Disparate Impact refers to

• A. a condition in which employment practices are seemingly neutral yet disproportionately exclude a protected group from employment opportunities
• B. A policy that favors protected groups
• C. A direct admission of discrimination
• D. A neutral rule that benefits all applicants

Answer: (A)

Disparate impact happens when an employment practice is neutral in form but produces a disproportionately negative effect on a protected group. The important part is the outcome, not whether someone intended to discriminate. For example, a test or screening rule that is job-related in name but ends up excluding far more people from a protected group than others would be considered disparate impact. Under law, the employer may need to show the rule is job-related and consistent with business necessity or look for less discriminatory alternatives. This concept is different from discrimination that is intentional (disparate treatment), and it is not about a policy that “favors” protected groups, nor about a neutral rule that simply benefits all applicants.