# Adverse impact

Adverse impact is when a hiring practice that appears neutral on its face ends up disproportionately screening out candidates from a protected group, even without any intent to discriminate.

This is a general description of the concept, not legal advice; employers should consult counsel to assess a specific practice.

**Adverse impact** — Adverse impact is when a hiring practice or selection procedure, applied the same way to everyone, produces a meaningfully different selection rate for one protected group compared to another. It's distinct from disparate treatment, which involves intentionally treating candidates differently based on a protected characteristic. Adverse impact can occur even when a practice is applied identically to every candidate and no one involved intended any discriminatory effect; the concern is the outcome, not the intent behind the rule. A common example is a physical fitness test or a specific credential requirement that, while applied evenly, screens out a disproportionate share of one group relative to others. It's typically identified statistically, by comparing the rate at which different groups pass through a given stage of the hiring process, most commonly using a guideline like the four-fifths rule as an initial screening threshold.

Adverse impact analysis is why employers, particularly larger ones, track selection rates by group at each stage of hiring: application, screening, interview, and offer. A single stage showing a large gap between groups doesn't automatically mean a legal problem exists, since a job-related and consistent business necessity can justify a practice even with an uneven pass rate, but it's a signal that warrants a closer look at whether the criteria being used are actually necessary for the role.

## Frequently asked questions

### Is adverse impact the same as intentional discrimination?

No. Intentional discrimination, also called disparate treatment, involves deliberately treating candidates differently. Adverse impact can occur from a neutral practice applied evenly to everyone, with no discriminatory intent, based purely on the outcome it produces.

### Does adverse impact automatically mean a hiring practice is illegal?

Not automatically. A practice showing adverse impact can potentially be justified if it's job-related and consistent with business necessity, though this is a legal determination that depends on the specific facts and should involve counsel.

### How do employers typically screen for adverse impact?

By comparing selection rates across candidate groups at each stage of the hiring process, often using the four-fifths rule as an initial statistical benchmark before looking more closely at any stage showing a gap.

## Related pages

- [The four-fifths rule](/glossary/four-fifths-rule)
- [EEOC compliance](/glossary/eeoc-compliance)
- [Browse open roles](/jobs)

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