What is disparate impact?

Disparate impact is an employment policy or practice, while neutral on its face, adversely impacts against a particular racial, ethnic or sex group. A neutral policy or practice may have an adverse effect on disabled individuals or religious groups. Disparate impact discrimination may be found when an employer’s use of a facially neutral selection standard, such as a test, an interview or a degree requirement, disqualifies members of a particular race, sex, religion, color, national origin, age, and/or physical or mental disability at a significantly higher rate than others and is not justified by business necessity or job related duties. An intent to discriminate is not necessary; however, if discrimination is an unintended byproduct of a selection standard, then it will be deemed illegal.