Under the 1964 Civil Rights Act, state and local governments and their employees were excluded from Title VII coverage. Title VII prohibits employment discrimination based on race, color, religion, sex and national origin.Title VII of the Civil Rights Act of 1964. Title VII of the Civil Rights Act of 1964 is a federal law that makes it illegal to discriminate employees based on race, color, religion, or sex. Title VII of the Civil Rights Act of 1964 outlaws discrimination against a job seeker or employee on the basis of race, color, religion, sex. Title VII expands upon Title VI to include religion and sex discrimination within its law. The Hively Court based its decision to extend protection under Title VII to sexual orientation claims on three theories. Title VII of the 1964 Civil Rights Act makes it illegal to discriminate against someone based on race, color, religion, national origin, or sex. As noted above in the discussion of National. Railroad Passenger Corp. v.