Question

When is the four-fifths rule applied?

a) When measuring adverse impact in employment selection rates.
b) When assessing annual employee attendance rates.
c) When measuring forced distribution ratings in performance evaluations.
d) When counting employee votes during a union certification process.

Answer 1

The four-fifths rule is used to measure adverse impact in employment selection rates and is a tool to detect potential discrimination in hiring processes. The U.S. Equal Employment Opportunity Commission (EEOC) endorses this rule, which compares selection rates across different demographic groups to identify disparities.

Step-by-step explanation:

The four-fifths rule is applied when measuring adverse impact in employment selection rates. This rule, endorsed by the U.S. Equal Employment Opportunity Commission (EEOC), is a guideline for assessing whether there is evidence of discrimination within the selection process. It states that if the selection rate for any racial, ethnic, or sex group is less than four-fifths (or 80%) of the rate of the group with the highest selection rate, there may be evidence of adverse impact, warranting further investigation.

However, this is not a strict legal standard but rather a rule of thumb that can trigger a closer look into hiring practices. Other methods for combating discrimination in hiring include various city, state, and federal laws aimed at preventing hiring decisions based on aspects such as race, color, religion, sex, and other characteristics unrelated to job performance.