As the hiring rate for management trainees for the white applicants is 50 percent while the hiring rate for hispanics is 20 percent and 15 percent for native americans, this is an example of disparate impact based on business necessity.
This refers to a legal concept used to justify some employer’s employment criteria that disproportionately affect a group of individuals. The justification often resides in a possibility that such company has its legitimate reasons to operate under such restrictive employment practices.
Some of the examples of a Business Necessity in hiring practices today includes:
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