Final answer:
The FALSE statement is that Disparate impact can never occur if policies are neutral and applied without discriminatory intent. Neutral policies can still result in a disparate impact on protected groups.
Step-by-step explanation:
The statement that is FALSE among the options given is: B. Disparate impact can never occur if your policies are neutral and applied without discriminatory intent. While policies may be neutral on their face and applied equally, they can still have a disparate impact on certain groups. This form of discrimination occurs when a policy or practice seems neutral but results in a disproportionate impact on a protected group, even without the employer's intent to discriminate.
For example, an employment test that is not job-related and disproportionately screens out members of a certain race could be seen as creating disparate impact. Thus, it is a myth that neutral policies automatically prevent disparate impact; the actual outcome of the policy must be considered.