What type of discrimination arises from a neutral policy that has a discriminatory effect?

The concept of adverse impact addresses situations where a seemingly neutral policy or practice unintentionally leads to discrimination against a protected group. This type of discrimination is assessed through the use of statistical evidence to show significant differences in outcomes for different groups, even if the policy itself does not explicitly target any particular group.

For instance, an employer might implement a hiring test that is not intended to discriminate but which, in practice, results in a significantly lower pass rate for minorities compared to other applicants. Even though the intent behind the policy was neutral, the effect is discriminatory, and this is what constitutes adverse impact.

In the context of employment law, demonstrating adverse impact is crucial because it shifts the focus from discriminatory intent to the actual outcomes of policies or practices, highlighting the need for employers to be vigilant in evaluating how their decisions may inadvertently affect different groups. Understanding this principle helps ensure compliance with equal employment opportunity laws, as it underscores the importance of not only evaluating intentions but also understanding the implications of policies in practice.