Shippers Express is accused of adverse impact on a protected group. Eighty percent of all male applicants are hired, but only 50% of female applicants are hired. Using the formula for disparate rejection rates, adverse impact cannot be shown.

Question

Quizplus · Accepted Answer

A selection rate for any racial, ethnic, or sex group which is less than four-fifths or 80% of the rate for the group with the highest rate will generally be regarded as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded as evidence of adverse impact. In this example, Shippers Express hires 80% of male applicants, but only 50% of female applicants. Four-fifths of 80% would be 64%. Since 50% is less than 64%, adverse impact exists.

Shippers Express Is Accused of Adverse Impact on a Protected