A Colorado jury has awarded $11.5 million to a Rehab Mohamed, a former instructional designer, after finding that SHRM engaged in racial discrimination against Mohamed and terminated her employment when she complained. According to the verdict, the award includes $1.5 million in compensatory damages and $10 million in punitive damages, reflecting the jury’s conclusion that SHRM’s misconduct was serious and deserving of punishment.
What makes this case particularly striking, and a wake-up call to all employers, is that SHRM is not a typical employer. SHRM holds itself out as a leader in the United States for human resources (HR) education, certification, and advice.
During trial, the evidence revealed alarming flaws in SHRM’s HR practices. The investigator assigned to Mohamed’s complaints had only completed a single training session on HR investigations, could not remember what he had learned in that training, and simultaneously drafted the termination paperwork for Mohamed, undermining any claim of impartiality.
SHRM has responded by saying it strongly disagrees with the verdict and plans to appeal. Regardless of the appeal, the fallout already serves as a powerful cautionary tale for all businesses and HR teams.
Key Takeaways for Employers
In the wake of this decision, business owners and human resources professionals should:
- Review investigation protocols. Ensure that any person assigned to investigate claims of discrimination or retaliation has received recent, thorough, and documented training in investigating such complaints, and that they approach the investigation without even the appearance of bias.
- Document every step. Build a clear record that will be easy to understand for anyone reviewing it after the fact. Keep in mind that, in the eyes of the law, if it is not written down (dates, times, witnesses, actions, etc.), it simply did not happen.
- Beware of Retaliation Claims. Taking an adverse employment against an employee shortly after they have engaged in protected activity (such as raising a complaint of discrimination or harassment) is a major risk for retaliation claims.
- Partner with Legal Counsel Early in the Process. Do not rely solely on HR in any investigation. Get legal advice to protect the organization and its leaders to make sure the investigation strategy and execution are sound and that the organization never has to answer the question, “Why didn’t you . . .?”.
*This Alert is provided for general informational purposes only and does not constitute legal advice.
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The recent SHRM verdict is a reminder of how vital impartial, well-documented, and legally sound HR practices are for every business. Having a dedicated compliance partner ensures that your organization is fair and compliant with current regulations.
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