Understanding Adverse Impact
Adverse impact, something that all organizations want to avoid in their employment decisions, has a long history in the United States legal system. It is rooted in the language of Title VII of the 1964 Civil Rights Act, Supreme Court decisions in Griggs v. Duke Power (1971) and Albemarle v. Moody (1975), and subsequently codified in the 1978 Uniform Guidelines on Employee Selection Procedures.
This white paper discuss a number of relevant issues surrounding adverse impact in employment practice, and specifically in the hiring process. In addition, we provide a summary of important court cases related to adverse impact; and, more importantly, we address how PSI helps reduce adverse impact in our selection systems.