There is no question that discrimination occurs in the workplace every day, both here in Ohio and around the country, and it can be implicit and even unnoticed in practice. As a result, the Equal Employment Opportunity Commission puts guidelines in place (known as the Uniform Guidelines for Employee Selection Procedures) to help employers determine whether there are discriminatory employment practices.
One of those guidelines in place is what is known as the “80% rule,” which was designed to help employers determine if they have been discriminatory in their hiring practices. The rule states that employers should be hiring protected groups (i.e. those who are different from white men in terms of ethnic group, race, or sex) at a rate that is at least 80% that of a non-protected group (such as white males). Specifically, the 80% rule dictates that the selection rate of a protected group should be at least 80% of the selection rate of the non-protected group.
Adverse Impacts and Enforcement
Determining whether there has been an adverse impact is based on the rates at which job applicants are hired. For example, if an employer hires 60% of white males applying for a particular job, but only 10% of the female applicants, the case could be made that there is a discrimination issue, as the rate of hiring female applicants is only a percentage of the rate of hiring male applicants, and that percentage is well below the 80% cutoff.
However, the rule has no real authority other than providing guidance so as to potentially call into question a company’s equal employment practices, as those who are not in compliance with it need only provide a legitimate reason as to why they cannot comply with practices that are designed to avoid adverse impacts in terms of substantial differences in employment outcomes for members of a specific group. Establishing legitimacy typically involves the employer justifying the result as being a business necessity, meaning that the procedure is essential to the efficient, safe operation of the business, and there are no alternative procedures that are substantially equally valid that would have a less adverse impact, or that it is job-related.
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Note that adverse impact does not just refer to hiring, but other employment practices, including development, promotions, training, layoffs, transfers, performance reviews, and more. Everyone has the right to the same opportunities in the workplace. If you or a loved one has experienced discrimination in the hiring or employment process due to their disability, our Columbus, Ohio, disability discrimination attorneys are here to help. Contact us today to set up a confidential consultation and find out more.
FAQs
The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.
What is the 80% rule of adverse impact? ›
The 80% rule states that the selection rate of the protected group should be at least 80% of the selection rate of the non-protected group. In this example, 4.8% of 9.7% is 49.5%. Since 49.5% is less than four-fifths (80%), this group has adverse impact against minority applicants.
What is the 80 rule in affirmative action? ›
The rule states that employers should be hiring protected groups (i.e. those who are different from white men in terms of ethnic group, race, or sex) at a rate that is at least 80% that of a non-protected group (such as white males).
How much can you win in a racial discrimination lawsuit? ›
When it comes to California discrimination lawsuits, the potential payout varies greatly depending on the company's size. Take small businesses with fewer than 100 employees - they're looking at a maximum payout of $50,000. But scale up to 101-200 employees, and that number jumps to $100,000.
What are the two ways to prove discrimination? ›
Wronged employees have three ways of proving their employers intended to discriminate: circ*mstantial evidence, direct evidence, and pattern and practice. Circ*mstantial evidence is evidence that proves a fact by inference, as opposed to direct evidence which directly proves a fact.
What is the burden of proof for discrimination? ›
This means that the initial burden of proof lies with the worker. The worker needs to prove that the facts of the case give rise to an inference of discrimination, or that discrimination has occurred in the absence of any other explanation.
What are 3 examples of affirmative action policies? ›
Outreach campaigns, targeted recruitment, employee and management development, and employee support programs are examples of affirmative action in employment.
What is the 4 5 rule in affirmative action? ›
What is the Four-Fifths Rule? The Four-Fifths Rule, also known as the 80% Rule, is a statistical guideline established by the Equal Employment Opportunity Commission (EEOC) in the United States, used to evaluate whether a selection process leads to adverse impact against any specific group.
What is positive discrimination in the workplace? ›
This is a form of discrimination that favours someone by treating them differently in a positive way. An example might be an organisation appointing someone from an underrepresented group into a role without considering whether they have right skills for the post.
How do you negotiate a discrimination settlement? ›
Before agreeing to any settlement agreement, you need to consider elements like monetary compensation. This includes lost wages, compensatory and punitive damages, etc. You should also consider reinstatement or changes in employment status and policy changes to prevent further discrimination.
Q: What Are the Chances of Winning an EEOC Case? A: The EEOC has a very high success rate when it comes to court decisions, reaching favorable outcomes in nearly 96% of all district court cases stemming from EEOC complaints.
How much compensation for discrimination? ›
You can get compensation for any money you've lost because of the discrimination. This could be the difference in salary if you didn't get a promotion. As a starting point, work out what your losses would be if it takes you a year to find a job which pays the same as the promotion.
What is the 80 80 rule? ›
The “80/80 rule” applies when more than 80 percent of your sales are food and more than 80 percent of the food you sell is taxable. If the 80/80 rule applies and you do not separately track sales of cold food products sold to-go, you are responsible for tax on 100 percent of your sales.
What is the federal 85% rule? ›
This rule prohibits Department of Veterans Affairs (VA) from paying benefits to students enrolling in a program when more than 85 percent of the students enrolled in that program are having any portion of their tuition, fees, or other mandatory charges paid for them by the school or by VA under Title 38 and Title 10.
What is the 80/20 rule for hiring diversity? ›
Most companies unknowingly violate this the 80/20 Talent Rule every day. The rule is: Focus 80% of your hiring and recruiting efforts on the most important 20% of the talent market.
What is the 50-80 rule? ›
Understanding the 50–80 rule in the stock market: “Once a secular market leader puts in a major top, there is a 50% chance that it will decline by 80% and a 80% chance that it will decline by 50%” – Mark Minervini The above statement is not some random assumption but is a fact as per Mark.
