Title VII and Section 1981 prohibit employers from retaliating against employees because they have engaged in statutorily protected activity. Title VII prohibits employment discrimination based on race, color, religion, sex and national origin.Section 1981 grants individuals the right to make and enforce contracts, regardless of race. The First Circuit Court of Appeals held that there is no implied private right of action for damages against state actors under 42 USC Section 1981. The Title VII claims were dismissed on proce- dural grounds. A link to the US Code and a summary of the law with helpful links. Key tips to help prove your employment race discrimination case using either or both Title VII of the 1964 Civil Rights Act and Section 1981. Section 3: Powers and duties. A) Discriminatory practices prohibited; employees or applicants for employment subject to coverage. § 1981a, compensatory and punitive damages are available for a range of violations under Title VII, including retaliation.