Section 1981 is primarily concerned with racial discrimination in contracts, whereas Section 1983 provides a remedy for violations of constitutional rights by government actors.
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.
§ 1981 (Section 1981) bears the burden of initially pleading and ultimately proving that racial bias was the “but for” cause of the plaintiff's injury.
Title VII is the federal employment statute prohibiting discrimination based on all protected classes, while Section 1981 only prohibits discrimination based on race and is not limited to the employment context.
The employee must first present evidence that he is a member of a protected class, he was qualified for the position he held, he suffered an adverse employment action such as being fired, and that he was replaced with another worker who is not a member of that protected class.
While similar in protecting against unjust discrimination, Section 1981 differs from Title VII of the 1964 Civil Rights Act.
To establish a prima facie case of disparate treatment under Title VII, a plaintiff must show “(1) he is a member of a protected class; (2) he was qualified for his position; (3) he experienced an adverse employment action; and (4) similarly situated individuals outside his protected class were treated more favorably.” ...
Actual damages include emotional distress, pain and suffering and the like. Punitive damages are also available against individuals under section 1983 where recklessness or deliberate indifference is shown. , they are not available against local governments.
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. 42 U.S.C. § 1981a(b).