Company X uses a test to select employees. The proportion of Black candidates who pass the test, however, is unusually small in comparison to the proportion of White candidates who pass the test. This situation appears to be an example of:

Question

Quizplus · Accepted Answer

Adverse impact occurs when a seemingly neutral employment practice results in a disproportionate impact on a protected group, such as racial minorities. In this scenario, the lower proportion of Black candidates passing the test suggests that the test may be having a disparate impact on this group, even though the test itself may not be intentionally discriminatory.

Company X Uses a Test to Select Employees