World’s largest HR body hit with $11.5 million verdict in discrimination case

A US federal jury has ordered the Society for Human Resource Management (SHRM), the world’s largest HR organisation, to pay $11.5 million in damages after finding it liable for racial discrimination and retaliation against a former employee.

The verdict, delivered on Friday in a Colorado federal court, includes $1.5 million in compensatory damages and $10 million in punitive damages, according to plaintiff attorney Ariel DeFazio, reported Business Insider. SHRM said it plans to appeal, stating that the decision “does not reflect the facts, the law, or the truth of how SHRM operates.”

The lawsuit was filed in 2022 by Rehab Mohamed, who worked at SHRM as an instructional designer from 2016 to 2020. Mohamed alleged she was racially discriminated against by a white supervisor and retaliated against after raising concerns with management, including CEO Johnny C. Taylor Jr. and the head of human resources.

During the five-day trial, Taylor testified he was not involved in Mohamed’s termination. Another former SHRM employee, Mike Jackson, who investigated Mohamed’s complaint, told the court that it was the only discrimination case he had handled and that he had completed just one HR investigations training session months earlier. He said he could not recall specifics from the training.

Court records show that SHRM sought to block Mohamed from presenting evidence that the organisation markets itself as an expert on HR best practices. US District Judge Gordon P. Gallagher denied that request, ruling that SHRM’s stated expertise was “integral” to the case.

Employment attorneys told Business Insider the verdict was unsurprising given SHRM’s position in the HR industry. One lawyer, Evan Fray-Witzer, said organisations that claim authority on HR standards “are going to be held to a higher standard.”

The case comes amid wider scrutiny of SHRM’s internal practices. Business Insider has previously reported on controversies including a strict attendance policy, a memo enforcing a conservative dress code, and comments from Taylor describing some staff as “entitled,” “complacent,” and “sloppy.”

During pre-trial discovery, SHRM disclosed two other discrimination complaints from employees. One case filed with the Equal Employment Opportunity Commission in 2018 was settled, while another filed in 2021 with a California regulator remains pending. SHRM has denied wrongdoing in both matters.

Following the verdict, DeFazio said the jury’s decision “will send a message to workplaces in the entire country.”