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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).
Once the EEOC issues a Notice of Right to Sue, you must file a lawsuit in court within 90 days. In contrast, in Jones v. R.R. Donnelley & Sons Co., 541 U.S. 369 (2004), the U.S. Supreme Court held that § 1981 claims are governed by the federal ?catch-all? four-year statute of limitations.
Section 1981 applies only to intentional racial discrimination, while Title VII applies to intentional discrimination and disparate impact discrimination on race, color, national origin, sex, or religion. Title VII also requires an EEOC charge to be filed before bringing their claims in court and has a cap on damages.
§ 1981 must plead and has the ultimate burden of showing that race was a but-for cause of the plaintiff's injury, and that burden remains constant over the life of the lawsuit.
Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, promotion, discharge, pay, fringe benefits, job training, classification, referral, and other aspects of employment, on the basis of race, color, religion, sex or national origin.
All persons within the jurisdiction of the United States shall have the same right in every State and Territory to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens, and ...
§ 1981, which derives from Section 1 of the 1866 Civil Rights Act. The statute establishes that certain rights are to be guaranteed to all citizens of the United States, and these rights are to be protected against impairment by nongovernment and state discrimination.