Cover-the-Earth, Inc. operates a pharmaceutical plant located in Mobile, AL for the across-the-counter cold remedies. Of the 2,500 production personnel currently employed at the facility, 750 are white males, 500 are Hispanic males, 150 are black males, 50 are Asian males, and 30 are American Indian males; 450 are Hispanic females, 350 are white females, 110 are black females, 90 are Asian females, and 20 are American Indian females. Cover-the-Earth traditionally has recruited its unskilled production workers from the Mobile metropolitan statistical area (MSA) as all members would possess the basic skills for production work. The Mobile MSA has a civilian labor force of 310,950 of which 106,005 are African American, 5,500 are Asian-American, 7,660 are Hispanic, 2,755 are American Indian, 4,595 are Two or More Races, and 184,435 are non-Hispanic whites.

Males account for approximately 52 percent of the total local labor market.

In 2013, 20 Asian males took a basic skills test for production jobs and 6 were hired, compared to 8 Asian female applicants, of whom 6 passed. Also, 110 Hispanic males took the test, of whom 70 passed. Additionally, 100 Hispanic females took the test for work during the same period; 45 passed. That year, 100 black males and 60 black females sat for the skills test and 25 and 20 passed, respectively. Additionally, 25 of 60 white females taking the test passed. Of the 200 white males who were tested, 110 passed. There were 10 American Indian males who took the test, of whom 5 passed compared to only 2 of 12 American Indian females who were tested. No applicants of mixed race applied during the period. Assume that all production jobs require low skills.

Several applicants claim that the company's basic skills test discriminates against Hispanic applicants. Using the four-fifths rule and actual applicant flow analysis, is there adverse impact on the basis of race for Hispanic applicants?

Similarly, an employee contends that the company's basic skills test discriminates against Black applicants. Using the four-fifths rule and actual applicant flow analysis, is there adverse impact on the basis of race for Black applicants? Is there disparate impact using the three standard deviations rule?

Is there any group in the employer's internal work force that does not account for 2 percent or more of the relevant labor market?

Does stock analysis create any concerns about the company's representation of females in its workforce?