4/5 Rule Calculator

EEOC 4/5 Rule Formula:

\[ \text{Adverse Impact} = \begin{cases} \text{Yes} & \text{if } \text{Selection Rate} < \frac{4}{5} \times \text{Highest Rate} \\ \text{No} & \text{otherwise} \end{cases} \]

Threshold (80% of Highest Rate):

Adverse Impact:

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1. What is the 4/5 Rule?

The 4/5 Rule (also known as the 80% Rule) is a guideline established by the Equal Employment Opportunity Commission (EEOC) to identify potential adverse impact in employment selection processes. It helps detect possible discrimination in hiring, promotion, or other employment decisions.

2. How Does the Calculator Work?

The calculator uses the EEOC 4/5 Rule formula:

\[ \text{Adverse Impact} = \begin{cases} \text{Yes} & \text{if } \text{Selection Rate} < \frac{4}{5} \times \text{Highest Rate} \\ \text{No} & \text{otherwise} \end{cases} \]

Where:

\( \text{Selection Rate} \) — The selection rate of the protected group (%)
\( \text{Highest Rate} \) — The highest selection rate among all groups (%)
\( \frac{4}{5} \) — The 80% threshold multiplier

Explanation: If the selection rate for any protected group is less than 80% of the highest selection rate, adverse impact may be present, indicating potential discrimination.

3. Importance of 4/5 Rule Analysis

Details: The 4/5 Rule is a crucial tool for employers to monitor and ensure fair employment practices, comply with equal opportunity laws, and identify potential discriminatory patterns in hiring and promotion processes.

4. Using the Calculator

Tips: Enter the selection rate (%) for the group being analyzed and the highest selection rate (%) among all comparison groups. Both values must be between 0-100%.

5. Frequently Asked Questions (FAQ)

Q1: What constitutes adverse impact under the 4/5 Rule?
A: Adverse impact exists when the selection rate for a protected group is less than 80% of the rate for the group with the highest selection rate.

Q2: Is the 4/5 Rule a legal requirement?
A: While not a strict legal standard, it's a widely accepted enforcement guideline used by EEOC and courts to identify potential discrimination.

Q3: What types of employment decisions does this apply to?
A: Hiring, promotions, transfers, training opportunities, and any other employment selection processes.

Q4: What should employers do if adverse impact is found?
A: Employers should investigate the cause, validate the selection procedure, and ensure it's job-related and consistent with business necessity.

Q5: Are there exceptions to the 4/5 Rule?
A: Yes, if the selection procedure is validated as job-related and consistent with business necessity, adverse impact may be legally justified.