Adverse Impact Essay

709 WordsJan 25, 20123 Pages
Adverse impact is the general impact of employer practices that creates a considerably different rate of selection in promotion, hiring and other decisions which work to the disadvantage of affiliates of a certain sex, race or ethnic group. For example, if an applicant feels they are a victim of inadvertent discrimination due to an employer’s interview process because the company requires a Masters degree, the company would in turn have to prove that a degree is essential to one’s performance for that job. Title VII litigation use the 80% rule as a basis for determining if companies have an adverse impact on a protected group. This rule states that if 80% of male applicants pass an employment test, but only 20% of females passed, a female applicant may have a case to prove adverse impact. There are four different strategies used to show that a company’s employment process have an adverse impact on a certain group. The first method, Disparate Rejection Rates is illustrated by comparing the rejection rates for a protected group verses another group. Restricted policy is another way of determining adverse impact that requires proving that an employer’s policy excludes affiliates of a protected group. For instance, such as not hiring Sales representatives that are female. Population comparisons are another popular way of establishing adverse impact. In population comparisons the percentage of a certain minority in a specific labor market is compared to a corresponding group within that same market. Lastly, the McDonnell- Douglas test determines if a qualified applicant that has been rejected represents an example of adverse impact. This method has four requirements for determining this including the person must belong to a protected class, was qualified for the job, was rejected and the company kept the position open after the rejection took place. In the 2009

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