It is the case of Power Duke company where different tests are conducted for promotion, transfer and internal movement of people. But, people who have high school qualification can only participate in the test. During the time of the case, 34% of white employees possessed the qualification, but only 6% of the black American possessed the qualification. Hence, in the first instance, it is a case of discrimination that adversely affects the opportunities to those people who are black.
In this scenario, a case of disparate impact theory is identified because the particular class of employees was getting affected even if the company could prove that the test planning and its conduct were standard and unintentional towards the negative impact created towards a particular class of people. It is proved by the fairly low % of black American clearing the test in comparison to the white American employees. Hence, somehow the rules were making a negative impact upon a class of people that proves the presence of disparate impact theory.
Employer’s intent were intentional and the employer had set such a higher qualification that most of the black employees will be automatically screened out. Hence, a kind of discrimination will take place in violation of title VII of civil rights act, 1964 and different guidelines of EEOC. It could put management, full of white employees, creating a wider scope of discrimination. Besides, the internal movement & transfer facility was not available for labor people comprising mostly of Black people. Hence, the intention was not standard, rather discriminatory.