Disparate treatment

What is disparate treatment?

Disparate treatment is a type of discrimination in which employers intentionally discriminate against their employees based on their protected characteristics, including color, race, religion, gender, nationality, disability, or age.

What is an example of disparate treatment?

Disparate treatment occurs when employees in a similar situation are treated differently solely because of who they are, rather than based on their ability.

For instance, let's assume that two candidates, Candidate A and Candidate B, with similar educational backgrounds, credentials, experience, and skills, apply for a particular role in an organization. Candidate A gets selected, whereas Candidate B gets rejected just because they are over 50. The employer assumes that Candidate B would expect higher pay than the younger candidate.

What is the difference between disparate treatment and disparate impact?

Disparate treatment occurs when an employer intentionally treats an employee differently from others, while disparate impact occurs when a seemingly neutral HR policy or process unintentionally disadvantages certain employees.

What are the consequences of disparate treatment?

Organizations can face the following consequences:

Hefty penalties and lawsuits due to a lack of compliance with anti-discrimination laws
Erosion of employee trust in the organization and significantly lower morale
Higher attrition, as employees are more likely to leave when they experience unfair treatment
Serious risk of the organization’s reputation and employer brand

How can organizations spot and avoid disparate treatment?

These six steps can help organizations prevent disparate treatment at all costs:

Revisit hiring practices to include role-relevant assessments, and use diverse panels to finalize hiring decisions.
Educate managers about disparate treatment, help them recognize their implicit biases, and make them aware of anti-discrimination laws.
Develop a clear set of criteria to guide hikes, promotions, bonuses, and other pay-related decisions.
Draft anti-discrimination policies that list unacceptable behaviors, and make sure it applies uniformly to every employee.
Have a clear process in place to document every employee-related decision.
Audit each HR process regularly to look out for any inconsistencies or unfair treatment.