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Elk River <br /> Municipal Utilities UTILITIES COMMISSION MEETING <br /> TO: FROM: <br /> ERMU Commission Theresa Slominski—Finance & Office Manager <br /> MEETING DATE: AGENDA ITEM NUMBER: <br /> January 9, 2018 2.6 <br /> SUBJECT: <br /> 2018 Pay Equity Report Filing <br /> ACTION REQUESTED: <br /> Approve 2018 pay equity report filing,per state requirements. <br /> BACKGROUND: <br /> The Local Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter <br /> 3920 require local jurisdictions to submit a pay equity report to the State of Minnesota every <br /> three years. The basis of the reporting requirement is to ensure that male and female employees <br /> are fairly compensated for comparable work. To determine this pay equity,jobs are assigned a <br /> point value that is compared to the gender and wage of the employee(s) and a statistical analysis <br /> is performed. The filing requirement is done online (which is also where the statistical analysis is <br /> performed) and is summarized in a one-page Compliance Report,which needs to be brought to <br /> the governing body for approval. 2015 was the last time that we filed, and our 2018 report is due <br /> January 31, 2018, which reports payroll information as of December 31, 2017. <br /> DISCUSSION: <br /> There are two statistical tests used to determine compliance, an Underpayment Ratio, and a T- <br /> test. To be in compliance, an Underpayment Ratio of 80.00 or above must be met. If this ratio is <br /> too low, a low enough T-test result must be met in order to be in compliance. Our calculated <br /> Underpayment Ratio is 85.56, and our T-test result is .963 (which needs to be lower than 1.684.) <br /> Therefore,we are in compliance by the first test. If you will recall, we were monitoring <br /> compliance throughout 2017 with the Wage and Benefits Committee. Attached are the 2018 <br /> Implementation Report, 2018 Compliance Report, and the 2018 Predicted Pay Chart we will file; <br /> as well as a copy of the Notice we are required to post. Approval from the governing body is <br /> required to submit a report, and so the report and action request is presented here for such <br /> approval. <br /> ATTACHMENTS: <br /> • 2018 Pay Equity Implementation Report <br /> • 2018 Pay Equity Compliance Report <br /> • 2018 Pay Equity Predicted Pay Chart <br /> • 2018 Pay Equity Notice posting <br /> Page 1 of 1 <br /> 38 <br />