Disparate Impact
Disparate Impact Discrimination
A form of discrimination that occurs when a facially neutral policy or practice disproportionately affects members of a protected class, even without discriminatory intent. In AI hiring, this often manifests as algorithms that systematically disadvantage certain demographic groups.
Why This Matters for Employers
The 4/5ths rule (or 80% rule) is commonly used to evaluate disparate impact. If a selection rate for any group is less than 80% of the rate for the highest-scoring group, disparate impact may exist.
Related Laws & Regulations
Examples in Practice
How EmployArmor Helps
Understanding Disparate Impact is just the first step. EmployArmor helps you implement compliance for all AI hiring regulations.
Compliance Assessment
Find out which laws apply to your AI hiring tools and what you need to do to comply.
Documentation Templates
Get ready-to-use templates for impact assessments, notifications, and audit preparation.