What is the "four-fifths rule" used for?

The "four-fifths rule" is a guideline established to assess whether there is an adverse impact on a particular group during the selection process. This rule suggests that if the selection rate for a protected group is less than four-fifths (or 80%) of the selection rate for the group with the highest selection rate, this may indicate potential discrimination. This framework is essential for employers as it helps them analyze their hiring practices and ensure that they are not inadvertently disadvantaging any group based on race, gender, or other protected characteristics.

This rule is particularly relevant in evaluating the effectiveness of hiring processes and addressing issues related to Equal Employment Opportunity laws. By using this guideline, employers can take proactive steps to adjust their hiring processes to promote fairness and compliance with EEO regulations. Understanding this concept is crucial for those in HR or management roles to maintain equitable employment practices.