Business necessity

A business necessity is a legitimate business purpose that justifies an employment decision as effective and needed to optimally achieve the organization’s goals and ensure that operations run safely and efficiently.^[1] This is often presented as a defense of an employment decision that is questioned because it was found to cause disparate impact.

References

1. Cascio, W. F., & Aguinis, H. (2010). Applied Psychology in Human Resource Management, Prentice Hall.