SHRM Faces Major Legal Defeat in Discrimination Case
The Society for Human Resource Management (SHRM), the world’s largest HR organization with a membership base of over 340,000 professionals, has been ordered to pay $11.5 million in damages following a racial discrimination lawsuit. The verdict, delivered on December 5, 2025, marks a significant blow to the organization’s public image and raises serious questions about its internal practices.
Background of the Case
The plaintiff, Rehab Mohamed, filed the lawsuit in June 2022, alleging that SHRM terminated her employment in retaliation for filing a racial discrimination complaint. Mohamed, who identifies as both Black and Egyptian, had worked at SHRM for four years. She claimed that shortly after submitting her complaint to SHRM CEO Johnny C. Taylor Jr. and then-Chief Human Resources Officer Sean Sullivan, she was dismissed from her role.
SHRM argued that Mohamed’s dismissal was due to performance-related issues. However, court records revealed that she had received a promotion just months earlier, undermining SHRM’s justification for her termination.
Jury’s Decision and Legal Grounds
A jury concluded that SHRM violated Section 1981 of the Civil Rights Act of 1866, which prohibits racial discrimination in contractual relationships, including employment contracts. The law also protects individuals from retaliation for asserting their rights.
As a result, Mohamed was awarded $1.5 million in compensatory damages and an additional $10 million in punitive damages. Her attorney, Ariel DeFazio, expressed satisfaction with the outcome, saying, “We are very happy that the jury spent a week listening very closely to the evidence and that they decided, as a result, to hold SHRM accountable.”
SHRM’s Response and Plans to Appeal
Despite the verdict, SHRM remains defiant. In a statement posted to its website, the organization said, “We strongly disagree with today’s court ruling and with respect we will continue to move through the process by appealing this decision to the highest courts in the land.”
SHRM further stated that the claim was baseless and did not reflect the organization’s values or operations. “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,” the statement read.
Previous Controversies at SHRM
This lawsuit is not the first time SHRM has faced criticism over its handling of diversity, equity, and inclusion (DEI) issues. In recent years, the organization has been scrutinized for its perceived backtracking on DEI commitments. In 2024, SHRM invited Robby Starbuck, a known critic of DEI initiatives, to speak at its DEI-focused Blueprint conference—a move that sparked widespread backlash within the HR community.
Additionally, SHRM removed the word “equity” from its official language in 2023, prompting further outrage from DEI advocates. The organization also faced criticism in 2020 for what many viewed as an inadequate response to the murder of George Floyd and has been largely silent on matters related to racial justice and LGBTQ+ rights.
According to Business Insider, at least three other discrimination complaints have been filed against or settled with SHRM over the past eight years, although the organization has consistently denied any wrongdoing.
HR Community Reacts
The recent verdict has ignited discussions among HR professionals, many of whom took to LinkedIn to express their dismay. Melissa Grabiner, a job coach, wrote, “I believe that a company’s culture starts at the top and trickles its way down. Looks like they need a full revamp of their leadership team…SHRM spends decades teaching organizations how to handle discrimination and retaliation, and yet here they are failing the very standards they preach.”
The sentiment was echoed by others in the HR field who noted the irony of the situation—an organization dedicated to promoting fair employment practices now found guilty of violating the very principles it advocates.
Moving Forward
As SHRM prepares to appeal the decision, the case continues to have wide-reaching implications for both the organization and the broader HR community. The lawsuit not only brings SHRM’s internal practices into question but also serves as a cautionary tale for other organizations that preach DEI values without executing them internally.
Whether or not SHRM succeeds in its appeal, the reputational damage could have lasting effects on its influence and authority within the HR industry. Many professionals are calling for systemic changes within the organization, including a re-evaluation of leadership and a renewed commitment to genuine inclusion and equity.
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