Employment discrimination generally exists where an employer treats an applicant or employee less favorably merely because of a person's protected class. Housing Discrimination is illegal under Federal law.Learn about the warning signs. This article explains how to file a complaint if you believe your employer has discriminated against you. Federal law and Texas law provides protections to members of a "protected class" against discrimination in the workplace. The law makes discrimination illegal in all employment practices. The law makes discrimination illegal in all employment practices. Title VII of the Civil Rights Act, and the Texas Labor Code, section 21.001, provides legal protection against Race Discrimination in the workplace. Because of this, all employees, including state employees, are protected under federal law, as federal law prohibits employment discrimination-based actions. It forbids discrimination in all areas of the employer-employee relationship, from advertisement for new employees through termination or retirement.