Title VII prohibits employment discrimination based on race, color, religion, sex and national origin. In 1964, the U.S. Congress passed Title VII Civil Rights Act, which prohibited discrimination in employment and in other areas of society.1981, this statute has been interpreted as prohibiting discrimination on the basis of race in the making and enforcement of private contracts. Section 1981 grants individuals the right to make and enforce contracts, regardless of race. Title VII and Section 1981 prohibit employers from retaliating against employees because they have engaged in statutorily protected activity. A) Discriminatory practices prohibited; employees or applicants for employment subject to coverage. You can sue under Section 1981 and proceed directly to court. You can also sue under Title VII, the principle employment discrimination statute. Commissions, necessary under Title VII, would not be required in a section 1981 action. Plaintiff's claims of race and nationalorigin discrimination under Title VII and Section 1981 are analyzed under the wellknown burdenshifting framework.