The disparate effect, also known as adverse impact, refers to a situation where a seemingly neutral employment practice or policy disproportionately affects individuals of a certain protected characteristic, such as race, gender, age, or disability. Although the practice or policy may not have been intentionally discriminatory, its impact results in unequal treatment or opportunities for certain groups.

Example
A company implements a height requirement for a specific job position, assuming that it is necessary for safety reasons. However, the height requirement disproportionately excludes women from being considered for the position, resulting in a disparate effect on female applicants. Even though the company did not intend to discriminate against women, the height requirement has a discriminatory impact and may be considered as disparate effect.