There are two legal theories that can be used to assert claims of discrimination under Title VII of the 1964 Civil Rights Act: 1) Disparate Treatment – Under this theory a plaintiff argues that he/she was treated differently because of their protected class under Title VII (race, gender, color, national origin, or religion); 2) Disparate Impact – Under this theory a plaintiff argues that a company maintains a policy that has a significantly disproportionate impact on a protected class under Title VII. The primary difference between the two theories is that Disparate Treatment requires proof of “intent” to discriminate, while Disparate Impact does not require proof of intent (it is sufficient to show statistical evidence of disproportionate negative impact).
QUESTION: With regard to “word of mouth” advertising or referral programs, which type of discrimination is most likely to occur and how can companies prevent this type of discrimination from occurring.
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