ACME Rug Company had 10 openings for carpet weavers last year, the only openings

Question

ACME Rug Company had 10 openings for carpet weavers last year, the only openings ACME had all year. Ten white males applied, and five were hired. Ten African Americans applied and four were hired. The only other applicants were Hispanics: five of them applied and only one was hired. The African-American and Hispanic applicants who were not hired are considering bringing a disparate impact claim for discrimination. May the employer rely on the 80% rule as to any of these applicants? Explain your answer. **SHOW YOUR WORK**

Explanation / Answer

Applied Hired Hired Percentage
White males 10 5 50%
African American 10 4 40%
Hispanics 5 1 20%
Employee Selection Procedures provided a simple "80 percent" rule for determining that a company's selection system was having an "adverse impact" on a minority group. The rule was based on the rates at which job applicants were hired. In this case African American 40% and Hispanics 20% are well below the 80 percent that was arbitrarily set as an acceptable difference in hiring rates. Therefore Company could have been called upon to prove that there was a legitimate reason for hiring .

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