Legislature(2001 - 2002)

05/02/2001 01:59 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
CS FOR SENATE BILL NO. 65(FIN)                                                                                                
                                                                                                                                
     "An Act requiring a study regarding equal pay for equal                                                                    
     work of certain state employees."                                                                                          
                                                                                                                                
JOMO STEWART,  STAFF, SENATOR DONLEY testified  in support of                                                                   
the legislation on  behalf of the sponsor. He  noted that the                                                                   
legislation  would  provide  for   a  pay  equity  study.  He                                                                   
observed that there  is evidence that there  is pay disparity                                                                   
between men and women working  in state government and in the                                                                   
state.  A 1997  study showed that women were  paid 35 percent                                                                   
less than men.  Women in state government made  73 percent of                                                                   
what  men  were  making.  Women   in  local  government  made                                                                   
approximately 76  - 77 percent of  a man's salary. It  is the                                                                   
sponsor's  intent that  the study  examines  the question  of                                                                   
equal  pay   for  equal  work   among  state   employees.  He                                                                   
emphasized that  the focus  should be on  equal pay  for same                                                                   
work, which  is defined in the  same manner as equal  pay for                                                                   
comparable  work: The principle  requires equal  compensation                                                                   
for jobs that  require substantially the same  skills, effort                                                                   
and responsibility  and are  performed under similar  working                                                                   
conditions.  A pay equity  study will  help determine  if and                                                                   
where inequities  exist and provide an opportunity  to comply                                                                   
with  state  and   federal  law.  Assuring  that   state  pay                                                                   
practices are not influenced by  gender is good public policy                                                                   
and will  promote fairness  in the  workplace. Voluntary  pay                                                                   
equity  is  more cost  effective  than  a court  ordered  pay                                                                   
equity  adjustment.  Discrimination  suits  tend to  be  very                                                                   
costly.                                                                                                                         
                                                                                                                                
Mr.  Stewart compared  pay equity  issues  in Washington  and                                                                   
Minnesota. Washington  State failed to act on  the inequities                                                                   
found in  their pay. Minnesota  phased in equity  adjustments                                                                   
through legislation  and arbitration.  It cost  approximately                                                                   
$41  million dollars  in  the state  of  Minnesota over  four                                                                   
years. Washington  state litigation costs  were approximately                                                                   
$106 million dollars.                                                                                                           
                                                                                                                                
Mr. Stewart observed that a study  in the February 1999 issue                                                                   
of Alaska Economic Trends entitled  The Gender Gap in Earning                                                                 
observed  the  difference  between  pay scales  but  did  not                                                                   
determine the cause of the inequities.                                                                                          
                                                                                                                                
Representative Hudson questioned  if the courts are requiring                                                                   
action. Mr. Stewart did not know of any court order.                                                                            
                                                                                                                                
Representative  Foster   observed  that  minorities   receive                                                                   
inferior jobs and pay, especially minority women.                                                                               
                                                                                                                                
Mr. Stewart  acknowledged inequity  in pay to  minorities. He                                                                   
explained  that  the  legislation   would  pertain  to  state                                                                   
employees.                                                                                                                      
                                                                                                                                
Representative  John  Davies  MOVED  to  ADOPT  a  conceptual                                                                   
amendment to include minorities in the study.                                                                                   
                                                                                                                                
Mr. Stewart observed  that the House State  Affairs Committee                                                                   
decided not to  take up the issue in the  current legislation                                                                   
since it would raise the fiscal cost.                                                                                           
                                                                                                                                
Representative  John Davies argued  that the greatest  fiscal                                                                   
cost would  be the collection  of data. He stressed  that the                                                                   
fiscal impact of the incremental  analysis to determine if it                                                                   
applies  to   minorities  would   be  relatively   small.  He                                                                   
maintained  that  it  would  be   relatively  simply  to  add                                                                   
minority status [to the legislation].                                                                                           
                                                                                                                                
DEB  DAVIDSON, STAFF,  SENATOR  DAVE DONLEY,  referenced  the                                                                   
discussion on the addition of  race to the legislation in the                                                                   
House  State Affairs  Committee.  The  study  under the  bill                                                                   
would look  at job  classifications and  identify those  that                                                                   
have a pay  disparity to determine why the  disparity exists.                                                                   
A larger study would need to be  completed if a difference is                                                                   
not determined.                                                                                                                 
                                                                                                                                
SENATOR  DAVE DONLEY,  SPONSOR  provided  information on  the                                                                   
legislation. He  asserted that multiple variables  would make                                                                   
the study  more complex.  He  noted that studies in  24 other                                                                   
states  were  limited  to  gender.   The  statutory  sections                                                                   
referenced in  the legislation  address gender not  race. The                                                                   
decision was  made in  the House  State Affairs Committee  to                                                                   
not include race.  The intent is to address the  issue in the                                                                   
most economic manner.                                                                                                           
                                                                                                                                
DAVE   STEWARD,   DIVISION  OF   PERSONNEL,   DEPARTMENT   OF                                                                   
ADMINISTRATION,  explained that the  fiscal note is  based on                                                                   
sampling  job classifications.  The inclusion  of race  would                                                                   
require an  expansion of the  sample collection,  which might                                                                   
impact the fiscal note.                                                                                                         
                                                                                                                                
Representative John Davies asked  what sampling would entail.                                                                   
Mr.  Steward  explained  that job  classifications  would  be                                                                   
reviewed  for gender  base.  The state's  job  classification                                                                   
system assigns  pay rates based on  the kind of work  that is                                                                   
done. Race or gender is not considered.  Descriptions of work                                                                   
and minimum qualifications  required would be  sampled from a                                                                   
variety  of  the  job families  that  the  state  classifies.                                                                   
There  are  no  parameters  to  look  at  whether  population                                                                   
density of  race and gender  mixtures influences the  rate of                                                                   
pay. The  gender base  population is  fairly even around  the                                                                   
state but race based population is not.                                                                                         
                                                                                                                                
Senator Donley asserted that the  addition of minority status                                                                   
would complicate  the study. He  noted that research  for the                                                                   
legislation was based on gender studies in other states.                                                                        
                                                                                                                                
Representative  Hudson  agreed  with the  prime  sponsor.  He                                                                   
acknowledged  that  it would  require  a far  more  expansive                                                                   
study.  He  observed  that  a  gender  base  study  would  be                                                                   
straightforward.                                                                                                                
                                                                                                                                
Representative  John  Davies  pointed  out  that  it  may  be                                                                   
necessary  to   correct  for  age  and  minority   status  to                                                                   
understand  the  gender issue.  He  questioned  if the  study                                                                   
could be done adequately on the limited basis.                                                                                  
                                                                                                                                
Senator Donley noted that contact  with contractors for other                                                                   
state,  which  have  compiled   similar  studies  helped  the                                                                   
Department of  Administration to  develop their fiscal  note.                                                                   
He  commended work  by the  Department  of Administration  in                                                                   
minimizing the costs on the fiscal note.                                                                                        
                                                                                                                                
Representative Croft  agreed that expansion would  affect the                                                                   
fiscal note.                                                                                                                    
                                                                                                                                
Senator  Donley  spoke against  expanding  the  scope of  the                                                                   
legislation.  He  stressed that  expansion  [of  the bill  to                                                                   
include  race]  would require  a  great  amount of  work  and                                                                   
research.                                                                                                                       
                                                                                                                                
Representative  Foster  spoke in  support  of  the study  and                                                                   
expressed his  hope that  "we are able  to do something  with                                                                   
the study.                                                                                                                      
                                                                                                                                
A roll call vote was taken on the motion to include race.                                                                       
                                                                                                                                
IN FAVOR: Foster, Croft, Davies                                                                                                 
OPPOSED: Harris, Hudson, Lancaster, Moses, Bunde, Williams                                                                      
                                                                                                                                
Co-Chair Mulder and Representative  Whitaker were absent from                                                                   
the vote.                                                                                                                       
                                                                                                                                
The MOTION FAILED (3-6).                                                                                                        
                                                                                                                                
Representative   Davies   expressed   his  support   of   the                                                                   
legislation.                                                                                                                    
                                                                                                                                
Representative  Foster MOVED  to report  CSSB 65(FIN)  out of                                                                   
Committee with  the accompanying fiscal note.  There being NO                                                                   
OBJECTION, it was so ordered.                                                                                                   
                                                                                                                                
CSSB 65(FIN) was  REPORTED out of Committee with  a "do pass"                                                                   
recommendation  and with previously  published fiscal  impact                                                                   
note  by  the  Senate  Rules   Committee  for  Department  of                                                                   
Administration.                                                                                                                 

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