Section 1981, which is codified at 42 U.S.C. 1981, protects the equal right of all persons to make and enforce contracts without respect to race.
While similar in protecting against unjust discrimination, Section 1981 differs from Title VII of the 1964 Civil Rights Act.
Title VII of the Rehabilitation Act of 1973 created the Independent Living Services and Centers for Independent Living programs.
While both statutes prohibit discrimination on the basis of race, Section 1981 contains no damages cap. The most a plaintiff can recover in “non-economic” compensatory and punitive damages in a Title VII is $300,000.00.
While Congress's principal motivation in enacting § 1981 was to secure equal rights for Black citizens post-slavery, the Supreme Court held in McDonald v. Santa Fe Trail Transportation Company, a case involving a private employer, that the provision permits claims brought by White persons as well.
2001) (“To establish a prima facie retaliation claim under Title VII or § 1981 … , a plaintiff must show: (1) that he engaged in a protected activity; (2) that he suffered an adverse employment action; and (3) that there was a causal connection between the protected activity and the adverse employment action”); ...