The online system displays information regarding underutilization.
For each job category with less than 30 employees, the online system will perform a simple subtraction, showing the difference between the percentage of employees in the particular job category (cross-classified by race, national origin and sex) and the percentage of employees in the same job category in the relevant labor market.
For each job category with 30 or more employees, the online system will perform a statistical analysis and then display any job categories that have underutilization of two or more standard deviations. The calculations indicate that it is unlikely that the underutilization is based on chance. If the online system does not identify underutilization in the recipient's workforce of two standard deviations or more, the online system will display only the utilization analysis chart based on simple subtraction.
Courts have generally recognized that statistics showing underutilization of two standard deviations or more (comparing the percentage of employees of a protected class in a particular job category to the percentage of similarly qualified workers of the same protected class in the relevant labor market) may be evidence of employment discrimination. See generally Barbara T. Lindemann & Paul Grossman, 1 Employment Discrimination Law 124-26 (4th ed. 2007).
When the online system identifies and displays underutilization of two standard deviations or more, the recipient should address this in its narrative in the EEOP Report. The identified underutilization will most likely become the basis for developing objectives and next steps.
If the utilization analysis chart does not show two or more standard deviations, the recipient should still review the chart based on simple subtraction and identify the most significant underutilization in its workforce. This should inform drafting the recipient's narrative, objectives and next steps.
