Federal Law

Section 1981

Civil Rights Act of 1866 - Section 1981

42 U.S.C. § 1981

Employer Size

1+

Filing Deadline

1460 days

Extended Deadline

— days

Filing Agency

Federal court

Overview

Section 1981 of the Civil Rights Act of 1866 guarantees all persons the same right to make and enforce contracts as is enjoyed by white citizens. In the employment context, Section 1981 prohibits race and ethnicity-based discrimination in the formation, performance, modification, and termination of contracts, including employment contracts. Section 1981 provides significant advantages over Title VII: there is no minimum employer size threshold, no requirement to file an EEOC charge before suing, a longer four-year statute of limitations, and no cap on compensatory or punitive damages. It provides a private right of action directly in federal court.

Key Provisions

  • Guarantees equal rights to make and enforce contracts regardless of race
  • Covers all phases of the contractual relationship including formation, performance, and termination
  • No administrative exhaustion requirement - can file directly in federal court
  • No employer size threshold - applies to all employers including those with fewer than 15 employees
  • Provides uncapped damages, making it a powerful complement to Title VII for race discrimination claims

Available Remedies

Compensatory damages (uncapped)Punitive damages (uncapped)Back payFront payAttorney fees and court costsInjunctive and declaratory relief

Filing Information

Deadline

4-year statute of limitations; file directly in federal court

Agency

Federal court (private right of action)

Eligibility Notes

  • •No minimum employee threshold
  • •No requirement to file EEOC charge first
  • •4-year statute of limitations
  • •No cap on compensatory or punitive damages
  • •Covers contracts, including employment
  • •Applies to race and ethnicity discrimination; does not cover sex, age, disability, or religion

Covers These Situations

discriminationretaliationwrongful terminationharassment

Protected Characteristics

raceethnicitynational origin

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This information is provided for educational purposes only and does not constitute legal advice. Laws and regulations are subject to change. Consult a qualified employment attorney for advice about your specific situation. Last reviewed: February 2025.