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Disparate impact is the formal legal term for adverse impact.
Disparate impact is the biased or negative effect that a discriminatory hiring practice may have on one of any protected groups. It is illegal to discriminate against a job applicant or employee because of:
- Sex (including pregnancy, sexual oriantation and gender identity)
- National origin
- Age (40 or older)
- Physical or mental disability
- Genetic Information (including family medical history)
From pre-employment assessments and interviews to promotions and even performance reviews, adverse or disparate impact can occur at any stage of the hiring or employment process. Since adverse impact is typically unintentional and found in hiring practices that appear neutral on the surface, addressing adverse impact requires a clear, strategic focus on creating an equitable candidate experience.
Learn more about how to avoid Disparate Impact check out this article – 4 ways to reduce adverse impact in your workplace