SHRM ordered to pay $11.5 million fine in racial discrimination and retaliation lawsuit
The HR trade body has been found liable of racial discrimination and retaliation against a former employee. Here’s what the HR community had to say about the verdict.
News in Brief
The Society for Human Resources Management (SHRM) has been hit with a $11.5 million fine after being found liable of racial discrimination and retaliation against former employee, Rehab Mohamed.
The verdict is another blow to the HR trade body that found itself in controversy last year after dropping Equity from its DEI strategy.
HR leaders have called for SHRM leadership to resign and said the body no longer represents modern people leaders.
The Society for Human Resources Management (SHRM) has been ordered to pay $11.5 million by a Colorado court after being found liable of racial discrimination and retaliation against a former employee.
A suit brought against SHRM by former employee Rehab Mohamed alleged she was “the target of race and/or color discrimination by her new direct supervisor, Carolyn Barley”, who “systematically favored the white employees she supervised over their non-white colleagues, including Ms. Mohamed“.
“Rather than taking meaningful steps to address the systemic race/color discrimination within the organization’s education department, however, SHRM’s leadership empowered Barley and [Vice President of Education Jeanne] Morris to silence Ms. Mohamed by firing her on September 1, 2020.”
The jury found in favor of Mohamed after a five-day trial and determined SHRM should pay compensatory damages in the amount of $1.5 million and punitive damages in the amount of $10 million to Mohamed.
In response to the verdict, SHRM issued a statement that said the trade body “strongly disagrees” with the ruling and will appeal the decision “to the highest courts in the land“.
“The principles at stake matter — not just for SHRM, but for every organization that strives to do the right thing,” it said.
“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.
“This claim has no merit. None. 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.”no
SHRM CEO claims verdict is a ‘blip’ but HR experts disagree
As reported by Business Insider, SHRM CEO Johnny Taylor called the verdict a “blip in the history of SHRM”. having recently branded some of the trade body’s workers as ‘entitled’, ‘complacent’ and ‘sloppy’.
Last year SHRM also found itself in hot water with the HR community after controversially dropping ‘Equity’ from its DEI pledge.
“Effective immediately, SHRM will be adopting the acronym “I&D” instead of “IE&D.” This strategic decision underscores our commitment to leading with Inclusion as the catalyst for holistic change in workplaces and society,” it said in a statement.
The timing of the change was also criticized, with the announcement coming on Black Women’s Equal Pay Day.
Here’s what the HR community had to say about the outcome of the lawsuit:
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Senior Journalist, UNLEASH
John Brazier is an experienced and award-winning B2B journalist and editor, with a strong track record of hosting conferences, webinars, roundtables and video products. He has a keen interest in emerging technologies within the HR space, as well as wellbeing and employee experience topics. Prior to joining UNLEASH, John both led and wrote for various global and domestic financial services publications, including COVER Magazine, The TRADE, and WatersTechnology.
Get in touch via email: john@unleash.ai
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