EEOC Adverse Impact Calculator

Adverse Impact Formula:

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

Minority Selected:

count

Minority Total Applicants:

count

Majority Selected:

count

Majority Total Applicants:

count

Adverse Impact Ratio:

Adverse Impact Exists:

Minority Selection Rate:

Majority Selection Rate:

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1. What is Adverse Impact?

Adverse impact occurs when a selection process results in a substantially different selection rate for members of a protected group compared to members of a majority group. The EEOC (Equal Employment Opportunity Commission) uses the 80% rule (or four-fifths rule) to determine if adverse impact exists.

2. How Does the Calculator Work?

The calculator uses the EEOC's 80% rule formula:

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

Where:

\( \text{Minority Selection Rate} = \frac{\text{Minority Selected}}{\text{Minority Total Applicants}} \)
\( \text{Majority Selection Rate} = \frac{\text{Majority Selected}}{\text{Majority Total Applicants}} \)

Interpretation: If the ratio is less than 0.8 (80%), adverse impact is indicated and the selection process may require further investigation.

3. Importance of Adverse Impact Analysis

Details: Adverse impact analysis helps organizations identify potentially discriminatory hiring practices, ensure compliance with equal employment opportunity laws, and promote fair and equitable selection processes.

4. Using the Calculator

Tips: Enter the number of minority and majority applicants selected and the total number of applicants in each group. All values must be non-negative integers, and selected counts cannot exceed total applicants.

5. Frequently Asked Questions (FAQ)

Q1: What is the 80% rule?
A: The 80% rule states that adverse impact exists when the selection rate for a protected group is less than 80% of the selection rate for the majority group.

Q2: What constitutes a protected group?
A: Protected groups include race, color, religion, sex, national origin, age (40+), disability, and genetic information under federal EEO laws.

Q3: Is adverse impact the same as intentional discrimination?
A: No, adverse impact refers to unintentional discrimination where neutral policies disproportionately affect protected groups, while disparate treatment involves intentional discrimination.

Q4: What should I do if adverse impact is detected?
A: Investigate the selection process, validate the job-relatedness of selection criteria, and consider alternative selection methods that reduce adverse impact while maintaining validity.

Q5: Are there statistical tests beyond the 80% rule?
A: Yes, statistical significance tests like chi-square or Fisher's exact test may be used to supplement the 80% rule analysis, especially with small sample sizes.