1. What Is Adverse Impact Ratio?

The Adverse Impact Ratio is a statistical measure used to identify potential discrimination in employment practices. It compares the selection rates of minority and majority groups to ensure fair hiring practices according to EEOC guidelines.

2. How Does The Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• Minority Selection Rate — Proportion of minority candidates selected (0-1)
• Majority Selection Rate — Proportion of majority candidates selected (0-1)

EEOC Guideline: A ratio of 0.8 or higher (the "four-fifths rule") generally indicates no adverse impact. Ratios below 0.8 suggest potential discrimination requiring further investigation.

3. Importance Of Adverse Impact Analysis

Details: Adverse impact analysis helps organizations identify unintentional discrimination in hiring, promotion, and other employment decisions. It ensures compliance with equal employment opportunity laws and promotes diversity and inclusion.

4. Using The Calculator

Tips: Enter selection rates as proportions between 0 and 1. For example, if 30 out of 100 minority candidates were selected, enter 0.3. The majority rate cannot be zero.

5. Frequently Asked Questions (FAQ)

Q1: What is the "four-fifths rule"?
A: The EEOC's rule of thumb stating that a selection rate for any minority group that is less than 80% of the majority group's rate may indicate adverse impact.

Q2: What constitutes a minority group?
A: Any protected class under employment law, including race, gender, age (40+), disability status, religion, or national origin.

Q3: Is adverse impact always illegal?
A: Not necessarily. If an employer can demonstrate that the practice is job-related and consistent with business necessity, it may be permissible.

Q4: How many data points are needed for reliable analysis?
A: Generally, at least 30-50 selections per group for statistical significance, though smaller samples can still trigger investigation.

Q5: What should I do if my ratio is below 0.8?
A: Conduct further analysis to determine if the practice is job-related and necessary, or consider alternative selection methods with less adverse impact.