What's happened
SHRM was ordered to pay $11.5 million in damages for racial discrimination and retaliation against a former employee, Rehab Mohamed. The verdict, which includes $1.5 million in compensatory damages and $10 million in punitive damages, is being appealed. The case highlights ongoing issues of workplace discrimination within the organization, which promotes itself as an HR authority.
What's behind the headline?
The verdict against SHRM underscores the risks organizations face when their public image as HR experts is challenged by internal misconduct. The $11.5 million award, including punitive damages, signals jurors' perception of extreme and outrageous conduct, especially given SHRM's branding. This case reveals a disconnect between SHRM's external reputation and internal realities, highlighting the importance of genuine accountability. The organization's decision to appeal may prolong reputational damage, but it also reflects a strategic effort to contest the verdict. The case could set a precedent for how discrimination claims are viewed in organizations that position themselves as HR authorities. Moving forward, SHRM's handling of this case will influence its credibility and the broader conversation about workplace discrimination and retaliation, especially in organizations that promote diversity and inclusion but fail to address internal issues effectively.
What the papers say
The New York Times reports that SHRM plans to appeal the verdict, emphasizing their disagreement with the decision and asserting that the case lacks merit. Business Insider UK highlights the jury's substantial damages award and the legal context, noting that the verdict is considered a 'nuclear verdict' and reflecting jurors' view of SHRM's branding as an HR expert. Both sources discuss the broader implications for SHRM's reputation and internal practices, contrasting the organization's public stance with the court's findings and the legal community's observations about the case's significance.
How we got here
Rehab Mohamed, an instructional designer at SHRM from 2016 to 2020, filed a lawsuit alleging racial discrimination by a white supervisor and retaliation after raising concerns. The case was tried in a Colorado federal court, with the jury awarding Mohamed substantial damages. SHRM has denied the claims and plans to appeal, citing the case as lacking merit. The verdict reflects the jury's view of SHRM's self-promotion as an HR expert and raises concerns about internal practices and reputation, especially given previous discrimination complaints and recent controversies.
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