Challenging Question: Disparate Treatment. Disparate Impact. Adverse Impact. (PHR, SPHR, SHRM-CP, SHRM-SCP Exams)

Hello All!
The challenging question before us today is the difference between Disparate Treatment, Disparate Impact and Adverse Impact.

I will address Adverse Impact first. Adverse impact, according to the EEOC, " is a substantially different rate of selection in hiring, promotion or other employment decision which works to the disadvantage of members of a race, sex or ethnic group." 

When you hear about the 4/5th rule or 80% rule, I want you to think of adverse impact. It is synonymous to disparate impact but some scholars have made a distinction based on the fact that adverse impact includes the 4/5th calculation. To learn more on adverse impact and how to understand the calculations involved, go right here.



Alright, so the key difference is between disparate treatment and disparate impact. I love simplicity so here goes;


Disparate treatment is outright discrimination against a protected class, while Disparate impact is a seemingly fair employment process but which results in discrimination against a protected class in application and outcome.

Disparate treatment examples

1. Only men are hired for the truck driver position. (Discrimination based on gender)
2. Only Asians are required to take an assessment test. (Discrimination based on race).

Disparate treatment is therefore treating a protected class different from others. 

Protected classes include Race, Color, National Origin, Religion, Age, Sex, Pregnancy, Disability, Veteran Status, Citizenship, Familial Status, Genetic Information etc. 


Disparate Impact, on the other hand, is an employment process that on the surface seems to be fair. However, in its application and outcome, it results in some form of discrimination against a protected class.

Disparate Impact Examples

1. A height requirement for a job. (This seems fair but note that women and Asians may not meet certain height requirements)
2. A high school diploma requirement for a job. (This seems fair...but it is only fair if it is required for the job and a necessity for business success. If success on that job does not require a diploma and the employer requires it..., and the diploma requirement creates a negative impact against a protected class..., then it creates a disparate impact)

Disparate impact was established by this case, Griggs v. Duke Power Company. I will encourage you to read about it.

I hope this helps and if you need a little more help, check out the table below.

Disparate Treatment	Disparate Impact
Direct and intentional discrimination	A weight lifting test is required for a boxing program. More women than men fail the test
Different standards for different groups	An assessment tests measures entrepreneurship potential and applicants over 40 have lower scores than applicants of a younger age
Different requirements for different groups	Same requirements but different consequences  for different groups

Do you have any more examples?

Let me know and I will place them in the table!

I wish you success!