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SPHR · Question #287

When administering layoffs, which of the following is the most important factor in mitigating risk?

The correct answer is C. Disparate impact analyses. Disparate impact analysis ensures that layoffs don't unintentionally discriminate against protected groups. Even neutral policies can lead to adverse impact, which exposes the employer to legal Extract from HRCI-aligned HR knowledge (Risk Management): SPHR strategy includes "cond

Risk Management

Question

When administering layoffs, which of the following is the most important factor in mitigating risk?

Options

  • AHistorical wrongful terminations
  • BPerformance indicators
  • CDisparate impact analyses
  • DFinancial objectives

How the community answered

(33 responses)
  • A
    9% (3)
  • B
    18% (6)
  • C
    70% (23)
  • D
    3% (1)

Explanation

Disparate impact analysis ensures that layoffs don't unintentionally discriminate against protected groups. Even neutral policies can lead to adverse impact, which exposes the employer to legal Extract from HRCI-aligned HR knowledge (Risk Management): SPHR strategy includes "conducting statistical and legal risk assessments prior to workforce reductions." Disparate impact is a core concept in compliance with Title VII and EEOC enforcement guidance.

Topics

#layoffs#disparate impact#reduction in force#legal compliance

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