What you need to know about Title VII of the Civil Rights Act

Whether you are an employer or employee, you've likely heard about Title VII of the Civil Rights Act of 1964. Few employment laws are as crucial as this one, particularly regarding allegations of workplace discrimination.

But if you don't know this critical legislation's specific details and nuances, don't worry — you're not alone. Fortunately, this article will cover the fundamental concepts of Title VII, including its protections, prohibitions, and the potential claims employees may pursue under it. So, let's start with the basics.

What is Title VII of the Civil Rights Act — and what does it prohibit? 

Title VII is the primary federal law that prohibits employment discrimination based on:

• Race
• Religion
• National origin
• Color
• Sex, including gender, gender identity, pregnancy, and sexual orientation

Many people are surprised to learn that most jobs in the U.S. are considered at-will employment. At-will employment means that an employer can typically fire an employee for any reason they want — except an illegal reason such as unlawful discrimination — and that's where Title VII of the Civil Rights Act comes in.

An employer cannot take an adverse employment action — such as firing, refusing to hire, demoting, refusing to promote, etc. — against an employee or potential employee based on any of these protected characteristics. If they do, the employee might have a discrimination claim.

You may notice that age and disability don’t appear among the protected groups listed above, and that is because older workers and disabled workers are protected under different federal laws — the Age Discrimination in Employment Act (ADEA) and the Americans with Disabilities Act (ADA), respectively.

It's also important to note that individual states may create their own discrimination laws that might protect a broader range of employees than any of these federal laws, so employers should also be aware of those.

Title VII's value resides in its ability to ensure equitable treatment in the workplace. It promotes equality, diversity, and social peace by outlawing discrimination based on race, color, religion, sex, or national origin. Employee morale, output, and innovation are all boosted when people feel valued and respected by their employers. This title protects people's basic liberties, promotes diverse and welcoming workplaces, and helps establish a more just and peaceful world where everyone's contributions are valued equally.

Possible employee claims under Title VII

If an employee believes their employer has engaged in discrimination and other unlawful acts in violation of Title VII, there are several potential legal claims they may pursue, including:

• Disparate treatment. Disparate treatment is the most obvious form of employment discrimination. It occurs when an employer treats an employee or job applicant differently than other employees because of their race, color, religion, national origin, or sex — similar to laws in education.
• Disparate impact. Disparate impact is when a seemingly neutral practice unduly impacts employees in a protected class, often unintentionally. For example, if employees must pass physical strength tests or meet a minimum height — requirements that appear neutral at first glance — it may still have a disparate impact on women or other protected groups. Assuming an employee can prove a disparate impact, the employer would be allowed to show that the policy is necessary for the position and that no alternative policy or requirement would work.
• Quid pro quo sexual harassment. Under Title VII, there are two primary forms of harassment claims, which include sexual harassment in quid pro quo fashion and a hostile work environment. Similar to fraud and security training, employers should have a policy in place for sexual harassment to protect and prevent other illegal activities like bribery.
• Retaliation. Title VII prohibits an employer from retaliating against employees or applicants when they assert their rights under the law, including when an employee files a discrimination charge, opposes an employer practice that violates the law, or testifies or participates in an investigation or proceeding related to it.
• Negligence. A Title VII negligence claim usually involves instances in which a co-worker gets an employee fired for discriminatory reasons by making negative or critical statements about the employee, and the employer knows — or should have known — of the co-worker's discriminatory intentions.

Remember, though, this is not an exclusive list of the potential claims an employer may face under Title VII, not to mention some employees may also attempt to bring additional claims under state law.

Are all employees protected under Title VII?

The determination is usually pretty straightforward when it comes to who is and is not a protected employee under Title VII. In fact, the title defines an employee as simply "an individual employed by an employer."

Therefore, assuming they work — or are applying to work — for a covered employer as outlined above, Title VII provides discrimination protection for all employees, former employees, and those applying to be employees. However, there are some significant exceptions to this rule. For example, this title typically does not cover:

• Independent contractors
• U.S. citizens who are working abroad for non-U.S.-controlled businesses
• Foreign nationals who are working abroad for U.S.-controlled businesses

Not to sound like a broken record, but it's always important to remember to check state and local laws since they may have additional discrimination protections beyond what Title VII provides.

In how many days should a discrimination complaint be filed?

Title VII of the Civil Rights Act of 1964 (Act) specifies that a charge of discrimination must be filed with the Equal Employment Opportunity Commission (EEOC) within 180 days of the occurrence of the alleged unlawful employment practice or 300 days if the proceedings are initially instituted with a state or local agency having authority to grant or seek relief.

No charge may be brought with the EEOC under Section 706(c) until 60 days have passed since the first filing of the charge with an authorized state or local agency unless the proceedings before the state or local agency have been earlier terminated.

Unless the state or local agency terminates its proceedings before the 300-day limit in 706(e), a charge must be filed with, or referred by the EEOC to, the state or local agency within 240 days of the alleged discriminatory event.

Does Title VII apply to all employers?

Simply put, Title VII does not apply to every employer. In fact, as a general rule, it typically only covers private and public sector employers with 15 or more employees. These employees may include:

• Part-time employees
• Full-time employees
• Suspended employees
• Employees on leave or vacation

You should know that this 15-employee requirement doesn't apply if the employer is the federal government. Also, even if an employer doesn't reach this 15-employee threshold, it doesn't guarantee they can't face employee discrimination claims since state and local laws may give employees other options.

Penalties for non-compliance

Title VII contains essential anti-discrimination and equal employment opportunity provisions, and enforcing these provisions through penalties for non-compliance is necessary. There are serious penalties and repercussions for violating Title VII of the Civil Rights Act of 1964. Consequences may include:

• To seek remedies such as back pay, front pay, compensatory damages, and injunctive relief, victims of discrimination can file civil cases against their employers.
• Under 42 U.S.C. 1981a, plaintiffs who prove intentional discrimination are entitled to compensatory and punitive damages, with limits based on the business size.
• The courts can impose injunctions mandating that the employer end discriminatory practices and implement any necessary changes.
• According to 42 U.S.C. 2000e-5(k), successful Title VII litigants are entitled to an award of reasonable attorney's fees and court expenses.
• Employers who have engaged in unlawful discrimination may be subject to monetary fines from the EEOC.
• The EEOC has the authority to issue cease and desist orders, which require violating businesses to cease their discriminatory practices and begin corrective action immediately.
• If an employer is found to violate Title VII, they may lose their ability to receive government contracts and funds.

Exemption

Title VII forbids discrimination in employment based on race, color, religion, sex, or national origin, with some limited exceptions. These carve-outs are intended to strike a fair balance between the protection against discrimination and other vital interests like religious freedom, business necessity, and specific employment requirements.

One such exception is in Section 2000e-1 of the United States Code. It provides that a religious corporation, association, educational institution, or society is exempt from the provisions of Title VII that prohibit discrimination based on religion in the workplace.

Staying compliant with Title VII of the Civil Rights Act

Compliance and understanding start with an in-depth analysis of the law and what it means to both employers and employees. If you want more information about Title VII of the Civil Rights Act, try the resources available in Practical Law today.