1. What is Adverse Impact Ratio?

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

2. How Does the Calculator Work?

The calculator uses the Adverse Impact Ratio formula:

Where:

• \( \text{Minority Selection Rate} \) — Percentage of minority candidates selected
• \( \text{Majority Selection Rate} \) — Percentage of majority candidates selected

Explanation: The ratio measures whether employment practices have a disproportionately negative effect on protected groups.

3. Importance of Adverse Impact Analysis

Details: Adverse impact analysis is crucial for EEOC compliance, identifying potential discrimination, ensuring fair hiring practices, and maintaining diverse and inclusive workplaces.

4. Using the Calculator

Tips: Enter minority and majority selection rates as percentages (0-100%). A ratio below 0.8 typically indicates adverse impact according to the "four-fifths rule."

5. Frequently Asked Questions (FAQ)

Q1: What is the "four-fifths rule"?
A: The four-fifths rule states 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 adverse impact?
A: Generally, an Adverse Impact Ratio below 0.8 suggests potential adverse impact, though statistical significance should also be considered.

Q3: Is adverse impact analysis required by law?
A: While not explicitly required, it's a best practice for EEOC compliance and defending against discrimination claims.

Q4: What factors should be considered besides the ratio?
A: Sample size, statistical significance, job-relatedness of selection criteria, and overall hiring context should all be considered.

Q5: How often should adverse impact analysis be conducted?
A: Regular analysis (annually or per hiring cycle) is recommended to proactively identify and address potential issues.