Adverse Impact: Legal Insights and Implications for Employment

Definition & Meaning

Adverse impact refers to employment practices that, while seemingly neutral, result in a discriminatory effect on a specific protected group. This occurs when a policy, decision, or practice disproportionately disadvantages individuals based on race, gender, or ethnicity. Importantly, adverse impact can happen even if there was no intention to discriminate.

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Real-world examples

Here are a couple of examples of abatement:

(hypothetical example) A company implements a new hiring test that is intended to assess job skills. However, the test results in a significantly lower selection rate for female candidates compared to male candidates. This could indicate an adverse impact, prompting further examination of the test's fairness and validity.

State-by-state differences

State Notes
California State laws may impose stricter standards for proving adverse impact.
New York Additional protections for various demographics may apply.
Texas Adverse impact claims may have different procedural requirements.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition
Disparate Treatment Intentional discrimination against individuals based on protected characteristics.
Disparate Impact Similar to adverse impact, focusing on the effects of policies rather than intent.

What to do if this term applies to you

If you believe you have experienced adverse impact in your workplace, consider the following steps:

  • Document any relevant employment practices and their effects on your group.
  • Consult with a legal professional to understand your rights and options.
  • Explore legal form templates on US Legal Forms to assist with filing a claim or complaint.

Quick facts

  • Adverse impact can occur unintentionally.
  • Four-fifths (80%) rule is a common threshold for evaluation.
  • Related to Title VII of the Civil Rights Act of 1964.
  • Applies in employment practices like hiring and promotions.

Key takeaways

Frequently asked questions

Adverse impact refers to unintentional discrimination through policies, while disparate treatment involves intentional discrimination against individuals.