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CITY COUNCIL <br />AGENDA ITEM 3A <br /> <br /> <br />STAFF ORIGINATOR: Karissa Bartholomew, Human Resources Manager <br /> <br />MEETING DATE: December 10, 2018 <br /> <br />TOPIC: Wage Adjustment for Pay Equity Compliance <br /> <br />VOTE REQUIRED: 3/5 <br /> <br /> <br />INTRODUCTION <br /> <br />The Council is being asked to adjust the pay scale for the Accounts Payable/Payroll Clerk for <br />Pay Equity compliance. <br /> <br />BACKGROUND <br /> <br />The Local Government Pay Equity Act, M.S. 471.991-471.999 and Minnesota Rules, Chapter <br />3920 require local government jurisdictions to submit a Pay Equity report to the State of <br />Minnesota every three years. The City is required to report in 2019. This report must show wages <br />in place as of December 31, 2018. Pay Equity attempts to eliminate gender-based inequalities. <br /> <br />The City is currently out of compliance. If the City does not make changes to achieve <br />compliance, the City is subject to a five percent reduction in government aid, or a fine or $100 a <br />day until non-compliance is remedied, whichever is greatest. <br /> <br />A cost-effective way to bring the City in compliance is by adjusting female positions receiving <br />lower wages, such as the technical/clerical positions. Through a recent compensation study done <br />for all technical/clerical positions, it was found that the Accounts Payable/Payroll Clerk was the <br />furthest away from market at 15 percent below market. Increasing this position by 3.5 percent <br />would bring the City into compliance. <br /> <br />The City’s non-compliance with Pay Equity is a symptom of a larger issue regarding the City’s <br />job classification plan. For example, the Sergeant’s contract has not settled and Pay Equity <br />requires reporting for wages at 2018 year-end. An arbitration decision for the Sergeants contract <br />is not expected until mid-January 2019. Once the Sergeants contract is settled, their wages will <br />increase and again bring the City out of compliance. Staff will be bringing this back to the <br />Council in 2019 with recommendations on how to address these issues. <br /> <br />RECOMMENDATION <br /> <br />Approve increasing the Accounts Payable/Payroll Clerk position by 3.5 percent for Pay Equity <br />Compliance, effective the start of the last payroll period in December.