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MI MINNESOTA <br />Method Used for Predicted Pay Calculation in the Statistical Analysis <br />The following explanation is a general description of how predicted pay is calculated but does not include <br />all details of the formula in Minnesota Rules Chapter 3920. <br />Basis of the Statistical Analysis <br />The definition in the Local Government Pay Equity Act for equitable compensation relationship says <br />"...compensation for female -dominated classes is not consistently below the compensation for male - <br />dominated classes of comparable value..." <br />The formula for the statistical analysis is based on three concepts found in the above definition: <br />comparable value, male compensation and consistently below. <br />I. Defining "Comparable Value" <br />Except for classes in the lower and upper 10% of the point range, comparable value is defined by <br />drawing a 20% window around the job class being analyzed. Each window extends 10% of the range <br />of points on each side of the class. In the example, there is a range of 200 points from lowest to <br />highest, so 10% would be 20 points. Each window must have at least three male classes (two of <br />which have different points) and must include at least 20% of all male classes in the jurisdiction. If <br />this criteria is not met, the window will expand at 5% increments on either side until the required <br />number of male classes are included. The drawing below shows one window for one class. <br />$2,200 <br />$2,100 <br />$2,000 — <br />$1,goo <br />$1, 800 <br />,>' $1,700 <br />$1,600 <br />1,500 <br />51,300 <br />$1, 200 <br />Predicted Pair Chart <br />da#aWindow <br />LO% I.M <br />0 <br />= V Class being analyzed <br />■ <br />■ <br />o a o Ln i o o m a rn� <br />� r�,] " " rj r�,] r4 O'� <br />Job Points <br />Male 0 female 9salanced <br />Guide to Understanding Pay Equity Compliance Tests - 10/16 Page 8 <br />