SHRM, the largest HR organization in the world, faces an $11.5 million verdict in a racial discrimination case.

The Society for Human Resource Management (SHRM) has been embroiled in a legal battle with a former employee over discrimination allegations since 2022. On Friday, a Colorado jury delivered a verdict of $11.5 million in favor of the plaintiff, Rehab Mohamed, who accused the organization of racial discrimination and retaliation.

The jury awarded Mohamed $1.5 million in compensatory damages and $10 million in punitive damages. SHRM, the largest HR organization in the world, has announced plans to appeal the decision, asserting that the ruling does not reflect the facts, the law, or the truth of its operations. In a statement, SHRM emphasized that it has acted with integrity, transparency, and in accordance with its values.

Mohamed, who worked as an instructional designer for SHRM from 2016 to 2020, filed the lawsuit after claiming she was discriminated against by a white supervisor and faced retaliation for raising concerns about the treatment she was receiving. According to the suit, she reported these issues to SHRM's leadership, including CEO Johnny C. Taylor Jr., and the head of human resources in the summer of 2020.

During the trial, Taylor testified that he was not involved in Mohamed's termination. A former SHRM employee, Mike Jackson, stated that Mohamed's discrimination claim was the only one he had ever investigated during his time at SHRM. Jackson also admitted that, despite undergoing training on HR investigations, he could not recall specific details from the session.

SHRM has consistently denied the allegations. In September, the organization requested that the court exclude evidence linking SHRM's expertise in HR best practices to the case. However, this request was denied by U.S. District Judge Gordon P. Gallagher, who ruled that SHRM's claimed expertise was a key factor in the case.

In his testimony, Taylor described SHRM's role as advising HR professionals on best practices, including how to investigate complaints of discrimination and retaliation. He highlighted SHRMs curriculum on these matters as part of its mission to promote HR best practices.

The outcome of the trial was seen as unsurprising by some legal experts, particularly given SHRM's self-promotion as a leader in HR practices. When you position yourself as an expert in the field, you're going to be held to a higher standard, said Evan Fray-Witzer, a Boston employment lawyer.

In recent years, SHRM has faced public scrutiny over various issues, including a controversial attendance policy that penalizes employees for arriving even one minute late and a memo outlining a conservative dress code that bans sequins. CEO Johnny C. Taylor Jr. also sparked criticism following a companywide meeting in which he referred to some employees as "entitled," "complacent," and "sloppy."

During pre-trial discovery, SHRM disclosed the existence of two other discrimination complaints filed by employees. One, filed in 2018 with the Equal Employment Opportunity Commission, was settled, while the other, filed with a California agency in 2021, remains pending. SHRM has denied any wrongdoing in these cases as well.

Rehab Mohamed's lawyer, Ariel DeFazio, expressed satisfaction with the jury's decision, stating that the verdict would send a powerful message to workplaces nationwide. "We are very pleased that the jury carefully considered the evidence and held SHRM accountable," she said. "This verdict will have significant implications for workplaces across the country."

Author: Aiden Foster