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.
FAQs
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 of adverse impact? ›
The 80% rule states that the selection rate of the protected group should be at least 80% of the selection rate of the non-protected group. In this example, 4.8% of 9.7% is 49.5%. Since 49.5% is less than four-fifths (80%), this group has adverse impact against minority applicants.
What is the 80 rule in affirmative action? ›
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 law for hiring minorities? ›
1964 – Section 717 of Title VII of the Civil Rights Act of 1964 protects employees and job applicants from employment discrimination based on race, color, religion, sex and national origin but does not authorize group preferences.
How does the 80 rule work? ›
When it comes to insuring your home, the 80% rule is an important guideline to keep in mind. This rule suggests you should insure your home for at least 80% of its total replacement cost to avoid penalties for being underinsured.
What is the 80% rule formula? ›
The Power of 80/20
In an example from Perry Marshall in a primer to the Pareto principle, he writes: “If you have 1000 customers, 80% of your business comes from 200 of them. But if we now look at those 200 best ones, 80/20 is still true. 80% of business from those 200 will come from 20% of the 200, which is 40.
What is adverse impact for dummies? ›
Adverse impact refers to a situation where a seemingly neutral employment practice disproportionately excludes persons from employment opportunities based on their race, sex, ethnic group, or other protected status, and is not job-related or necessary for business operations.
How do you prove adverse impact? ›
The four-fifths rule is an equation that can help you determine if there is evidence of 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.
What is adverse impact in layman's terms? ›
What Is Adverse Impact? Adverse impact occurs when a decision, practice or policy has a disproportionately negative effect on a protected group, even though the adverse impact may be unintentional.
What is the 80% rule for partnerships? ›
This principle, named after economist Vilfredo Pareto, states that roughly 80% of effects come from 20% of causes. In the partnership world, this translates to 80% (or more) of revenue often being generated by only 20% of partners. Typically, a small group of top-performing partners drive the majority of results.
The U.S. Supreme Court ruled against the use of race in college admissions in June 2023. Colleges are finding new ways to reach underrepresented communities of color. Some colleges are reevaluating legacy admissions policies and athletic recruiting.
What are the three types of affirmative action? ›
Types of affirmative action
Affirmative action remains a public policy still actively enforced by private and public sector managers across the United States. The three basic types are Voluntary, Court-ordered, and Executive-ordered affirmative action.
What are unfair hiring practices? ›
Hiring discrimination occurs when unfair hiring choices are made based on factors like a person's color, religion, sexual orientation, place of origin, age, or genetics. Disability discrimination and racial bias are also forms of discriminatory practices in hiring.
Is it illegal to pay someone who doesn't work? ›
Unless some other law has been broke, it is not illegal to pay employees that don't work. There are certainly times where it can be illegal, but the underlying reasoning is what makes it illegal.
What is the diversity hiring rule? ›
Employment agencies cannot discriminate or make referrals based on discriminatory categorizations. Well-represented candidate pools are acceptable, without specifying individual characteristics. The Rooney Rule and the “two-in-the-pool effect” are ways to increase diversity without discrimination.
What is the 80 percent decision rule? ›
One of my favorite decision-making guidelines is the 80% Rule. The essence of the rule is that 80% solutions are usually good enough – especially in business, since we typically make dozens of material decisions every week as we deal with the myriad of issues afflicting every company.
What is the 80 percent rule in life? ›
The 80-20 rule, also known as the Pareto Principle, is a familiar saying that asserts that 80% of outcomes (or outputs) result from 20% of all causes (or inputs) for any given event. In business, a goal of the 80-20 rule is to identify inputs that are potentially the most productive and make them the priority.
What is the 80% done rule? ›
That is where the the 80% rule come in. This principle, grounded in the philosophy of efficiency and progress, emphasizes that achieving perfection isn't always necessary or even attainable. Instead, aiming for 80% completion can lead to faster results, increased innovation, and a culture of agility.
What is an example of the 80 rule? ›
The 80/20 rule is not a formal mathematical equation, but more a generalized phenomenon that can be observed in economics, business, time management, and even sports. General examples of the Pareto principle: 20% of a plant contains 80% of the fruit. 80% of a company's profits come from 20% of customers.
