Managing Employment Discrimination Risks by Conducting Disparate Impact Analyses
Companies that are contemplating making adjustments to their workforces through reductions in force (RIFs) and/or furloughs may consider performing proactive disparate impact analyses. While workforce adjustments can improve a company’s financial picture, there can be serious legal and financial consequences if they are not designed and implemented properly. To minimize legal exposure, employers should understand how workforce adjustments affect each demographic group (e.g., gender, race, and age groups) before decisions are considered final. By conducting disparate impact analyses proactively, companies can execute their compliance and risk management efforts by making informed decisions.