Understanding the 80% Rule | The Melton Law Firm (2024)

Unfortunately, protected groups frequently face discrimination every day, sometimes without even noticing. Identifying discrimination in the workplace can be very difficult for employers that feel as if they are practicing fair and equal employment. Even the Equal Employment Opportunity Commission has a difficult time prosecuting employers that violate civil rights, as charges can be challenging to prove. Thankfully, there are guidelines in place such as the 80% rule that can help companies determine if they are unknowingly discriminating against protected groups.

At The Melton Law Firm, our attorneys understand how aggravating it is to be discriminated against, even if the employer did so unwittingly. We can help you shed light on the discriminatory treatment you’ve been receiving so that your employer understands that certain behaviors are unacceptable.

What is the 80% Rule?

The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men. For example, if a firm has hired 100 white men in their last hiring cycle but only hired 50 women, then the company can be found in violation of the 80% rule. The rule itself has no real effect other than to call into question a company’s hiring ethics. Those that are found in violation are only asked to provide a legitimate reason as to why they are hiring protected groups at such a lower rate.

When hiring potential new employees, some employers may end up hiring primarily one race or ethnic group, and while hiring the most qualified employee is important, having a huge portion of a company belong to a single ethnic group can raise questions about its equal employment practices. Nonetheless, the 80% rule is a useful guideline for companies to use when hiring to ensure that they are not unknowingly discriminating against protected groups.

Contact an Austin Equal Employment Attorney

If you or someone you know has been discriminated against in the workplace, you have many legal options to begin building your equal employment case. Every person, no matter race or ethnic group, has the right to have the same opportunities. At The Melton Law Firm, our Austin employment attorneys have dedicated their professional lives to protecting the employment rights of all our clients. Contact our office today at (512) 330-0017 to speak with a member of our legal team today.

Understanding the 80% Rule | The Melton Law Firm (2024)

FAQs

Understanding the 80% Rule | The Melton Law Firm? ›

What is the 80% Rule? The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.

What is the 80% rule in affirmative action? ›

The rule states that employers should be hiring protected groups (i.e. those who are different from white men in terms of ethnic group, race, or sex) at a rate that is at least 80% that of a non-protected group (such as white males).

What is the 80 percent rule for adverse impact? ›

If any of the comparison groups do not have a passing rate equal to or greater than 80 percent of the passing rate of the highest group, then it is generally held that evidence of adverse impact exists for the particular selection procedure.

What is the four fifths rule? ›

The rule states that one rate is substantially different than another if their ratio is less than four-fifths (or 80%). In the example above involving a personality test scored by an algorithm, the selection rate for Black applicants was 30% and the selection rate for White applicants was 60%.

What is the 80 percent rule? ›

The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.

What are 3 examples of affirmative action policies? ›

Here are some examples of affirmative action practices:
  • Quota systems. Occurring most often in education or employment settings, quota systems allocate a certain percentage of opportunities to disadvantaged groups. ...
  • Higher education admissions. ...
  • Political party quotas. ...
  • Employment Equity Act.

What is the 4 5 rule for layoffs? ›

The four-fifths rule prescribes that a selection rate for any group (classified by race, sexual orientation or ethnicity) that is less than four-fifths of that for the group with the highest rate constitutes evidence of adverse impact (also called 'disparate impact'), that is, discriminatory effects on a protected ...

How do you prove adverse impact? ›

If an organization finds that the selection rate of a protected group is less than 80% of the selection rate when compared to a different group, it may suggest that there's an adverse impact. This rule does not provide definitive proof of discrimination. Instead, it's an indicator that further investigation is needed.

How do I calculate adverse impact? ›

This is done by comparing the selection rate for each group against that of the most-represented group, in which you are basically comparing the rate for the adverse group with the rate for the favored group by dividing the former by the latter.

What is the McDonnell Douglas framework? ›

An evidentiary framework used to analyze whether a plaintiff's disparate treatment discrimination claims should survive a defendant-employer's motion for summary judgment. The McDonnell Douglas burden-shifting analysis is applied when a plaintiff lacks direct evidence of discrimination.

How do you prove disparate treatment? ›

To prove disparate treatment, the employee (plaintiff) must first present a “prima facie” case, meaning that he must present evidence that discrimination has occurred. This evidence can be either direct evidence or indirect (circ*mstantial) evidence.

What is a prima facie case of discrimination? ›

In order to establish a prima facie case in an employment setting, a plaintiff must have enough evidence to show that they were discriminated against by their employer for a prohibited reason. If the employer is not able to show evidence that contradicts it, the employee plaintiff will likely win.

What is the 80/20 rule for hiring diversity? ›

Most companies unknowingly violate this the 80/20 Talent Rule every day. The rule is: Focus 80% of your hiring and recruiting efforts on the most important 20% of the talent market.

What are the rules for affirmative action? ›

Affirmative action requirements are intended to ensure that applicants and employees of federal contractors have equal opportunity for recruitment, selection, advancement, and every other term and privilege associated with employment, without regard to their race, color, religion, sex, sexual orientation, gender ...

What is the threshold for affirmative action? ›

Section 503 of the Rehabilitation Act of 1973 (Section 503): Covered contractors that have 50 or more employees and a contract of $50,000 or more are required to develop and maintain a written Section 503 affirmative action program.

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