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The Four-Fifths Rule

The four-fifths rule is a way of measuring adverse impact in selection processes of organizations. It works like this: assume your organization requires a cognitive test for employment. You set a test score of 70 as the required pass rate for the candidate to be considered for an interview. Based on our numbers, if 50 percent of men passed this test with a score of 70, then four-fifths or 40 percent of women should also be able to pass the test. You might calculate it like this:

Gender	Total Scoring 70 or Above	Total Taking the Test	Percent
Male	52	62	83.8 or 84 percent passed
Female	36	58	62.07 or 62 percent

If you divide the total of those who scored above 70 by the total number who took the test, it shows the percentage of 84 percent passed the test. If you divide the number of women who passed by the total number of women who took the test, you come up with 62 percent. Then divide 62 percent by 84 percent (62/84 = 73.8 percent). The resulting 74 percent means that it is below the 80 percent or the four-fifths rule, and this test could be considered to have disparate impact.

This is only an indicator as to how the selection process works for the organization, and other factors, such as sample size, can impact the reliability of this test. Using the tables below, please calculate possible disparate impact and then answer the questions that follow.

National Origin	Passing Test Score	Total Number Taking the Test	Percent
Caucasians	56	89
Minority groups	48	62

Age	Passing Test Score	Total Number Taking the Test	Percent
People under 40	28	52
People over 40	23	61

Gender	Passing Test Score	Total Number Taking the Test	Percent
Male	71	82
Female	64	85

1. Please calculate the above numbers using the four-fifths rule. Based on your calculation:

   1. Which group or groups might be affected negatively by this test?

   2. What would be your considerations before changing any selection tools based on this data?

   3. How might you change your selection process to ensure disparate impact isnt occurring at your organization?