Color Discrimination Laws in Indiana: Know the Difference From Race Discrimination

Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e, prohibits employment discrimination based on race, which federal courts and the EEOC interpret to include discrimination based on color or skin tone. The law applies to employers with 15 or more employees for at least 20 weeks in the current or preceding calendar year. Covered employers cannot discriminate in hiring, firing, compensation, job training, promotion, or any other term or condition of employment.

Color discrimination is actionable separately from race discrimination. An employee can experience color discrimination even when both parties share the same race if the employer discriminates based on the darkness or lightness of skin tone. The EEOC enforces Title VII and investigates color discrimination charges. Remedies available include back pay, front pay, reinstatement, compensatory damages for emotional distress, punitive damages against private employers in some circumstances, and attorney fees and costs. The EEOC initiates the enforcement process; employees must file a charge within 180 days in most states (300 days in states with deferral agencies like Indiana that have their own civil rights commissions).

Indiana Code section 22-9-1-1 et seq. establishes that no employer shall discriminate against any individual because of race, color, religion, sex, national origin, or disability. Indiana's civil rights law provides protections equal to or, in some respects, stronger than federal Title VII. Indiana covers employers with 6 or more employees, a lower threshold than the federal 15-employee requirement under Title VII. This means more employers fall under Indiana's protections than federal law alone.

Color discrimination under Indiana law is interpreted consistently with federal guidance: it prohibits employment decisions based on skin tone, hair texture policies that disproportionately affect certain color groups, or stereotypes associated with color. Indiana courts recognize color as distinct from race; therefore, both race and color discrimination claims can be brought separately or together. The Indiana Civil Rights Commission (ICRC) is the state enforcement agency and has primary jurisdiction for state claims filed within 300 days of the alleged violation.

Indiana allows for remedies including back pay calculated from the date of discrimination until the date of judgment or reinstatement, front pay for future lost earnings, compensatory damages for emotional distress, humiliation and damage to professional reputation, and attorney fees and costs. Indiana's law does not cap compensatory damages in discrimination cases, unlike some federal limitations. Punitive damages may be available against employers who act with malice or reckless indifference. The ICRC investigates charges and issues findings; if discrimination is found, the ICRC attempts conciliation. If that fails, the case can proceed to administrative hearing before an ICRC administrative law judge or, if either party requests, may be referred to federal court under Title VII.

Color discrimination protections do not apply to employers with fewer than 6 employees under Indiana law. Federal Title VII similarly does not cover employers with fewer than 15 employees; however, if an employer meets Indiana's 6-employee threshold but falls below the federal 15-employee threshold, state law still applies.

Bona fide occupational qualifications (BFOQs) are a narrow federal defense; employers may rarely argue that color is essential to a specific job (for example, authenticity in historical reenactments or certain artistic performances), but this defense is not available in Indiana for color discrimination except through the same restrictive BFOQ framework. Employer dress codes and grooming policies are not exceptions to color discrimination law; however, if a policy is neutral on its face and applied equally to all employees, and does not have a disparate impact on individuals of a particular color, it may survive challenge.

At-will employment is preserved in Indiana; employers retain the right to terminate employees for any reason or no reason, but not for an unlawful reason such as color discrimination. Seniority systems and merit-based systems are not exceptions if they are pretexts for color discrimination. Union-represented employees retain color discrimination protections under both state and federal law; collective bargaining agreements cannot waive statutory protections against discrimination. Hiring based on customer preference does not exempt an employer; discriminating to satisfy client color preferences is illegal. Independent contractors are generally not covered under Indiana's employment discrimination statute, though this depends on the nature of the working relationship and whether an individual is truly independent.

Step 1: Document the Discrimination. Keep detailed records of all incidents involving color-based comments, decisions, or actions. Record dates, times, locations, who was present, what was said or done, and any witnesses. Save emails, text messages, performance reviews, and hiring materials. Document your job performance ratings and compare them to similarly situated employees of different colors. Note any pattern of hiring, promotion, or termination decisions that correlate with color. Photograph company materials or policies that may demonstrate discriminatory patterns. Retain pay stubs and compensation records to establish wage disparities. Create a personal timeline of events and preserve copies of all documentation in a personal file outside the workplace.

Step 2: Attempt Internal Complaint. Review your employer's anti-discrimination and complaint procedures policy, typically found in the employee handbook. Follow the prescribed internal complaint procedure: submit a written complaint to HR or the designated compliance officer, clearly describing the discriminatory acts, dates, and any witnesses. Keep a copy of your internal complaint and all responses from the employer. Document whether the employer conducts an investigation and what actions, if any, the employer takes. Internal complaints matter because they create an employer record and demonstrate that you gave the employer a chance to remedy the situation; failure to pursue internal remedies can sometimes affect future remedies, though it is not a strict requirement. Do not delay external filing while pursuing internal remedies if the internal process stalls or appears ineffective.

Step 3: File a Charge with the Indiana Civil Rights Commission. You must file within 300 days of the discriminatory act. Visit the ICRC website at www.in.gov/icrc or call 317-232-2600 to request a charge form. You can file online, by mail, or in person. Required information includes: your name, address, and contact information; the employer's name, address, and business type; the date(s) of the alleged discrimination; a clear description of the discriminatory conduct and how it relates to color; the names and contact information of witnesses; your current employment status; and whether you have filed the same charge elsewhere. File the charge with the ICRC, not directly with the EEOC (though the ICRC will cross-file with the EEOC to preserve federal rights). The filing fee is typically waived for individual employees. Retain your charge receipt and reference number.

Step 4: Expect the Investigation Process. After filing, the ICRC will send you and the employer acknowledgment of the charge. The employer must respond to the charge within 14 days. The ICRC investigator will contact you to gather additional details about your complaint. The investigator will interview the employer and any witnesses. The investigation typically takes 60–180 days, though it can extend longer if complex issues are involved. The investigator will examine hiring records, personnel files, wage data, performance evaluations, and communications to establish a pattern or specific instance of color-based discrimination. You will have the opportunity to provide additional evidence and respond to the employer's position. The ICRC will issue a preliminary finding or determination of whether there is probable cause to believe discrimination occurred. If probable cause is found, the ICRC will attempt conciliation. If conciliation fails or no probable cause is found, you have the right to a public hearing before an ICRC administrative law judge. The entire process from charge to hearing decision typically takes 6–18 months.

Step 5: Consult an Employment Attorney. Contact an employment law attorney if the employer's internal response is dismissive, if the ICRC investigation stalls beyond 6 months, if the preliminary finding is against you and you believe it is incorrect, or if you are facing retaliation for filing the charge. An attorney can help you gather evidence, prepare for administrative hearings, negotiate settlement agreements, and represent you before the ICRC or in court. If the ICRC issues a final determination of discrimination, you have the right to appeal or file a civil lawsuit in state or federal court. An attorney can advise on statute of limitations, available remedies, and strategy. Indiana does not require you to retain an attorney, but doing so increases the likelihood of a favorable outcome and ensures your rights are protected throughout the process.