Disparate impact and disparate treatment refer to discriminatory employment practices. The distinction between these two types of discriminatory practices often focuses on the employer’s intent.

Disparate impact is often referred to as unintentional discrimination and disparate treatment is often referred to as intentional discrimination. The terms adverse impact and adverse treatment are sometimes used in place of disparate impact and disparate treatment.

Disparate impact occurs when policies, practices, rules, or other processes that appear to be neutral result in a disproportionate impact on a protected group of persons.

For example, testing all applicants and using results from that test that will unintentionally eliminate certain minority applicants disproportionately is disparate impact. And testing a particular skill of only certain minority applicants is disparate treatment.

Federal laws prohibit job discrimination based on race, color, sex, sexual orientation, gender identity or expression, national origin, religion, age, military status, equal pay, pregnancy, disability, or genetic information and prohibit both disparate treatment and disparate impact discrimination.


In Indiana, as in other states, employment discrimination laws prohibit both disparate treatment and disparate impact. Disparate treatment refers to intentional discrimination where an employer treats an individual or a group of individuals differently based on a protected characteristic, such as race or gender. An example of this would be requiring only applicants of a certain race to pass a specific test. Disparate impact, on the other hand, involves employment practices that, while neutral on their face, disproportionately affect a protected group and cannot be justified by business necessity. An example is a cognitive test that, although applied to all applicants, results in a significantly lower pass rate for a particular minority group. Both types of discrimination are illegal under federal law, including Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the Americans with Disabilities Act, and other statutes. These federal laws are enforced by the Equal Employment Opportunity Commission (EEOC). Indiana state law also reflects these protections and is enforced by the Indiana Civil Rights Commission (ICRC), which addresses discrimination in employment, among other areas.