In a September 2, 2026, article published by HR.com, Lacey McMullan examines how 42 U.S.C. § 1981, a federal civil rights law less familiar than Title VII, can protect against race discrimination in contracts, business relationships, and professional opportunities outside the traditional workplace.
Lacey highlights several situations where Section 1981 can apply, including when minority-owned businesses face discriminatory contract terms, independent contractors or consultants lose agreements because of race, or businesses deny services or cancel contracts based on race. Because these relationships involve contracts, courts have consistently recognized them as falling within the statute’s protections.
“For business owners and independent professionals, this statute may be one of the most important legal protections against race discrimination in the marketplace,” Lacey wrote.
Read the full article, “Section 1981: Federal Protection Against Race Discrimination In Contracts And Business Opportunities.” (PDF)
