Question

A hotel in Florida has instituted a policy to hire individuals living in close proximity to the hotel premises to reduce instances of employees coming in late. As the area surrounding the hotel is predominantly populated with individuals of Hispanic origin, the Caucasian and African-American communities became underrepresented in the hotel's workforce. This is an example of:

Answer 1

Answer: Disparate impact

Step-by-step explanation: In simple words, disparate effect refers to the situation when certain activities or decisions of the business adversely affect one group of people than others. Although these decisions and activities are made on neutral basis with no intention of harming any group.

In the given case, the hotel management decided to employee the nearby local, co-incidentally the Hispanic's were in majority in the neighborhood.

Hence from the above we can conclude that the given case illustrates disparate effect.