CITY OF MINNEAPOLIS 2021 Gender Pay Equity Minnesota Salary Range Test Salary Schedule & Pay Adjustments Department of Human Resources Total Compensation Division
Overview • 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 2
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” Male Jobs Female Jobs Male, Male, 80% 30% Female, Female, 20% 70% 3
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% 4
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% The cost to bring the City into compliance is: $28.4K annually $4.2K for 2020 5
Penalty for Non-Compliance “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.” 6
Options To remedy the City’s performance on the Salary Range Test either: Option 1 Option 2 Option 2 was Reduce the Increase the dismissed. number of number of Perceived as a steps for steps for male take-away because jobs female jobs it would take longer to reach the top step. 7
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 3 Steps 7 Steps 6 1 Steps Step 5 Steps 8
Remedy Goals • Pass all state mandated gender pay equity tests • Minimize cost to the City • Minimize negative impact on employees Solution Reduce the number of steps for CNR female dominated jobs by eliminating the bottom steps and recalculating the remaining steps Step 7 Step 6 Step 5 Step 4 Step 5 Step 3 Step 2 Step 4 Step 1 Step 3 Step 2 Step 1 9
Impact 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 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 small cost no cost Step 4 Step 5 Step 3 Step 1 Step 2 10
Impact Job moved from 4 to 3 steps 1 Affects 35 female Jobs moved from 6 to 5 steps 4 dominated jobs Jobs moved from 7 to 5 steps 30 The City passes the Salary Range Test: 80.3% 11
Impact • 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) # Emps Annualized Department Affected Cost * Attorney 1 $0.00 NOTE: Additional action may City Clerk 1 $0.00 be required when December City Coordinator 3 $0.00 1, 2020 data is known. 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 * Cost is $0.00 when Total 44 $28,440 employee(s) in the job are on the top step already 12
Request Approval of $28.4K annually to remedy the gender pay gap identified by the state’s Salary Range Test 13
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 14
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