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Massive Jury Verdict Illustrates Why Employers Must Take Appropriate Action Against Allegations

By Drew Hintze posted 2 days ago

  

In early December, a Colorado jury sent a resounding message to employers when it awarded $11.5 million to a former employee who sued the Society for Human Resource Management (SHRM) for race/color discrimination and retaliation.

Mohamed v. SHRM involved a 34-year-old plaintiff, a high-performing, self-described “brown-skinned Egyptian Arab woman,” who served as SHRM’s Senior Instructional Designer. The lawsuit alleged that the plaintiff’s manager systematically favored her white colleagues over her non-white colleagues, resulting in escalating differential treatment. Examples included micromanagement, exclusion from important communications and meetings, being denied autonomy routinely granted to white coworkers, being assigned menial tasks, and having her work or ideas misappropriated.

The plaintiff stated that these issues continued after she raised multiple internal complaints about race and color discrimination with her manager’s supervisor, HR, the CHRO, and even SHRM’s CEO. Ultimately, she alleged that SHRM failed to intervene and instead “empowered” the same individuals she accused to terminate her employment on September 1, 2020. The plaintiff sued SHRM, alleging claims of race/color discrimination and retaliation under 42 U.S.C. § 1981 and Title VII of the Civil Rights Act of 1964.

On December 5, 2025, following a week-long trial, a Colorado jury awarded the plaintiff $1.5 million in compensatory damages and $10 million in punitive damages. The award serves as an important reminder about an organization’s duties after receiving a complaint.

For employers, the lesson is clear: when an employee raises concerns about harassment, discrimination, or retaliation, that employer must take action. Employers must promptly document their responses, conduct fair and impartial investigations, prevent retaliatory conduct, and take corrective action when necessary. For Colorado employers, the margin for error is smaller than ever as the POWR Act eliminates Title VII’s “severe or pervasive” standard for hostile work environment claims.

Employers Council is here to help our members meet these expectations. Members have access to experienced employment law attorneys who provide consultations, conduct impartial workplace investigations, and deliver harassment-prevention training for managers and supervisors. These resources are here to help members build exceptional workplaces and stay compliant in an evolving legal landscape. Reach out to us at info@employerscouncil.org to access help from our experienced staff.

Drew Hintze is a Managing Attorney for Employers Council.

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