What is the term for a seemingly neutral employment policy that has a negative effect on the employment outcomes of people in protected classes?

• A. Ableism
• B. Ageism
• C. Adverse impact
• D. Allies

Answer: (C)

Adverse impact describes a neutral employment policy or practice that ends up producing disproportionately negative outcomes for people in protected classes. It isn’t about intent or blaming the policy’s wording; it’s about the actual effect on hiring, promotion, or other employment outcomes. When a policy seems neutral—like a test or qualification requirement—but results in fewer hires or advancements for groups such as those defined by race, gender, age, disability, or religion, it’s functioning as adverse impact. In practice, this concept is often analyzed through a disparate impact lens, asking whether the policy is connected to the job and essential for business needs; if not, adjustments or accommodations may be warranted. So, the term that best captures this phenomenon is adverse impact (also called disparate impact).