What Is Title VII? A Compliance Guide for Employers

Title VII of the Civil Rights Act of 1964 is a foundational anti-discrimination law that covers almost all employers in the United States. For federal contractors, Title VII was often overshadowed by the affirmative action obligations created by Executive Order 11246, and the enforcement of those requirements by the Office of Federal Contract Compliance Programs (OFCCP). With the revocation of EO 11246, federal contractors should refresh themselves on the basics of Title VII. While federal contractors are no longer required to create federal affirmative action plans for minorities and women, Title VII requirements remain and violations of the law continue to make up the majority of the Equal Employment Opportunity Commission's (EEOC) lawsuits brought against employers. Understanding Title VII compliance is now more important than ever for organizations navigating this shifting regulatory landscape.

Have questions about how Title VII compliance applies to your organization? Contact a Berkshire compliance expert to talk through your specific situation.

Key Title VII Takeaways

• Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, or national origin.

• The law applies to private employers, state and local governments, and educational institutions with 15 or more employees for at least 20 weeks in the current or preceding calendar year.

• With EO 11246 revoked, Title VII is now the primary federal anti-discrimination obligation for former federal contractors.

• Title VII is enforced by the EEOC, not through the audit process federal contractors were previously subject to under OFCCP.

The Basics of Title VII

Who is covered by Title VII?

Title VII applies to private employers, state and local governments, and educational institutions that have 15 or more employees for at least 20 weeks in the current or preceding calendar year. It also covers staffing or employment agencies meeting that employee threshold, as well as labor unions that operate as a hiring hall or have at least 15 members.

Title VII protects all current and former employees of a covered employer. It also protects applicants for employment at covered employers, as well as participants in training or apprenticeship programs.

Compliance Note: Employee count thresholds are calculated based on the current or preceding calendar year, so an organization that dips below 15 employees mid-year may still be covered. If you're unsure whether your organization meets this threshold, this is a common area where employers miscalculate their obligations. Berkshire's federal contractor compliance services can help confirm your coverage status.

What does Title VII prohibit?

Title VII prohibits employment discrimination based on race, color, religion, sex or national origin. Title VII does not cover age or disability discrimination, but employment discrimination on those bases are prohibited under the Age Discrimination in Employment Act and the Americans with Disabilities Act, respectively.

Title VII applies to all areas of employment and employment decisions. This includes hiring, firing, and promotions, as well as pay decisions and other conditions of employment. Other conditions of employment covers things like hours, shifts, job assignments, and training.

Title VII also prohibits 'discrimination for making charges, testifying, assisting, or participating in enforcement proceedings'. More commonly this is referred to as retaliation, and it expands beyond just termination of an employee. Retaliation includes any negative employment action such as demotion, shift reassignment, pay reduction, or a hostile work environment. Importantly, retaliation is only prohibited under Title VII when it is in response to activity by the employee that is covered under Title VII. This covers activities like making a charge of discrimination, participating in a Title VII investigation, or helping someone else make a Title VII complaint.

While not explicitly outlined, sexual harassment is covered in Title VII. This was solidified in 1986, when the Supreme Court unanimously held in its opinion in Meritor Savings Bank v. Vinson that unwanted sexual advances and coercion fall under Title VII's prohibition of discrimination on the basis of sex. This behavior doesn't just include actions like firing or demotions but also includes the creation of a hostile work environment through sexual harassment. Title VII also prohibits harassment on the basis of race, color, religion, or national origin.

Title VII also contains a unique provision related to religious discrimination. Title VII requires employers to provide reasonable accommodations for an employee's sincerely held religious beliefs, practices, or observations, unless doing so would cause undue hardship for the employer. Types of accommodations could include modifying work schedules to allow for religious observances, making exceptions to dress codes to allow religious dress, or providing a private location for religious observances.

What are the protected classes under Title VII?

The protected classes under Title VII are race, color, religion, sex, and national origin. This is narrower than some employers assume: Title VII does not extend to age or disability discrimination, which are instead covered under separate federal laws (the Age Discrimination in Employment Act and the Americans with Disabilities Act). Employers should be careful not to conflate Title VII coverage with these other statutes when building compliance policies.

How Title VII is Enforced

While federal contractors were used to the process of random audits carried out by OFCCP to review compliance with EO 11246, the enforcement of Title VII looks very different. Responsibility for enforcing Title VII with private employers lies with the EEOC and is carried out through a few different methods.

Charge Filing Process

First, an individual can file a complaint, or charge of discrimination, with the EEOC. The agency may dismiss the claim if they don’t feel it has merit, or they can move forward with an investigation. After concluding the investigation, the EEOC will determine if there is cause to believe a violation of the law took place. If the EEOC doesn’t find reasonable cause, they will dismiss the charge and close the case. At that point, the employee has 90 days to file a lawsuit on their own. If the EEOC does find reasonable cause, they are required to attempt to resolve the incident through conciliation between the employer and the employee. If the conciliation process is unsuccessful, the employee may file a lawsuit on their own or the EEOC can choose to file one on the employee’s behalf.

Berkshire Take: Because Title VII enforcement is complaint-driven rather than audit-driven, employers can no longer rely on the absence of an OFCCP audit as a sign of compliance. A single employee charge can trigger a full EEOC investigation with no advance warning, which makes proactive workforce analytics, policy reviews, and employer training on Title VII obligations even more important safeguards than they were under the EO 11246 audit model.

Commissioner Charges

While most investigations are initiated by an individual bringing a discrimination claim, EEOC commissioners can also initiate a charge, which is referred to as a Commissioner charge. Commissioner charges can be proposed by someone in an EEOC field office, like a District Director, or can be proposed by a member of the public. Commissioners can also sign a charge on their own.

Commissioner charges that are raised through EEOC field offices are reviewed by commissioners on a rotating basis. Once a commissioner signs off on the charge, no more commissioners review it and it is assigned to the appropriate field office to move forward with an investigation. If a charge goes through each commissioner and none sign off on it, the charge will not be issued and the process ends. When a commissioner initiates a charge on their own, it is reviewed by the Office of Field Programs and then signed off on by the commissioner. At that point, the charge is assigned to a field office for investigation.

Like charges brought by members of the public, the issuance of a commissioner charge doesn’t necessarily mean that the EEOC has determined that there has been a violation of the law. When the charge is sent to a field office, it will follow the same process as a charge brought by a member of the public – the field office will determine if there is reasonable cause to believe discrimination occurred and move forward from there.

The vast majority of EEOC charges are initiated by members of the public. According to EEOC’s website, from 2015 through 2024 commissioner’s charges represented, on average, less than 1% of the charges filed each year.

Title VII compliance requires more than understanding the law, it requires having the right policies, training, and documentation in place before a charge is ever filed. Talk to a Berkshire compliance expert to assess your organization's Title VII readiness.

H2: Frequently Asked Questions about Title VII

Does Title VII apply to all employers?

No. Title VII applies specifically to private employers, state and local governments, and educational institutions with 15 or more employees for at least 20 weeks in the current or preceding calendar year, along with qualifying staffing agencies and labor unions. Smaller employers below this threshold are not covered by Title VII, though they may still be subject to state or local anti-discrimination laws.

Who does Title VII apply to?

Title VII protects current and former employees, job applicants, and participants in training or apprenticeship programs at covered employers. It does not require any minimum tenure for an individual to be protected under the law.

How many employees does a company need to have for Title VII to apply?

A company must have 15 or more employees for at least 20 weeks in the current or preceding calendar year for Title VII to apply. This calculation includes part-time employees.