To avoid adverse impact is to prevent unfair or discriminatory outcomes in employment practices. Adverse impact occurs when a selection process or employment practice has a disproportionately negative effect on a particular group of people, such as a racial or ethnic minority, women, or people with disabilities.
Avoiding adverse impact is important because it helps to ensure that all individuals have an equal opportunity to succeed in the workplace. When adverse impact occurs, it can create a hostile and discriminatory work environment, and it can also lead to legal liability for employers. In 1978, the Supreme Court ruled in the case of Griggs v. Duke Power Co. that an employer cannot use a selection process that has a disparate impact on a protected group unless the employer can demonstrate that the process is job-related and consistent with business necessity.