Adverse Impact Ratio Calculator

Adverse Impact Ratio Formula:

\[ AIR = \frac{\text{Minority Selection}}{\text{Majority Selection}} \]

Adverse Impact Ratio (AIR):

Impact Status:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Adverse Impact Ratio?

The Adverse Impact Ratio (AIR) is a statistical measure used to identify potential discrimination in employment practices. It compares the selection rates of minority and majority groups to determine if there is adverse impact in hiring, promotion, or other employment decisions.

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

\[ AIR = \frac{\text{Minority Selection}}{\text{Majority Selection}} \]

Where:

\( \text{Minority Selection} \) — Selection rate of protected group (%)
\( \text{Majority Selection} \) — Selection rate of majority group (%)
\( AIR \) — Adverse Impact Ratio (unitless)

Interpretation: An AIR ratio < 0.8 indicates adverse impact, suggesting potential discrimination that may require further investigation.

3. Importance of AIR Calculation

Details: AIR calculation is crucial for compliance with equal employment opportunity laws, identifying potential discrimination patterns, and ensuring fair hiring practices across different demographic groups.

4. Using the Calculator

Tips: Enter minority selection rate and majority selection rate as percentages. Both values must be valid (0-100%). The calculator will determine if adverse impact exists based on the 80% rule (AIR < 0.8).

5. Frequently Asked Questions (FAQ)

Q1: What is the 80% rule in adverse impact analysis?
A: The 80% rule (also known as the four-fifths rule) states that adverse impact exists when the selection rate for any protected group is less than 80% of the selection rate for the majority group.

Q2: What constitutes adverse impact?
A: Adverse impact occurs when employment practices appear neutral but have a disproportionate negative effect on protected groups, potentially violating equal employment opportunity laws.

Q3: What are protected groups in employment?
A: Protected groups include race, color, religion, sex, national origin, age (40+), disability, and genetic information as defined by various employment laws.

Q4: Is AIR the only test for adverse impact?
A: No, while the 80% rule is commonly used, statistical significance tests (chi-square, Fisher's exact test) may also be employed for more robust analysis.

Q5: What should I do if adverse impact is detected?
A: Conduct further analysis to determine if the practice is job-related and consistent with business necessity, and consider alternative practices with less adverse impact.