and to report this information to the Deparhnent of Employee Relations(the
"department").
Concept of Pay Equity
Compensation programs have three parts:
✓ Pay level -the level an employer pays in comparison to other employers;
✓ Pay structure-the relationships among jobs in an organization; and
✓ Pay method-the set of policies and procedures for paying individual employees.
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 affects pay structure,NOT pay level or pay method. An employer can still have a pay
level that is different than other employers. The city can still pay more to recognize individuals'
seniority and performance. One way to do this is to establish salary ranges for each job class and
reward employees for seniority,performance or both by moving them through the salary range.
Job Evaluation System
Every city must use a job evaluation system to deternune the comparable work value of the work
performed by each class of its employees. System options are: use the state job match,use or
modify systems used by other public employers, design your own system, or purchase a privately
owned(consultant's) system. No matter what job evaluation system is used, it must be updated to
account for:
✓ New employee classes; and
✓ Any changes in factors affecting the comparable work value of existing classes.
Cities should be aware that(1)when substantially modifying their job evaluation
system or adopting a new system they must notify the Commissioner of the
Department of Employee Relations (the"commissioner"); and (2)the results of any
job evaluation system and subsequent reports may be used in any proceeding or
action alleging discrimination.
145 UNIVEILSITY AVE.WEST PHONf:(6S�)ZS1-1200 F�x:(651)281-1299
ST. PAUL, MN 55103-2044 TOLL fREE:(HOO)9ZS-1122 WEB:WVYW.LMC.OAG
Pay Equity & Bargaining Units
✓ Cities must meet and confer with the exclusive representatives of their employees on the
development or selection of a job evaluation system.
✓ A report containing the results of the job evaluation system must be provided to the exclusive
representatives of the employees to be used by both parties in contract negotiations.
✓ In interest arbitration(for any class other than balanced)the arbitrator shall consider pay
equity, including results of a job evaluation study and any employee objections to said study,
together with other standards appropriate to interest arbitration.
✓ The provisions of the Pay Equity Act do not diminish a city's duty to bargain in good faith.
Pay Equity Implementation Report
Cities with one or more employees must file a pay equity implementation report every three years
as required by the department. Per MN Statutes 179A.03, subdivision 14:
Generally, an employee is one who works an average of at least 14 hours per week or 35 percent of
the normal work week& 67 working days per calendar year; or one who works in a position filled
for more than 67 working days in a calendar year. See MN Statutes for further information on
temporary, seasonal and student employees.
The information in the report is public data governed by Chapter 13. The form which cities must
use is provided by the departrnent and requires that the following information be submitted:
✓ A list of all job classes in the political subdivision
✓ The number of employees in each class
✓ The number of female employees in each class
✓ An identification of each class as male-dominated, female-dominated,or balanced
✓ The comparable work value of each class as determined by the job evaluation system
✓ The minimum and maximum salary for each class and the amount of time in employment
required to qualify for the maximum
✓ Any additional cash compensation
✓ Any other information requested by the commissioner
Based on the pay equity implementation report and any other information requested by the
deparhnent, a number of tests are used to analyze the information submitted and determine
compliance/noncompliance. Detailed information on testing methods is available in MN Rules,
Chapter 3920.0400.
Noncompliance
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 that compliance is not achieved within the defined time period set by the
commissioner, the commissioner will notify the city and the commissioner of revenue
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that 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.
Maintaining Pay Equity
Per the Act, cities must maintain equitable pay relationships and submit additional reports as
required by the department(generally every third year). The department monitors compliance on
an ongoing basis and reports to the legislature annually. The procedures for imposing/appealing
penalties still applies to those cities found in compliance at one time,but found not in compliance
at a future date.
Pay Equity Information Resources
MN Department of Employee Relations League of Minnesota Cities
Faith Zwemke, Pay Equity Coordinator Rebecca Hardel, HR
(651)259-3761 (651) 281-1217
If you have any additional questions,please contact the LMC HR&Benefits Department at 651-
281-1200.
HR&Benefits 07/2011
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