SHRM Hit With $11.6M Verdict in Race Discrimination Lawsuit

Case Background

A federal jury in Colorado awarded $11.6 million to Rehab Mohamed, a former employee of the Society for Human Resource Management, after finding that SHRM terminated her because of her race and in retaliation for her discrimination complaints. The verdict, entered on December 5, 2025, in the United States District Court for the District of Colorado.

Cause

Mohamed, a 34-year-old Egyptian Arab woman with brown skin, worked for SHRM from April 2016 until her termination on September 1, 2020. She alleged that after her promotion to Senior Instructional Designer in January 2020, her new supervisor Carolyn Barley subjected her to race-based discrimination by treating her differently than white colleagues. Mohamed claimed Barley required her to ghost-write emails for approval, demanded to attend all her vendor meetings, and took credit for her work, while allowing white employees Ann Godmere and Carrie Mills to work independently without such oversight.

Injury

Mohamed reported that after she complained about racial discrimination to her superiors in June 2020, Barley retaliated against her by attempting to exclude her from important meetings, criticizing her work without justification, and setting her up for termination by imposing unrealistic deadlines. Mohamed stated she felt humiliated and dehumanized by the treatment. She complained to multiple SHRM executives, including CEO Johnny C. Taylor Jr. and Chief Human Resources Officer Sean Sullivan, but the company fired her on September 1, 2020, allegedly for failing to complete two projects by an August 31 deadline that Mohamed contended was arbitrary and impossible to meet.

Damages Sought

Mohamed sought back pay and benefits with pre-judgment interest, front pay, compensatory damages for emotional distress and mental anguish, punitive damages, and attorney fees and costs.

Key Arguments and Proceedings

Legal Representation

Plaintiff: Rehab Mohamed

· Counsel for Plaintiff: Hunter A. Swain | Ariel Beryl DeFazio

Defendant: Society for Human Resource Management

Key Arguments or Remarks by Counsel

Mohamed's attorneys argued that SHRM, despite publicly declaring its dedication to eliminating workplace race discrimination and dismantling racism, knowingly allowed racial discrimination and unlawful retaliation to fester within its own organization. They presented evidence that Barley treated Mohamed and another Black employee, Ebony Thompson, more strictly and less supportively than white colleagues. Thompson was also terminated just 17 days after sharing her discrimination concerns with management in July 2020.

Claims

Race Discrimination Under Section 1981: Mohamed alleged that SHRM engaged in unlawful discriminatory employment practices by treating her differently, disciplining her unfairly, and terminating her because of her race. She argued that these actions deprived her of equal employment opportunities and were intentional and done with malice or reckless indifference to her federally protected rights.

Retaliation Under Section 1981: Mohamed claimed that after she complained about discrimination to Morris, Taylor, and Sullivan, SHRM retaliated against her by disciplining and firing her for engaging in protected activity. She maintained that she held a good faith belief that SHRM was engaged in discriminatory conduct when she made her complaints.

Defense

SHRM denied all discrimination and retaliation allegations. The company maintained that all actions taken regarding Mohamed were for legitimate, nondiscriminatory business reasons. SHRM argued that Mohamed received performance counseling for communication issues with her supervisor, untimeliness in meeting deadlines, and failure to complete two large projects, which led to her termination. The company stated that its Chief Human Resources Officer investigated Mohamed's complaints and found no discrimination or retaliation, but rather a strained work relationship between Mohamed and Barley. SHRM contended that the workplace policies requiring oversight and approval were legitimate performance expectations applied for valid business purposes, not racial bias.

Jury Verdict

The jury found in favor of Mohamed on both claims under 42 U.S.C. Section 1981. On the race discrimination claim, the jury answered yes to the question of whether Mohamed proved by a preponderance of the evidence that but for her race, SHRM would not have terminated her. On the retaliation claim, the jury also answered yes, finding that but for her complaints about race discrimination and retaliation, SHRM would not have terminated her.

The jury awarded Mohamed $1.6 million in compensatory damages and $10 million in punitive damages, for a total verdict of $11.6 million. The verdict form was signed by the jury foreperson on December 5, 2025, and the case was presided over by Judge Gordon P. Gallagher. The substantial punitive damages award reflected the jury's finding that SHRM acted with malice or reckless indifference to Mohamed's federally protected rights. This case underscored the legal risks organizations face when they fail to address internal discrimination complaints, particularly those involving allegations of racial bias in supervision and termination decisions.

Court documents are available upon request at jurimatic@exlitem.com