What type of discrimination is known for having a discriminatory effect despite a neutral policy?

Disparate Impact refers to a situation where a seemingly neutral policy or practice unintentionally results in a disproportionate adverse effect on a particular group of individuals based on characteristics such as race, gender, or age. This form of discrimination does not require proof of intent to discriminate; rather, it focuses on the outcomes of the policy.

For instance, if a company implements a hiring test that is not inherently discriminatory but ends up disqualifying a significantly higher percentage of candidates from a particular racial group, this could be deemed as resulting in disparate impact. The key aspect of this concept is that the policy itself may be fair on its face, but its implementation leads to unfair outcomes for certain groups.

This is distinct from Disparate Treatment, which involves intentionally treating individuals differently based on a protected characteristic. Direct and Indirect Discrimination also relate to different contexts where intent and effects might be evaluated but do not capture the essence of a neutral policy leading to discriminatory outcomes. Thus, the understanding of Disparate Impact is crucial in identifying and addressing systemic inequalities in employment practices.