Leading HR management firm SHRM has been hit with a discrimination lawsuit, and according to the latest update, the verdict has leaned in favor of the employee. Despite its reputed position in the HR industry, this is not the first time SHRM has landed itself in hot water, with some of its decisions having been disavowed by other HR leaders. This time, a lawsuit filed on the basis of race discrimination and retaliation by a former employee has led to a victory for the worker, awarding her a $11.5 million verdict in her favor.
A former employee’s discrimination lawsuit against SHRM has ended in a big win for the worker, but SHRM is hoping to appeal the verdict. (Image: Freepik)
Understanding the Discrimination Lawsuit Levied Against SHRM
The discrimination lawsuit against SHRM, titled Mohamed v. Society for Human Resource Management, was initially filed in 2022 by a former instructional designer who had worked at the organization between 2016 to 2020. The case finally reached a Colorado court at the start of December, after a judge approved a jury hearing. The former employee alleged that she was unfairly discriminated against during her time at the organization and was subsequently fired as a result.
Her case in the SHRM race discrimination trial suggested that she brought up the discrimination with a supervisor and later their superior during her time at the organization. Following her claims, she felt the supervisor retaliated against her, excluding her from meetings and leaving her out of selections for new opportunities. She claimed she received harsh criticism for her work, and after the organization continued “setting her up to be fired within weeks,” she was soon let go.
SHRM claimed she was let go due to performance issues, untimeliness of meeting deadlines, and failure to complete two large projects. The plaintiff, on the other hand, remained certain that the discriminatory practices were to blame, claiming that the supervisor “systematically favored white employees.” In the years that followed, the racism retaliation case was filed against SHRM, but the matter took a while to unravel. The HR leader even asked the courts to block the plaintiff from using its apparent position in the industry as a specialist in HR best practices to make a case against the business. This request was denied.
What Does SHRM’s $11.5 Million Verdict Entail?
The jury verdict confirmed that internal biases were at play at SHRM and that the former employee should be compensated for her troubles. The ruling involves an $11.5 million payout. This was broken down into $1.5 million in compensatory damages and $10 million for punitive damages, according to Business Insider.
SHRM is reported to be looking at appealing the decision. In a statement shared on the company’s website, it explained that “All employers should follow a simple, principled approach to the law: If you’re wrong, make it right. If you’re right, stand firm. In this case, we are right — and we will continue to advocate with integrity for the correct outcome.”
It also added that “Today’s decision does not reflect the facts, the law, or the truth of how SHRM operates. We have acted with integrity, transparency, and in full alignment with our values and obligations. We remain steadfast in our mission, undeterred in our focus, and resolute in our commitment to stand up for what is right.”
What Can We Take Away From the SHRM Verdict?
The SHRM verdict is a win for the employee, but the case does show that despite the dissolution of DEI practices, discrimination within the workplace remains unwelcome. SHRM was among the first organizations to distance itself from DEI practices, choosing to drop the “equity” concept from its policy. It later indicated a distancing from “inclusion” as well, during the announcement of its annual conference.
The SHRM discrimination lawsuit also brought up two other cases where employees had alleged discrimination, of which one was settled. Despite its status as “the trusted authority on all things work,” the company has been accused of presenting employees with certain harsh policies and leadership attitudes. Any organization can find itself in a similar situation if it doesn’t take great care to ensure that decisions made across the organization reflect its principles.
Regular audits of a workplace are an essential part of keeping it operational, ensuring all employees receive fair treatment that reflects their performance. SHRM may be able to overturn the ruling with its appeal, but as things stand, the $11.5 million verdict should hold for now.
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