What is the threshold for proving disparate impact through hiring rates?

Proving disparate impact in hiring practices typically involves a comparison of hiring rates between different groups to assess whether a selection process disproportionately excludes members of a protected class. The established threshold for establishing a prima facie case of disparate impact is that the hiring rate for the protected class must be less than four-fifths (or 80%) of the majority class rate. This standard is rooted in guidelines from the Equal Employment Opportunity Commission (EEOC), which suggests that a significant disparity—lowering the hiring rate of a demographic group to below this threshold—could indicate potential discrimination.

This four-fifths rule serves as a practical benchmark to flag potential issues warranting further examination. If the hiring rate for the protected class falls below this percentage, it raises a presumption that the practice may disproportionately affect that group, prompting an investigation into the practices used by the employer.

The other options do not accurately capture the legal standard established for determining disparate impact. For instance, requiring the rate for the protected class to be less than half of the majority class rate is excessively strict and not aligned with legal guidelines. Similarly, showing no difference or requiring the protected class rate to exceed the majority class rate do not reflect the principles behind assessing disparate impact, which seeks to identify cases