When the Mighty Fall: SHRM Gets Slapped with $11.5 Million Discrimination Verdict

The irony isn’t lost on anyone: the entity that holds itself out as the nation’s largest HR expert now finds itself on the wrong side of employment laws. This is the biggest but not the only controversy SHRM has faced this year.

What Happened?

Rehab Mohamed, an Egyptian-Arab woman who worked as an instructional designer at SHRM from 2016 to 2020, filed suit in 2022 alleging she was systematically discriminated against by a white supervisor who favored white employees. After Mohamed complained to leadership—including SHRM’s CEO and head of human resources—she claims she faced retaliation before being terminated in September 2020.

SHRM maintained that Mohamed was fired for legitimate performance issues, including missed deadlines and incomplete projects. But after a five-day trial in Colorado federal court, a jury disagreed. The verdict included $1.5 million in compensatory damages and a whopping $10 million in punitive damages.

The HR “Expert’s” Dilemma

The show stopper was SHRM’s attempt to prevent Mohamed from referencing the organization’s status as an HR expert during trial. The motion was denied by U.S. District Judge Gordon P. Gallagher, who ruled that SHRM’s self-proclaimed expertise in human resources was “integral to the circumstances of this case and cannot reasonably be excluded.” That decision opened the door for the jury to consider whether SHRM was living up to its own standards.

Incredibly, it emerged that the SHRM employee responsible for investigating Mohamed’s discrimination complaint had never investigated a discrimination claim before. When asked what he learned from HR investigation training he’d attended just months earlier, he couldn’t recall any specifics.

SHRM has stated it will appeal the decision.

What Employers Should Know

The substantial punitive damages award reflects the jury’s view that SHRM’s conduct was particularly egregious, likely influenced by the disconnect between what the organization preached and what it practiced.

The key takeaways will not be a surprise to most organizations (and certainly not our clients!):

Conduct thorough investigations. When discrimination complaints arise, assign experienced investigators who understand proper protocols. Document every step of the process.

Take complaints seriously. Mohamed raised concerns with multiple levels of leadership, including the CEO. Organizations must have clear channels for reporting discrimination and ensure complaints receive prompt, impartial attention.

Avoid retaliation by best practices. The jury found SHRM liable not just for discrimination but also retaliation—often easier to prove and potentially more costly.

Practice what you preach. If your organization provides guidance or training on employment practices, ensure your internal policies and procedures reflect those standards. The gap between rhetoric and reality can be costly.

Consider Alternative Training Services:  For decades, SHRM has held itself out as the premier HR training company. But of course there are excellent alternatives and this is a good time to explore. We have developed a certificate program, Foley Fundamentals, based on our decades of advising and guiding HR professionals. We are mindful of your time and needs–check out our easy to access offerings and contact Attorney Wendy Hansen for more details.

Questions? We can help.

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