"Colored People" is a pop rock song primarily based on acoustic guitars, a background electric guitar, and occasional strings. The verses are sung by Kevin Max, while the chorus vocals are shared by all three members with Michael Tait leading. Lyrically, the song is about appreciation of racial variety, promoting unity and a "kaleidoscopic take on race relations".
The song was released as a single in 1996 and received positive comments from music critics. Entertainment Weekly editor Laura Jamison said that the album Jesus Freak "combines textured vocals, aggressive guitar, and solid songwriting, especially on 'Colored People'."