The HR Dictionary

Disparate Effect

Originating from the Civil Rights Act of 1964, Title VII, forbids employers from using ostensibly neutral tests or selection processes that inordinately exclude people based on their race, color, religion, sex, sexual orientation, gender identity, or national origin if the tests or processes are not ‘related for the position in question and consistent with business necessity.’ Disparate impact analysis is permitted by federal statutes and regulations to find illegal discrimination. 

With the use of suitable HR management systems, organizations can also build HR administration policies & frameworks that are transparent in order to avoid disparate treatment in activities such as recruitment.