Adverse impact (Al) is a test characteristic where differential outcomes vary as a function of a protected-class status variable
s (i.e., race, sex, color, religion, national origin, age, and disability; Arthur, Doverspike, Barrett, & Miguel, in press). This is distinct from subgroup differences which reflect group mean differences on certain tests; Al on the other hand is a legal term that refers to differential outcomes for different groups (Arthur et al., in press). Despite being distinct, these constructs are highly related; subgroup differences on predictor tests very often lead to Al. Many authors have proposed a variety of solutions for avoiding Al in employment decisions (Campion et al., 2001; Ployhart & Holtz, 2008; Sackett, Schmitt, Ellingson, & Kabin, 2001), though not all options are legal and/or valid. Maintaining equilibrium between minimizing Al and maximizing validity has been referred to as the diversity-validity dilemma (Ployhart & Holtz, 2008).
What is
Meant by differential outcomes