By the Employment Attorneys at Smith & Garg, LLC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, and Missouri City.

How is adverse impact determined?

The law dictates that adverse impact is determined by a four-step process. First, the rate of selection is determined by dividing the number of persons selected from a protected group by the number of applicants from the same group. Second, determine which group has the highest selection rate. Third, impact ratios are calculated by a comparison of the of the selection rate for each group with that of the highest group. Fourth, determine whether the selection rate for any group is substantially less than the selection rate for the highest group. If the rate of hire of the protected class is less than 80% of the rate of hire for the non-protected class, then there is the likely indication that there is an adverse impact. However, adverse impact is not solely determined by math as there are other factors that could be relevant.

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