What is Title VII of the Civil Rights Act? A Guide for Employers

One of the main roles of Human Resources is staying informed about employment laws and helping their organizations remain in compliance with those laws. Title VII of the Civil Rights Act of 1964 remains an important foundational law despite the many legal changes that have happened during the first several weeks of 2025.  

The law was enacted to prevent widespread discrimination in the workplace and continues to shape how employers engage with employees and job applicants. The law protects employees from discrimination and requires equal opportunity in the workplace. 

What exactly does Title VII cover, and how does it continue to drive and impact HR practices today? Let’s review the specifics of Title VII - what it is, who it protects, how employers can ensure compliance, who enforces it, and why Title VII is not just a legal requirement but a necessary component for building fair and equitable work environments. 

What is Title VII of the Civil Rights Act?

Title VII is a critical part of the Civil Rights Act of 1964. It’s a federal law that prohibits discrimination and harassment based on: 

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

Title VII prohibits discrimination in all terms and conditions of employment, including recruiting, hiring, compensation, benefits, promotions, advancement opportunities, training, work assignments, and termination of employment. By deeming discrimination unlawful, Title VII ensures that all employees and job applicants have an equal opportunity to succeed in the workplace. 

Most employment in the United States is considered “at-will.” This means that an employer or employee can terminate employment at any time and for any reason. From an employer perspective, an employee can be terminated without notice and without having to establish “just cause” for the termination. The only exception is if the termination is due to the employee's involvement in illegal activity. 

One of the most common forms of unlawful termination relates to discrimination, where an employee is terminated as a result of their race, gender, sexual orientation, religion, disability status or other protected characteristics. Title VII makes the reason for this type of termination unlawful.

*In 2020, the Supreme Court ruled that Title VII of the Civil Rights Act prohibits discrimination on the basis of sexual orientation and/or transgender status. It's important to note that while Title VII continues to protect against discrimination based on sex, including sexual orientation and gender identity, the current administration has taken steps to redefine gender strictly as biological sex. This policy shift may influence the enforcement and interpretation of these protections. 

Key Provisions of Title VII 

Some of the key provisions of Title VII that HR needs to understand include: 

1. Non-Discrimination: Title VII mandates that employers cannot make decisions about any terms or conditions of employment, such as hiring, compensation, benefits, transfers, promotions, advancement opportunities, training, terminations, and other terms and conditions of employment based on protected characteristics like race, color, religion, sex, gender identify, sexual orientation, or national origin 
2. Harassment: Title VII prohibits harassment based on any protected characteristics, including unwanted conduct that creates a hostile or intimidating work environment. 
3. Retaliation: Employees are protected from retaliation if they file a discrimination complaint or participate in investigations or lawsuits related to discrimination. 

Title VII lays the groundwork for many HR policies and practices.  

Who is Protected Under Title VII? 

Title VII protects job applicants, current employees, including full and part-time, seasonal, temporary, and former employees. It covers these individuals regardless of citizenship or immigration status. Title VII identifies five key protected classes: race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), and national origin. Let’s break down what each of these categories means: 

1. Race: Title VII prohibits discrimination based on race, which includes racial traits or ethnic backgrounds. 
2. Color: Prohibits discrimination based on skin color, complexion or tone. 
3. Religion: Title VII protects individuals from discrimination based on their religious beliefs or practices. This includes major religions and minor or lesser-known beliefs. Employers are also required to reasonably accommodate an employee’s religious practices, such as schedule changes for religious observances. An employee must request a religious accommodation and then HR and management will determine if the accommodation can be reasonably accommodated based on business needs. 
4. Sex (Including Pregnancy, Gender Identity, and Sexual Orientation): Discrimination based on sex covers not only traditional gender roles but also includes pregnancy, gender identity, and sexual orientation.  
5. National Origin: Discrimination based on national origin refers to treating someone unfairly due to their birthplace, ethnicity, accent, or the culture associated with their origin.  

It’s important to clarify that age, disability, or genetic information are not listed among the above Title VII protected groups. Those individuals are protected under different laws that the EEOC enforces as well. Those laws include: 

• Age Discrimination in Employment Act (ADEA): Prohibits employment discrimination against individuals who are 40 years of age or older.   
• Americans with Disabilities Act (ADA): Prohibits discrimination against people with disabilities in any job terms and conditions. The law provides a definition and examples of “disability”.  
• Genetic Information Nondiscrimination Act (GINA): Protects individuals from discrimination based on their genetic information, such as family medical history or genetic tests. Employers cannot use that information when making any employment decisions.   
• Pregnancy Discrimination Act (PDA): A separate law that prohibits discrimination based on pregnancy.  

It’s also important to note that individual states may have their own discrimination laws that could protect a broader range of employees than federal laws, so employers must also be aware of and comply with those state laws as well. 

Title VII: What it Means for Employees and Job Applicants 

Title VII protects both current employees and job applicants, and both are entitled to equal consideration without bias related to any protected classes. This means that when an employer takes actions such as posting job openings, interviewing candidates, and making hiring decisions, those choices cannot be based on race, religion, sex, or any of the other protected categories. Making decisions based on protected characteristics is unlawful and in violation of VII. 

Who Must Comply with Title VII? 

• Employers with 15 or More Employees: This means that small businesses with fewer than 15 employees are technically not subject to Title VII's provisions. However, many state and local anti-discrimination laws may offer protections to employees in smaller businesses, so it is essential for HR to check both federal and local laws when creating and reviewing their compliance initiatives and HR policies.
• Federal, State, and Local Government Employers: All levels of government—federal, state, and local—must also comply with Title VII. Public sector employers— including government agencies, police departments, schools, and municipalities— are required to ensure that they do not engage in discriminatory practices, similar to their private-sector counterparts.
• Employment Agencies and Labor Organizations: Employment agencies and labor organizations are also bound by Title VII. Employment agencies must ensure that their services do not discriminate against job seekers based on the protected categories. Similarly, labor unions or collective bargaining groups cannot discriminate when it comes to membership, benefits, or participation in union activities. 

Prohibited Employment Practices Under Title VII 

Hiring, Compensation Benefits, Promotions, and Terminations 

Title VII prohibits discrimination in all conditions and terms of employment. Employers cannot refuse to hire, fail to promote, pay, or terminate an individual based on their race, color, religion, sex, or national origin. For example, if a female employee is being paid less than a male employee who performs the same job, that could be a potential violation of Title VII. 

Harassment and Hostile Work Environments 

Discrimination is not limited to hiring and firing decisions. Title VII also addresses harassment in the workplace, which occurs when an employee faces unwelcome conduct based on their race, sex, religion, or another protected characteristic. This could include offensive jokes, slurs, or other behavior that creates a hostile or intimidating work environment. Harassment can lead to legal action if the employer fails to address the issue or allows it to continue.  

Under Title VII, there are two primary forms of harassment claims, which include: 

• “Quid pro quo” sexual harassment: Occurs when a supervisor seeks sexual favors from a worker, often a subordinate, in return for some time of job benefit, such as a promotion, raise, schedule, or to avoid some kind of negative action like a decrease in pay, demotion, poor performance review, etc.  
• A hostile work environment: Occurs when an employee experiences unwelcome conduct, often based on protected characteristics, that is so pervasive that it creates an intimidating and negative work environment where the employee feels threatened or harassed. 

Retaliation Against Employees for Reporting Discrimination 

Another key protection under Title VII is the prohibition of retaliation. The law prohibits an employer from retaliating against employees or applicants if:  

• They file a discrimination charge 
• They oppose an employer practice that violates the law 
• They participate in or testify in a related investigation or legal proceeding. 

How is Title VII Enforced? 

The Equal Opportunity Employment Commission (EEOC) is the federal agency responsible for enforcing Title VII. It investigates discrimination complaints, provides guidance to employers, and even files lawsuits on behalf of employees in some cases. The EEOC plays an essential role in ensuring that Title VII is followed, and that workers’ rights are protected. 

How Can Employees File a Discrimination Complaint 

Employees who believe they have been discriminated against under Title VII can file a complaint with the EEOC. The complaint must be filed within 180 days of the alleged discrimination taking place. A complaint can be filed by a current employee, former employee, job applicant, individual, organization, or agency acting on behalf of a victim.   

The process begins with the affected individual submitting a charge of discrimination to the agency. Once a charge is filed, the EEOC typically sends the written charge to the employer, and the employer is given a certain timeframe to investigate the charge on their end and respond back in writing to the EEOC.  

The employer needs to provide the EEOC any supporting documentation as part of their response. The EEOC then investigates the complaint. During the course of their investigation, the EEOC may ask for additional information or supporting documentation and can even choose to do an onsite investigation if they feel that is warranted in order to conduct a thorough investigation.  

The results of their investigation determine the course of action the EEOC will pursue next. This can include: 

• A federal lawsuit: If the results of the investigation prove that a violation has occurred.  
• Mediation: If both parties are interested in resolving the matter out of court. 
• Dismissal: If the EEOC finds no evidence of a violation to support the claim, it will issue a Dismissal and a Right to Sue notice to the person who filed the complaint, which closes the EEOC investigation but allows the individual(s) who filed the charge an opportunity to file their own lawsuit in court. 
• Potential penalties and consequences for non-compliance: Employers who violate Title VII may face serious consequences. These can include severe financial penalties, court-ordered changes to employment practices, and damages due to the affected employee. In some cases, the employer may also be required to reinstate an employee or compensate them for backpay. Non-compliance with Title VII can also damage an employer's reputation. 

Why Title VII Matters for Employers 

HR needs to take the lead with their executive management to stay compliant with Title VII. Ensuring that your workplace is free from discrimination helps mitigate legal risks and avoid costly litigation by creating a culture of fairness and respect for all employees. 

Benefits of a Diverse and Inclusive Workplace 

Beyond the legal requirements, cultivating a diverse and inclusive workplace can bring numerous benefits to a company. Diverse teams tend to be more innovative, creative, and effective at solving problems. Additionally, an inclusive work environment increases employee morale and retention because workers feel respected and valued regardless of their background or personal characteristics. This can have a positive impact on a company’s bottom line. A study by Glassdoor found that 76% of job seekers reported that a diverse workforce was an important factor when making a job decision.

Best Practices for Avoiding Discrimination Claims 

To avoid discrimination claims, employers should establish clear anti-discrimination policies, which include a statement about the company’s commitment to zero tolerance for harassment and discrimination. It should also include an equal opportunity statement or create a separate equal opportunity policy.  

Title VII requires employers to post workplace notices explaining the rights this law gives employees. HR needs to make sure that the notices are posted in high traffic areas so that all employees have access to them.  

HR should also develop a training plan to regularly train employees on discrimination and harassment issues and set up effective channels for reporting discrimination. HR should maintain records and documentation on this type of training, as well as documentation related to other employment related actions, such as recruitment, hiring, promotions, performance evaluations, training opportunities, disciplinary procedures, and terminations. HR will particularly need this type of information if an EEOC charge is filed against an employer and supporting documentation is needed or requested.  

The EEOC also has a best practices resource. 

What Title VII Means for your Organization 

Title VII of the Civil Rights Act of 1964 continues to be a critical and foundational piece of employment law - one that promotes fairness and equality in the workplace. From hiring practices to harassment prevention and retaliation protections, HR plays a critical role in helping employers comply with Title VII. Compliance with this law is not just a legal obligation, but a necessary step toward building diverse, inclusive, and equitable work cultures. 

Staying informed about the key provisions of Title VII and implementing best practices in the workplace allows employers to create a respectful and supportive environment for all employees, while also avoiding legal challenges. 

Reach out to OutSolve for expert guidance with our anti-discrimination in employment solutions. We offer comprehensive and customizable solutions designed to fit your business needs.