law
disparate impact
Disparate impact is a theory of discrimination under which a policy or practice that appears neutral on its face can still violate fair housing or fair lending laws if it has a significantly greater harmful effect on a protected class and is not justified by a legitimate, necessary business reason. Intent to discriminate does not need to be proven. It contrasts with disparate treatment, where someone is treated differently intentionally because of a protected characteristic.
- Exam tip
- The trap is thinking discrimination requires intent. Under disparate impact, the effect of a neutral rule can be enough.
- Example
- An apartment complex bans all applicants with any arrest record. The policy seems neutral but may disproportionately exclude certain racial groups, raising a disparate impact claim.
Related terms & state variants
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Last verified: 2026-10-23