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Disparate Impact Theory and Defense

13 minPRO
2/6

Key Takeaways

  • Disparate impact follows a three-part framework: statistical impact, business necessity, less discriminatory alternative.
  • Common vulnerable policies: blanket criminal bans, high credit minimums, English-only requirements, restrictive occupancy standards.
  • The four-fifths rule presumes adverse impact when a protected group's selection rate falls below 80% of the highest group.
  • Calibrate each criterion to the narrowest level necessary and document the business justification.
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Test Your Knowledge

1.What is the three-part framework for analyzing disparate impact claims under the FHA?

2.Which common landlord policy is most vulnerable to a disparate impact challenge?

3.What type of evidence is most important in defending against a disparate impact claim?