Four Fifths Rule K 4 5ths Rule 80 Rule Simplest Common Way Estimating Adverse Impact Unifo Q34310480

The four-fifths rule (a.k.a. 4/5ths rule or 80% rule) is thesimplest and most common way of estimating adverse impact. TheUniform Guidelines indicate that the 4/5ths rule is the preferredmethod for determining adverse impact.

1. Calculate the selection rate for each protected group thatmakes up more than 2% of the applicant pool. The selection rate isequal to the total number of applicants within the group that arehired divided by the total number of applicants with thatgroup.
2. Observe which group has the highest selection rate. This is notalways the white, male or “majority” group.
3. Calculate the impact ratio by dividing the selection rate foreach group the
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