Sexual harassment History & the Law Under Title VII of the Civil Rights Act of 1964, Sexual harassment is a form of sex discrimination. Federal law as well as various state fair-employment laws prohibit employers with 15 or more employees from treating members of one sex or race differently from members of the opposite sex or another race in terms, conditions, or privileges of employment. The statutory and regulatory laws govern the entire employment process from pre-employment activities such as recruiting, through an employee’s career with the organization, including termination.