Title VII prohibits employment discrimination based on race, color, religion, sex and national origin. The act made it illegal to discriminate in the workplace based on a person's race, color, religion, sex and national origin.(2) Exclusions from compensatory damages. Employment Law Report. There are serious penalties and repercussions for violating Title VII of the Civil Rights Act of 1964. The state law prohibiting retaliation is Chapter 21 of the Texas Labor Code. In 1964, the US Congress passed Title VII Civil Rights Act, which prohibited discrimination in employment and in other areas of society.