Tanglewood Case 5: Disparate Impact The Uniform Guidelines on Employee Selection Procedures (UGESP) requires that all organizations maintain records that allow the calculation and comparison of statistics. UGESP also requires that the four-fifths rule be calculated in all organizations. If there is evidence that “a selection rate for any… group is less than four-fifths (4/5) (or eighty percent) of the rate of the group with the highest rate” (Code of Federal Regulations, 2011) , then this is usually considered evidence of negative impact. After applying the four-fifths rule and examining selection reports for all job categories, we determine that the evidence indicates disparate impact discrimination. Historical Hiring and Promotion Data: Applicant Flows Job Category Total White* Total Non-White African-American*Store Associates External Hires Applicants 18226 15436 2790 594Hires 3832 3221 611 135Selection Ratio 21.02% 20.87% 21.90% 22, 72%Shift manager External hiring Candidates 392 320 72 17Hiring 61 5 4 7 2Selection report 15.56% 16.88% 9....