Title VII prohibits employment discrimination based on race, color, religion, sex and national origin. This article examines the scope of this exemption and explores how the statute applies to churches and religious ministries.Under the California Fair Employment and Housing Act (FEHA), it is unlawful to harass an employee for adhering to or respecting a certain religious creed. Title VII also prevents creating any terms and conditions of employment based on religious belief. Many California employers are seeing an uptick in requests for religious exemptions. Here are some tips from employment attorneys on how to respond. Title VII prohibits federal agencies from discriminating against employees or applicants for employment because of their religious beliefs.