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HANDOUT AT MEETING - Calculation Revision <br />�i <br />Elk River <br />Municipal Utilities UTILITIES COMMISSION MEETING <br />TO: <br />FROM: <br />ERMU Commission <br />Mark Hanson —General Manager <br />MEETING DATE: <br />AGENDA ITEM NUMBER: <br />January 29, 2024 <br />2.1 <br />SUBJECT: <br />2024 Pay Equity Report Filing <br />ACTION REQUESTED: <br />Approve 2024 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 <br />employees are fairly compensated for comparable work. To determine this pay equity, jobs are <br />assigned a point value that is compared to the gender and wage of the employee(s) and a <br />statistical analysis is performed. The filing requirement is done online (which is also where the <br />statistical analysis is performed) and is summarized in a one -page Compliance Report, which <br />needs to be brought to the governing body for approval. 2021 was the last time that we filed, <br />and our 2024 report is due January 31, 2024, which reports payroll information as of December <br />31, 2023. <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 167.39, and our T-test result is -0.041 (which needs to be lower than <br />1.684). We are in compliance with both tests. We have been monitoring compliance <br />throughout 2021, 2022, and 2023 with the Wage and Benefits Committee. Attached are the <br />2024 Implementation Report, 2024 Compliance Report, and the 2024 Predicted Pay Chart we <br />will file; as well as a copy of the Notice we are required to post. Approval from the governing <br />body is required to submit a report, and so the report and action request is presented here for <br />such approval. <br />ATTACHMENTS: <br />• 2024 Pay Equity Implementation Report <br />• 2024 Pay Equity Compliance Report <br />• 2024 Pay Equity Predicted Pay Chart <br />• 2024 Pay Equity Notice Posting <br />Page 1 of 1 <br />