How does adverse impact relate to the 4/5ths rule?
Adverse impact and the “four-fifths rule.” A selection rate for any race, sex, or ethnic group which is less than four-fifths ( 4/5) (or eighty percent) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact, while a greater than four …
What are the adverse impacts of practicing equal employment opportunity?
“Adverse impact refers to employment practices that appear neutral but have a discriminatory effect on a protected group. Adverse impact may occur in hiring, promotion, training and development, transfer, layoff, and even performance appraisals,” reports the Society for Human Resource Management (SHRM).
What is an example of adverse impact?
An example of adverse impact are background checks for a certain group of candidates, but not another. An employer may have what they believe is a logical reason for checking the backgrounds of applicants from Group A and not Group B.
What does 4/5ths rule say?
The Four-Fifths rule states that if the selection rate for a certain group is less than 80 percent of that of the group with the highest selection rate, there is adverse impact on that group.
Why is it important to consider the 4/5 rule during selection efforts?
This “4/5ths” or “80%” rule of thumb is not intended as a legal definition, but is a practical means of keeping the attention of the enforcement agencies on serious discrepancies in rates of hiring, promotion and other selection decisions.
How is the four fifths rule used in adverse impact analysis?
Typically, adverse impact is determined by using the four-fifths or eighty percent rule. The four-fifths or 80% rule is described by the guidelines as “a selection rate for any race, sex, or ethnic group which is less than four-fifths (or 80%) of the rate for the group with the highest rate will generally…
When did the four fifths rule come into effect?
Since the EEOC created the Uniform Guidelines on Employee Selection Procedures in 1978, the Four-Fifths rule has been the first analytic step for evaluating adverse impact. More sophisticated methods of affirming adverse impact exist (such as the z-test and Fisher’s Exact test, which measure whether the impact seen is statistically significant).
How to calculate a 4 / 5ths rule violation?
3) Calculate the impact ratio by dividing the selection rate for each group by the selection rate of the group with the highest selection rate. 4) Determine if the selection rates are substantially different. If the impact ratio is less than .8, there is a 4/5ths rule violation.
What is the four fifths or 80% rule?
The four-fifths or 80% rule is described by the guidelines as “a selection rate for any race, sex, or ethnic group which is less than four-fifths (or 80%) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact,…