Rock the PHR Exam 2026 – Unleash Your HR Superpowers!

Disparate impact refers to a situation in employment decisions where a seemingly neutral policy or practice disproportionately affects individuals from a protected class, even if there is no intention to discriminate. This is a crucial concept in employment law, particularly under Title VII of the Civil Rights Act of 1964, as it acknowledges that the effects of decisions can lead to inequalities, regardless of the employer's intent.

This means that if a hiring practice or criterion is applied uniformly but results in a significant disadvantage to a particular group (such as those defined by race, gender, or disability), it can be challenged as disparate impact. For example, if a certain test used in hiring procedures is shown to have a negative effect on the hiring of minority candidates, even if that test is not designed to discriminate, it may be indicative of disparate impact.

In this context, the other options do not accurately capture the essence of disparate impact. Equal treatment regardless of qualifications does not take into account the unequal outcomes that may arise from neutral policies. Intentional bias suggests a more overt approach to discrimination, which does not align with the concept of disparate impact, as it specifically addresses unintentional outcomes. Encouragement of diverse hiring practices is more about promoting equity rather than examining the negative effects of