SHRM Faces $11.5M Discrimination Verdict; CEO Calls It a ‘Blip’
UPDATE: The Society for Human Resource Management (SHRM) is reeling after a $11.5 million verdict in a discrimination case, confirmed on December 5, 2023. CEO Johnny C. Taylor Jr. characterized the ruling as a “blip,” igniting controversy as the organization prepares to appeal.
In a surprising twist, a Colorado jury awarded former employee Rehab Mohamed $1.5 million in compensatory damages and a staggering $10 million in punitive damages. This unprecedented ruling has drawn sharp backlash on social media, calling into question SHRM’s commitment to workplace excellence.
Taylor addressed SHRM staff in a video, urging them to refrain from speaking to the media about the case. “While as a lawyer, you all know, I respect the judicial process, we vehemently disagree with the decision,” he stated, dismissing the case as lacking merit. However, critics argue that an $11.5 million verdict is far from insignificant.
The verdict is notable for its size, marking what many legal experts refer to as a “nuclear verdict,” a term used for cases with exceptionally high financial awards. In comparison, the median federal race-discrimination verdict was just $150,000 over a seven-year period, according to data from Westlaw.
Employment lawyer Allison Williard described the award as “staggering,” emphasizing the challenges of securing punitive damages. “Getting a punitive damages award is difficult because it is such a high bar to prove that the conduct at issue is extreme and outrageous,” she explained.
The fallout from the verdict could have serious implications for SHRM’s reputation, with potential loss of members and sponsors for its over 575 local chapters worldwide. One chapter president expressed concern about the organization’s future, labeling the verdict as “mind-blowing.”
In response to the mounting criticism, a SHRM spokesperson, Eddie Burke, acknowledged the concerns raised by the verdict, reinforcing the organization’s commitment to appeal. “An $11.5 million verdict doesn’t happen in a vacuum; it reflects patterns, dismissed concerns, and a lack of internal accountability,” he stated.
As SHRM plans to take the case to “the highest courts in the land,” the organization faces a critical moment. The jury’s decision, which came after just four and a half hours of deliberation, included strong sentiments from jurors who questioned the punitive damages process.
With the potential for reputational damage and the ongoing appeal process, SHRM’s leadership is under intense scrutiny. The situation remains fluid as the organization seeks to defend its practices and regain public trust.
Stay tuned for updates as this story develops.
