Analytics · HR glossary

Four Fifths Rule

The four-fifths rule is a US selection-analysis guideline that compares a group's selection rate with the highest group's rate. A ratio below 80% generally flags potential adverse impact for further examination.

By SmallHRTools · How we write definitions

Example

If one group has a 30% selection rate and the highest group has 50%, the ratio is 30 divided by 50, or 60%, below four-fifths.

What to keep in mind

The rule is a screening guideline, not a legal verdict or safe harbour. Small samples and other statistical or practical evidence matter, and ratios above 80% can still require investigation.

Four Fifths Rule

Example

What to keep in mind

Further reading