Disparate impact tool

In a memo reported by The Washington Post last week, the administration has placed in its cross hairs a civil rights enforcement tool that has for decades been used to counter discriminatory actions when a bias motive is not obvious. Source: ACLU. Source: Slate. A coalition of fair housing advocates has filed a federal lawsuit against the U. Department of Housing and Urban Development over the recent reversal of long-standing fair housing protections.

Source: Forbes. Civil rights groups on Thursday filed a pair of lawsuits against the U. Source: WashingtonPost. Specifically, the rule provides:. The Facts. Q: What is the disparate impact tool?

Q: Who is helped by disparate impact? Q: Is housing discrimination even still a concern in America? Q: What is the Fair Housing Act? Specifically, the rule provides: Overwhelming obstacles to prove discrimination: Victims of discrimination will face a drastically higher burden to prove a disparate impact claim under the Fair Housing Act, making it virtually impossible to succeed when filing a complaint with HUD.

Profits above all else: The rule suggests that a policy that is profitable could be immune from challenge for its discriminatory impact—with the burden on discrimination victims to show that a company can make at least as much money without discriminating. It explicitly protects policies even if lenders know and rely on evidence that they exclude people of color or other groups protected by the Fair Housing Act. This will encourage lenders to adopt and maintain algorithms and other covertly discriminatory practices even if the lenders know they have a discriminatory effect.

Perpetuates Systemic Discrimination: The disparate impact tool helps to eliminate the vestiges of segregation and discrimination. Q: Who will be impacted by this rule? This would place women — the primary victims of domestic abuse — and their children at risk of homelessness and further violence.

This action would bar people with disabilities or seniors who may not work full-time but can still afford an apartment. A bank could charge excessive fees or rates to certain groups who seek home mortgage loans.

Given these barriers, people of color or people with disabilities would be forced to take on risky or costly loans — or not have access to financing at all. You have successfully saved this page as a bookmark. OK My Bookmarks. Please confirm that you want to proceed with deleting bookmark.

Delete Cancel. You have successfully removed bookmark. Delete canceled. Please log in as a SHRM member before saving bookmarks. OK Proceed. Your session has expired.