Understanding the 80% Rule | The Melton Law Firm (2024)

Unfortunately, protected groups frequently face discrimination every day, sometimes without even noticing. Identifying discrimination in the workplace can be very difficult for employers that feel as if they are practicing fair and equal employment. Even the Equal Employment Opportunity Commission has a difficult time prosecuting employers that violate civil rights, as charges can be challenging to prove. Thankfully, there are guidelines in place such as the 80% rule that can help companies determine if they are unknowingly discriminating against protected groups.

At The Melton Law Firm, our attorneys understand how aggravating it is to be discriminated against, even if the employer did so unwittingly. We can help you shed light on the discriminatory treatment you’ve been receiving so that your employer understands that certain behaviors are unacceptable.

What is the 80% Rule?

The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men. For example, if a firm has hired 100 white men in their last hiring cycle but only hired 50 women, then the company can be found in violation of the 80% rule. The rule itself has no real effect other than to call into question a company’s hiring ethics. Those that are found in violation are only asked to provide a legitimate reason as to why they are hiring protected groups at such a lower rate.

When hiring potential new employees, some employers may end up hiring primarily one race or ethnic group, and while hiring the most qualified employee is important, having a huge portion of a company belong to a single ethnic group can raise questions about its equal employment practices. Nonetheless, the 80% rule is a useful guideline for companies to use when hiring to ensure that they are not unknowingly discriminating against protected groups.

Contact an Austin Equal Employment Attorney

If you or someone you know has been discriminated against in the workplace, you have many legal options to begin building your equal employment case. Every person, no matter race or ethnic group, has the right to have the same opportunities. At The Melton Law Firm, our Austin employment attorneys have dedicated their professional lives to protecting the employment rights of all our clients. Contact our office today at (512) 330-0017 to speak with a member of our legal team today.

Understanding the 80% Rule | The Melton Law Firm (2024)

FAQs

Understanding the 80% Rule | The Melton Law Firm? ›

What is the 80% Rule? The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.

What is the 80% rule in hiring? ›

The rule states that employers should be hiring protected groups (i.e. those who are different from white men in terms of ethnic group, race, or sex) at a rate that is at least 80% that of a non-protected group (such as white males).

What is the 80 rule for adverse impact? ›

Measuring Adverse Impact: The Four-Fifths Rule

The Four-Fifths rule states that if the selection rate for a certain group is less than 80 percent of that of the group with the highest selection rate, there is adverse impact on that group.

What is the 80% rule test? ›

The 80% rule is a principle that states that if a selection rate for a protected group (such as a minority group) is less than 80% with respect to the group with the highest selection rate, the selection process may be considered discriminatory.

What is the 80 percent rule? ›

The 80% rule was created to help companies determine if they have been unwittingly discriminatory in their hiring process. The rule states that companies should be hiring protected groups at a rate that is at least 80% of that of white men.

How do I calculate adverse impact? ›

This is done by comparing the selection rate for each group against that of the most-represented group, in which you are basically comparing the rate for the adverse group with the rate for the favored group by dividing the former by the latter.

How do you prove adverse impact? ›

If an organization finds that the selection rate of a protected group is less than 80% of the selection rate when compared to a different group, it may suggest that there's an adverse impact. This rule does not provide definitive proof of discrimination. Instead, it's an indicator that further investigation is needed.

What is the EEOC four-fifths rule? ›

What is the Four-Fifths Rule? The Four-Fifths Rule, also known as the 80% Rule, is a statistical guideline established by the Equal Employment Opportunity Commission (EEOC) in the United States, used to evaluate whether a selection process leads to adverse impact against any specific group.

What is the 80-20 rule in staffing? ›

The 80/20 Principle: 20% of Employees Shoulder 80% of the Work. The Pareto Principle suggests that a small minority of employees is responsible for the majority of an organization's productivity. These 20% are the floor leaders – the ones who know what to do and simply take care of things.

What is the 80/20 rule for hiring diversity? ›

Most companies unknowingly violate this the 80/20 Talent Rule every day. The rule is: Focus 80% of your hiring and recruiting efforts on the most important 20% of the talent market.

Is 80% of employee turnover due to bad hiring decisions? ›

As much as 80% of employee turnover is due to bad hiring decisions. From Harvard Business Review. 36% of 1,400 executives surveyed claimed that the leading factor of a failed hire, aside from performance problems, is a poor skills match.

What is the rule of 80 companies? ›

The rule is often used to point out that 80% of a company's revenue is generated by 20% of its customers. Viewed in this way, it might be advantageous for a company to focus on the 20% of clients that are responsible for 80% of revenues and market specifically to them.

Top Articles
Latest Posts
Article information

Author: Trent Wehner

Last Updated:

Views: 5536

Rating: 4.6 / 5 (76 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Trent Wehner

Birthday: 1993-03-14

Address: 872 Kevin Squares, New Codyville, AK 01785-0416

Phone: +18698800304764

Job: Senior Farming Developer

Hobby: Paintball, Calligraphy, Hunting, Flying disc, Lapidary, Rafting, Inline skating

Introduction: My name is Trent Wehner, I am a talented, brainy, zealous, light, funny, gleaming, attractive person who loves writing and wants to share my knowledge and understanding with you.