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Adverse Impact Analysis (Overview)
"Not long after the passage of the 1964 U.S. Civil Rights Act (now commonly known as Title VII), the legislative and judicial fields began hammering out the concept of adverse impact. Nearly 50 years later, after thousands of cases and arbitrations and well over one billion dollars spent by employers, government enforcement agencies, special interest plaintiff groups, and law firms, the concept has been highly refined. It has also expanded to apply to settings other than that for which it was first designed (e.g., some U.S. circuit courts have recently approved of using adverse impact calculations for age discrimination cases).While the courts still struggle for a definitive explanation of what constitutes a "finding of adverse impact,” the term as used today essentially means the same as when it was first written: a substantially different rate of selection in hiring, promotion or other employment decision which works to the disadvantage of members of a race, sex or ethnic group (Uniform Guidelines Questions & Answers Supplement #10). The three most common methods for determining adverse impact are the 80% Rule, statistical significance tests, and practical significance tests." (from Adverse Impact and Test Validation: A Practitioner's Handbook, 3rd Edition, by Dr. Dan Biddle)>>Download the Adverse Impact Analysis Overview PowerPoint Slides (PDF)
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