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Disparate Impact and Disparate Treatment

Help discuss the importance of the legal context of talent management.

Bases for Employment Lawsuits
a - What is the difference between disparate treatment and adverse impact?
b - Strategic Exercise. Using each of the three statistical examples (stock, flow, and concentration), discuss whether or not there is evidence of adverse impact.
(see attached file for data).
c - Try to identify what might be happening.

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Solution Summary

This solution discusses disparate treatment and disparate impact.

Disparate Treatment - This form of discrimination is defined by the US Supreme Court as treating an applicant or employee less favorably than others because of race, color, national origin, gender and sexual orientation (in California).

Disparate Impact - The main focus in disparate impact is not the motivation of discrimination, but rather the discriminatory consequences. Disparate impact can be defined as the employment practices that negatively impact (either intentionally or not) a group of protected individuals. For example, when an organizations creates a math exam as part of a recruitment process which is typically aced only by Asian ethic groups.