Adverse impact occurs when a hiring process, policy, or assessment unintentionally results in disproportionate negative outcomes for candidates belonging to a protected group, such as those defined by race, gender, age, or disability status. It is a key concept in employment law and equal opportunity compliance.

Organizations are responsible for identifying and addressing adverse impact even when discrimination is not intentional. Regular audits of hiring data and candidate screening selection criteria can help companies stay compliant and ensure their processes are equitable across all candidate groups.