How does Regulatory agencies establish proof of disparate impact?

Regulatory agencies establish proof of disparate impact by analyzing statistical data to identify adverse effects of a policy or practice on specific demographic groups. They compare outcomes among different groups to assess whether disparities exist that are not justified by legitimate business reasons. Additionally, agencies may consider factors such as historical context and the availability of less discriminatory alternatives. If significant disparities are found, they may require the entity to demonstrate that the practices are necessary for achieving a legitimate goal.