The 4/5 rule (80% rule) explanation:
Despite state and federal legislation, people have continued to be denied employment based on race, color, creed, religion, gender, national origin, age, veteran’s status, or disability. Because the basis of some of an employer’s decision could be considered subjective, the Equal Employment Opportunity Commission (EEOC) is charged with measuring the practice and effects of employer hiring practices. A major concern is identified as adverse impact, which is intentionally or unintentionally, the personnel practices and policies of some businesses that have had a disproportionate effect on individuals in classes protected by law. If policies and practices in hiring, transfer, promotion, and firing significantly affect people with protected status, the effect is labeled “adverse impact.” To reduce subjective interpretations of disproportionate, significant affect, and adverse impact, the EEOC has the authority and tools to analyze these practices statistically. Employers with practices deemed as adverse in their impact are subject to consequences in the law.
