Bankruptcy Section
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What is “adverse impact”?
The term “disparate impact” is used to describe the effect of discrimination. Succinctly, disparate treatment can be summed up thusly: the results when an employer treats “some people differently than others because of their membership in a group protected by one of several laws.” Otherwise stated, disparate impact is “a substantially different rate of selection in hiring, promotion or other employment decision which works to the disadvantage of members of a race, sex, or ethnic group.” Further, in statistical comparison between the racial composition of qualified people in a certain labor market and those individuals holding the job(s) at issue, there must be an adverse effect on a protected class as a result of the employer’s subjective or objective selection practices. The Uniform Guidelines on Employee Selection Procedures sets forth the steps employers can take to ensure that their employee selection process meets the nondiscriminatory threshold allowed by law.
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