Biddle Adverse Impact Calculator

Adverse Impact Ratio Formula:

\[ \text{Adverse Impact Ratio} = \frac{\text{Minority Selection Rate}}{\text{Majority Selection Rate}} \]

Adverse Impact Ratio:

Minority Selection Rate:

Majority Selection Rate:

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1. What is Adverse Impact Ratio?

The Adverse Impact Ratio, also known as the Four-Fifths Rule or 80% Rule, is a statistical measure used to evaluate potential discrimination in employment practices. It compares the selection rates of minority and majority groups to ensure EEO (Equal Employment Opportunity) compliance.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

\[ \text{Adverse Impact Ratio} = \frac{\text{Minority Selection Rate}}{\text{Majority Selection Rate}} \]

Where:

\( \text{Minority Selection Rate} = \frac{\text{Minority Selected}}{\text{Minority Total Applicants}} \times 100\% \)
\( \text{Majority Selection Rate} = \frac{\text{Majority Selected}}{\text{Majority Total Applicants}} \times 100\% \)

Interpretation:

Ratio ≥ 0.8: Generally considered no adverse impact
Ratio < 0.8: Potential adverse impact requiring further investigation

3. Importance of EEO Compliance

Details: Monitoring adverse impact is crucial for organizations to ensure fair hiring practices, avoid legal liabilities, and promote diversity and inclusion in the workplace. Regular analysis helps identify potential discriminatory patterns in selection processes.

4. Using the Calculator

Tips: Enter the number of minority and majority applicants selected and the total number of applicants in each group. Ensure all values are positive integers and that selected numbers do not exceed total applicants.

5. Frequently Asked Questions (FAQ)

Q1: What is the Four-Fifths Rule?
A: The Four-Fifths Rule states that a selection rate for any minority group that is less than 80% of the rate for the majority group may indicate adverse impact.

Q2: Is adverse impact ratio legally binding?
A: While not definitive proof of discrimination, a ratio below 0.8 triggers the need for further statistical analysis and may be used as evidence in discrimination cases.

Q3: What groups are considered in adverse impact analysis?
A: Typically includes race, gender, age, disability status, and other protected characteristics under EEO laws.

Q4: Can small sample sizes affect the analysis?
A: Yes, statistical significance tests should accompany adverse impact analysis, especially with small sample sizes where chance variations can occur.

Q5: What actions should be taken if adverse impact is found?
A: Organizations should review their selection procedures, validate employment tests, provide additional training, and document business necessity for any practices causing adverse impact.