Validation, Compliance, and Adverse Impact

The Equal Employment Opportunity Commission (E.E.O.C.) has established that screening instruments, psychological testing, personality tests, and all other evaluation procedures that are used in industry are to fulfill the Uniform Guidelines on Employment Selection Procedures (1978). Employer policies and practices which have an adverse impact on the employment opportunities of any age, race, sex, or ethnic group are illegal. Employer decisions include, but are not limited to hiring, promotion, demotion, membership, referral, licensing, and certification. Included in the law is the statement: “notwithstanding any other provision of this (Act), it shall not be unlawful employment practice for an employer to give and act upon the results of any professionally developed ability test provided that such test, its administration or action upon the results is not designed, intended or used to discriminate because of race, color, religion, sex or national origin.” (Civil Rights Act of 1964, Title VII, Section 703h).

Further the Equal Employment Opportunity Commission (EEOC) and the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) have recently shifted their mandate from investigating cases of “intentional” discrimination to identifying and investigating cases of “systemic” discrimination. In order to ensure your organization’s selection process is in full compliance with these revised EEOC and OFCCP policies, firms must now prove not only that their Tests and Screening procedures deliver a better candidate . . . but they also must conform to the EEOC’s 4/5 Rule (80% Rule) and all the FCRA’s requirements to offer Consumers the Right of Recourse.

Adverse impact refers to a selection process in hiring, promotion, or other employment decisions that works to the disadvantage of protected members of a race, gender, or age group. Adverse impact is said to occur when a selection rate for any protected group (based on race, gender, or age) is less than 4/5ths of the selection rate for the group that is not protected.

All assessments used by Employee Insights, LLC are EEOC compliant and meet the 4/5 rule. Additionally all assessments are validated and each validation is available on request. Click here for a recent validity study.

Click here for a recent analysis of validity, reliability, and adverse impact for our TTI TriMetrix assessment.

Click here for a recent white paper on adverse impact.