HR Separation and Retention

SHRM Disability Accommodation Lawsuit (October 2026)

On October 8, 2026, a federal jury found that the Society for Human Resource Management (SHRM) violated the Americans with Disabilities Act (ADA) and the Virginia Human Rights Act (VHRA). The jury awarded the plaintiff $400,000 in compensatory damages (and $0 in punitive damages).

Case Facts (Torres v. SHRM)

SHRM offered the plaintiff a Senior Specialist role in June 2024 but refused her request to bring her service dog on-site to help manage Type 1 diabetes. The applicant experienced life-threatening hypoglycemic episodes (sudden loss of consciousness) caused by rapid blood glucose changes that mechanical monitors (like CGMs) could not detect in time.

SHRM’s Defense

SHRM allowed continuous glucose monitors (CGMs) and desk snacks, argued the dog was not doctor-prescribed, and contended that an accommodation is a dialogue, not a dictation

Jury Findings

HRM ran afoul of the law by rescinding the job offer due to the need to accommodate her disability, failing to provide a reasonable accommodation, and discriminating based on disability under the VHRA

Involuntary Turnover

Employer-initiated separation (firings for cause, layoffs, restructuring). Used to manage poor performance, misconduct, or organizational financial constraints

Voluntary Turnover

Employee-initiated departure (resignations, retirements). Signals issues with compensation, company culture, or lack of growth opportunities.

Replacement Costs

Replacing an employee costs 3 to 9 months of an employee's salary on average.

Hourly Employees

Cost 100% to 150% of monthly salary (e.g., $12/hr →\rightarrow→$1,920/mo ×\times× 150% = $2,880).

Salaried/Management Positions

Cost 200% to 250% of monthly salary (e.g., $5,000/mo </span><span style="line-height: 1.15;">$\times$ 250% = $12,500).

Turnover Rate Formula:

(Losses/Total employees) x 100

JOLTS

Job Openings and Labor Turnover Survey, published monthly/annually by the U.S. Bureau of Labor Statistics

Fast-Food Industry Benchmarks:

• Panera Bread experiences nearly 100% annual turnover.

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• Industry-wide fast-food turnover ranges from 130% to 150% (Chick-fil-A averages ~60%).

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• McDonald’s invested nearly $1 billion in ordering kiosks and automation.

Employment-at-Will Doctrine

Either the employer or the employee can sever the employment relationship at any time, for any reason or no reason, as long as it is not illegal

Employment and Will Baseline Status

Serves as the default standard in 49 states (Montana is the only exception, requiring a 6-month probation standard).

Florida Standard

Florida is an strict "at-will" state, but terminations cannot violate statutory protections (e.g., Title VII anti-discrimination)

Implied Contract / Covenant Exception

Written or verbal promises in handbooks/policies that override default at-will status

Public Policy Exception

Firing an employee for refusing to perform an illegal act or exercising a statutory right (e.g., filing workers' comp)

Covenant of Good Faith & Fair Dealing

Requires employers to act fairly (e.g., firing an employee right before paying a earned commission is illegal bad faith).

Just Cause Standard

Common in unionized environments (collective bargaining) and public sector employment

Mitigation Strategies of Involuntary Turnover

Create detailed paper trails, implement progressive discipline, offer severance pay in exchange for signed liability waivers, and maintain zero tolerance for poor performance.

The Hot Stove Rule

Principle stating that organizational discipline should operate like touching a hot stove

Warning

Gives clear advance notice (you see the stove is hot)

Immediate

Consequences follow instantly without delay

Consistent

Burns everyone who touches it equally.

Impersonal

Focuses on the behavior, not the individual.

First Offense

Unofficial verbal warning (documented, witness present).

Second Offense

Official written warning (filed in personnel record)

Third Offense

Second written warning plus threat of temporary suspension

Fourth Offense

Temporary suspension and "last chance notification"

Fifth Offense

Termination (with right to request arbitration)

Stage 1 (Open-Door Policy) ADR

Direct supervisor and subordinate attempt to resolve the issue together.

Stage 2 (Peer Review) ADR

A panel of organizational peers hears the case to facilitate settlement.

Stage 3 (Mediation) ADR

A neutral third-party mediator from outside the firm facilitates non-binding negotiation

Stage 4 (Arbitration) ADR

A professional outside arbitrator (employment attorney/retired judge) renders a binding decision.

Herzberg’s Two-Factor Theory

Job satisfaction and job dissatisfaction are driven by two separate, independent sets of factors: motivators (which build satisfaction and drive performance) and hygiene factors (which prevent dissatisfaction when present, but do not actively motivate)

Motivators (Fit —> High Satisfaction)

Factors that actively drive job satisfaction and motivation.

Top 6 Motivation factors

Achievement, Recognition, The Work Itself, Responsibility, Advancement, Growth

Hygiene Factors (Equity —> Low Dissatisfaction)

Basic factors expected in the environment; their absence causes demotivation/dissatisfaction, but their presence alone does NOT motivate.

Top 6 Hygiene factors

Company policies, Supervision, Relationship with manager, Work conditions, Salary, Relationship with peers.

Causes of Dissatisfaction

Personal dispositions, task/role ambiguity, bad supervisors/coworkers, poor pay/benefits

Manifestations of Job Withdrawal

Behavioral, Physical Job Withdrawal, Psychological Job Withdrawal

Behavior Change:

Open supervisor confrontations, grievances, whistle-blowing.

Physical Job Withdrawal

Absenteeism, tardiness, internal transfers, quitting

Psychological Job Withdrawal

Low job involvement, low organizational commitment, disengagement

Employee Assistance Programs (EAPs)

Referral-based benefit programs helping staff resolve personal, health, substance abuse (alcohol/drugs), or financial issues

Occupational Safety and Health Act of 1970 (OSHA)

Federal law mandating safe working conditions across interstate commerce

Negative Affectivity

A personal disposition characterized by persistent negative emotions; positive affectivity correlates with higher performance, promotions, and pay.

Job Descriptive Index (JDI)

Measures 5 dimensions: Present job (Fit), Present pay (Hygiene), Promotion opportunities (Hygiene), Supervision (Fit/Hygiene), Coworkers (Fit).

Pay Satisfaction Questionnaire (PSQ)

Measures compensation satisfaction specifically.

Pulse Surveys

Brief, frequent surveys monitoring employee sentiment over time.

Non-Monetary Retention Strategies

On-site daycare, gym memberships, concierge services, dry cleaning drop-off, "Summer Fridays" (half-days), peer recognition programs, community volunteer days, and fertility benefits.

Egalitarian Approach

Allocates development funds to lower performers to raise baseline skills

Meritocratic Approach

Allocates development funds to top performers as a reward

The Equity Trap

In a merit-based culture, sending lower performers to off-site, resume-building training causes top performers to feel penalized for high output, sparking resentment and voluntary turnover

Historical FSU Subterranean Drainage Culvert Story

Story from ~20–30 years ago across from DeGraff Hall (near McDonald's) where tropical storm rains filled an un-fenced drainage culvert with 10 feet of water. A driver unknowingly drove into it, and water suction pulled the car and driver completely underground through 3/4 mile of subterranean pipes to the track field, prompting campus-wide safety fencing over culverts.

Longitudinal Time-Series Audits

Conducting climate audits across multiple time intervals (before, midway through, and after a Merger & Acquisition) to track how employee attitudes evolve.