Legal Definitions - disproportionate impact

Disproportionate impact, also known as disparate impact, occurs when a seemingly neutral policy, rule, or practice has a significantly more negative effect on a particular group of people who are protected by anti-discrimination laws (such as based on race, gender, religion, or disability) than it does on other groups. Crucially, this concept focuses on the outcome or effect of the policy, rather than requiring proof of intentional discrimination. Even if a policy was designed without any discriminatory intent, it can still be unlawful if its practical application results in a severe imbalance that harms a protected group.

Here are some examples illustrating disproportionate impact:

• A technology company implements a new hiring algorithm that prioritizes candidates with continuous employment histories. While the algorithm appears neutral, a statistical analysis reveals that it disproportionately screens out women who may have taken career breaks for childcare or family responsibilities, as well as individuals with disabilities who might have had intermittent employment due to health issues. The policy, despite not intending to discriminate, creates a barrier that unfairly disadvantages these protected groups in the hiring process.

• A landlord uses a strict "no pets" policy for all rental units. On the surface, this rule applies equally to all tenants. However, if a tenant requires a service animal for a disability, this blanket policy would have a disproportionate impact on individuals with disabilities by effectively denying them housing or forcing them to choose between their housing and their essential service animal. Federal fair housing laws often require reasonable accommodations for service animals, recognizing the disproportionate burden a "no pets" rule places on disabled individuals.

• A city's zoning ordinance requires all new commercial buildings to have a minimum of 50 parking spaces. This rule is intended to manage traffic and ensure adequate parking. However, if this requirement makes it financially unfeasible to build smaller businesses or community centers in historically underserved neighborhoods where land is scarce and expensive, it could have a disproportionate impact on minority entrepreneurs or community groups trying to establish services in those areas. The neutral parking requirement, in practice, creates an unequal barrier to economic development for certain populations.