Pay Discrimination Disparate Impact  

Disparate impact is a legal theory for proving that an employer has engaged in discrimination against a specific group of employees or job applicants of the same sex, race, religion or ethnicity. The disparate impact methodology also states that it dos not requires evidence of an employer discrimination.

The best example is the first US Supreme Court case on the disparate impact topic. During a hiring process of laborers, the employer required high school diploma from its applicants. The document requirement process screened out blacks than screening whites. Therefore the Supreme Court ruled it as disparate impact based on race, even though there was no intentional discrimination.

In another case (Smith v. Jackson, Mississippi, 2005), the plaintiffs, who were the city police officers and dispatchers, over the age of 40 claimed that the city’s performance pay plan granted larger pay increase to employees under the age of 40. They argued that employees with five or fewer years of tenure had an increase in their pay when compared to their former pay than those with more than five years of tenure. To prove their arguments, plaintiffs provided statistical proof that demonstrated that older employees received smaller raises than young employees and the average pay increases differed by age.

The United States Supreme Court has held that these claims are under the Age Discrimination in Employment Act (ADEA) and it may be brought under a disparate impact analysis. However, the court provided defense to employers in such cases which is not available to employers in Title VII case. This meant that plaintiff s pursuing disparate impact claims under the ADEA will have difficulty in winning the case.

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Pay Discrimination Disparate Impact

Labour Laws:

Pay-Discrimination-Performance-Appraisal      Ever since the end of World War II, employers have been trying to link performance appraisals to pay hikes. Most companies evaluate performance of their employees and reward them monetarily with the hope of motivating employees to work harder, smarter and stay at job. Performance appraisal can be defined as the process by which employers evaluate the performance of an employee. More..




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