What Is Race-Based Discrimination?

By Andra DelMonico, J.D. | Reviewed by Canaan Suitt, J.D. | Last updated on June 17, 2025

Race discrimination, as defined by the U.S. Equal Employment Opportunity Commission (EEOC), is treating someone unfavorably because of their race or personal characteristics associated with race, such as skin color, hair texture, or facial features. Race discrimination is a complex and pervasive civil rights issue. It arises in many contexts, including employment, housing, education, healthcare, law enforcement, and the criminal justice system.

Federal and state laws prohibit race-based discrimination. These laws provide avenues for victims of racial discrimination to advocate for their rights, seek legal remedies, and pursue racial justice. For legal advice, reach out to a discrimination law attorney.

The Civil Rights Act of 1964

The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, sex, or national origin. The titles or sections of the Act address discrimination in specific contexts, including public facilities, schools, voter registration, and employment.

For example, Title VI of the Civil Rights Act prohibits race discrimination in any programs or activities that receive federal financial assistance. This includes federal funding for hospitals, schools, and other government agencies. The goal is for federally funded programs to operate in a non-discriminatory manner.

Title VII prohibits race discrimination in employment. It applies to businesses that employ 15 or more employees and covers all aspects of employment, from hiring to currently employed to termination.

The U.S. Equal Employment Opportunity Commission (EEOC) enforces Title VII and investigates complaints of discrimination. If the EEOC finds evidence of discrimination, it will attempt to settle the charge through mediation or settlement or file a lawsuit on your behalf. Alternatively, the EEOC may issue a Notice of Right to Sue, allowing you to file a discrimination lawsuit in federal court. Learn more about the EEOC complaint process.

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The Fair Housing Act

The Fair Housing Act (FHA) prohibits discrimination in the sale, renting, and financing of housing. It applies to everyone in the real estate industry, including landlords, companies, municipalities, and banks. The U.S. Department of Housing and Urban Development (HUD) enforces the FHA through its Office of Fair Housing and Equal Opportunity (FHEO).​

Housing discrimination doesn’t have to be outright legal segregation. It is often more subtle. For example:

  • Lenders refuse mortgages to certain areas based on race
  • Lenders approve loans, but only with predatory terms
  • Real estate agents refuse to show buyers of a specific race certain neighborhoods or homes
  • Agents encourage homeowners to sell after new homeowners of a different race move in the neighborhood, implying that home values will drop because of it
  • Insurance companies refuse to provide homeowners insurance to people of a certain race for a specific area

Housing discrimination complaints must be filed with FHEO within one year of the alleged discriminatory act. You can file a complaint online, by mail, or by calling HUD’s toll-free number. HUD assists in multiple languages and accommodates individuals with disabilities. ​Upon receiving a complaint, HUD investigates the allegations. If discrimination is found, HUD may pursue legal action or facilitate a resolution between the parties. ​

The Equal Credit Opportunity Act

The Equal Credit Opportunity Act (ECOA) prohibits race discrimination by creditors. This law applies to all entities that extend credit, including banks, credit unions, finance companies, and retailers.​

Creditors must provide applicants with a Notice of Action Taken on their credit application within 30 days and if credit is denied. The Consumer Financial Protection Bureau (CFPB) enforces ECOA to ensure fair access to credit.​

State-Level Anti-Discrimination Laws

Several states have enacted their own civil rights laws that expand on federal protections. For example, many states extend protections to include characteristics such as sexual orientation, gender identity, marital status, and more.

State fair housing laws commonly forbid discrimination in renting, selling, or financing housing based on race, color, national origin, and other protected characteristics. State laws often prohibit discrimination in educational institutions, ensuring that students of all races and ethnic groups have equal access and treatment.

Many states have laws prohibiting discrimination in places open to the public, such as restaurants, hotels, and theaters. These laws often align with or expand upon Title II of the Civil Rights Act.

Recognizing Race Discrimination

Race discrimination concerns physical traits such as skin color, hair, or facial features. It is distinct from, though often overlaps with, discrimination based on ethnicity or national origin:

  • Ethnicity. Discrimination based on an person’s ethnicity or ethnic origin, such as language, traditions, ancestry, religion, or cultural heritage.
  • National origin. Discrimination based on the fact that a person, or their parents or ancestors, came from a particular country.

Actions can be discriminatory in two ways:

  1. Intentional discrimination. When individuals are treated less favorably than others on the basis of race.
  2. Unintentional discrimination. This often happens when a policy isn’t outwardly racist in its wording but disproportionately negatively impacts one race more than the others through its application.

Racist statements or behaviors create a hostile work environment. It can start with the application process, when a company refuses to hire job applicants of a specific race or has seemingly neutral requirements that, when applied, exclude applicants of a specific race.

Race discrimination could be on the level of company policies that create racial disparities among employees. Or it could happen on an employee-to-employee level and involve racial slurs or epithets, offensive jokes or comments about race, or displaying racially insensitive materials.

How To Report and File a Complaint

If you’re an employee experiencing workplace discrimination, you might be able to go through your employer’s internal complaint process. This could include filing a report with human resources or an Equal Employment Opportunity (EEO) Officer.

Some companies have a formal complaint process to prevent discrimination. Once a report is filed, the company conducts an internal investigation. Often, a resolution can be found without the need for external intervention. Employees can turn to the EEOC if pursuing an internal complaint doesn’t resolve the issue.

Housing discrimination complaints must be filed with HUD’s Office of Fair Housing and Equal Opportunity (FHEO).

Protections Against Retaliation for Reporting Race Discrimination

Individuals who file a racial discrimination complaint are protected from retaliation. It is illegal for employers to retaliate against employees for voicing their objection to discriminatory practices or participating in discrimination proceedings. This protection applies as long as the employee reasonably believes that discrimination occurred.

The Fair Housing Act prohibits retaliation against individuals who exercise their rights under the Act, including filing complaints or assisting others in doing so. ​If retaliation occurs, individuals can file additional complaints with the respective agencies. Employers or housing providers found guilty of retaliation may face legal consequences, including fines and other penalties.

Victims of racial discrimination may decide to pursue legal action if other avenues do not resolve the issue. Before taking action, it’s advisable to speak with a lawyer who represents clients in discrimination claims. An attorney can help you understand your rights, evaluate the merits of your case, and guide you through the complex legal process. They can also assist in determining the appropriate venue for your complaint.​

At any point during the litigation process, the parties may agree to a negotiated settlement to resolve the dispute and avoid going to trial. Settlements may include monetary compensation, reinstatement, policy changes, or other remedies. If a settlement is not reached, the case may proceed to trial. A judge or jury will then determine whether discrimination occurred and what remedies should be awarded. Following the trial, either party may appeal the decision if they believe legal errors affected the outcome.

Damages in a Race Discrimination Lawsuit

Compensatory damages in a civil lawsuit are intended to make the victim whole by covering actual financial losses resulting from discrimination. These damages could include back pay, wages, bonuses, and benefits lost due to discriminatory actions.​

It could also include estimated future earnings lost when reinstatement is not feasible.​ In some cases, victims may also claim emotional distress, which provides for mental anguish, inconvenience, and loss of enjoyment of life.

Injunctive Relief in a Race Discrimination Lawsuit

In some cases, the victim may want the other party to stop doing the discriminatory actions. Seeking an injunctive relief can provide this sort of remedy. ​The court would issue an order that requires a party to take specific action, such as making a policy change or participating in training programs.

A victim of discrimination could also seek to have their rightful position restored, such as getting a job back or being promoted.

Attorney’s Fees in a Race Discrimination Lawsuit

If a plaintiff is successful in their claim, they may be able to seek recovery of reasonable costs for pursuing their claim. This includes attorney’s fees, court costs, and additional expenses like witness fees. This ensures victims can seek justice without being burdened by the potential cost of litigation.

Punitive Damages in a Race Discrimination Lawsuit

Sometimes, damages are awarded to punish employers and discourage similar conduct in the future. These damages are only available when the employer acted with “malice or with reckless indifference” to the individual’s federally protected rights.

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