Harassment and hostile environment. Racial discrimination in the workplace is strictly illegal.Harassment is prohibited in all workplaces, even those with fewer than five employees. Under California law, an employer is not permitted to retaliate against an employee who files a complaint of discrimination under FEHA. Both Title VII of the Civil Rights Act of 1964 and the Fair Employment and Housing Act (FEHA) prohibit coworker sexual harassment. Title VII, 42 U.S.C. § 2000e, prohibits discrimination based upon sex or gender, as does the California Fair Employment and Housing Act, Cal. When Can You File a Lawsuit for Employment Discrimination? To continue health care coverage under. Title VII prohibits employment discrimination based on race, color, religion, sex and national origin. Title VII prohibits employment discrimination based on race, color, religion, sex and national origin.