Adverse Impact

Hidden discrimination toward a particular minority group. Such an occurrence is not necessarily intentional and is especially relevant in terms of hiring practices. According to the Equal Employment Opportunity Commission (EEOC), “a substantially different rate of selection in hiring, promotion or other employment decision which works to the disadvantage of members of a race, sex, or ethnic group” constitutes adverse impact. The EEOC currently provides an “80% rule” of thumb to determine the presence of adverse impact. In this framework, if the target (or minority) group selected is four fifths or greater than the reference (or majority) group selected of the applications received, then adverse impact is considered to have taken place. For example, let us say a particular place of employment has 50 applicants for positions, including 40 (declared) whites and 10 (declared) Hispanics. If 10 of the (declared) whites are then given a position and 2 (declared) Hispanics, the 80% rule has not been statistically violated because 20% of the hires were from [Page 14]a minority group. For more information, see USLegal (n.d.).