Title VII prohibits employment discrimination based on race, color, religion, sex and national origin. Racial discrimination in the workplace is strictly illegal.Federal Sexual Harassment Laws. Filing a formal charge of employment discrimination is a serious matter. The elements of this instruction are derived from Fuller v. City of Oakland, California, 47 F.3d 1522, 1527 (9th Cir. 1995). Title VII of the Civil Rights Act of 1964 prohibits both disparate treatment and disparate impact. â–«. It prohibits discrimination on the basis of race, color, and national origin in programs and activities receiving federal financial assistance. It prohibits discrimination on the basis of race, color, and national origin in programs and activities receiving federal financial assistance. Under federal law, sexual harassment appears in Title VII of the Civil Rights Act of 1964.