disparate impact

Advanced 👥 Human Resources

Definition

Employment practices that appear neutral but disproportionately harm protected groups—essentially discrimination by spreadsheet rather than intent. It's illegal even when accidental, requiring employers to prove business necessity.

Example Usage

The algorithm screening resumes had disparate impact, rejecting female candidates at twice the rate of males due to biased training data.

Origin

Legal doctrine established by Griggs v. Duke Power Co. (1971), formalized in 1978 Uniform Guidelines

Fun Fact

The 'four-fifths rule' is the statistical test: if one group's selection rate is less than 80% of the highest group's rate, disparate impact may exist and trigger investigation.

Source: Civil Rights Act Title VII and EEOC enforcement guidelines

Related Terms

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