Title VII of the Civil Rights Act: what small employers should know
A short cheat sheet on the federal job discrimination law, with coverage, deadlines and damages caps in force in October 2026 and the agency changes that are still only proposals.
Prepared by Prem Tax and Accounting Corp. Last checked against official sources on October 29, 2026.
Title VII, part of the 1964 Civil Rights Act, is the federal law against job discrimination, enforced mainly by the U.S. Equal Employment Opportunity Commission, or EEOC. Our Hiring-Hall Fairness Pass below turns it into a routine. The official text starts at 42 U.S.C. 2000e.
- Employers with at least 15 employees for 20 or more weeks in the current or prior year are covered.
- It bars retaliation and bias based on national origin, race, color, religion or sex.
- File a charge with the EEOC within 180 days, or 300 in Illinois. Workers generally have 90 days to sue after its notice.
- Compensatory plus punitive damages have caps of $50,000 to $300,000, by size.
Who it covers
| Group | Covered? | Note |
|---|---|---|
| Employer with 15 or more employees | Yes | For 20 or more weeks of the current or prior year |
| Employer with fewer than 15 employees | Not by Title VII | State or local law may apply |
| Indian tribes, bona fide private tax-exempt membership clubs | No | Excluded |
| Religious organizations | Partly | May prefer their own religion for work tied to their activities |
The numbers
| Item | Amount | Year in force |
|---|---|---|
| Charge deadline | 180 days; 300 in Illinois | Current, October 2026 |
| Damages cap | By size, $50,000 to $300,000 | Fixed since 1991 |
| Notice poster fine | Up to $698 per offense | 2025 amount, no 2026 change |
Source: 42 U.S.C. 1981a
Our checklist
The Hiring-Hall Fairness Pass checks six stages of a job.
- Ads and hiring: no stated preference for a protected trait, with narrow exceptions.
- Pay and promotion: the same standards for everyone.
- Accommodation: a routine for religious and pregnancy requests.
- Complaints: a clear way to report, and prompt follow-up.
- Paperwork: the EEOC notice posted, and records kept 1 year, and longer once a charge is filed.
- Headcount: tracking the 15-employee line.
Mistakes people make
- Having no route for complaints, or sitting on one.
- Retaliating with schedule changes or scrutiny after a complaint.
- Refusing a religious request over small cost; the test is substantial burden (Groff, 2023).
Talk to an attorney about a harassment complaint, an EEOC charge or a right-to-sue notice.
Common questions
Does Title VII apply with fewer than 15 employees?
Not Title VII itself. State or local laws and the Equal Pay Act can still apply. See [Illinois laws](/small-business-laws/illinois/).
How long does someone have to file a charge?
With the EEOC it is 180 days, or 300 in Illinois, generally counted from each separate act. At the Illinois Department of Human Rights the window is longer (2 years since January 1, 2025). See [Illinois Human Rights Act](/small-business-laws/illinois/human-rights-act/).
Is the EEO-1 report still required?
The written rule still reaches employers with 100 or more employees, but the EEOC proposed on July 23, 2026 to rescind the EEO-1 and related report rules. As of October 27, 2026 it is only a proposal, so check the EEOC site for due dates.
Official sources
- U.S. Equal Employment Opportunity Commission: Title VII of the Civil Rights Act of 1964
- U.S. EEOC: Time limits for filing a charge
- U.S. EEOC: Remedies for employment discrimination
- U.S. EEOC: Poster and notice requirement
- Federal Register: proposal to rescind EEO-1 report rules, 91 FR 46332
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