A federal district court in Texas has ruled that businesses with religious owners may be exempt from federal prohibitions against employment discrimination. The law covers all religious and spiritual affiliations, so long as the employee's beliefs are sincerely held.Title VII also protects atheists and agnostics. Secure for persons in this state, including persons with disabilities, freedom from discrimination in certain employment transactions. Under Title VII these business are exempt from the religious toleration requirement. This exemption is complicated, however. Title VII includes an exemption for religious organizations so that they can consider religion when they select their staff. Title VII prohibits federal agencies from discriminating against employees or applicants for employment because of their religious beliefs. United States Constitution, and the Religious Freedom Restoration Acts. Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on religion.