5.h) 2009 Pay Equity Report Meeting Date: 1/20/2009
Agenda Item: �; h 1
J
City Council Agenda Report
City of Scandia
14727 209`�' St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Approve the 2009 Pay Equity Implementation report to the State of
Minnesota.
Deadline/ T'tmeline: Deadline is January 31, 2009.
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.
• A draft report is attached. Scandia has only five positions that that
met the reporting criteria of an average of 14 hours per week and
67 days per year.
• The State Job Match system was used as the job evaluation system
to detennine the number of points for each position.
• The draft report was reviewed by the Human Resources
Committee (Council members Crum and Peterson and
Administrator Hurlburt) on January 12.
• The report appears to show that the city is in compliance with the
pay equity law.
Recommendation: I recommend that the Council approve the report.
Attachments/ • Pay Equity Impleinentation 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
O1/15/09
Pay Equity Implementation Report
I For Department Use Only
Send completed report lo:
Pay Equity Coordinator ' Posimark Date of Re o
Department of Employee Relations ! ( p � �
200 Centennial Building
658 Cedar Street 1466 Jurisdiction ID Number �
St. Pau�, MN 55155-1603 �651)259-3761 (Voice) ,
(651)282-2699(TDD) j
Part A: Jurisdiction Identification
Jurisdiction: City of Scandia Jurisdiction Type: CITY
14727 209th St N
Scandia, MN 55073
Contact: City Administrator Anne Hurlburt Phone:(651)433-2274
Fax: 6514335112
Email: a.hurlburt@ci.scandia.mn.us
Part B:Official Verification
0 The job evaluation system used measured skill,effort � No salary ranges/performance differences.
responsibility and working conditions and the same
system was used for all classes of employees. ❑ Leave blank unless BOTH of the following apply:
The system used was: State Job Match � a. Jurisdiction does not have a salary range for any job
class.
b. Upon request,jurisdiction will supply documentation
showing that inequities between male and female
classes are due to performance differences.
� Health Insurance benefits for male and female
classes of comparable value have been evaluated and: Note: Do not include any documentation regarding
here is no difference �-i and pertormance with this form.
ema e classes are not at a disadvantage.
� An official notice has been posted at:
� �✓ Information in this report is complete and accurate. Scandia Community Center
(prominent location)
informing employees that the Pay Equity Implementation
Report has been filed and is available to employees upon
0 0✓ The report includes all classes of employees over request. A copy of the notice has been sent to each exclusive
which the jurisdiction has final budgetary approval representative, if any,and also to the public library.
authority.
The report was approved by:
Scandia City Council
(governing body)
Dennis D.Seefeldt
(chief elected official)
Part C: Totat Payroll Mayor
$422,212.00 (title)
❑✓ Checking this box indicates legal signature by above official.
is the annual payroll for the calendar year just ended December 31. Date Submitted 01/15/2009
Job Class Data Entry Verification List City of Scandia •
LGID: 2
Case: 2008 Data Status:
Job Class Nbr Nbr Ciass Jobs Min Mo. Max Mo. Yrs to Max Yrs of Exceptional
Nbr Title Males Females Type Points Salary Salary Salary Service Service Pay
1 Deputy Cierk 0 1 F 192 $3,137.00 $3,137.00 0 2.79
2 Maintenance Worker FT 1 0 M 194 $3,267.00 $3,267.00 0 1.53
3 Maintenance Supervisor 1 0 M 213 $4,398.00 $4,398.00 0 1.73
4 Building/Code Official 1 0 M 282 $5,485.00 $5,485.00 0 1.40
5 City Administrator 0 1 F 483 $6,890.00 $6,890.00 0 2.29
00
LEAGUE oF CONNECTING & [NNOVATI[�1G
MINNESOTA s�NCE ]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 Department 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.
1ob 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 UNIVERSITY AVE. WEST PHONE:(651)ZHI-120O F,vc:(651)281-1299
ST. PAUL, MN 55103-2044 TOLL FREE:(HOO)9Z$-I1Z2 WEB:WWW.LMC.ORG
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.
✓ 1n 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 department 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
department, 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
2
that the city is subject to a five percent reduction in the aid tl�at would otherwise be
payable to that city, or to a fine of$100 per day, whichever is greatest.
✓ Cities may appeal tlle 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 Lisa Rund, HR Manager
(651) 259-3761 (651) 281-1200
If you have any additional questions, please contact the LMC HR& Benefits Department at 651-
281-1200.
HR&Benefits 03/2008
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