Enter the selection rate of the protected group and the selection rate of the highest group into the calculator to determine the selection rate.

4/5 Rule Calculation Formula

The following formula is used to calculate the 4/5 Rule or 80% Rule. 

SR = (SRp / SRh) * 100

Variables:

  • SR is the selection rate (%)
  • SRp is the selection rate of the protected group (%)
  • SRh is the selection rate of the highest group (%)

To calculate the selection rate, divide the selection rate of the protected group by the selection rate of the highest group. Multiply the result by 100 to get the percentage. If the selection rate is less than 80%, it is considered evidence of adverse impact.

What is a 4/5 Rule Calculation?

The 4/5 rule, also known as the 80% rule, is a legal test used in the United States to determine whether there is evidence of adverse impact in employment practices. It is used in situations where a protected group, such as women or minorities, is selected at a rate less than 80% of the rate of the group with the highest selection rate. If the selection rate for a protected group is less than 80% or 4/5 of the selection rate for the group with the highest selection rate, it is considered evidence of adverse impact, which could potentially lead to a discrimination lawsuit.

How to Calculate 4/5 Rule Calculation?

The following steps outline how to calculate the 4/5 Rule Calculation.

  1. First, determine the selection rate of the protected group (SRp) (%).
  2. Next, determine the selection rate of the highest group (SRh) (%).
  3. Next, use the formula SR = (SRp / SRh) * 100 to calculate the selection rate (SR) (%).
  4. Finally, calculate the 4/5 Rule Calculation.
  5. After inserting the variables and calculating the result, check your answer with the calculator above.

Example Problem : 

Use the following variables as an example problem to test your knowledge.

selection rate of the protected group (SRp) (%) = 80

selection rate of the highest group (SRh) (%) = 90