03/26/2026
Did you know SHRM (Society for Human Resource Management) was sued in—and lost—due to poor HR practices?
Yes!! the very organization that sets the standard for HR got hit with an $11.5 million jury verdict in the case Mohamed v. Society for Human Resource Management (D. Colo. 2024).
Let me explain what actually happened—and why this matters to you.
An employee worked at SHRM for several years. She claimed that after a new supervisor came in, she was treated differently than her white coworkers—excluded from meetings, scrutinized more heavily, and not given the same opportunities.
So she did what employees are supposed to do—she spoke up.
She raised concerns internally.
She escalated them to leadership.
She even went as far as contacting senior executives.
And this is where everything started to go wrong.
Instead of the issue being handled cleanly, objectively, and with a strong investigation process, the situation deteriorated.
According to the case, after she complained:
Her performance reviews changed
She became increasingly isolated
And ultimately, she was terminated
From a legal standpoint, that’s where retaliation comes in—and that’s what makes cases like this extremely expensive.
The jury ultimately found SHRM liable for both racial discrimination and retaliation, awarding:
$1.5 million in compensatory damages
$10 million in punitive damages ()
Now here’s the part I want you to really understand…
This wasn’t just about one bad decision.
The court specifically questioned:
Whether the investigation was truly neutral
Whether it was handled consistently
Whether it was properly documented
In other words… SHRM couldn’t prove they handled the complaint correctly.
And that’s why the number got so big.
Because when a company:
Doesn’t follow a clear process
Allows even the appearance of bias
Or fails to protect an employee after they speak up
It doesn’t just look like a mistake…
It looks like a system failure.
And juries respond to that.
Now let’s bring this back to you.
If a complaint came into your organization today, ask yourself honestly:
Would your team know exactly what to do—step by step?
Would the person handling it be completely neutral?
Would every conversation, decision, and finding be documented in a way that could stand up in court?
And this is exactly why companies bring in an HR consultant like us.
We don’t just help you “check the box” on compliance.
We help you:
Handle complaints the right way the first time
Conduct objective, legally sound investigations
Train your managers so they don’t unintentionally create risk
Ensure everything is documented and defensible
So if a situation is ever challenged—you’re not trying to piece together what happened after the fact. You already have it.
Because here’s the reality:
If SHRM—the organization that teaches HR best practices—can get this wrong…
It can happen to anyone.
The difference is having the right support in place before it does!