Discrimination that occurs when a neutral-appearing practice or policy actually has a discriminatory effect on a protected class or classes. For example, an employment test that results in disproportionately more men receiving promotions than women might be found to have a disparate impact. Disparate impact is one of the theories of discrimination under Title VII of the Civil Rights Act of 1964 (Title VII). Another is disparate treatment.

For more information about disparate impact, see Practice Notes, Discrimination Under Title VII: Basics: Disparate Impact and Conducting Layoffs and Other Reductions in Force: Avoiding Disparate Impact and Retaliation Litigation.