The 80% rule evaluates adverse impact by comparing the representation of a group in the applicant pool to the representation of that group among those who have been hired,fired,promoted,transferred,or demoted.

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The 80% rule, also known as the Four-Fifths Rule, is a method to evaluate adverse impact in selection processes. It compares the selection rates for different groups by dividing the selection rate of the group with the lowest rate by the selection rate of the highest group. If the result is lower than 80%, it suggests a potential adverse impact and requires further investigation. The rule is often used by the Equal Employment Opportunity Commission (EEOC) to determine if an employer's selection process is discriminatory.

The 80% Rule Evaluates Adverse Impact by Comparing the Representation