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. PLEASE SHOW ALL CALCULATIONSON YOUR SHEET
- 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.
- Observe which group has the highest selection rate. This is notalways the white, male or “majority” group.
- Calculate the impact ratio by dividing
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