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Explanation of Compliance Report <br />Explanations below correspond to shaded numbers <br />on page three. <br />2 <br />3. <br />4 <br />Average Maximum Monthly Salary for <br />Employees in Male Classes <br />Average Maximum Monthly Salary for <br />Employees in Female Classes <br />Overall Average Maximum Monthly <br />Salary for an Employee <br />Underpayment Ratio <br />The minimum requirement to pass the <br />statistical analysis test is an underpayment <br />ratio of 80%. The underpayment ratio is <br />calculated by dividing the percentage of male <br />classes below predicted pay (item five) by <br />the percentage of female classes below <br />predicted pay (item six). In the example on <br />page three, 37.5 _ 25 = 150%. Jurisdictions <br />with an underpayment ratio below 80% can <br />improve their score by increasing salaries for <br />female classes to at or above predicted pay. <br />More details regarding predicted pay are on <br />pages six, and 14 through 17. <br />If the underpayment ratio is less than 80%, a <br />jurisdiction may still pass the statistical analysis <br />test if the t-test results (explained in item 7) are <br />not statistically significant. The t-test mea- <br />sures the average dollar difference from <br />predicted pay for male and female classes. <br />5. Percentage of Male Classes Below <br />Predicted Pay <br />This percentage is calculated by dividing the <br />number of male classes below predicted pay by <br />the overall total of male classes. In the ex- <br />ample on page three, the total of male classes <br />is eight, and three fall below predicted pay. <br />Therefore, 3 _ 8 = 37.50%. <br />6. Percentage of Female Classes Below <br />Predicted Pay <br />This percentage is calculated by dividing the <br />number of female classes below predicted pay <br />by the overall total of female classes. In the <br />example on page three, the total of female <br />classes is four and one of those falls below <br />predicted pay. Therefore, l _ 4 = 25%. <br />7. T-Test & Degrees of Freedom <br />These numbers are used only for jurisdictions <br />with an underpayment ratio below 80%, at least <br />six male classes and at least one class with a <br />salary range. If the underpayment ratio is <br />80% or more, these numbers are not used <br />nor are they used for jurisdictions in the <br />alternative analysis. <br />These numbers show the average dollar <br />amount that males and females are from <br />predicted pay and answer the question: Are <br />females paid less than males on average and, is <br />the underpayment of females statistically <br />significant? <br />To determine if these numbers show statistical <br />significance, they must be checked against the <br />table on page five. Find the DF number in the <br />"Degrees of Freedom" column and then look <br />across for the "Value of T." If the "value of t" <br />on the compliance report is less than the "value <br />of t" on the table, it means that either there is <br />no underpayment of female classes or that the <br />underpayment is not statistically significant. If <br />the t-test number is the same or more than the <br />"value oft" on the table, the underpayment for <br />female classes is statistically significant and the <br />jurisdiction would not pass the test. <br />Salary increases for female classes sufficient <br />to eliminate statistical significance would allow <br />a jurisdiction to pass the statistical analysis test <br />even with an underpayment ratio below 80%. <br />Guide to Understanding Pay Equity Compliance and Computer Reports - 10/01 Page 4 <br />