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Glossary
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Adverse Impact

Adverse impact in employment law refers to a situation where an employment practice or policy unintentionally discriminates against a particular group of people based on characteristics like race, gender, age, or disability.

Example #1

An example of adverse impact would be if a company's hiring process consistently screens out a higher percentage of job applicants from a certain racial group compared to others, even though the practice appears neutral on the surface.

Misuse

Misuse of adverse impact could result in systemic discrimination within an organization, leading to unfair treatment of certain groups and limiting diversity and inclusion efforts. It's important to protect against adverse impact to ensure fair opportunities for all individuals in the workplace.

Benefits

Recognizing and addressing adverse impact can lead to more equitable hiring, promotion, and retention practices. By proactively identifying and correcting such discriminatory effects, companies can create a more inclusive and diverse workforce that reflects the population they serve.

Conclusion

Adverse impact is a critical concept in employment law that aims to prevent unintentional discrimination in the workplace. By understanding and mitigating adverse impact, organizations can foster a fair and inclusive environment for employees.

Related Terms

Equal Employment Opportunity Commission (EEOC)Discrimination

Last Modified: 4/30/2024
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