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Introduction to
Race Discrimination Law


Claims under 42 U.S.C. Section 1981

This federal statute allows employees who have employment contracts to sue for race discrimination in employment.

Some courts have required an employee to have an actual written employment contract before being allowed to sue under Section 1981. But recently, more courts have begun holding that an employee at will has an unwritten employment contract for purposes of Section 1981 -- it just happens to be a contract that can be terminated at will.

The determination of whether an employee at will has an employment contract for Section 1981 purposes depends upon the law of the particular state in which the employee works.

Interaction between Title VII and Section 1981

Persons who are entitled to sue under Title VII and under Section 1981 can sue under both statutes. There are some similarities between the laws, but also some important differences:

Similarity: The standard of liability under Title VII and Section 1981 is the same. In other words, if conduct would be considered race discrimination under Title VII, it would also be considered race discrimination under Section 1981.

Difference: A Section 1981 claim is filed directly in court -- without first filing an administrative charge with the EEOC or a state or local agency. Therefore, the time for filing suit differs. Whereas the time for filing a Title VII lawsuit is within 90 days of receiving a right-to-sue letter from the EEOC, the time for filing a Section 1981 lawsuit is based upon a state statute of limitations law. Each state has a law that determines how long a person has to file a personal injury action. That is the statute that usually controls how long one has to file a Section 1981 action. For example, in Tennessee the state statute of limitations is one year as set forth in Tenn. Code Ann. Section 28-3-104. Because the statute of limitations is going to vary from state to state, this is yet another example of why you should consult with an attorney in your community to understand your legal rights.

Difference: The amount of compensatory and punitive damages that can be awarded in a Title VII action is limited based on the size of the employer.  But under Section 1981, there is no cap. Obviously, this difference is extremely important.

Some 42 U.S.C. Section 1981 Cases

In Hawkins v. PepsiCo, Inc., 203 F.3d 274 (4th Cir. 2000), a 42 U.S.C. Section 1981 race discrimination action, the court held that the fact that the plaintiff and her supervisor disagree about her job performance and the fact that they do not get along is insufficient to make out a claim of race discrimination.

In Blise v. Antaramian, 409 F.3d 861 (7th Cir. 2005), a race discrimination actiona alleging failure to promote, the court held that the fact that different finalists were asked different questions and the fact that the decision was based upon subjective criteria are not evidence of pretext.

In Maxfield v. Cintas Corp. No. 2, 427 F.3d 544 (8th Cir. 2005), a 42 U.S.C. Section 1981 race discrimination action alleging wrongful termination, the court held that even if employer's proffered reasons for termination were false, employee failed to provide any evidence that discharge was based on race.

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