1. What Is Adverse Impact Analysis?

Adverse Impact Analysis is a statistical method used to detect potential discrimination in employment practices. It compares selection rates between protected groups (such as racial minorities, women, etc.) and comparison groups to identify significant disparities that may indicate discriminatory practices.

2. How Does The Calculator Work?

The calculator uses the Four-Fifths Rule (80% Rule) formula:

Where:

• \( Protected\ Group\ Rate \) — Selection rate of the protected group (%)
• \( Comparison\ Group\ Rate \) — Selection rate of the comparison group (%)
• \( Ratio \) — Unitless ratio comparing the two rates

Interpretation: A ratio less than 0.8 (80%) indicates potential adverse impact according to the Uniform Guidelines on Employee Selection Procedures.

3. Importance Of Adverse Impact Analysis

Details: Adverse impact analysis is crucial for organizations to ensure fair hiring and promotion practices, comply with equal employment opportunity laws, and identify potential discrimination before it becomes a legal issue.

4. Using The Calculator

Tips: Enter the selection rates for both protected and comparison groups as percentages (0-100%). The calculator will compute the ratio and determine if adverse impact exists based on the Four-Fifths Rule.

5. Frequently Asked Questions (FAQ)

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

Q2: What Constitutes A Protected Group?
A: Protected groups include race, color, religion, sex, national origin, age (40+), disability, and genetic information under various employment laws.

Q3: Is Adverse Impact Always Illegal?
A: Not necessarily. Adverse impact may be justified if the practice is job-related and consistent with business necessity, and no alternative practices exist with less adverse impact.

Q4: What Sample Size Is Needed For Reliable Analysis?
A: Generally, statistical significance tests should be used when sample sizes are small. The Four-Fifths Rule is more reliable with larger sample sizes.

Q5: How Often Should Adverse Impact Analyses Be Conducted?
A: Regular monitoring (annually or semi-annually) is recommended, especially after implementing new hiring or promotion practices.