aPHRiTM - Glossary - 4/5ths rule - rule-based evidence for adverse impact

Aug 25, 2026

Uploaded by Himbo

aPHRiTM Glossary provides clear, plain-language definitions for key terms related to employment practices, human resources, compensation, benefits, and workplace relations. Entries explain concepts such as affirmative action and adverse impact, retirement plan types (401(k), 403(b), 457, 529), and common HR and accounting terms like absenteeism, accrual, accounts payable, and accounts receivable. The glossary also covers training methods, communication skills, legal frameworks, and risk or procedural concepts used in HR assessment and decision-making.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages124

Reading Time5 h 12 min

AccessFree to download

4/5ths rule

401(k) plans

403(b) plans

457 plans

529 plans

Absenteeism

Accident

Accountability

Accounts payable

Accounts receivable

Accrual

Acquired immune deficiency syndrome (AIDS)

Acquiring organization

Acquisition

Action learning

Action plans

Active listening

Ad hoc

ADA Amendments Act

Adaptability screening

ADDIE model

Adverse impact

Affirmative action (AA)

Affirmative action plans (AAPs)

Age Discrimination in Employment Act (ADEA)

Agency shop

Agency theory

Agent-principal relationship

Alignment

Allowances

Ally doctrine

Alternation ranking method

Alternative dispute

Alternative dispute resolution (ADR)

aPHRiTM Glossary aPHRiTM is a registered trademark of HR Certification Institute, used under permission of HRCI. All rights reserved Glossary 4/5ths rule States that “a selection rate for any racial, ethnic or sex group which is less than four fifths or 80% of the rate for the group with the highest rate will generally be regarded as evidence of adverse impact, while a greater than four-fifths rate will generally not be regarded as evidence of adverse impact.” 401(k) plans Plans that allow employees to make tax-favored pay deferrals toward retirement savings through a payroll deduction plan. 403(b) plans Plans that allow employees of certain tax-exempt organizations to contribute pretax dollars toward retirement savings. 457 plans Plans that allow employees of states, political subdivisions or agencies of states, and certain tax-exempt organizations to defer receipt of wages. 529 plans Qualified tuition plans that provide families a federal tax-free way to save money for college. Absenteeism Absenteeism is an employee's intentional or habitual absence from work (not coming to work) because of illness or personal problems; many companies calculate the rate of absenteeism of their employees, which is the average number of days they do not come to work. Accident Undesired event that results in physical harm to a person or damage to property. Accountability The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner. If you take responsibility for your own actions, you show accountability. Accounts payable Money an organization owes its vendors and suppliers. Accounts receivable Page 2 of 124 Glossary Money an organization's customers owe the organization. Accrual An accounting method that recognizes a company’s financial performance by recording income and expenses at the time a transaction occurs, rather than when a payment is received, or an invoice is paid. Acquired immune deficiency syndrome (AIDS) Bloodborne pathogen transmitted through intimate contact. Acquiring organization A company that buys another company, or the business or organization that is buying another business. Acquisition Situation in which one organization acquires assets or takes over the full operation of another organization. Action learning A training technique by which management trainees can work full time analyzing and solving problems in other departments. Action plans Detailed steps a unit, department, or team will take to achieve short-term objectives. Active listening That is fully concentrating on what is being said rather than just passively ‘hearing’ the message of the speaker. This is a communication method that a listener uses to interpret and evaluate information from a speaker. ad hoc A solution to a specific problem that is not planned or cannot be used in other situations. ADA Amendments Act Amendments to Americans with Disabilities Act covering mitigating measures and definition of individuals regarded as having a disability. Page 3 of 124 Glossary Adaptability screening A process that aims to assess the assignee’s (and spouse’s) probable success in handling a foreign transfer. ADDIE model Five-step instructional design process that governs the development of human resource development programs. Adverse impact The overall impact of employer practices that result in significantly higher percentages of members of minorities and other protected groups being rejected for employment, placement, or promotion. Affirmative action (AA) Practice in which employers identify conspicuous imbalances in their workforce and take positive steps to correct underrepresentation of protected classes. Affirmative action plans (AAPs) Plans that focus on the hiring, training, promoting, compensating, and terminating of protected classes. Age Discr

FAQs

What does the 4/5ths rule indicate in employment decisions?

It states that a selection rate below four fifths (80%) of the highest-rate group generally serves as evidence of adverse impact, while a rate above four fifths generally does not.

What is the difference between 401(k), 403(b), 457, and 529 plans?

401(k) plans use payroll deductions for tax-favored retirement savings. 403(b) plans allow certain tax-exempt organizations to contribute pretax dollars. 457 plans let employees defer wage receipt. 529 plans are qualified tuition plans for federal tax-free college savings.

What is affirmative action and what are affirmative action plans (AAPs)?

Affirmative action is the practice of addressing underrepresentation by taking positive steps to correct imbalances. AAPs are plans focused on hiring, training, promoting, compensating, and terminating protected classes.

Aug 25, 2026

Uploaded by Himbo

aPHRiTM - Glossary - 4/5ths rule - rule-based evidence for adverse impact_Page 1

Open in WPS to view all 124 pages