ADMINISTRATION Clark Arneson, City Manager
Title
RECEIVE PAY EQUITY REPORT
Background
The Minnesota Legislature enacted Chapter 471.991-471.999 “Local Government Pay Equity Act” in 1984. This law requires each local government to analyze its pay structure for evidence of inequities, and to report this information to the Department of Management and Budget. As such, each political subdivision of the state is required to establish equitable compensation relationships between female-dominated, male-dominated, and balanced classes of employees to eliminate sex-based wage disparities in public employment. The Act further requires a job evaluation system meeting the specified statutory criteria be used to determine comparable work value of employee classes.
There are four tests to be met to achieve compliance:
• Statistical analysis of comparability of male/female wages;
• Benefit test which determines that no female class is disadvantaged when compared to male classes regarding health insurance;
• Salary range which determines that no female class is disadvantaged in reaching maximum salary range; and
• Exceptional service pay is longevity pay to any employee above the maximum salary range.
The Act requires Blaine to submit pay equity data for the year ending 2018. In compliance with this act, the Implementation Report and Job Class Data Entry Report are submitted for your approval.
The Act’s penalty for failure to submit the report or to reach compliance is a 5% reduction in state aid payments or a fine of $100 per day, whichever is greater.
Recommendation
By motion, receive and approve the Pay Equity Report as submitted.