Disparate impact

Definition

General meaning

Disparate impact refers to a law, policy, or rule set (either governmental or that of a private firm) that has a disproportionate adverse impact on a clearly identifiable subgroup of the population, even though it may not explicitly discriminate (or intend to discriminate) against that subgroup of the population.

In US legal jargon

In the United States, disparate impact is typically used in the context of employment practices and rules by firms (private or governmental) that make it harder for people in certain subgroups of the population to obtain employment. A firm whose hiring practices are shown to have disparate impact may be sued and, if the charge of disparate impact is proved, the firm must show that these hiring practices arise from a business necessity (i.e., that the rule set is necessary to meet business objectives) in order to win the case.