Definition
When an employment practice disproportionately excludes a protected group, violating discrimination laws even if unintentional. The legal term for 'oops, your hiring process is accidentally racist.'
Example Usage
Our requirement for 'culture fit' is showing adverse impact against older candidates—time to rethink that beer pong test.
Origin
Defined by the Uniform Guidelines on Employee Selection Procedures (1978)
Fun Fact
The 'four-fifths rule' states that adverse impact exists if a protected group's selection rate is less than 80% of the highest group's rate.
Source: Employment law and compliance terminology
Related Terms
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See “adverse impact” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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