A federal jury in Colorado ordered the Society for Human Resource Management to pay $11.5 million to a former employee on December 5, 2025, finding that the country’s largest HR trade group had racially discriminated and retaliated against her. The SHRM lawsuit, brought by former senior instructional designer Rehab Mohamed, ended in a $1.5 million compensatory award and a $10 million punitive award. SHRM’s motion for a new trial was denied on April 15, 2026, and the organization is now appealing to the U.S. Court of Appeals for the Tenth Circuit.1HR Dive. Judge Denies SHRM’s Request for a New Trial
Who Sued SHRM and Why
Rehab Mohamed, who identifies as an Egyptian Arab, joined SHRM in 2016 and was promoted to senior instructional designer in January 2020. Her performance reviews had consistently rated her a “Solid Performer” or “Role Model.”2Unleash. SHRM Ordered to Pay $11.5 Million in Racial Discrimination and Retaliation Lawsuit
Mohamed alleged that her supervisor, Carolyn Barley, systematically favored white employees. According to the complaint, Barley micromanaged her work, demanded to review her emails, insisted on attending all of her vendor meetings, withheld professional opportunities, and criticized her in ways that white colleagues did not experience. Coworkers testified that they had seen the same disparate treatment of non-white employees in the department.3Virginia Lawyers Weekly. Judge Allows SHRM Discrimination Case to Proceed to Trial
Mohamed filed an internal complaint on June 3, 2020. She escalated the matter to Vice President of Education Jeanne Morris and eventually to CEO Johnny C. Taylor Jr. and the Chief Human Resources Officer after HR failed to act.4HR Morning. SHRM Discrimination Lawsuit $11.5M Verdict SHRM fired her on September 1, 2020, about three months after her first complaint, citing a missed project deadline. Mohamed argued the reason was pretextual: colleagues testified that missing similar deadlines was routine and had not triggered discipline before.5HR Brew. Trial for SHRM Race Discrimination Case Set to Begin
She sued in the U.S. District Court for the District of Colorado on June 30, 2022, bringing race discrimination and retaliation claims under Title VII of the Civil Rights Act and Section 1981 of the Civil Rights Act of 1866. The case went to U.S. District Judge Gordon P. Gallagher, with Mohamed represented by Hunter Swain of Swain Law LLC in Denver.6HR Brew. Inside the SHRM Lawsuit
The Internal Investigation That Sank SHRM’s Defense
The single most damaging piece of trial evidence involved how SHRM handled Mohamed’s complaint. The investigation was assigned to Mike Jackson, an HR staffer who had never previously handled a discrimination investigation. Jackson testified that he had attended one training session on investigations but could not recall its contents.6HR Brew. Inside the SHRM Lawsuit
Rather than acting as a neutral fact-finder, Jackson was simultaneously advising the manager Mohamed had accused. On August 12, 2020, he helped Barley draft an email imposing a “non-negotiable” project deadline on Mohamed. On August 19, the same day Mohamed filed a separate retaliation complaint, Jackson began drafting her termination paperwork, before the deadline he had helped set had even passed. He never interviewed Mohamed about her retaliation complaint.6HR Brew. Inside the SHRM Lawsuit
The court found that a reasonable jury could conclude the investigation was a “sham” and that management had engaged in a “termination scheme,” seeking to “concoct some evidence for SHRM’s benefit in a ham-fisted manner.”4HR Morning. SHRM Discrimination Lawsuit $11.5M Verdict Judge Gallagher denied SHRM’s motion for summary judgment on October 8, 2024, describing the case as a “messy employment discrimination case” and letting it proceed to trial.7Law360. SHRM Can’t Beat Black Egyptian Worker’s Discrimination Suit
Why SHRM’s Own Expertise Was Used Against It
In September 2025, as trial approached, SHRM asked the court to bar Mohamed from characterizing it as a “specialist in HR best practices.” SHRM argued that treating it as an expert would hold it to a higher standard than any other employer and mislead the jury.8Business Insider. SHRM Discrimination Case HR Expertise
Judge Gallagher denied that motion in October 2025. He ruled that SHRM’s “asserted expertise in human resources is integral to the circumstances of this case and cannot reasonably be excluded.”8Business Insider. SHRM Discrimination Case HR Expertise That ruling let Mohamed’s team argue that SHRM, which markets guides on running “bulletproof HR investigations” and stresses investigator impartiality, had fallen far short of the standards it sells to other employers.
The Verdict Breakdown
After a five-day trial in December 2025, a nine-member jury found SHRM liable on both the discrimination claim and the retaliation claim. It awarded $1.5 million in compensatory damages and $10 million in punitive damages.6HR Brew. Inside the SHRM Lawsuit The compensatory figure reflected evidence of emotional harm from what the court described as a “systematically disregarded” work environment; the punitive figure reflected a finding that SHRM had acted with reckless indifference to Mohamed’s federally protected rights.4HR Morning. SHRM Discrimination Lawsuit $11.5M Verdict
Hunter Swain said after the verdict: “A jury of nine listened to all the facts and decided to hold SHRM accountable. The jury also chose to send a message that every employer in the country should hear loud and clear — that SHRM’s behavior in this case will not be allowed.”6HR Brew. Inside the SHRM Lawsuit
SHRM’s Response and the Denied New Trial Motion
SHRM issued a statement saying it “strongly disagrees” with the verdict, calling the claim meritless: “This claim has no merit. None. Today’s decision does not reflect the facts, the law, or the truth of how SHRM operates.” The organization pledged to appeal “to the highest courts in the land.”9SHRM. SHRM Statement on Mohamed Lawsuit Ruling
CEO Johnny C. Taylor Jr. sent a video to staff calling the verdict “just a blip in the history of SHRM” and telling employees not to talk to the press.10Business Insider. SHRM Verdict Lawsuit CEO Video Response In an interview he defended the investigation, saying SHRM “followed, to the T” best practices and that Jackson’s findings had been reviewed by a more senior HR professional before reaching the CHRO. He also conceded a training gap: “A learning for me is…we put people in jobs, and we don’t necessarily teach them how to do this.”6HR Brew. Inside the SHRM Lawsuit
In February 2026, SHRM moved for a new trial, arguing the judge had given an erroneous jury instruction and admitted improper evidence. Judge Gallagher denied the motion on April 15, 2026, calling SHRM’s arguments “unconvincing in face of the evidence presented at trial.”1HR Dive. Judge Denies SHRM’s Request for a New Trial
On the size of the punitive award, the judge applied a specific standard to SHRM’s own expertise: “If anyone knew the possibility of high potential punitive damages for employment discrimination and malicious retaliation, it was SHRM, which trains businesses on related issues, including potential liability.”4HR Morning. SHRM Discrimination Lawsuit $11.5M Verdict The court concluded SHRM had “reasonable notice” that its conduct could produce an award this size.
What Is Still Open on Appeal
SHRM spokesperson Eddie Burke confirmed the organization is proceeding with its appeal to the Tenth Circuit.1HR Dive. Judge Denies SHRM’s Request for a New Trial The full $11.5 million verdict stands while the appeal is pending. The Tenth Circuit will decide whether the damages award and the trial court’s evidentiary rulings survive review, including the ruling that let jurors weigh SHRM’s own HR expertise as relevant to its culpability.