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 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 80 percent rule? ›

The Pareto principle states that for many outcomes, roughly 80% of consequences come from 20% of causes. In other words, a small percentage of causes have an outsized effect. This concept is important to understand because it can help you identify which initiatives to prioritize so you can make the most impact.

What is the 80 percent 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 four-fifths rule? ›

The rule states that one rate is substantially different than another if their ratio is less than four-fifths (or 80%). In the example above involving a personality test scored by an algorithm, the selection rate for Black applicants was 30% and the selection rate for White applicants was 60%.

What are 3 examples of affirmative action policies? ›

Here are some examples of affirmative action practices:
  • Quota systems. Occurring most often in education or employment settings, quota systems allocate a certain percentage of opportunities to disadvantaged groups. ...
  • Higher education admissions. ...
  • Political party quotas. ...
  • Employment Equity Act.

What is the 80 rule in employment? ›

This rule is called the 80% or 415th~ rule. If a race, sex, or ethnic group's rate of selection is less than 80% of the most. favored group, the group is experiencing adverse impact. ( Note: At this point in. the analysis, adverse impact does not mean discrimination.)

How does the 80 rule work? ›

The 80% rule means that an insurance company will pay the replacement cost of damage to a home as long as the owner has purchased coverage equal to at least 80% of the home's total replacement value.

What is an example of the 80 rule? ›

To set goals with the 80-20 rule, you primarily establish that 20% of your efforts/tasks will result in 80% of your results. For example, at work, 20% of the effort you put into your job will result in 80% of your tasks being completed/successful.

What is the 80% rule formula? ›

The 80/20 rule is a simple concept that can be applied to many situations. It states that 80% of the results come from 20% of the effort. This means that you should focus on the 20% of your efforts that will lead to the greatest reward, or yield the highest value for your time and energy.

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 80% or four-fifths rule a guideline the courts have used? ›

Adverse impact and the “four-fifths rule.” A selection rate for any race, sex, or ethnic group which is less than four-fifths ( 4/5) (or eighty percent) of the rate for the group with the highest rate will generally be regarded by the Federal enforcement agencies as evidence of adverse impact, while a greater than four ...

What is an example of adverse impact? ›

The most common example of adverse impact is changes in work conditions such as new workers being more stressed than ever before. Other examples include increased stress in the workplace due to changes in work schedule, working too hard or too much, or being in a negative work environment.

How do you prove disparate treatment? ›

The analysis is as follows: (1) the plaintiff must establish a prima facie case of discrimination; (2) the employer must then articulate, through admissible evidence, a legitimate, nondiscriminatory reason for its actions; and (3) in order to prevail, the plaintiff must prove that the employer's stated reason is a ...

What is a prima facie case of discrimination? ›

In order to establish a prima facie case in an employment setting, a plaintiff must have enough evidence to show that they were discriminated against by their employer for a prohibited reason. If the employer is not able to show evidence that contradicts it, the employee plaintiff will likely win.

What is disparate treatment in the workplace? ›

Disparate treatment is a form of discrimination that can occur in the workplace and is considered as evidence of illegal employment discrimination. It is intentional discrimination in the form of unequal treatment, which is directly given to an employee.

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.

What are the rules for affirmative action? ›

Affirmative action requirements are intended to ensure that applicants and employees of federal contractors have equal opportunity for recruitment, selection, advancement, and every other term and privilege associated with employment, without regard to their race, color, religion, sex, sexual orientation, gender ...

What is the threshold for affirmative action? ›

Section 503 of the Rehabilitation Act of 1973 (Section 503): Covered contractors that have 50 or more employees and a contract of $50,000 or more are required to develop and maintain a written Section 503 affirmative action program.

What is the 80 rule in electrical? ›

An 80% rated breaker means that the breaker is listed for operation at 80% of its rating and can be used in an 80% branch circuit design. The 80% design as per section 210.20(A) of the NEC provides overcurrent protection by considering the sum of the non-continuous loads and 125% of the continuous loads.

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