Four-fifths rule

Advanced 👥 Human Resources

Definition

A US guideline stating that a selection rate for one group below 80 percent of the rate for the highest group suggests adverse impact. It is a rule of thumb used by regulators and lawyers, who treat it as a warning light rather than a verdict.

Example Usage

Our hiring test failed the four-fifths rule for one group, so the assessment needs a validation study before we use it again.

Origin

Established in the Uniform Guidelines on Employee Selection Procedures (1978) by US federal agencies.

Source: Uniform Guidelines on Employee Selection Procedures (1978)

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