3.15 2024 Pay Equity Compliance Report
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration Assistant City Administrator/Human Resources Hille January 8, 2024
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.15 – Pay Equity
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
X Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends the City Council review and approve submission of the 2024 Pay Equity Compliance Report.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
Pay Equity is a method of eliminating discrimination against women who are paid less than men for jobs requiring
comparable levels of expertise. The Local Government Pay Equity Act (Minnesota Statute §471.991 - §471.999) and
Minnesota Rules (Chapter 3920) require local government jurisdictions to submit a pay equity report to the State of
Minnesota every three years.
City Staff has worked to complete the necessary reporting requirements for the 2024 report year, which is based on
wage data in place as of December 31, 2023. Below summarizes the four tests and respective results.
Completeness and Accuracy Test – The City will pass this test if the report is submitted electronically by January 31, 2024.
City staff will submit the report upon approval of the report by the City Council.
Statistical Analysis Test – This test compares salary data to determine if female classes are paid consistently below male
classes of comparable job points. The City was required to use to Alternate Analysis to review the data, which resulted in
a the compliance test Value of T less than the T-Test Table, which indicates that the City would pass this test.
Salary Range Test - For organizations with established salary ranges for positions, this measures whether male classes are
reaching the top of their salary range faster than female classes. This result must either be 0 or above 80 to be found in
compliance. The results of the salary range test for the City is 100, which is above the established standard and indicates
that the City would also pass this test.
Exception Service Pay Test - This 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 be above 80. The results of this test are 0 as no employees are receiving longevity of
performance pay and indicates that the City also passes this test.
Once the Compliance Report is approved by the City Council, staff will submit the Pay Equity Implementation Report to
the Department of Management and Budget.
An official notice informing employees that the Pay Equity Implementation Report has been filed and is available to
employees upon request is also required. This official notice will be provided to each individual employee and will also be
posted at City Hall, Prairie Center, and both Wastewater Facilities.
SUPPORTING DOCUMENTS ATTACHED:
• Compliance Report
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve the submission of the 2024 Pay Equity Compliance Report.
BUDGET INFORMATION
FUNDING: BUDGETED:
General Fund – Human Resources (41800)
N/A
Compliance Report
Jurisdiction:Otsego Report Year:2024
13400 90th Street N.E.Case:3 - 2023 DATA (Shared (Jur and
MMB))
Otsego, MN 55330
Contact:A. Flaherty Phone:(763) 441-4414 E-Mail:AFlaherty@ci.otsego.m
n.us
The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information
from your pay equity report data. Parts II, III and IV give you the test results.
For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports.
I. GENERAL JOB CLASS INFORMATION
Male Classes Female Classes Balanced Classes All Job Classes
# Job Classes 14 8 1 23
# Employees 25 9 2 36
Avg. Max Monthly Pay per employee 7734.54 7146.61 7511.87
II. STATISTICAL ANALYSIS TEST
A. Underpayment Ratio = 68.57143 *
Male Classes Female Classes
a. # At or above Predicted Pay 8 3
b. # Below Predicted Pay 6 5
c. TOTAL 14 8
d. % Below Predicted Pay (b divided by c = d)42.86 62.50
*(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.)
B. T-test Results
Degrees of Freedom (DF) = 32 Value of T = 0.416
a. Avg. diff. in pay from predicted pay for male jobs = 5
b. Avg. diff. in pay from predicted pay for female jobs = -22
III. SALARY RANGE TEST = 100.00 (Result is A divided by B)
A. Avg. # of years to max salary for male jobs = 6.00
B. Avg. # of years to max salary for female jobs = 6.00
IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A)
A. % of male classes receiving ESP = 0.00 *
B. % of female classes receiving ESP = 0.00
*(If 20% or less, test result will be 0.00)
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