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 shall be subject to the like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and to no other.

In response to the Patterson decision Congress passed the Civil Rights Act of 1991. Among other changes, the Civil Rights Act of 1991 added Section 1981(b), which states:

[f]or purposes of this section, the term "make and enforce contracts" includes the making, performance, modification, and termination of contacts, and the enjoyment of all benefits, privileges, terms, and condition of the contractual relationship.

Lastly, although Section 1981 does not itself use the word "race," the Supreme Court has construed the section to forbid all "racial" discrimination in the making of private as well as public contracts. Over the years, "racial discrimination" has been expanded to cover ethnic groups, such as, Hispanics, Asians and Arabs, just to name a few.

1. Back pay, which can consists of wages, salary and fringebenefits the employee would have earned during the period of discrimination from the date of termination (or failure to promote), to the date of trial.

2. Compensatory Damages are allowed for future loss, emotional distress, pain & suffering, inconvenience, mental anguish & loss of enjoyment of life. The caps placed on compensatory damages do not apply in a Section 1981 claim.

3. Attorney’s Fees may be awarded to the prevailing party.

4. Punitive Damages are limited to cases where the "employer has engaged in intentional discrimination and has done so with malice or reckless indifference to the federally protected rights of an aggrieved individual." Kolstad v. American Dental Association, 119 S.Ct. 2118 (1999). There are no caps on punitive damages in a Section 1981 claim.

5. Injunctive relief is available when there is an intentional discriminatory employment practice. For instance, an employee can be reinstated and an employer can be ordered to prevent future discrimination.