ABSTRACT
The purpose of this chapter is to describe and evaluate the relationships between adverse impact and the various methods by which cut scores can be selected. Adverse impact is a decision made by enforcement agencies and by courts. This is the meaning of adverse impact from an organization’s perspective. Although the “four-fifths rule” is a defined evidence threshold, the Uniform Guidelines on Employment Selection Procedures (1978) expressly allows that other evidence may also inform the decision about adverse impact. In Section 4D, the Guidelines establish that statistical and practical considerations as well as employer actions having an impact on minority applicant pools, such as recruiting programs, also be taken into consideration by agencies and courts. Nevertheless, the main focus of this chapter is on the four-fifths rule because the design and operation of selection decision processes, such as cut scores, are likely to influence adverse impact primarily through their effects on group selection rates.
