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11/9/2020 - Meeting Minutes Meeting Minutes Citizens’ Compensation Advisory Committee November 9, 2020 Members Present: Marlene Sloan Jeff Worthington Jeff Herring Ray Schelble Mike Terry Brandon Dew Members Excused: Jeff Herring Staff Present: David Salazar, Compensation Administrator Carolyn Campbell, Benefits Program Manager Eleonore Jackson, Classification & Compensation Analyst Guests: Kim Taylor, VP Compensation & Data Operations, Payfactors Jaysen Oldroyd, City Attorney’s Office Jami McCart, Employee Relations & EEO Manager Allen Hatch, HR Business Partner Jennifer Sykes, HR Business Partner Liz Nenni, HR Business Partner Michael Sanchez, HR Business Partner Dave Buchanan, HR Business Partner A recording of these proceedings is on file and available by request from the SLC- HR Department. Meeting Open & Welcome: Jeff Worthington called the meeting to order and established a quorum, including all members of the committee except for Jeff Herring who was excused. Review & adopt: With a motion set by Brandon Dew the committee unanimously approved the minutes from the October 8, 2020 meeting. Public Comment: None Internal Pay Equity Audit – report and presentation by Payfactors: Kim Taylor (Vice President of Compensation & Data Operations, Payfactors) shared the report and findings on the Internal Pay Equity Audit ordered by The City. Excerpts from Kim Taylor’s report & presentation: Project Background In 2020 Salt Lake City partnered with Payfactors to complete a comprehensive and proactive review of current employee salaries, to ensure that pay practices are equitable and not adversely impacting incumbents based on gender, age, and/or ethnicity. This review was completed in three stages. The first stage was a simple comparison of average pay for each employee demographic group. The second stage was a regression analysis of employee salaries, with the goal of identifying and measuring a predictive relationship existing between pay and individual employee characteristics such as gender, age, or ethnicity. Finally, Payfactors was tasked with conducting an Employee Cohort Analysis whereby salaries paid to employees in the same or comparable jobs were manually evaluated to identify any perceived inequities requiring in-depth review, and individual pay actions meant to mitigate these inequities were recommended. Pay Equity Overview While Utah does not have standalone legislation governing pay equity, the Utah Antidiscrimination Act prohibits employers from wage discrimination based on gender, age, or ethnicity (among other individual employee characteristics). Under this Act, employers may not pay different salaries to employees having substantially equal experience, responsibilities, and skills for the particular job. Furthermore, the federal Equal Pay Act states that employers may not pay different salaries to men and women when those employees are performing substantially equal work. The Utah Antidiscrimination Act specifically calls out organizational tenure as an affirmative defense for observed pay differences, provided that increases are uniformly applied across employees. The federal Equal Pay Act goes farther, and outlines four possible affirmative defenses for pay differences: seniority, merit, quantity or quality of work output, or any factor other than sex. Employees Excluded from the Analysis Employees belonging to a collective bargaining unit Temporary or seasonal workers Political appointees Employees assigned to jobs where there is no variability in pay (for example, Justice Court Judge, ranked Fire or Police jobs) Findings After several iterations of the Employee Cohort Analysis, all but 3 of the initial 522 employee pay discrepancies that were flagged for review were ultimately found to be justified. The primary justifications were considerable prior work experience, often in the private sector and occasionally at specific and relevant labor competitors; specialized technical skill or knowledge, or possession of a certification/license that impacts the value of the work; or the relative size of the department or team managed. Overall, the total cost of the recommended pay increases meant to resolve these discrepancies is $4.46 per hour: $3.08 in the general employee population and $1.38 in the Department of Airports population. Four additional employees were flagged for future review and potential pay adjustment, simply because their pay rate was relatively low in their respective pay ranges, but not a result of a specific pay equity concern. Recommendations & Recap To summarize, while a statistically significant difference in pay was found between female employees and male employees across the City’s general employee population, none of the other differences identified were deemed statistically significant. Further, an in-depth review of employees and their associated backgrounds ultimately demonstrated that all but three identified pay discrepancies were found to be justifiable. Overall salary adjustments were recommended with the goal of adjusting those three unjustifiable pay gaps, and while the overall amounts recommended as a result of this audit were relatively small, it’s often the case that organizations are unable to make all recommended adjustments in a single increase cycle. Our short- and long-term strategies for closing gaps are to initially focus on resolving on focusing largest discrepancies first, followed by adjustments to employees that happen to also be below their respective range minimum, or adjustments to employees that are top performers or long-tenured. New committee appointment: The Committee conferred to elect a new committee member in order to fulfill the vacancy left by the departure of Frances Hume. With a motion set first by Mike Terry then followed by Brandon Dew, the committee has voted to appoint Jana Bake as the newest member of the Citizens’ Compensation Advisory Committee. Jeff Herring, though absent, had submitted his candidate pick ahead of the meeting. Unfinished business: None Confirmed next meeting dates: − Tuesday, January 5, 2021 from 3:30pm – 5:30pm − Tuesday, January 19, 2021 from 3:30pm – 5:30pm − Tuesday, February 2, 2021 from 3:30pm – 5:30pm − Tuesday, February 16, 2021 from 3:30pm – 5:30pm − Tuesday, May 11, 2021 from 4:00pm – 5:00pm − Tuesday, October 5, 2021 from 4:00pm – 5:00pm Meeting adjourned at approximately 5:14 PM