The EEOC uses an eighty percent rule of thumb to flag selection rates that differ substantially from the highest group's rate.
Key takeaways before you keep a hiring test
- Apply the rule of thumb where a selection rate for any race, sex, or ethnic group is less than four-fifths or eighty percent of the selection rate for the group with the highest selection rate, as defined in the U.S. Equal Employment Opportunity Commission guidance.
- Observe whether the selection rate for any group is substantially less than the selection rate for the highest group, a step the U.S. Equal Employment Opportunity Commission identifies as the fourth part of the comparison process.
- Recognize that the 4/5ths rule of thumb speaks only to the question of adverse impact and is not intended to resolve the ultimate question of unlawful discrimination, according to the U.S. Equal Employment Opportunity Commission.
- Write down each group's selection rate and divide it by the highest group's rate before deciding to keep a scored screen for the next opening.
A hiring test needs the eighty percent check before you keep using it
This "4/5ths" or "80%" rule of thumb is not intended as a legal definition, but is a practical means of keeping the attention of the enforcement agencies on serious discrepancies in rates of hiring, promotion and other selection decisions according to U.S. Equal Employment Opportunity Commission.
What the eighty percent rule of thumb says, and what it does not decide
A rate falling below this threshold does not automatically establish illegality, nor does a rate above it guarantee the absence of issues. The rule acts as a screening tool to highlight groups that may require further scrutiny rather than providing a final legal determination.
Compare males with females, and compare each race or ethnic group only with the race or ethnic group that has the highest selection rate, according to U.S. Equal Employment Opportunity Commission. This comparison helps identify where a test might be filtering out applicants from specific groups at a higher rate than others. The focus remains on adverse impact, which is distinct from the broader question of whether discrimination has occurred.
The four-step comparison on the uniform-guidelines page
The U.S. Equal Employment Opportunity Commission describes a specific method for evaluating selection rates in its Questions and Answers to Clarify and Provide a Common Interpretation of the Uniform Guidelines on Employee Selection Procedures. According to the U.S. Equal Employment Opportunity Commission, adverse impact is determined by a four-step process. This structured approach provides a consistent framework for recruiters to apply when reviewing the outcomes of a hiring test or scored exercise.
The first step requires calculating the rate of selection for each distinct group. The U.S. Equal Employment Opportunity Commission defines this calculation as dividing the number of persons selected from a group by the number of applicants from that group. You must perform this division for every relevant demographic category present in your applicant pool. This creates a baseline percentage for each group that serves as the foundation for the subsequent comparison steps.
The final step involves observing whether the selection rate for any group is substantially less than the selection rate for the highest group. The U.S. Equal Employment Opportunity Commission notes that adverse impact is normally indicated when one selection rate is less than 80% of the other. This threshold, often referred to as the four-fifths rule, acts as a signal for further review.
What a job analysis and a disability-related test rule add
Before applying the eighty percent check to your specific screen, verify that the test measures what the job actually requires. The U.S. Office of Personnel Management describes job analysis as the foundation for all assessment and selection decisions according to U.S. Office of Personnel Management. This foundation involves examining the tasks performed in a job, the competencies required to perform those tasks, and the connection between the tasks and competencies according to U.S. Office of Personnel Management.
When a hiring test screens out individuals with disabilities, the Americans with Disabilities Act of 1990 provides a specific standard for when that screening is permissible. The law prohibits using qualification standards, employment tests or other selection criteria that screen out or tend to screen out an individual with a disability or a class of individuals with disabilities unless the standard, test or other selection criteria, as used by the covered entity, is shown to be job-related for the position in question and is consistent with business necessity according to U.S. Department of Justice.
This creates a two-part requirement for your scored exercise. First, the test must be job-related for the specific position in question. Second, it must be consistent with business necessity.
To apply this to your current hiring process:
- Identify the core tasks. List the specific tasks performed in the job you are hiring for.
- Map competencies. Identify the competencies required to perform those tasks.
- Verify the connection. Ensure your test measures the connection between those tasks and competencies, not unrelated skills.
- Check disability impact. Review if the test screens out individuals with disabilities. If it does, confirm the test is job-related and consistent with business necessity.
See conviction timing rules and salary history questions if the screen asks about a record or past pay.
Filled reference table of each publisher's hiring-test rule
The following table summarizes the specific rules and definitions provided by the four named publishers regarding selection criteria and employment tests. Each row cites the exact source material to clarify the scope of the guidance.
| Publisher | Rule or Definition | Source Context |
|---|---|---|
| U.S. Equal Employment Opportunity Commission | The agencies generally consider a selection rate for any race, sex, or ethnic group which is less than four-fifths (4/5ths) or eighty percent (80%) of the selection rate for the group with the highest selection rate as a substantially different rate of selection. | According to U.S. Equal Employment Opportunity Commission, this is a rule of thumb for interpreting uniform guidelines. |
| U.S. Office of Personnel Management | Job analysis is the foundation for all assessment and selection decisions. | According to U.S. Office of Personnel Management, this statement defines the role of job analysis in selection. |
| U.S. Department of Justice | Using qualification standards, employment tests or other selection criteria that screen out or tend to screen out an individual with a disability or a class of individuals with disabilities is prohibited unless the standard, test or other selection criteria, as used by the covered entity, is shown to be job-related for the position in question and is consistent with business necessity. | According to U.S. Department of Justice, this rule applies to covered entities under the Americans with Disabilities Act. |
| GovInfo | A complaining party demonstrates that a respondent uses a particular employment practice that causes a disparate impact on the basis of race, color, religion, sex, or national origin and the respondent fails to demonstrate that the challenged practice is job related for the position in question and consistent with business necessity. | According to GovInfo, this describes a condition for disparate impact liability under Title 42. |
Use this table to verify that your current screen aligns with the specific definitions provided by these sources before you retain it for the next opening.
Illustrative example of two selection rates
The higher group has 10 applicants and 8 persons selected. The other group has 10 applicants and 4 persons selected. Divide each group's persons selected by its applicants. The second rate is 50 percent of the higher rate, because 4 is half of 8, and 50 percent is less than 80 percent. Record both rates. Do not treat that gap alone as proof of unlawful discrimination.
A blank worksheet for the next test you might keep
Before you decide to keep a scored screen, record the numbers for your next opening in the table below. The worksheet is a blank form for you to fill in with your own applicant data. Use the columns to track each group's applicants, persons selected, selection rate, and ratio to the highest group.
When calculating the selection rate, divide the number of persons selected from a group by the number of applicants from that group, as described by the U.S. Equal Employment Opportunity Commission. This step ensures you have a clear baseline for each group before comparing them.
After you have calculated the rates for all groups, observe whether the selection rate for any group is substantially less than the selection rate for the highest group, usually less than 4/5ths or 80%, according to U.S. Equal Employment Opportunity Commission. This comparison helps you identify if a specific group is being selected at a significantly lower rate than others.
Fill in the table below with your data for the next test you might keep.
| Group | Applicants | Selected | Selection Rate | Ratio to Highest |
|---|---|---|---|---|
| Example | Your applicant group | Persons you selected | Rate you calculate | Comparison with the highest rate |
| __ | __ | __ | __ | __ |
| __ | __ | __ | __ | _ _ |
| __ | __ | __ | __ | _ _ |
| __ | __ | __ | __ | __ |
| __ | __ | __ | __ | __ |
Today, fill one worksheet row for each group on a screen you might keep, then divide persons selected by applicants and file the notes in hiring decision debrief.
Hiring-test rate FAQ
What does eighty percent compare?
The rule of thumb compares a group's selection rate to the selection rate of the group with the highest selection rate. Agencies generally consider a rate less than four-fifths or eighty percent of that highest rate as a substantially different rate of selection, according to U.S. Equal Employment Opportunity Commission. This comparison identifies whether a specific group's rate is substantially less than the highest group's rate, according to U.S. Equal Employment Opportunity Commission.
Does a lower rate by itself prove discrimination?
No. The four-fifths rule of thumb speaks only to the question of adverse impact. It is not intended to resolve the ultimate question of unlawful discrimination, according to U.S. Equal Employment Opportunity Commission. A rate under eighty percent does not automatically establish a violation. It serves as a threshold for further review of adverse impact, according to U.S. Equal Employment Opportunity Commission.
Which groups do you compare with which?
Selection rates for males and females are compared against each other. Selection rates for race and ethnic groups are compared with the selection rate of the race or ethnic group with the highest selection rate, according to U.S. Equal Employment Opportunity Commission. You do not compare male rates to female rates in the same calculation as racial or ethnic group rates.
What does the disability statute add about a test that screens people out?
The Americans with Disabilities Act prohibits using qualification standards, employment tests, or other selection criteria that screen out or tend to screen out an individual with a disability or a class of individuals with disabilities. This prohibition applies unless the standard, test, or other selection criteria is shown to be job-related for the position in question and is consistent with business necessity, according to U.S. Department of Justice. If your test screens out individuals with disabilities, you must demonstrate job-relatedness and business necessity to keep using it, according to U.S. Department of Justice.