2021 Gender Pay Equity Minnesota Salary Range Test Salary Schedule - - PowerPoint PPT Presentation

CITY OF MINNEAPOLIS

2021 Gender Pay Equity

Minnesota Salary Range Test

Salary Schedule & Pay Adjustments Department of Human Resources Total Compensation Division

Overview

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• State statute requires government organizations to submit to

a gender-based pay equity test every three years

• Minneapolis last submitted a report for 2017 in early 2018

and passed

• Minneapolis is due to submit its 2020 file in early 2021

Data was recently submitted to get preliminary test results

Males/Female Jobs

• Tests compare results for male dominated jobs and female

dominated jobs

• Per Minnesota statute:
• Male dominated jobs are those where 80% or more incumbents are

male (“male jobs”)

• Female dominated jobs are those where 70% or more incumbents

are female (“female jobs”)

• The remaining jobs are categorized as “balanced”

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Male, 80% Female, 20%

Male Jobs

Male, 30% Female, 70%

Female Jobs

Tests

• There are three tests the City must pass:
• Statistical Analysis Test
• A predicted pay line is created using linear regression based on points

and pay for male jobs

• The calculation is: % of males jobs below the predicted pay line/% of

female jobs below the predicted pay line

• 80% is passing and the City is at 92%
• Exception Service Pay Test
• Compares job eligibility for longevity pay
• Longevity pay is additional compensation based on years of service
• Most jobs have longevity pay
• The calculation is: % of male jobs receiving longevity pay/% of female

jobs receiving longevity pay

• 80% is passing and the City is at 91%

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Tests

• There are three tests the City must pass (cont’d):
• Salary Range Test
• Compares the average number of years to reach the top step
• The calculation is: average # years for male jobs/average # years for

female jobs

• 80% is passing and the City is at 76%

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The cost to bring the City into compliance is: $28.4K annually $4.2K for 2020

Penalty for Non-Compliance

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“If the subdivision [city] does not make the changes to achieve compliance within a reasonable time set by the commissioner, the commissioner shall notify the subdivision and the commissioner of revenue that the subdivision is subject to a five percent reduction in the aid that would otherwise be payable to that governmental subdivision under section 126C.13, 273.1398, or sections 477A.011 to 477A.014, or to a fine of $100 a day, whichever is greatest.”

Options

To remedy the City’s performance on the Salary Range Test either:

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Option 1 Reduce the number of steps for female jobs Option 2 Increase the number of steps for male jobs Option 2 was dismissed. Perceived as a take-away because it would take longer to reach the top step.

Options

• The CNR (non-represented, non-appointed) salary schedule

currently has jobs with 1,3,5,6 & 7 steps; the majority of jobs have 7 steps, the next largest number of jobs have 5 steps

• CNR jobs were chosen because
• Many CNR jobs were already moved from 7 to 5 steps
• Non-CNR schedules are generally consistent about the number of

steps for each job in it so it didn’t make sense to introduce variability into those schedules

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1 Step 3 Steps 5 Steps 7 Steps 6 Steps

Remedy

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• Pass all state mandated gender pay equity tests
• Minimize cost to the City
• Minimize negative impact on employees

Goals

Reduce the number of steps for CNR female dominated jobs by eliminating the bottom steps and recalculating the remaining steps

Solution

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Step 1 Step 2 Step 3 Step 4 Step 5

The jobs with employees least affected by a reduction in steps generally have:

• All employees currently on the top step (no pay change/cost)
• All employees currently on the first or second step (small pay increase)
• Some combination of both

Impact

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Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 1 Step 2 Step 3 Step 4 Step 5

small cost no cost

Impact

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Job moved from 4 to 3 steps Jobs moved from 6 to 5 steps Jobs moved from 7 to 5 steps

1 4 30

Affects 35 female dominated jobs The City passes the Salary Range Test: 80.3%

• 8 employees will receive average additional pay of $3.55K

annually as a result of the changes

• Total Cost: $28.4K annually ($4.2K for 2020)

Impact

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Department # Emps Affected Annualized Cost *

Attorney 1 $0.00 City Clerk 1 $0.00 City Coordinator 3 $0.00 Finance and Property Serv 6 $6,850 Human Resources 10 $6,439 Information Technology 2 $0.00 Internal Audit 1 $4,193 Minneapolis Health Department 9 $1,420 Police Department 6 $8,015 PW-Fleet Services 1 $0.00 PW-Solid Waste 1 $0.00 Regulatory Services 3 $1,523

Total 44 $28,440

* Cost is $0.00 when employee(s) in the job are

• n the top step already

NOTE: Additional action may be required when December 1, 2020 data is known.

Request

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Approval of $28.4K annually to remedy the gender pay gap identified by the state’s Salary Range Test

2021 Pay Equity Goals

• Race-based pay equity
• Measure and evaluate current state
• Address as needed
• Gender pay equity
• Evaluate gender pay equity more deeply and broadly
• Address as needed

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