Adopt Resolution #21-202 to Adjust Certain Non-union Wage Scales and Direct Staff to Submit a Compliant Pay Equity Report 

This case was discussed during this evenings Council work session, as well at the June 22, 2021,Council work session. Specifically discussed were seven female non-union employees that were shown on the Pay Equity Report to be below the predicted pay level (as determined by the Department of Management and Budget - Pay Equity Division). Staff explained that this issue must be corrected in order to avoid penalties of $100 per day, retroactive to January 1, 2021. 

The seven positions include the following: Administrative Services Director, Assistant Finance Director, Senior Planner, Police Department Office Supervisor, Accountant II, Deputy City Clerk and the HR Generalist.
 
If approved, staff will submit the compliant Pay Equity report prior to the deadline of August 7, 2021, and the wage adjustments will be made retroactively to July 7, 2021.  With this action the City will not be charged penalty fees for non-compliance with the Pay Equity Act. 
 
The attached spreadsheet shows the seven positions, the current pay scale, the proposed pay scale, and other details. Each employee would be placed in the lowest step that represented an amount greater than their current pay. Each employee (if they are still in their steps) would move to the next step in one year. Staff will be prepared to answer all questions during the meeting.
 
As previously mentioned, there are non-union male employees in the same situation; however, the male occupied positions are not linked to compliance with Pay Equity. Correcting the pay scales on the seven female occupied positions is the focus at this time and the positions occupied by male non-union employees should be included in the upcoming budget discussions.
 
As background, the 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 every three years. Most Minnesota cities are also subject to the Equal Pay for Equal Work Law, which is a different law from the Pay Equity Act but also prohibits discrimination in pay based on sex. 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.
 
The City’s 2021 pay equity report shows that the City is currently out of compliance with the Local Government Pay Equity Act. The report includes four tests: the completeness and accuracy test, the statistical analysis test, the salary range test and exceptional service pay test. Of the four tests, one test (statistical analysis) is noncompliant with a score of 62.06896 which required a minimum score of 80. By adjusting the wage scales upward on the seven non-union female occupied positions, staff feels the City will receive a passing or compliant Pay Equity score and no penalties will occur, contingent upon approval and submittal of the new wage scales.
 

Note:  Attached to this case are several documents.  The attachments dated 06-15-21 were provided at the June 22, 2021 Council work session.  With the exception of two positions (the HR Generalist and the Deputy City Clerk) the Predicted Pay data on these reports show the currently recommended wage scale adjustments .  With approval, the "pending" reports will be submitted to the Department of Management and Budget.   The pending reports show slightly higher predicted pay amounts, but does not change staff's recommendation regarding the new wage scales and still produces a passing score.   The reason for these differences relate to police officer's longevity pay. 

The 2021 funding estimated for this action, effective July 7, 2021, is estimated to be $10,303 and would be applied to the Contingency Fund.
 

To approve the recommended updated wage scales and direct staff to submit the updated Pay Equity report.  

Motion to adopt resolution #21-202 to approve the following updated wage scales and direct staff to submit the updated Pay Equity report.  

	Step 1	Step 6
Proposed Updated pay scales July 2021 - Dec. 2021	80%	100%
Updated Adm Services Director	90,936	113,670
Updated Assistant Finance Dir.	84,832	106,041
Updated Senior Planner	80,053	100,066
Updated Office Supervisor	68,624	85,780
Updated Accountant II	64,905	81,132
Updated Deputy City Clerk	58,290	72,863
Updated HR Generalist	61,242	76,553