Section 1981 & Would-Be Contractors

Are would-be contractors protected under Section 1981? Here's my point of view (NOTE: please read our DISCLAIMER before proceeding).

SECTION 1981

Section 1981 prohibits racial discrimination in the making and enforcement of contracts. See 42 U.S.C. § 1981. A plaintiff cannot state a claim under Section 1981 unless the plaintiff has (or would have) rights under the existing (or proposed) contract that he wishes ‘to make and enforce.’” See Domino’s Pizza, Inc. v. McDonald, 546 U.S. 470, 479-80 (2006).

THE WOULD-BE CONTRACTOR

However, a contractual relationship need not already exist, because Section 1981 protects the would-be contractor along with those who already have made contracts. See Domino’s Pizza, Inc. v. McDonald, 546 U.S. 470, 476, 126 S.Ct. 1246, 163 L.Ed.2d 1069 (2006). According to the court in Domino's Pizza, Inc.:

We made this clear in Runyon v. McCrary, 427 U.S. 160, 96 S.Ct. 2586, 49 L.Ed.2d 415 (1976), which subjected defendants to liability under §1981 when, for racially-motivated reasons, they prevented individuals who 'sought to enter into contractual relationships' from doing so, id., at 172, 96 S.Ct. 2586 (emphasis added). We have never retreated from what should be obvious from reading the text of the statute: Section 1981 offers relief when racial discrimination blocks the creation of a contractual relationship, as well as when racial discrimination impairs an existing contractual relationship, so long as the plaintiff has or would have rights under the existing or proposed contractual relationship.

Domino’s Pizza, Inc. v. McDonald546 U.S. at 476 (emphasis added).

CONCLUSION

I believe that would-be contractors may be protected under Section 1981 as long as the plaintiff has or would have rights under the existing or proposed contractual relationship.

Learn More

If you would like to learn more, then consider contacting an experienced Washington State Employment Discrimination Attorney as soon as possible to discuss your case. Please note: the information contained in this article is not offered as legal advice and will not form an attorney-client relationship with either this author or Williams Law Group, PS; please see our DISCLAIMER.

–gw

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