outsolve insights

Few HR compliance topics create more confusion, or more legal exposure, than disparate treatment and disparate impact. The terms are often used interchangeably, yet they represent two very different legal theories with different implications for how you design, measure, and defend employment decisions.

In April 2025, a new Executive Order directed federal agencies to deprioritize enforcement actions based on disparate impact liability. This shift may reduce cases or pressure from the EEOC, but it doesn’t eliminate the legal or reputational risks your organization could face when policies result in unequal outcomes.