1. What is EEOC Adverse Impact?

The EEOC (Equal Employment Opportunity Commission) Adverse Impact analysis examines whether employment practices have a disproportionately negative effect on protected groups. The 80% rule (or four-fifths rule) is a guideline used to identify potential discrimination in hiring, promotion, or other employment decisions.

2. How Does the Calculator Work?

The calculator uses the EEOC 80% rule formula:

Where:

• \( Minority\ Selection\ Rate \) — Selection rate for the minority/protected group
• \( Majority\ Selection\ Rate \) — Selection rate for the majority group
• \( Impact\ Ratio \) — Ratio comparing selection rates (dimensionless)

Interpretation: If the Impact Ratio is less than 0.8 (80%), adverse impact is indicated, suggesting potential discrimination that requires further investigation.

3. Importance of Adverse Impact Analysis

Details: Adverse impact analysis is crucial for ensuring fair employment practices, complying with anti-discrimination laws, and promoting diversity and inclusion in the workplace. It helps organizations identify and address unintentional discrimination in their processes.

4. Using the Calculator

Tips: Enter selection rates as decimal values between 0 and 1. For example, if 30% of minority applicants were selected, enter 0.30. The calculator will compute the Impact Ratio and determine if adverse impact exists according to the EEOC 80% rule.

5. Frequently Asked Questions (FAQ)

Q1: What is the EEOC 80% rule?
A: The 80% rule states that adverse impact exists when the selection rate for a protected group is less than 80% of the selection rate for the majority group.

Q2: Is the 80% rule a legal standard?
A: It's a guideline, not a legal definition. Courts may consider other factors, but it's widely used as an initial screening tool for potential discrimination.

Q3: What constitutes statistical significance in adverse impact?
A: While the 80% rule is a practical guideline, statistical tests (like chi-square or Fisher's exact test) are often used to determine if observed differences are statistically significant.

Q4: What should I do if adverse impact is detected?
A: Investigate the cause, review selection criteria for job-relatedness, consider alternative selection methods, and document the business necessity of any practices causing adverse impact.

Q5: Does adverse impact always indicate discrimination?
A: Not necessarily. It indicates a disparity that requires investigation. Legitimate business factors may justify the difference if they are job-related and consistent with business necessity.