A more thorough explanation:

Section 1981 is a law that guarantees certain rights to all citizens of the United States and protects those rights against discrimination by non-government and state entities. It comes from Section 1 of the 1866 Civil Rights Act.

Section 1981(a) guarantees the following rights:

• The right to make and enforce contracts
• The right to sue and be parties in legal proceedings
• The right to give evidence
• The right to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens
• The right to be subject to like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and to no other

Section 1981 protects against intentional racial discrimination by state governments, private individuals, and non-government entities. It differs from Title VII of the 1964 Civil Rights Act, which also protects against discrimination based on race, color, national origin, sex, or religion, but applies to both intentional and disparate impact discrimination. Title VII also requires an EEOC charge to be filed before bringing claims to court and has a cap on damages.

For example, in Jones v. Alfred H. Mayer Co., the U.S. Supreme Court confirmed that Section 1981 bars all racial discrimination, private as well as public, in the sale or rental of property. In CBOCS West, Inc. v. Humphries, the U.S. Supreme Court ruled that Section 1981 extends to retaliation claims.

Plaintiffs alleging racial discrimination will often allege Section 1981 and Title VII claims together (provided the plaintiff filed an EEOC charge and has received a right to sue letter from the EEOC).