Disparate Impact Policies or practices that appear to be neutral but have a negative effect on members of protected classes. U.S. Supreme Court – Texas Department of Housing and Community Affairs v. Inclusive Communities Project, Inc.  Holding Claims may be brought under the federal Fair Housing Act even if discrimination is unintentional.

Disparate Impact Safeguards  Plaintiff must demonstrate that the challenged practice is the cause of the disparate impact.  Legitimate business policy as a defense.  Policy or practice violates disparate impact only if it imposes an artificial, arbitrary, and unnecessary barrier.  Burden is on the plaintiff to show that there is a less discriminatory alternative.

Disparate Impact Examples of future potential challenge areas  Drug/criminal screening policies  Rental decisions based on source or type of income/income multipliers  Credit screening  House rules (i.e. those which affect families)

Disparate Impact What to do?  Train employees  Review new/existing policies or practices  Identify and consider legitimate, non- discriminatory reasons for changes  Document policy choices and rationales