Adverse Impact Analysis Calculator

Impact Ratio Formula:

\[ \text{Impact Ratio} = \frac{\text{Minority Rate}}{\text{Majority Rate}} \]

Impact Ratio:

EEO 80% Rule Compliant:

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1. What is Adverse Impact Analysis?

Adverse Impact Analysis is a statistical method used to determine if employment practices have a disproportionately negative effect on protected groups. It helps organizations identify potential discrimination in hiring, promotion, or other employment decisions.

2. How Does the Calculator Work?

The calculator uses the Impact Ratio formula and EEO 80% Rule:

\[ \text{Impact Ratio} = \frac{\text{Minority Selection Rate}}{\text{Majority Selection Rate}} \]

Where:

Minority Rate — Selection rate for the protected group (%)
Majority Rate — Selection rate for the majority group (%)
Impact Ratio — Ratio of minority to majority selection rates

EEO 80% Rule: If the Impact Ratio is less than 0.8 (80%), it indicates potential adverse impact and requires further investigation.

3. Importance of Adverse Impact Analysis

Details: Adverse impact analysis is crucial for compliance with equal employment opportunity laws, preventing discrimination lawsuits, promoting diversity and inclusion, and ensuring fair employment practices.

4. Using the Calculator

Tips: Enter the selection rates for minority and majority groups as percentages. Both values must be between 0-100%, and majority rate cannot be zero.

5. Frequently Asked Questions (FAQ)

Q1: What is the EEO 80% Rule?
A: The 80% rule (or four-fifths rule) states that adverse impact may exist if 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 exists when employment practices appear neutral but have disproportionate negative effects on protected groups, regardless of intent.

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

Q4: Is adverse impact analysis legally required?
A: While not always legally mandated, it's considered a best practice and is used by enforcement agencies like the EEOC to identify potential discrimination.

Q5: What if adverse impact is found?
A: Organizations should investigate the cause, determine if the practice is job-related and consistent with business necessity, and consider alternative practices with less adverse impact.