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Minnesota Legislature

Office of the Revisor of Statutes

SF 1806

2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/27/2014 02:24pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to state government; requiring certificates of pay equity compliance
as a condition for certain state contracts; classifying data; requiring a report;
appropriating money; amending Minnesota Statutes 2012, sections 13.552,
subdivision 1, by adding a subdivision; 363A.35, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapters 16C; 363A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 13.552, subdivision 1, is amended to read:


Subdivision 1.

Scope.

The sections referred to in subdivisions 2 to deleted text begin6deleted text endnew text begin 7new text end are codified
outside this chapter. Those sections classify human rights data as other than public, place
restrictions on access to government data, or involve data sharing.

Sec. 2.

Minnesota Statutes 2012, section 13.552, is amended by adding a subdivision
to read:


new text begin Subd. 7. new text end

new text begin Certificates of compliance. new text end

new text begin Access to data relating to certificates of pay
equity compliance issued by the Department of Human Rights is governed by section
363A.44.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014.
new text end

Sec. 3.

new text begin [16C.37] CERTIFICATE OF PAY EQUITY COMPLIANCE REQUIRED.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms have the meanings given them.
new text end

new text begin (a) "Balanced class" means any class in which no more than 80 percent of the
members are male and no more than 70 percent of the members are female.
new text end

new text begin (b) "Business" means a business having more than 40 full-time employees within the
state on a single working day during the previous 12 months.
new text end

new text begin (c) "Certificate of pay equity compliance" means a certificate of pay equity
compliance issued by the commissioner of human rights under section 363A.44.
new text end

new text begin (d) "Class" means one or more positions that have similar duties, responsibilities,
and general qualifications necessary to perform the duties, with comparable selection
procedures used to recruit employees, and use of the same compensation schedule.
new text end

new text begin (e) "Comparable work value" means the value of work measured by the skill, effort,
responsibility, and working conditions normally required in the performance of the work.
new text end

new text begin (f) "Equitable compensation relationship" means that the compensation for
female-dominated classes is not consistently below the compensation for male-dominated
classes of comparable work value within the business, as determined under subdivision 4.
new text end

new text begin (g) "Female-dominated class" means any class in which 70 percent or more of
the members are female.
new text end

new text begin (h) "Male-dominated class" means any class in which 80 percent or more of the
members are male.
new text end

new text begin (i) "Position" means a group of current duties and responsibilities assigned or
delegated by a supervisor to an individual.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin Every business that contracts with the state for goods
and services in excess of $500,000 shall establish equitable compensation relationships
between female-dominated, male-dominated, and balanced classes of employees within
the state to eliminate sex-based wage disparities. A primary consideration in negotiating,
establishing, recommending, and approving compensation is comparable work value in
relationship to other employee positions within the business.
new text end

new text begin Subd. 3. new text end

new text begin Required certificate of pay equity. new text end

new text begin For a contract for goods or services in
excess of $500,000, a state department or agency may not accept a bid or proposal from a
business unless the business has a certificate of pay equity compliance, the commissioner of
human rights is in receipt of the business's gender pay equity certificate application, or the
business has certified that it is exempt. No department or agency shall execute any contract
or agreement for goods or services in excess of $500,000 with a business unless the business
has a certificate of pay equity compliance or the business has certified that it is exempt.
new text end

new text begin Subd. 4. new text end

new text begin Job evaluation system. new text end

new text begin Every business that contracts with the state for
goods and services in excess of $500,000 shall use a job evaluation system to determine
the comparable work value of the work performed by each class of its employees within
the state. The system must be maintained and updated to account for new employee
classes and any changes in factors affecting the comparable work value of existing classes.
new text end

new text begin Subd. 5. new text end

new text begin Pay equity report. new text end

new text begin (a) Every business that contracts with the state for
goods and services in excess of $500,000 must submit a pay equity report on a form
provided by the department. The report must include a statement verifying that the job
evaluation system used by the business meets the following criteria:
new text end

new text begin (1) the job evaluation system is based on the skill, effort, responsibility, and working
conditions normally required in the performance of the work; and
new text end

new text begin (2) the same job evaluation system is used for determining comparable work value
for all classes of employees in the business.
new text end

new text begin (b) In addition, the business must submit the following information for each job class:
new text end

new text begin (1) class title;
new text end

new text begin (2) number of male employees;
new text end

new text begin (3) number of female employees;
new text end

new text begin (4) designation as to whether the class is a male-dominated class, female-dominated
class, or balanced class, as defined in subdivision 1;
new text end

new text begin (5) comparable work value as determined by the job evaluation system;
new text end

new text begin (6) the minimum and maximum monthly salary;
new text end

new text begin (7) performance payments, if any employee in the class was receiving payments
resulting in pay above the salary range maximum; and
new text end

new text begin (8) whether or not eligibility for benefits or the employer contribution for benefits is
different for any male-dominated and female-dominated classes of comparable work value.
new text end

new text begin Subd. 6. new text end

new text begin Exemption. new text end

new text begin This section does not apply to a business if the commissioner
of administration determines that any of the following conditions exists:
new text end

new text begin (1) a business is the sole supplier of required goods or services that are the subject
of the contract;
new text end

new text begin (2) the goods or services that are the subject of the contract are needed to respond to
a threat to public health, welfare, or safety that threatens the functioning of government,
the protection of property, or the health or safety of people, and there is no bid or response
from a business that has a certificate of pay equity compliance; or
new text end

new text begin (3) a business's ineligibility would cause the state undue hardship.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014, and applies to
contracts for which a state department or agency issues solicitations on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2012, section 363A.35, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Access to certificate data. new text end

new text begin (a) Except as otherwise provided in this
subdivision, data relating to an application for a certificate of pay equity compliance with
the Department of Human Rights under section 363A.44 are private data on individuals
or nonpublic data.
new text end

new text begin (b) The name and address of the applicant or certificate holder and the
commissioner's decision to grant, deny, revoke, or suspend a certificate is public data.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014.
new text end

Sec. 5.

new text begin [363A.44] CERTIFICATE OF PAY EQUITY COMPLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms have the meanings given them.
new text end

new text begin (a) "Balanced class" means any class in which no more than 80 percent of the
members are male and no more than 70 percent of the members are female.
new text end

new text begin (b) "Business" means a business having more than 40 full-time employees within the
state on a single working day during the previous 12 months.
new text end

new text begin (c) "Class" means one or more positions that have similar duties, responsibilities,
and general qualifications necessary to perform the duties, with comparable selection
procedures used to recruit employees, and use of the same compensation schedule.
new text end

new text begin (d) "Comparable work value" means the value of work measured by the skill, effort,
responsibility, and working conditions normally required in the performance of the work.
new text end

new text begin (e) "Equitable compensation relationship" means that the compensation for
female-dominated classes is not consistently below the compensation for male-dominated
classes of comparable work value within the business, as determined under section
16C.37, subdivision 4.
new text end

new text begin (f) "Female-dominated class" means any class in which 70 percent or more of the
members are female.
new text end

new text begin (g) "Male-dominated class" means any class in which 80 percent or more of the
members are male.
new text end

new text begin (h) "Position" means a group of current duties and responsibilities assigned or
delegated by a supervisor to an individual.
new text end

new text begin Subd. 2. new text end

new text begin Compliance; good faith effort. new text end

new text begin (a) The commissioner must issue a
certificate of pay equity compliance to a business if the business demonstrates that it is in
compliance with equitable compensation relationship standards or is making a good faith
effort to achieve compliance with those standards. As used in this section, "certificate of
compliance" means a certificate of pay equity compliance. A certificate of compliance is
valid for four years. The standards for determining equitable compensation relationships
for a business under this section are set forth in subdivision 3.
new text end

new text begin (b) Until August 1, 2015, a business that is not in compliance with equitable
compensation relationship standards is making a good faith effort to achieve compliance if
the commissioner has approved:
new text end

new text begin (1) a statement of the business's intention to prepare a pay equity report and an
estimated date no later than July 1, 2016, when the report and plan will be submitted; and
new text end

new text begin (2) information on the business's current status, including a statement on the
existence of a job evaluation system, the total number of male and female employees of
the business within this state, and the business's interest in receiving training on how to
establish equitable compensation relationships.
new text end

new text begin (c) On or after August 1, 2015, a business that is not in compliance with equitable
compensation relationship standards is making a good faith effort to achieve compliance if
the commissioner has approved:
new text end

new text begin (1) a plan for achieving compliance, including the business's proposed actions and
response to the commissioner's recommendations; and
new text end

new text begin (2) a proposed date for achieving compliance and for submitting a revised report
for the commissioner's review.
new text end

new text begin Subd. 3. new text end

new text begin Equitable compensation relationships standard defined. new text end

new text begin The standards
for determining equitable compensation relationships for a business under this section are:
new text end

new text begin (1) for a business with six or more male-dominated classes, a regression analysis
showing the relationship between comparable work value and compensation must show
that there is no consistent pattern of lower compensation for female-dominated classes
than for male-dominated classes within the business; and
new text end

new text begin (2) for a business with fewer than six male-dominated classes, an alternative analysis
must show the following:
new text end

new text begin (i) the compensation for positions that require comparable skill, effort, responsibility,
working conditions, and other relevant work-related criteria is comparable; and
new text end

new text begin (ii) the compensation for positions that require differing skill, effort, responsibility,
working conditions, and other relevant work-related criteria is proportional to the skill,
effort, responsibility, working conditions, and other relevant work-related criteria required.
new text end

new text begin Subd. 4. new text end

new text begin Filing fee; account; appropriation. new text end

new text begin The commissioner shall collect a
$150 fee for each certificate of compliance issued by the commissioner under this section.
The proceeds of the fee must be deposited in the state treasury and credited to a pay equity
fee special revenue account. Money in the account is appropriated to the commissioner to
fund the cost of administering this section.
new text end

new text begin Subd. 5. new text end

new text begin Revocation of certificate. new text end

new text begin A certificate of compliance may be suspended
or revoked by the commissioner if a holder of a certificate is not effectively implementing
or making a good faith effort to implement its approved plan to establish equitable
compensation relationships. If a business does not effectively implement its approved
plan, or fails to make a good faith effort to do so, the commissioner may refuse to approve
subsequent plans submitted by that business.
new text end

new text begin Subd. 6. new text end

new text begin Revocation of contract. new text end

new text begin A contract awarded by a department or agency of
the state to a business may be terminated or abridged by the contracting department or
agency if that business's certificate of compliance is suspended or revoked. If a contract is
awarded to a business that does not have a contract certificate of compliance as required,
the commissioner of administration may void the contract.
new text end

new text begin Subd. 7. new text end

new text begin Technical assistance. new text end

new text begin If the commissioner has suspended a business's
certificate of compliance, the commissioner shall provide technical assistance to enable
the business to be recertified within 90 days after the business's certificate of compliance
has been suspended.
new text end

new text begin Subd. 8. new text end

new text begin Access to data. new text end

new text begin Data submitted to the commissioner by a business for
purposes of obtaining a certificate of compliance under this section are private data on
individuals or nonpublic data with respect to persons other than Department of Human
Rights employees. The commissioner's decision to grant, not grant, revoke, or suspend
a certificate of compliance is public data.
new text end

new text begin Subd. 9. new text end

new text begin Rules. new text end

new text begin The commissioner must apply the following rules in administering
this section: Minnesota Rules, parts 3920.0100, subparts 2, 3, 6, 8, and 10; 3920.0400;
3920.0500; 3920.0600; and 3920.0700. For purposes of applying these rules to administer
this section, the term "jurisdiction" in those rules refers to a business seeking a certificate
of pay equity compliance under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2014.
new text end

Sec. 6. new text beginREPORT.
new text end

new text begin The commissioner of human rights, in cooperation with the commissioner of
administration, shall report to the chairs and ranking minority members of the committees
in the senate and house of representatives with primary jurisdiction over the administration
of state contracts for goods and services, by July 31, 2015, on implementation of sections
1 to 3. The report must include findings and recommendations on any changes needed to
ensure that state contractors achieve equitable compensation relationships.
new text end