Definition · Employment law and regulation

Title VII

By TapTalent Editorial TeamUpdated

Definition

Title VII of the Civil Rights Act of 1964 is the US federal law that prohibits employment discrimination based on race, color, religion, sex and national origin. It covers employers with 15 or more employees, plus employment agencies and labor unions, and applies to hiring, pay, promotion, discipline, harassment, termination and retaliation.

Also called: Title VII of the Civil Rights Act of 1964, Civil Rights Act Title VII, 42 U.S.C. § 2000e

What Title VII prohibits

Title VII makes it unlawful for a covered employer to fail or refuse to hire, to discharge, or otherwise to discriminate against any individual with respect to compensation, terms, conditions or privileges of employment because of race, color, religion, sex or national origin. It also bars employers from limiting, segregating or classifying employees or applicants in ways that deprive them of opportunities because of those characteristics.

In practice that covers the whole lifecycle: job ads, recruiting, screening, testing, interviews, hiring, assignment, pay, training, promotion, discipline, layoffs and termination. It also covers harassment, since a hostile work environment based on a protected characteristic is a form of discrimination in the terms and conditions of employment. Employment agencies cannot refer or classify candidates on a prohibited basis, and labor unions cannot exclude or discriminate against members.

Title VII separately prohibits retaliation against anyone who opposes a discriminatory practice, files a charge, or takes part in an investigation or lawsuit.

Protected characteristics under Title VII

The statute lists five: race, color, religion, sex and national origin. Their scope has grown through amendments and court decisions:

  • Sex includes pregnancy, childbirth and related medical conditions under the Pregnancy Discrimination Act of 1978. In Bostock v. Clayton County (2020), the Supreme Court held that firing someone for being gay or transgender is discrimination because of sex.
  • Religion includes all aspects of religious observance and practice. Employers must reasonably accommodate religious practices unless doing so would cause undue hardship. In Groff v. DeJoy (2023), the Supreme Court clarified that undue hardship means substantial increased costs in relation to the conduct of the business, not just more than a trivial cost.
  • National origin covers ancestry, ethnicity, accent and the appearance of belonging to a particular national group. English-only rules must be justified by business necessity.
  • Race and color are distinct. Color discrimination can occur between people of the same race.

See protected class for how these sit alongside age, disability and other categories protected by other federal and state laws.

Who Title VII covers

Title VII applies to private employers and state and local governments with 15 or more employees for each working day in 20 or more calendar weeks in the current or preceding year. It also covers the federal government as an employer, employment agencies regardless of size, and labor organizations. Applicants and former employees are protected as well as current staff.

There are narrow exceptions. Religious organizations may prefer members of their own religion for employment. Indian tribes and bona fide private membership clubs are excluded from the definition of employer. Small employers below 15 employees are outside Title VII but are usually covered by state law.

Disparate treatment and disparate impact

Title VII recognizes two main theories of discrimination, and recruiters need to understand both.

[Disparate treatment](/glossary/disparate-treatment/) is intentional: a person is treated differently because of a protected characteristic. Asking only female candidates about childcare, or rejecting an applicant with a foreign-sounding name without reviewing the resume, are classic examples.

[Disparate impact](/glossary/disparate-impact/) is about practices that look neutral but disproportionately exclude a protected group, such as a test, a credential requirement or a physical standard. The Supreme Court recognized this theory in Griggs v. Duke Power Co. (1971), and Congress wrote it into the statute in the Civil Rights Act of 1991. Once a plaintiff shows the adverse impact, the employer must show the practice is job-related and consistent with business necessity. Even then, the plaintiff can win by showing a less discriminatory alternative that the employer refused to adopt.

For high-volume hiring, disparate impact is the bigger risk. Knockout questions, assessments and automated screening tools apply the same rule to thousands of candidates, so a poorly chosen cut score can produce a large statistical disparity quickly.

Defenses and exceptions

The main employer defenses are:

  • Legitimate, nondiscriminatory reason. In disparate treatment cases, the employer explains the real reason for the decision, and the plaintiff must then show it was a pretext. Documentation made at the time of the decision is what makes this defense work.
  • Job-related and consistent with business necessity. The defense to disparate impact claims, usually supported by validation evidence for tests and requirements.
  • Bona fide occupational qualification (BFOQ). A narrow exception allowing religion, sex or national origin, but never race or color, to be a job requirement where it is reasonably necessary to the normal operation of the business.
  • Bona fide seniority or merit systems, applied without intent to discriminate.

Remedies and enforcement

Title VII is enforced by the EEOC. A person must generally file a charge with the EEOC within 180 days, or 300 days where a state or local agency enforces a similar law, before suing. Remedies can include hiring or reinstatement, back pay, front pay, attorney's fees and, for intentional discrimination, compensatory and punitive damages. The Civil Rights Act of 1991 caps combined compensatory and punitive damages by employer size, from $50,000 for employers with 15 to 100 employees up to $300,000 for those with more than 500. Back pay is not capped.

State laws often go further, with lower size thresholds, more protected characteristics and different damages rules. This page is general information, not legal advice.

What this means for recruiters

Use structured interviews with job-related questions asked of every candidate in the same order. Do not ask about national origin, religion, marital status, pregnancy or family plans. Validate assessments and check pass rates by group for each stage of the funnel. Write down the job-related reason for every rejection after the screen. And when an applicant asks for a religious accommodation, such as a scheduling change for a training class, treat it as a formal request and respond in writing.

Frequently asked questions

What is Title VII of the Civil Rights Act?

It is the federal law that prohibits employment discrimination based on race, color, religion, sex and national origin by employers with 15 or more employees, employment agencies and labor unions. It also prohibits retaliation.

What does Title VII discrimination include?

Discrimination in hiring, firing, pay, assignments, promotion, training, discipline and any other term or condition of employment, plus harassment and retaliation, when based on race, color, religion, sex or national origin.

Does Title VII cover sexual orientation and gender identity?

Yes. In Bostock v. Clayton County (2020), the Supreme Court held that firing someone for being gay or transgender is discrimination because of sex under Title VII.

Does Title VII cover age or disability?

No. Age discrimination is covered by the Age Discrimination in Employment Act, and disability discrimination by the Americans with Disabilities Act. Both are also enforced by the EEOC.

How many employees does an employer need for Title VII to apply?

Fifteen or more employees for each working day in at least 20 calendar weeks in the current or preceding calendar year. Employment agencies and unions are covered on different terms.

What is the Civil Rights Act of 1964 in employment?

Title VII is the employment section of the Civil Rights Act of 1964. It also created the Equal Employment Opportunity Commission to enforce it.