what is disparate impact

Disparate impact is a legal concept in the United States that refers to practices in employment, housing, and other areas that adversely affect one group of people of a protected characteristic more than another, even though rules applied by employers or other entities appear to be neutral. Disparate impact occurs when policies, practices, rules, or other systems that appear to be neutral result in a disproportionate impact on a protected group. In a disparate impact case, the investigation focuses on the consequences of the recipients practices, rather than the recipients intent. Disparate impact is different from disparate treatment, which is the inconsistency of policy or offer products that do not apply equally across all classes and cannot be justified by any non-discriminatory explanation.